Examining the Impact of Advanced Technology on Employment Patterns in China

Name

Institution

Abstract

Technological advancement is an essential driver of industrial and economic development through improved efficiency and productivity. The development of a nation is, therefore, dependent on technological development. The advancement of technology in the industrial sector is categorized into periods of the industrial revolution. The industrial revolution has both positive and negative impact. This study seeks to evaluate the impact of technological advancement on employment patterns in China with the focus being the technological unemployment.

The study used external secondary information from different Chinese publication sites to extract information on industrial development in China between 2009 and 2019. The main focus was on the impact of industrialization on employment patterns with the emphasis on technological unemployment.

The study findings indicate the importance of technological unemployment. In 2011, there were reported 21.6 million registered unemployed people. The figure had reduced in 2018 to 9.75 million in urban areas. However, the national unemployment figures remained constant at 4.1% as of 2019. Besides, the introduction of artificial intelligence in the coastal cities of china resulted in 30 to 40% job losses as of 2019. The estimated job losses as of 2050 will be 26%. Therefore, the introduction of automation technology has a negative impact on job opportunities.

The study findings are vital in mitigating the future risk of introduction of robotics to the industry. There is a risk of job losses if the current trend persists. Therefore, the Chinese government must develop and implement policies to ensure the same technology can create job opportunities for the entire Chinese population.

Table of Contents

TOC o “1-3” h z u 1.0 Introduction PAGEREF _Toc43728005 h 11.1 Background Information PAGEREF _Toc43728006 h 11.2 Research Questions PAGEREF _Toc43728007 h 31.3.1 Main Objective PAGEREF _Toc43728008 h 31.4 Justification PAGEREF _Toc43728009 h 41.5 Dissertation Structure PAGEREF _Toc43728010 h 62.0 Literature Review PAGEREF _Toc43728011 h 72.1 Industrial Revolution PAGEREF _Toc43728012 h 72.1.1 The First Industrial Revolution PAGEREF _Toc43728013 h 92.1.2 The Second Industrial Revolution PAGEREF _Toc43728014 h 102.1.3 The Third Industrial Revolution PAGEREF _Toc43728015 h 102.1.4 The Fourth Industrial Revolution PAGEREF _Toc43728016 h 112.2 Industrialization in China PAGEREF _Toc43728017 h 122.2.1 Industrialization Development Stages in China PAGEREF _Toc43728018 h 132.3 China’s Industrialization Achievements PAGEREF _Toc43728019 h 152.3.1 Economic Growth PAGEREF _Toc43728020 h 152.3.2 Employment Opportunities PAGEREF _Toc43728021 h 172.3.3 Industrial Challenge of Unemployment PAGEREF _Toc43728022 h 183.0 Methodology PAGEREF _Toc43728023 h 203.1 Secondary Information Search PAGEREF _Toc43728024 h 203.2 Technological Changes Affecting Chinese Labor Force PAGEREF _Toc43728025 h 213.3 Impact of Advanced Technology on Chinese Labor Force PAGEREF _Toc43728026 h 213.4 Contribution of Advanced Technology on Unemployment in China PAGEREF _Toc43728027 h 214.0 Data PAGEREF _Toc43728028 h 214.1 Total Employed and Unemployed Population in China PAGEREF _Toc43728029 h 224.2 Total Unemployed Youth in China PAGEREF _Toc43728030 h 254.3 Total Number of Rural to Urban Migrants in China PAGEREF _Toc43728031 h 274.4 Number of Employed People per Sector PAGEREF _Toc43728032 h 294.4.1 Primary Industry PAGEREF _Toc43728033 h 314.4.2 Secondary Industry PAGEREF _Toc43728034 h 324.4.3 Tertiary Industry PAGEREF _Toc43728035 h 344.5 Technological Changes in the industrial sector in China PAGEREF _Toc43728036 h 354.5.1 Investment in Research and Development (R&D) in China PAGEREF _Toc43728037 h 365.0 Data Analysis PAGEREF _Toc43728038 h 395.1 Total Employed and Unemployed Population in China PAGEREF _Toc43728039 h 405.2 Total Unemployed Youth in China PAGEREF _Toc43728040 h 425.3 Total Number of Rural to Urban Migrants in China PAGEREF _Toc43728041 h 435.4 The Primary Industry PAGEREF _Toc43728042 h 445.5 Secondary Industry PAGEREF _Toc43728043 h 455.6 Tertiary Industry PAGEREF _Toc43728044 h 475.7 Comparison with R&D PAGEREF _Toc43728045 h 486.0 Findings and Discussion PAGEREF _Toc43728046 h 526.1 Findings PAGEREF _Toc43728047 h 526.1.1 Technological Changes Affecting Chinese Labor Force PAGEREF _Toc43728048 h 526.1.2 Impact of Advanced Technology on Chinese Labor Force PAGEREF _Toc43728049 h 546.1.3 Contribution of Advanced Technology on Employment in China PAGEREF _Toc43728050 h 566.1.4 Contribution of Advanced Technology on Unemployment in China PAGEREF _Toc43728051 h 566.2 Discussion PAGEREF _Toc43728052 h 596.2.1 The Demand and Supply of Labor Force in China PAGEREF _Toc43728053 h 596.2.2 Factors Contributing to Automation Need in the Industries in China PAGEREF _Toc43728054 h 616.2.3 Artificial Intelligence and Technological Unemployment PAGEREF _Toc43728055 h 636.2.4 Limitation of the Study PAGEREF _Toc43728056 h 667.0 Conclusion and Recommendations PAGEREF _Toc43728057 h 677.1 Conclusion PAGEREF _Toc43728058 h 677.2 Recommendations PAGEREF _Toc43728059 h 68References PAGEREF _Toc43728060 h 70

List of Figures

TOC h z c “Figure” Figure 1 An image showing different features of the fourth industrial revolution. PAGEREF _Toc43728628 h 11Figure 2 A graph showing the GDP contributed by the three sectors of the industry in China.. PAGEREF _Toc43728629 h 16Figure 3 A graph showing the GDP rise in China from 2010 until 2019. PAGEREF _Toc43728630 h 17Figure 4 A graph showing the estimated unemployed population in China. PAGEREF _Toc43728631 h 19Figure 5 A graph showing the rate of educated unemployment and low qualified proportion in the total urban unemployed population.. PAGEREF _Toc43728632 h 19Figure 6 A table sowing the percentage of the total employed and unemployed people in China. PAGEREF _Toc43728633 h 22Figure 7 A graph showing the trend of employed people in China. PAGEREF _Toc43728634 h 23Figure 8 A graph showing the trend of unemployed people in china. PAGEREF _Toc43728635 h 24Figure 9 A graph showing unemployment trend in China. PAGEREF _Toc43728636 h 25Figure 10 A table sowing the percentage of the total unemployed youth in China. PAGEREF _Toc43728637 h 26Figure 11 A graph showing the trend of the proportion of unemployed youth in China. PAGEREF _Toc43728638 h 26Figure 12 A table showing the number of rural to urban migrants in China. PAGEREF _Toc43728639 h 28Figure 13 A graph showing migrant trend in China.. PAGEREF _Toc43728640 h 29Figure 14 A graph showing employment trend in China. PAGEREF _Toc43728641 h 30Figure 15 A table showing the number of employed people in primary sector in China. PAGEREF _Toc43728642 h 31Figure 16 A graph showing employment trend in China.. PAGEREF _Toc43728643 h 32Figure 17 A table showing the number of employed people in secondary sector in China. PAGEREF _Toc43728644 h 33Figure 18 A graph showing employment trend in China.. PAGEREF _Toc43728645 h 33Figure 19 A table showing the number of employed people in tertiary sector in China. PAGEREF _Toc43728646 h 34Figure 20 A graph showing employment trend in China. PAGEREF _Toc43728647 h 35Figure 21 A table showing the R&D expenditure in China. Data retrieved from National Bureau of Statistics of China, 2019. PAGEREF _Toc43728648 h 37Figure 22 A graph showing R&D expenditure trend in China. PAGEREF _Toc43728649 h 37Figure 23 A graph showing R&D expenditure trend in China. PAGEREF _Toc43728650 h 38Figure 24 A table showing correlation. PAGEREF _Toc43728651 h 41Figure 25 A table showing correlation. PAGEREF _Toc43728652 h 42Figure 26 A table showing correlation. PAGEREF _Toc43728653 h 44Figure 27 A table showing correlation. PAGEREF _Toc43728654 h 45Figure 28 A table showing correlation. PAGEREF _Toc43728655 h 46Figure 29 A table showing correlation. PAGEREF _Toc43728656 h 47Figure 30 A table showing correlation. PAGEREF _Toc43728657 h 50Figure 31 A table showing correlation. PAGEREF _Toc43728658 h 51Figure 32 A graph showing work force estimations as at 2050. PAGEREF _Toc43728659 h 53Figure 33 A graph showing impact of technological changes in agricultural sector. PAGEREF _Toc43728660 h 55Figure 34 A graph showing the impact of technological changes in manufacturing industry in China. PAGEREF _Toc43728661 h 55Figure 35 A graph showing the proportion of unemployed people in China.. PAGEREF _Toc43728662 h 58 HYPERLINK l “_Toc43728663” Figure 36 A graph showing the demographics substitution probability with automation technology in China. PAGEREF _Toc43728663 h 63

1.0 Introduction1.1 Background InformationAdvancing technology is a vital driver of industrial growth and rapid economic development through mass production. Technological progress results in increasing productivity, which boosts consumption and per capita income (Allen, 2009). Furthermore, technology influences the nature and quality of work in the industry sector. Therefore, the improvement of technology causes the development of the industry sector and society. Studies have shown that technology, society, and institutions have demonstrated to evolve together. The technological advancement has been gradual over time with slow improvement of the existing technology or innovation of new technology (Colombo et al., 2017). In other instances, the development has been rapid, causing the breakthrough that is experienced in various industries. The advancement of technology has resulted in the transformation of the economies and the organizational structure of societies. However, advanced technology has developed undesirable effects such as technological unemployment within society.

The technology supports the development history of humankind. Historically, the industrial revolution in the 1960s was characterized by the advancement of the machine industry from the workshop handicraft through technology (Ashton, 1997). During the period of the industrial revolution, machines were used to replace the workforce to improve productivity. However, studies have shown that technological progress is characterized by improved production and reduced labor in production. The industrial revolution caused the hand factory to be replaced by the machine factory. The massive technological revolution deprived the manual workers of their labor. Hence, continuous technological improvement causes the labor force to experience low-skilled labor. The operation of machines requires high-skilled labor to improve the efficiency of production and reduce machine breakdown (Buera & Shin, 2013). The numbers of machine operators are few compared to handcraft. Therefore, the advancement of technology has resulted in a loss of employment for many people over time.

Industrialization and development are associated with the advancement in technology. New technology in China has improved economic development by raising national income through increased industrial output (Feng et al., 2017). Globally, policymakers pay attention to technological innovation and inventions. Similarly, Chinese economic policy has promoted science and technology in the past years. The recently released National Guidelines for Medium- and Long-term Plans for Science and Technology Development of China (2006-2020), focuses on the technological changes. The Chinese firms have embraced the promotion with the development of artificial intelligence (AI) machines (Maynard, 2015). The development of AI has caused major technological and production breakthroughs in China. However, these machines require few skilled personnel within the departments. The low skilled staff is laid down because of the reduced services required. Therefore, the advancement of technology has enormous breakthroughs in industrial production but affects the living standards of the people and increases the possibility of increased poverty.

Previous studies have determined that the advanced technology in industries potentially cause rapid and enormous developments. The revolution will become the driving force in future upgrading and economic development (Colombo et al., 2017). This dissertation focusses on the impact of advanced technology in the employment patterns in China. Past studies have different views on employment patterns resulting from advanced technology with different views on technological unemployment. The advanced technology has been demonstrated with the main objective being industrial efficiency (Dollar et al., 2003). However, the link between advanced technology and technological unemployment is not elaborate. Therefore, it is crucial to study the impact of advanced technology on employment patterns in China, with a special focus on technological unemployment. To do this, the employment patterns in China resulting from advanced technology were considered with a special focus between 2009 and 2019 (ten years). The results from this period will give an insight into the current trend, which can be used to provide a likely future trend with a continued trend of technological advances. The findings showed a significant unemployment trend to be caused by advanced technology. Therefore, at the industry level, the stakeholders should find the possible ways of creating employment using the same technology to realize industrial expansion and growth.

1.2 Research QuestionsVarious questions need to be considered for testing the study hypotheses. These questions include:

What is the importance of advanced technology in the industrial sector?

What are the changes in technology affecting the labor force in China?

What is the extent that advanced technology causes unemployment?

What actions can be taken to ensure the advanced technology creates employment?

1.3 Research Objectives

1.3.1 Main ObjectiveTo determine the impact of advanced technology on employment patterns in China

1.3.1.1 Specific Objectives

To evaluate the technological changes affecting the labor force in China

To examine how advanced technology result in unemployment

To assess the positive impact of advanced technology on the labor force in China

To recommend basing on the findings on how advanced technology can be used to increase employment

1.4 JustificationThe fourth industrial revolution, characterized by the extensive implementation of current advanced technologies, will result not only in income equity and labor markets but also in global market changes (Walker, 2014). However, the nature and consequences of the change are not established. Therefore, there is a need to create a balance between the labor force and advancing technology to ensure appropriate strategies are in place to avoid undesirable effects of the Industrial Revolution (Ruan & Zhang, 2009). The continued reduction of the need for human labor because of new technological innovation requires proper ways to mitigate the impact and create better ways using the same technology to allow the creation of new employment opportunities that will benefit the growing population. Research studies aimed at reducing the uncertainty due to advanced technology will ensure preparedness for future risks.

Globally, many countries and states suffer from an unemployment problem. The advanced technology enhances the process of development through efficiency in production (Maynard, 2015). Therefore, it is crucial for the countries embracing the new technologies to set up policies that regulate the technological function and labor force to ensure the creation of job opportunities and not cutting off the staff. Studies and research on the significant problems of unemployment are essential to provide proper guidelines and solutions to alleviate the world’s crisis. Effective policies need to be developed, such as reallocation policies in cases where the technology results in less income supply. Therefore, technology should be embraced and policies created to mitigate the effects it has at the country and global levels.

Technology has been identified as the main enhancer of the economy, with policies promoting advancement being put in place. Globally, many countries, including China, have set policies that encourage technological advancement through development and innovation (Feng, 2011). The advanced technology has brought many positive impacts in the industrial sector. However, the advancement of technology has a negative effect causing a significant rise in the number of unemployment cases. Moreover, the development of machines using advanced technology, such as the introduction of artificial intelligence (AI), has been associated with improved efficiency, cost reduction, and saving time (Buera & Shin, 2013). However, the different industries have replaced staff with the machine that is managed and operated by fewer people resulting in a higher unemployment rate. The low skilled personnel is cut off, and their services replaced by robots to save time and cost. Therefore, both desirable and undesirable effects in the industrial sector accompany advanced technology.

On the other hand, advanced technology has desirable outcomes. The advancement of technology could result in innovations to improve production methods or increase the scale of production. Consequently, the amount of required labor will increase with growing technology. China has a higher population and experience employment problem causing wastage of social labor and social stability of the country. The cost of unemployment is expensive, characterized by increased financial expenditure in the country. Advanced technology is the main priority that causes rapid and stable economic development with its success. The third wave in the industrial revolution is due to high technology, which becomes the central pillar for the national economy and the transformation of social and economic development.

1.5 Dissertation StructureThis dissertation has been organized into seven chapters. Chapter 1 is the introduction and covers background information, research questions, research objectives, and justification for the research study. The background information contextualizes the study, focusing on global impact and an introduction to the overview in China. The chapter also gives a brief outline of the methodology, findings, and recommendations.

Chapter 2 is the literature review covering the historical perspective of the technological changes through reviewing the literature on the industrial revolution. The section covers the four industrial revolution and the technological changes associated with each industrial revolution. The chapter also reviews research on industrialization in China. Furthermore, it covers the stages of industrialization and economic growth. Besides, the literature on the employment opportunities associated with the technological changes in China is reviewed. Furthermore, the challenge of unemployment associated with industrialization in china was reviewed.

Chapter 3 focuses on the methodology. The chapter focuses on how the secondary information was obtained on various aspects under study, including the technological changes affecting the labor force, the impact of advanced technology on the labor force, and the contribution of advanced technology on unemployment in China.

Chapter 4 and 5 focuses on data and analysis. The main areas are the employment and the unemployment trends between 2009 and 2019. The analysis done is main the descriptive analysis to show the relationship between the various variables with the changes in time. the analysis will be performed using Microsoft Excel 2019.

Chapter 6 focuses on the findings and discussion of the findings from the secondary sources mentioned in chapter 3. The main areas of focus include the technological changes affecting the labor force, the impact of advanced technology on the labor force, and the contribution of advanced technology on unemployment In China. These findings form the basis of a discussion of outcomes in the next chapter. The areas of discussion include the demand and supply of labor force in China, factors contributing to the need for automation technology in China, and the contribution of artificial intelligence (AI) in technological unemployment. The chapter also discusses the limitation of the study.

Chapter 7 is on conclusion and recommendation base on the study findings. The conclusion provides a summary of the main points discussed in the various chapters of the study. Besides, the recommendation section offers practical suggestions on the impact of technological advancement, especially on the technological unemployment challenge.

2.0 Literature Review2.1 Industrial RevolutionThe industrial revolution is the historical change that led to the progressive change form handicraft and agrarian economy to machine and industry manufacturing. The industrial process began in Britain in the 18t century and later spread globally. Arnold Toynbee, a historian describing the development of Britain’s economy from 1760 to 1840, first described the industrial revolution (Allen, 2009). Features such as cultural, socioeconomic, and technological changes characterize the industrial revolution. The technological changes that were conducted included the use of new energy sources such as motive power and fuel. The sources of energy invented at the time included petroleum, electricity, coal, steam engine, and internal combustion engine. Secondly, there was an introduction to the new basic materials, including mainly steel and iron, into use. Thirdly, there was an invention and introduction of machines, including power loom and the spinning jenny, that increased production with little use of human energy. Furthermore, there was the introduction of the factory system representing a new organization of work characterized by specialization of function and division of labor. In addition, there were vital developments in the communication and transport sector, including the introduction of steamship, airplane, radio, telegraph, automobile, and the steam locomotive. Lastly, there was an increased application of science and technology in industrial operations. These technological changes allowed for the massive and efficient use of natural resources and mass production of goods in the manufacturing industry.

The industrial revolution did not only happen in the industrial sector but also other non-industrial sectors. In the agricultural sector, some changes led to massive food production to the nonagricultural population (Buera & Shin, 2013). Secondly, there were economic changes that led to wider wealth distribution. Furthermore, the economic changes caused reduced land use as the only resource for wealth, leading to increased international trade and a rise in industrial production. Thirdly, political changes caused the shift in the economic power and development of state policies that corresponded to increasing needs for the industrialized society (Feng et al., 2017). In addition, there were social changes, including the development of many working-class movements, growth of cities, and the emergence and development of new authority patterns. Moreover, there were psychological changes characterized by improved confidence concerning the ability to use the available resources and heightened ability to master nature. Lastly, there were broader cultural changes. The workers were trained and acquired new knowledge and skills, and the tasks they could perform changed. Many of the workers were trained to operate machines instead of remaining artisans due to revolution.

2.1.1 The First Industrial RevolutionThe first industrial revolution was experienced in Europe in between 1760 and 1840. During this period, Britain restricted machine export, manufacturing techniques, and skilled workers to the rest of the world (Ashton, 1997). However, Britain’s monopoly did not last as William and John Cockerill from Britain introduced the industrial revolution in Belgium in 1807 (Emerson, 1983). The two men saw profitable opportunities abroad than in their own country and made Belgium be the first county to experienced economic transformation. Belgium revolution was also centered in textile, coal, and iron (Blinder, 2006). The industrial revolution in France was slower because, at the time of the immense industrial revolution, Britain was establishing industrial leadership, making France not invest in industrial innovations due to political instability. In 1848, France became an industrial power but remained behind Britain (Ashton, 1997). Other counties within Europe did not grow industrially because of the political conditions that made expansion unfavorable. Germany was among the countries that developed later, and in 1870, the country had achieved great industrial success making use of steel to become the world’s leading country in chemical industries (Emerson, 1983). The US rose in the industrial revolution in the 19th and 20th centuries, followed by Japan.

Other countries in Eastern Europe remained behind in the 20th century until the Soviet Union became the leading industrial power. In the mid-20th century, the industrial revolution spread to other areas, including formerly non-industrialized India and China (Dong et al., 2017). Therefore, the industrial revolution took place at different times in various countries of the world.

2.1.2 The Second Industrial RevolutionThe second industrial revolution overlapped with the first industrial revolution in the late 19th and 20th centuries. The second revolution brought changes through the innovation of wired and wireless communication, the form of electricity distribution, the introduction of other forms of power generation, and the synthesis of ammonia (Xie & Zhou, 2014). The basic materials, including natural and synthetic resources that were formerly not exploited, were exploited in the second industrial revolution. Furthermore, the second revolution was characterized by the introduction of new alloys, lighter metals, energy sources, and synthetic products such as plastics. The development of tools, machines, and computers gave rise to automation in the factories. The operation automation in the industries led to mass production in the second half of the 20th century. The ownership of means of production became widespread, making increased distribution of ownership using the purchase of common stocks to be common among the institution such as insurance companies and individuals. The social and economic changes made the governments create new policies to meet the needs of their complex industrial societies.

2.1.3 The Third Industrial RevolutionThe third industrial revolution happened in the second half of the 20th century in 1969, characterized by the introduction of information technology (IT) and electronics to automate the production process (Blinder, 2006). During this revolution, there was the introduction of the untapped nuclear source of energy in various countries. The revolution introduced computers, telecommunication, and electronics. The new technologies at the time led to the introduction of research, biotechnology, and expeditions (Xie & Zhou, 2014). In the industrial sector, there was the introduction of the robots and the Programmable Logic Controllers (PLCs) that helped in the high technology automation processes.

2.1.4 The Fourth Industrial RevolutionThe period of revolution is characterized by the current transformations in industrial practices to smart technology. The focus of the revolution is the use of the Internet of Things (IoT) and machine-to-machine communication (M2M) to ensure a high level of automation, self-monitoring, smart machines, and improved communication (Maynard, 2015). The smart machines are able to perform analysis and diagnosis of issues independently without human assistance.

Figure SEQ Figure * ARABIC 1 An image showing different features of the fourth industrial revolution. Image retrieved from Maynard, 2015.Despite the dependence of third revolution infrastructure and technologies, the fourth revolution introduces innovative ways on how technology can be embedded in human bodies in society (Feng et al., 2017). Examples of these innovations include genome editing, cryptographic methods applied in governance approaches, and new machine intelligence.

2.2 Industrialization in ChinaResearch had shown that before the 20th century, China was utterly an agrarian nation, with 90% of the population living in rural areas. The industrialization process began in the 1900s, with an average of 8-9% annual industrial increase between 1912 and 1936 (Xu et al., 2018). In 1949, during the founding of the People‘s Republic of China, the country experienced different industrial progress through the development and implementation of strategies (Clark et al., 2017). These strategies included prioritization of the heavy industry, developing a balance between light and heavy industries, and re-prioritization of heavy industry. However, China faced setbacks in the process but was able to attain transformation from an agricultural economy to an industrial economy.

Industrialization in China has made tremendous progress in the past years. In 2000, studies reported that the share of the industrial sector on total GDP had increased by two-thirds. The agricultural industry’s contribution had registered a reduction from 42% in 1970 to 12% as of 2000 (Bloem et al., 2014). The industrial sector’s total output has continued to grow, and in 2017, the industrial sector contributed 46% of the country’s GDP (Xu et al., 2018). Currently, China has been recognized as one of the foreign investment-friendly economies, which is supported by the import-export industrialization model and the economic growth experienced in the country.

2.2.1 Industrialization Development Stages in ChinaThe development of industrialization in China can be categorized into three stages. Firstly, there is the period between 1953 and 1978, where China used the centrally planned economy to prioritize heavy industry (Allen, 2009). The country aimed at rapid industrialization to attain the level of other countries. The first five years of the period were characterized by the country’s focus on efforts towards the construction of the medium and large-sized industrial projects. The studies have reported 694 industrial projects with 156 supported by the Soviet Union. China was able to lay the primary foundation for the future industrialization providing technological and material support to build the national economy (Xu et al., 2018). A huge implementation of industrialization strategy characterizes a period between 1958 and 1960 (Li et al., 2017). The government mobilized a huge amount of workforce and funds investment to support industrial growth, with the major emphasis on the heavy industry, steel, and iron industry. The government’s focus was to utilize the cheap labor in high supply and avoid the expenses associated with the importation of heavy machinery. The period was characterized by failures resulting in material shortages and economic decline. The period between 1961 and 1965 was characterized by the development and implementation of the strategies (Knight & Xue, 2006). These strategies included coordination and balance in the development of agriculture, heavy industries, and light industries. The imbalance of economy contributed by the strategies led to the success and improvement of the economy in China. The period between 1966 and 1978 was characterized by the successful implementation of strategies and the division of the country into three fronts, the western, coastal, and central fronts. The division focused on the military strategy instead of the economic ef