Recovery from glf: danwei(work unit) system, hukou (residence registration) system, decollectivization of agriculture in some places. Only urban residents were entitled to coupons for food. Cant go up to shop to buy food or necessities. Farmers and rural residents were to be remain in the countryside. No it has broken down significantly, employees employed has dropped significantly and china has move on to privatization. Hukou: every citizen needs to be registrar with a local authority. ( beijing, Shanghai etc) people were destined either as rural or urban residences, like an identity card. Hukou: policy has been relaxed in 80s,90s. and this policy divided china into two tiers residents, the urban, wealthy residents and rural residents with welfare system. Increased political tensions: de-stalinization policies by khrushchev, lin biao, head of the people"s liberation army (pla, mao"s wife, jiang qing, mao"s little redbook, lei feng. Mao now focus on the possibility that china would follow the same path by the.