Song Yuehong: Chen Yun’s Rich Leadership Experience in Economic Work
General Secretary Xi Jinping pointed out in his speech at the symposium commemorating the 120th anniversary of Comrade Chen Yun's birth: "We must study Comrade Chen Yun's rich leadership experience." "In terms of managing economic work, Comrade Chen Yun proposed many important viewpoints and major measures, exploring effective ways to creatively solve problems and open up new horizons in our work." As a key member of both the first generation of the central collective leadership with Comrade Mao Zedong at its core and the second generation of the central collective leadership with Comrade Deng Xiaoping at its core, Comrade Chen Yun participated in the formulation and implementation of a series of major decisions by the Party Central Committee across different historical periods. He was in charge of the economic work of New China’s construction and development for a long duration, actively exploring the laws of socialist economic construction. He performed a great deal of highly effective work in establishing the socialist economic system and creating an independent and relatively complete industrial and national economic system. He made outstanding contributions to exploring China’s path of socialist construction, created rich leadership experience, and was one of the pioneers and founders of China’s socialist economic construction.
I
Comrade Deng Xiaoping pointed out: what is our primary task at present and for a considerably long historical period to come? In a word, it is to carry out modernization. Our country’s modernization has developed gradually by summarizing historical experience; first and foremost, it requires a clear understanding of national conditions and acting according to our capabilities. While reflecting on economic construction in the early years of the People's Republic, Comrade Chen Yun pointed out: "For backward countries like ours, the issue is not one of modernization, but of whether we have anything at all. Even if we are somewhat backward, it is good if production is rapid. We are developing and expanding production on the basis of our own strength" ("Five Lessons of Experience in Economic Construction in the Seven Years Since the Founding of the PRC," Collected Works of Chen Yun, Vol. 3). This constituted the historical foundation and logical starting point for New China's modernization. On December 10, 1978, speaking at the Northeast Group of the Central Working Conference prior to the Third Plenary Session of the 11th CPC Central Committee, he said: "Realizing the Four Modernizations [1] is an unprecedented great march for our country; we must be both proactive and steady" ("Five Points of Opinion on Current Economic Issues," Selected Works of Chen Yun, Vol. 3). He emphasized: "Under what circumstances are we pursuing the Four Modernizations and building a strong socialist power? To speak of seeking truth from facts, one must first get the 'facts' straight. If this issue is not clarified, nothing can be done well" ("Persist in Adjusting the National Economy According to Proportional Principles," Selected Works of Chen Yun, Vol. 3).
At the same time, our modernization is socialist modernization, and we must adhere to the correct direction. Regarding this, Comrade Chen Yun pointed out: "We are engaged in the four socialist modernizations, not some other kind of modernization. The cause we are pursuing is a socialist cause" (People's Daily, July 1, 1985). He stated that the Four Modernizations must rely on Party leadership and can certainly be realized under that leadership. Regarding the standards of modernization, he believed that "modernization should be marked by the most advanced industry—this is undoubtedly achievable" ("Work Together to Build Baosteel Well," Selected Works of Chen Yun, Vol. 3). "Modernization cannot be compared to [Western] lifestyles. The main hallmark of modernization is industrial modernization" ("Several Views on Current Economic Issues," Collected Works of Chen Yun, Vol. 3). Crucially, he believed that in socialist construction, we must grasp both material and spiritual civilization simultaneously for coordinated development [2]. He emphasized that if we do not carry out socialist spiritual civilization while building material civilization, the latter might deviate from the correct direction: "If we forget or relax our grip on socialist spiritual civilization, material civilization cannot be managed well either" (People's Daily, July 1, 1985).
Specifically regarding how to realize the Four Modernizations, Comrade Chen Yun valued the industrial base while also emphasizing the role of technical personnel. He pointed out: "The base for our modernization is the existing industry; we must transform it and introduce new technologies on this basis. Existing technical personnel are the foundation of our intellectual strength" ("The Economic Situation and Lessons of Experience," Selected Works of Chen Yun, Vol. 3). Facing the arduous tasks of reform and development in the early period of reform and opening up and the "generational gap" [3] in the cadre ranks, he proposed promoting and training tens of thousands of young and middle-aged cadres: "Without veteran cadres, we cannot achieve the Four Modernizations; however, without a large number of intellectuals joining our Party’s cadre ranks, we can never build a modernized New China." He emphasized that the methods for using and training large numbers of young and middle-aged cadres must become institutionalized ("Promoting and Training Young and Middle-Aged Cadres is an Urgent Priority," Selected Works of Chen Yun, Vol. 3). He believed that the key to the Four Modernizations lay in the modernization of science and technology. In the 1980s, as the new technological revolution represented by integrated circuits and computers was approaching, he keenly noted that this "is a new challenge for our national economy and our electronics industry." "To pursue the Four Modernizations, we cannot do without integrated circuits and computers. we must invigorate integrated circuits and computers, and boost the electronics industry," concentrating people with knowledge in these areas. Therefore, "the electronics industry must not only perform well in research and production but also focus on popularization and application. Once a result is achieved, it should be popularized, so that electronic technology can see major results in promoting national economic development" ("The Electronics Industry Must Be Greatly Improved," Collected Works of Chen Yun, Vol. 3).
II
Accelerating industrialization is an inevitable requirement for national independence and prosperity. On the eve of New China's founding, the Second Plenary Session of the Seventh CPC Central Committee clearly pointed out the need to steadily transform China from an agrarian country into an industrial one. In the early days of the People's Republic, Comrade Chen Yun was tasked with leading the nation's financial and economic work. To rapidly restore the national economy and consolidate the new people’s political power, he coordinated forces from all sides to win "economic wars" in grain, cotton, cotton cloth, and coal, achieving national fiscal and economic unification and stabilizing finances and prices. Summarizing the state of fiscal and economic work in the first year of the PRC, he pointed out: "By appropriately estimating the potential of both China's people and materials, we have the possibility of achieving tremendous creative success under the guarantee of the people’s political power." "We must recognize that China’s socio-economic situation is complex." "By striving for the best goals while preparing for the worst-case scenario, we can remain invincible and steadily strive for the continued and fundamental improvement of our fiscal and economic situation" (People's Daily, October 1, 1950). In the first three years after the founding of New China, the Party led the people to rapidly restore a national economy that had been severely damaged by war.
First is eating, second is construction. Under the conditions of that time, how to handle the relationship between "eating" (subsistence) and construction was extremely important. Comrade Chen Yun emphasized that the scale of construction must be adapted to the national conditions and national strength, and the relationship between accumulation and consumption [4] must be handled correctly: "If we cannot solve the problem of the people’s food and clothing, our socialist construction cause will not stand firm" ("Main Ways to Solve Food and Clothing Problems," Selected Works of Chen Yun, Vol. 3). He particularly emphasized the dialectical relationship between people’s livelihoods and national construction, noting: "We can certainly find a standard for the correct relationship between livelihoods and construction," and "basic construction within industry, transportation, etc., should be appropriately proportioned" ("Correctly Handling the Relationship Between Livelihoods and Construction," Collected Works of Chen Yun, Vol. 3). To guarantee the people's livelihood, one must first guarantee grain production; grain "is an indispensable material in economic construction; without grain, there can be no construction" ("Rationally Adjusting the Contradiction Between Grain Supply and Marketing," Collected Works of Chen Yun, Vol. 3). He emphasized: "The grain problem affects our entire economic situation. To turn a passive situation into a proactive one, the grain problem—which is the agricultural problem—is the greatest issue" ("The Grain Problem and the Market Problem," Collected Works of Chen Yun, Vol. 3). To increase grain yield, "we must rely on methods to increase the yield per unit area" ("Exploring Effective Ways to Increase Agricultural Production," Collected Works of Chen Yun, Vol. 3), and for grain production to "pass the test" [5], the most fundamental issue is mobilizing the initiative of the peasants. The "fundamental way out" for solving agricultural problems is "agricultural mechanization" ("Mobilizing Peasant Initiative is the Key to Grain Passing the Test," Collected Works of Chen Yun, Vol. 3).
A distinctive feature of Comrade Chen Yun's leadership in economic work was his consistent understanding and grasping of the laws of economic construction from a political perspective. He emphasized that economic work must be based on the needs of national construction: "The scale of construction must be adapted to the country's financial and material resources. Whether it is adapted or not is the boundary between economic stability and instability" ("Construction Scale Must Be Adapted to National Strength," Selected Works of Chen Yun, Vol. 3). Therefore, in economic work, national construction must have priorities, focusing on the order of importance and urgency. He said: "Financial and material resources are limited; if we do not distinguish between what is urgent and what is not and everyone rushes in together, crowding each other out, we will inevitably lose the great for the small and be passive everywhere." Priorities are "considered from the perspective of the overall and long-term interests of the entire country" ("On Modernization and the Training of Successors," Selected Works of Chen Yun, Vol. 3). According to specific circumstances, rationally arranging the proportions of various construction projects is the highest priority. In a letter to Premier Zhou Enlai reporting on issues regarding the Five-Year Plan, he wrote: "The contents include the proportion of public to private, industry to agriculture, light to heavy industry, the annual rate of increase, and so on" ("Letter to Zhou Enlai Regarding Five-Year Plan Issues," Collected Works of Chen Yun, Vol. 2). At the beginning of reform and opening up, he still persisted in adjusting the national economy following the principle of proportions, emphasizing: "The purpose of adjustment is to achieve proportions, enabling us to advance in a relatively proportional manner" ("Persist in Adjusting the National Economy According to Proportional Principles," Selected Works of Chen Yun, Vol. 3). He was adept at thinking about industrial layout from a national scope, including the scope within which to begin establishing a relatively complete industrial system and how to establish industrial hinterlands. When reconstructing the Anshan Iron and Steel Works [6] in the early days of the PRC, Comrade Chen Yun emphasized: "Whether it is completed on time or delayed relates to our country's financial resources and the speed of construction." "Concentrating national strength to first complete the reconstruction of Anshan Steel is the primary step in our country's industrialization" ("Transferring Technical Workers to Support Anshan Steel Construction," Collected Works of Chen Yun, Vol. 2). He keenly discovered the importance of improving mechanical manufacturing capabilities: "The foundation of economic construction is industry, and industrialization is mechanization. Therefore, improving mechanical manufacturing capabilities is not contradictory to our current national construction; on the contrary, it is an urgent task before us" ("Improving Mechanical Manufacturing Capabilities," Collected Works of Chen Yun, Vol. 2). At the beginning of reform and opening up, after the Central Committee’s opinion on building Baosteel was established, Comrade Chen Yun pointed out: "We can only do it well, not poorly," as this matter "concerns the national character" [7] ("Baosteel Construction Can Only Be Done Well, Not Poorly," Collected Works of Chen Yun, Vol. 3). In his economic work, he consistently planned development from a political and national perspective, advancing it in a down-to-earth manner.
III
Comrade Chen Yun actively explored a socialist economic system and economic mechanisms that adapted to the development of our country's productive forces. He studied new problems following the basic completion of the socialist transformation, explored the relationship between the market and planning that suited China's national conditions and the people's needs, and sketched the pattern of socialist economic development at the Eighth National Congress of the CPC. He pointed out: "In industrial and commercial management, state management and collective management are the mainstay of industry and commerce, but they are supplemented by a certain amount of individual management. This individual management is a supplement to state and collective management." "In production planning, the main part of the country's industrial and agricultural products is produced according to the plan, but at the same time, a portion of products is freely produced within the scope permitted by the state plan according to market changes. Planned production is the mainstay of industrial and agricultural production, and free production according to market changes within the scope permitted by the state plan is its supplement." "In a unified socialist market, the state market is its mainstay, but it is supplemented by a free market under state leadership within a certain range. This free market, under state leadership, serves as a supplement to the state market; therefore, it is a component of the unified socialist market" (People's Daily, September 21, 1956).
Chen Yun emphasized that socialist construction must utilize the law of value [8]: "We must be able to consciously apply the law of value, using it to stimulate the increase of more products, improve quality, and reduce costs to adapt to the needs of the people." In running industry, commerce, and handicrafts, one must serve the consumer, plan for the consumer, and consider the consumer's convenience. To revitalize the market, increase the variety and quantity of products, and enhance the proactivity of producers to meet the needs of the people's market, it is necessary to resolve relationships between purchasing and marketing, price policies, organizational forms, market management, and planned management—"moving from the restriction of capital to the construction of socialism, especially by thinking more from the perspective of the consumer" ("Invigorate the Market to Adapt to the Needs of the People," Collected Works of Chen Yun, Vol. 3). The fundamental issue in transforming commerce is increasing production. Comrade Chen Yun emphasized that agricultural production comes first; one must first revitalize the countryside and then revitalize the cities. Once the countryside is revitalized, the entire society will become revitalized ("First Revitalize the Countryside, Then the Cities," Collected Works of Chen Yun, Vol. 3).
The 12th National Congress of the Party proposed a "two-step" approach to achieve the goal of quadrupling the annual total value of industrial and agricultural output by the end of the 20th century. In the first ten years, from 1981 to 1990, the main task was to lay a solid foundation; in the second ten years, from 1991 to 2000, the goal was to enter a new period of economic invigoration. Comrade Chen Yun pointed out: "We must grasp the difference between these two decades." "The first ten years are for laying the foundation and straightening out various relationships; therefore, we must be steady and cannot rush" ("The First Ten Years and the Subsequent Ten Years," Collected Works of Chen Yun, Vol. 3). He emphasized that it is not enough to merely have "planned and proportionate" development; there must also be market regulation, and one must act according to economic laws while carrying out necessary state intervention. "Properly managing macro-control is the only way to facilitate micro-invigoration, ensuring it is 'active but not chaotic' [9]" (People's Daily, September 24, 1985). A critical issue in socialist economic construction is comprehensive balance. He emphasized that economic construction must achieve comprehensive balance, which requires studying proportionate relationships. Proportions exist objectively; the question is whether we consciously study and recognize them ("Several Views on Current Economic Issues," Collected Works of Chen Yun, Vol. 3).
After the start of Reform and Opening-up, Comrade Chen Yun actively explored and promoted the reform of the socialist economic system. He believed that the reform of the economic system broke the "big communal pot" [10] and the "iron rice bowl" [11], calling it "a major event." In terms of systemic reform, agriculture took the first step: "The systemic reform of finance and trade is more complex than that of agriculture. Both internal interrelations and external relations are more complex than in agriculture. Therefore, the pace of industrial systemic reform must be steady" ("The Significance of Economic System Reform is No Less Than That of the Transformation of Private Industry and Commerce," Collected Works of Chen Yun, Vol. 3). He also emphasized that the system must be reformed, but reform must undergo pilot testing [12]. If the progress of reform is slowed down due to pilot testing, compared to the loss incurred by rushing the pace without pilots—leading to poor results and the need to turn back and start over—the former loss is smaller than the latter ("Letter to Zhou Taihe Regarding Economic System Reform," Collected Works of Chen Yun, Vol. 3).
In his responsibility for economic work, Comrade Chen Yun always proposed important viewpoints and major measures based on investigation and research [13] to handle and resolve problems facing economic construction and development at different stages and in different fields, exploring creative solutions and effective ways to break new ground in the work. His leadership methods and his thinking and working methods profoundly embody the world-view and methodology of seeking truth from facts. He pointed out: "To lead our Party and country well, the most critical thing is to ensure that the thinking methods of leading cadres are set straight" ("Bearing Heavy Responsibilities and Studying Philosophy," Selected Works of Chen Yun, Vol. 3). He distilled the "fifteen-character formula" [14] saturated with materialist dialectics: "Don't follow the top blindly, don't follow books blindly, follow only the facts; exchange, compare, and repeat." He emphasized: "Following only the facts means proceeding only from reality and studying and handling problems by seeking truth from facts; this is the most reliable approach" ("Don't Follow the Top Blindly, Don't Follow Books Blindly, Follow Only the Facts; Exchange, Compare, and Repeat," Selected Works of Chen Yun, Vol. 3). He regarded investigation and research as a critical prerequisite for decision-making, emphasizing: "Leading organs should spend more than 90 percent of their time on investigation and research when formulating policies" ("How to Make Our Understanding More Correct," Selected Works of Chen Yun, Vol. 3). He believed that "grasping the true situation is very important. Only by grasping the true situation can one have a clear idea of what's what" ("Three Talks During the Suzhou Investigation," Collected Works of Chen Yun, Vol. 2). Moreover, "one must get a feel for professional work when problems arise, when one hits a snag, and when contradictions are at their sharpest; only then can one grasp things accurately" ("Being Adept at Groping for Professional Patterns When Contradictions are Sharp," Collected Works of Chen Yun, Vol. 3). These ideas and propositions, which explore and grasp the laws of socialist economic construction from the overall perspective of the Party and state's work, created a wealth of leadership experience and contain a scientific world-view and methodology that still hold significant revelatory meaning today.
(Author: Song Yuehong, Deputy Director and Researcher at the Institute of Contemporary China of the Chinese Academy of Social Sciences) Source: Guangming Daily, July 23, 2025, Page 11 Web Editor: Tongxin