BY THE PEOPLE, FOR THE PEOPLE

The "Jiawu" of 1954 was the beginning of another cycle in Chinese history, when the National People's Congress (NPC), China's top legislature, held its first plenary session in September and adopted China's first socialist constitution.

Following four amendments to the fourth Constitution passed in 1982, the republic of the proletariate now allows and protects the existence and growth of private companies, as well as property rights of individuals.

Back 60 years ago, these were precisely what the ruling Party set out to constrain. The CPC Central Committee issued a directive in July 1954 to strengthen market management and renovate private business.

In less than six months, the retail sales of private enterprises plunged to 25.6 percent from 57.2 percent (1952) of the country's total. As for the wholesale market, state-owned businesses took over the dominance of private firms.

Today, China's self-employed, private enterprises and other non-public sectors contribute more than half of the tax revenue, more than 60 percent of GDP, and employ more than 80 percent of the workforce.

The latest action the NPC took was to scrap reeducation through labor in December.

The system dealt with minor offenders whose crimes did not warrant full court proceedings and allowed detention of up to four years without trial. In its defence, the system was established in the 1950s when the Communist Party of China was consolidating a new republic and rectifying social order.