Policy of Readjustment, Consolidation, Filling Out and Raising Standards

In 1961, the Ninth Plenary Session of the Eighth CPC Central Committee established the policy of restoring and developing the national economy. It is abbreviated as "Eight Character Policy".

In the 1960s, the domestic economic situation was very serious. Faced with the overall economic tension caused by the continuation of the "Great Leap Forward", the whole Party and the Central Committee were determined to conduct serious investigations and studies, correct mistakes and adjust policies.

In July 1960, the Beidaihe Conference of the CPC Central Committee decided to adjust the national economy. When discussing the national economic plan for 1961, Li Fuchun proposed that the plan should be arranged in the spirit of "readjustment, consolidation and raising the standards".

At the end of August, when the State Planning Commission reported the 1961 economic plan to the State Council, it reiterated Li Fuchun's opinion and Zhou Enlai agreed, adding the word "filling out", thus forming the eight-word policy of "readjustment, consolidation, filling out and raising the standards". On September 30, the CPC Central Committee formally proposed the "Eight Character Policy" for the first time when it approved the report of the Party Committee of the State Planning Commission on the “Control Figures of the National Economy in 1961”.

The Ninth Plenary Session of the Eighth Party Central Committee, held in January 1961, approved the "Eight Character Policy" and announced it to the whole country. The Central Committee decided to implement the policy of readjustment, consolidation, filling out and raising the standards of the national economy within two or three years from 1961.

"Readjustment" refers to the adjustment of the proportional relationship in the national economy, mainly in agriculture, light industry and heavy industry, accumulation and consumption. We should vigorously strengthen the agricultural front, shorten the capital construction front, compress heavy industrial production, and streamline a large number of workers.

"Consolidation" refers to the consolidation of the achievements already made in the development of national economy and further developing them in the process of adjustment.

"Filling out" refers to the weak link of the national economy and the production of urgent complementary projects, with a small amount of investment to enrich its production capacity in order to receive greater economic benefits.

"Raising the standards" means to improve the quality of products, improve the management of enterprises, and improve economic efficiency.

Due to the correct leadership, decisive and powerful measures, and the concerted efforts of the whole Party and the whole nation, the economic adjustment work had achieved obvious results by 1962. The most difficult period of the national economy had passed, and there was a good situation of rapid recovery in many aspects.

In order to strive for a fundamental improvement of the national economy, the Work Conference of the Central Committee of the Communist Party of China held in February 1963 decided to continue to implement the "Eight Character Policy" for two to three years from that year onward. After three years of efforts, by 1965, the original tasks of adjustment were successfully completed and the national economy took on a new look.