The reform program seems to have followed a logical sequence, building a base of support in the countryside, where issues and institutions were more clear-cut, and then moving on to the more diverse and politically complex urban areas. As the reform program began to confront major obstacles in this setting, the reform leaders, led by Deng Xiaoping, began to emphasize the need to extend reform to political structures in order to make political institutions and processes more supportive of the modernization program.

The need for further political reform was underlined by the continuing difficulty in implementing the factory-director responsibility system, a major goal of the reform program for 1986. Party cadres had already lost the privilege of life tenure and been subjected to the rigors and requirements of the party rectification programs. They would not easily forfeit operational control of economic enterprises.

Data as of July 1987