Evaluate any two factors that led to the rapid growth in economic development in China.

In the initial phase, reforms were initiated in agriculture, foreign trade and investment sectors. In agriculture, commune lands were divided into small plots, which were allocated (for use not ownership) to individual households. They were allowed to keep all income from the land after paying stipulated taxes.

In the later phase, reforms were initiated in the industrial sector. Private sector firms (owned and operated by local collectives) were allowed to produce goods. Subsequently, enterprises owned by the government were made to face competition.