Section 1 of 1958–1976: Three Rounds of Crises at the Initial Phase of Industrialization and the Background of Foreign Debts Due to Introducing Foreign Investment, which is Chapter 2 of Ten Crises: The Political Economy of China's Development (1949-2020)
On a diplomatic mission, Mao Zedong negotiated Soviet aid starting in 1950: promised 50 projects in coal, electricity, steel, nonferrous metal, chemical industry, machinery, and military industry. <- China paid by low-interest loan (1%), and Soviets eventually accepted raw materials as liability payment
Zhou Enlai led a 1952 Soviet delegation that negotiated 91 new projects. <- China paid by trading raw materials directly and immediately, was not able to accrue liability
1951 sees the adoption of "Unified Purchase and Selling System" -> State buys "unified" prices in rural sector to sell to urban sector to control price and supply
Converted Land, Labour, and Capital into State Ownership
Over-industrialization from sovietism leads to an excess of industrial products that couldn't be sold in the foreign market -> China uses rural collectivization to pay off foreign debts