"Entering factories but not the cities _ leaving farm work but not the homeland" is the slogan of the Township Enterprises, launched in China in the 1970s, first in the coastal areas and later in the rural areas. Called commune- and brigade-run enterprises prior to 1984, Township Enterprises initially followed the strict guidelines of the central economy.

With economic liberalization, the Government introduced major changes, allowing ownership alternatives ranging from individual-owned, village-run cooperatives, to joint ventures where enterprises were free to decide on the means of production and marketing. Township Enterprises that fully employ local resources are actively promoted. There is also assistance in human resources development and training on management and procurement.

Since 1988, special attention has been given to joint ventures and cooperatively managed enterprises with outside investment, the rapid development of new products using modern technology, management techniques, study missions, exhibitions and trade fairs. By 1998, Township Enterprises totalled 20 million. Some 6,600 enterprises have built factories overseas, demonstrating their conformity to international standards to produce, sell and manage.

There is a high degree of coexistence and mutual promotion between Township Enterprises and the agriculture sector. The enterprises show a way for rural surplus labour to operate from their homes in the rural areas. The Government continues to exert considerable influence in planning, executing and monitoring the programme at all levels.