Cheng Fu Road East End—Late Spring 1981

One of the first economic reforms put in place under Deng Xiaoping was the allocation of private plots to peasant farmers. Little “free markets” like this one had begun to pop up around China, and farmers were allowed to sell the produce from these plots and keep the profits for themselves. Previously, all produce belonged to the commune, and was sold to state-run enterprises at state-controlled prices. Now the unfettered “invisible hand” of Adam Smith was being allowed to guide the economy.