The tasks set out under this Plan were:
First, to continue industrial construction with a focus on heavy
industry, push forward technical reconstruction and lay a solid
foundation for China's socialist industrialization.
Second, to continue socialist transformation, consolidate and
enlarge the shares of collective ownership and ownership by the
people.
Third, with basic construction and socialist transformation
already established, to further boost industry, agriculture,
handicrafts, transportation and commerce.
Fourth, to cultivate talents, strengthen scientific research and
development to fulfill the needs of socialist economic and cultural
development;
Fifth, riding on the basic industrial and agricultural
development, to strengthen national defense and improve people's
living standards and cultural awareness.
Major achievements during this time included:
Industrial output value had doubled; the gross value of
agricultural products increased by 35 percent; steel production in
1962 was between 10.6 million tons or 12 million tons; investment
in capital construction rose to 40 percent from 35 percent in the
First Five-Year Plan period; the investment in capital construction
was doubled; and the average income of workers and farmers
increased by up to 30 percent.
However, many planning targets were modified and raised
continuously during this time. In August 1958, the Political Bureau
of the CPC held a conference in Beidaihe, Hebei Province, to
discuss the Plan. Targets were raised from the last plan, and a
decision was made that socialist construction would create
conditions for the transition to a communist society. It was also
set out that by 1962, China would have a strong, independent and
complete industrial system, surpassing the United Kingdom and
catching up with the United States in terms of the quality of key
products. Gross value of agricultural products would increase 270
percent in five years, grain production in 1962 would reach 750
billion kilograms, cotton 150 million dan (1 dan = 50 kilograms),
steel 80 million tons, coal 900 million tons and cotton yarn 16
million pieces. Capital construction investment in the five years
would reach 385 billion yuan and major construction projects were
to surpass 1,000.
The Great Leap Forward and Anti-Rightist movements that emerged
in 1958 caused imbalances in the national economy, fiscal deficits
over consecutive years, great hardship for the people. Realizing
that it would be difficult to maintain the pace of economic
development as envisioned, the government had to make certain
adjustments. The State Planning Commission brought forward the
policy of readjustment, restructuring, consolidation and
improvement, as laid out in its Report on Controlling Figures of
National Economic Planning in 1961, and the CPC Central Committee
disseminated it to subordinate departments in September 1960. It
was officially approved at the Ninth Session of the Eighth National
Congress of CPC in January 1961.