The People's Government shall encourage the active operation of all private economic enterprises beneficial to the national welfare and to the people's livelihood and shall assist in their development.
Content
Introduction...
Fig. 30.1 Composition of production value of private industry sector 1949–1952
Wen (2021) Page 132 1,000 yuan [old RMB]"In 1950, the industrial value of the private sector grew
merely by 6.59%, whereas order, sale and purchasing by and processing
for the state increased by 158.6%, a 17% growth in total production
value, up to 28.83%. The value of independent production and sale was
decreased by 13.91%, a drop of 71.17%. The year 1951 was a boom
year for the private sector. However, the government was still the dominant
contributor to economic growth. Order, sale, and purchase by and
processing for the state increased by 106%, representing 42.71% of the
total production value. In comparison, independent production and sale
increased by merely 11.9%, 57.29% of total value. In 1952, the value
of order, sale, and purchase by and processing for the state increased by
36.49%. It went over 50% for the first time, whereas the absolute figure
of independent production and sale dropped by 20.17% "
"The government’s substitution for market first manifested itself in the
transformation of economic subject ownership. During the period of national
economic recovery and adjustment (1949-1952), the state-owned economy gradually
gained the leading position in the economic system, but individual businesses and
national bourgeoisie capital industry still played an important role. The reform of
ownership system was mainly carried out mainly in the form of purchasing, ordering
and exclusive sale of products. By 1952, the proportion of self-production and self-
marketing of capitalist industry was still 17.1%, and the proportion of private commerce
in wholesale and retail was 36.3% and 57.8%, respectively1" Page 55 Research team (2019). Economic Lessons from 70 Years of China’s Development Academic Center for Chinese Economic Practice and Thinking Tsinghua University Beijing.
30-12-1950 Interim Regulations on Private Enterprises 30-03-1951 Measures for the Implementation of the Interim Regulations on Private Enterprises
under construction...
privately-run
Relocated, Nationalized or Ceased operation private companies...
Fig. 30.2 Private companies Relocated, Nationalized or Ceased operation
Banks & Financial Institutions
These institutions were heavily affected by the Communist takeover, as the PRC nationalized the banking system in 1949.
• Kinchong Banking Corporation (金城銀行) → Nationalized in 1949 by the PRC, absorbed into the new state-controlled banking system.
• The Shanghai Commercial & Savings Bank (上海商業儲蓄銀行) → Moved to Taiwan in 1949 and re-established itself, later expanding into Hong Kong.
• Bank of China (中國銀行) → Split in 1949: the mainland branches became state-owned under the PRC, while the Taiwan branch continued under the ROC government.
• Central Trust of China (中央信託局) → Relocated to Taiwan with the GMD government in 1949, managing government assets and foreign trade. Insurance Companies
Most private insurance companies were either nationalized or relocated to Hong Kong/Taiwan.
• China Insurance Co. (中國保險公司) → Mainland operations nationalized; its Hong Kong branch continued independently.
• Pacific Insurance Co. (太平保險公司) → Hong Kong branch survived; mainland operations were nationalized.
• The China United Assurance Society, Ltd. (華安保險) → Operations in China were nationalized; some assets moved to Taiwan. Trading & Retail Companies
Many trading firms and department stores either relocated to Taiwan or were nationalized.
• China Merchants Steam Navigation Co. (輪船招商局) → Partially relocated to Hong Kong; the mainland operations were nationalized and became part of China's state shipping sector.
• China Travel Service (中國旅行社) → Mainland operations taken over by the Communist government; the Hong Kong branch remained independent.
• Tong Ji Department Store (同記百貨) → Nationalized in 1949 and became part of the state-run retail network.
• Da Ye Trading Co., Ltd. (大業貿易有限公司) → Relocated to Taiwan in 1949.
• He Sheng Yuan (合盛元) → Likely nationalized, as many major Chinese wholesalers were taken over by the state.
• Yuan Feng Run (源豐潤) → Possibly nationalized; little documentation on relocation.
• Tai Gu Zhuang Hao (太古莊號) → Likely absorbed into PRC-controlled trading networks. Industrial & Manufacturing Companies
Most large manufacturers were nationalized, while some private firms relocated to Taiwan or Hong Kong.
• Sichuan Animal Byproduct Trading Co., Ltd. (四川畜產公司) → Nationalized in 1949 and merged into a state-run trading company.
• Sheng De Chemical Works (勝德賽珍廠) → Nationalized and merged into state chemical industries.
• Zhen Hua Painting Co., Ltd. (振華油漆公司) → Likely nationalized and absorbed into China’s state-owned chemical sector.
• China Can Co., Ltd. (康元制罐廠) → Nationalized and became part of China's packaging industry.
• Huachang Antimony Smeltery (華昌煉銻公司) → Nationalized, as antimony mining was deemed a strategic resource.
• New Asiatic Chemical Co., Ltd. (新亞制藥股份有限公司) → Relocated to Taiwan in 1949.
• Sine Laboratories & Co., Ltd. (信誼制藥公司) → Nationalized; today, Sine Pharma (信誼製藥) remains a major state-owned pharmaceutical company in China.
• Ming Sung Industrial Co. (民生實業股份有限公司) → Relocated to Taiwan; continued operations there.
• Nanyang Brothers Tobacco Co. (南洋兄弟煙草公司) → Nationalized but continued under government ownership; Hong Kong operations survived independently.
• Chinese Egg Produce Co. (茂昌蛋業股份有限公司) → Nationalized, as food processing industries were absorbed by state-controlled firms.
• Tian Yuan Industrial Co., Ltd. (天元實業公司) → Relocated to Taiwan in 1949. Textiles & Silk Companies
Some textile companies relocated, while others were nationalized and became part of China's state-owned textile industry.
• Nantong Silk Product Co. (南通繡品公司) → Nationalized and merged into state-owned textile enterprises.
• Yung Tai Silk Co. (永泰剿絲廠) → Relocated to Taiwan.
• Mayar Silk Mills, Ltd. (美亞織綢股份有限公司) → Relocated to Hong Kong in 1949.
• Shen Xin Cotton Co. (申新紡織集團) → Nationalized in 1949, became part of China's textile SOEs Food & Specialty Stores
Some smaller businesses closed, moved, or were absorbed into state-owned enterprises.
• Feng Ji Seafood Store (豐記海產行) → Possibly nationalized.
• Dong Lin Store (東林店) → Likely nationalized.
• Tong Feng Yuan (同豐源) → Unclear, possibly relocated.
• Chinese Tea Corporation (中國茶公司) → Nationalized; later became part of China’s state-owned tea industry.
• Cheng Ji Hao (成記號) → Possibly relocated to Taiwan or Hong Kong.
00-04-1950 Comments on the Issue of Dealing with the National Bourgeoisie and Private Industrial and Commercial Policies
01-08-1948 Chen Yun on the proper management
of employees in enterprises that have been recently taken over 
