Yes, China's rapid industrial growth can indeed be traced back to the reforms introduced in 1978. The new leadership at that time was not happy with the slow pace of growth and lack of modernisation in the Chinese economy under the Maoist rule. The Maoist vision of economic development based on decentralisation, self-sufficiency, and shunning of foreign technology, goods and capital had failed. Despite initiatives like the Great Leap Forward, the per capita grain output in 1978 was the same as it was in the mid-1950s.

China introduced reforms in phases. In the initial phase, reforms were initiated in agriculture, foreign trade and investment sectors. Commune lands were divided into small plots and allocated to individual households for cultivation. 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 and township and village enterprises owned and operated by local collectives were allowed to produce. The reforms in agriculture brought prosperity to a vast number of poor people and created conditions for phenomenal growth in rural industries.

China used the market mechanism to create additional social and economic opportunities. By retaining collective ownership of land and allowing individuals to cultivate lands, China ensured social security in rural areas. Over the last four decades, China succeeded in raising the level of growth along with alleviation of poverty.