A sharp contrast stands between the mood of optimism in 1958 and 1959 when official as well as unofficial reports of industrial progress continued to pour out of Communist China and the silence and complete black-out of statistical information which has characterised the Chinese scene since 1960. If the principal landmarks are retraced, the first major sign of a change in official policy appears to have come in early 1961 when the Chinese Communist Party decided to reverse the policies which had characterised the “leap forward” of 1958–59. This was followed by a drastic policy of retrenchment in investment and reorientation of industrial production during the latter part of 1961 as the economic crisis deepened. Since then the new slogan has been “adjustment, consolidation, reinforcement, and improvement”; the new order of priorities is agriculture, light industry and heavy industry; the new approach is to regard agriculture as the economic base and industry as the “leading factor.”