Central planning

The first Five-Year Plan ran from 1953 to 1957. It followed the Soviet model of economic development. Instead of leaving businesses to decide what to produce, the government used central planning to set priorities, allocate resources and establish production targets.

The First Five Year Plan aimed to turn China into a stronger industrial economy. It followed the Soviet model: central planning, increasing state ownership and a priority on heavy industry. Steel, coal, electricity, cement and machinery were important because they supplied the materials and power needed to build further industries.