Beginning in the late 1970s, China's leaders stressed expertise and education over motivation and ideology and consequently placed emphasis again on examinations. Competition in the schools was explicit, and examinations were frequent. A major step in the competition for desirable jobs was the passage from senior middle school to college and university, and success was determined by performance on a nationwide college and university entrance examination (see Education Policy , ch. 4). Examinations also were used to select applicants for jobs in factories, and even factory managers had to pass examinations to keep their positions. The content of these examinations has not been made public, but their use represents a logical response to the problem of unfair competition, favoritism, and corruption.

One extreme form of selection by favoritism in the 1980s was simple hereditary transmission, and this principle, which operated on a de facto basis in rural work units, seems to have been fairly widely used in China's industrial sector. From the 1960s to the 1980s, factories and mines in many cases permitted children to replace their parents in jobs, which simplified recruitment and was an effective way of encouraging aging workers to retire. The government forbade this practice in the 1980s, but in some instances state-run factories and mines, especially those located in rural or remote areas, used their resources to set up subsidiaries or sideline enterprises to provide employment for their workers' children. The leaders of these work units evidently felt responsible for providing employment to the children of unit members.

The party and its role in personnel matters, including job assignments, can be an obstacle to the consistent application of hiring standards. At the grass-roots level, the party branch's control of job assignments and promotions is one of the foundations of its power, and some local party cadres in the mid-1980s apparently viewed the expanded use of examinations and educational qualifications as a threat to their power. The party, acting through local employment commissions, controlled all job assignments. Party members occupied the most powerful and desirable positions the way party members were evaluated and selected for positions remained obscure. Local party cadres were frequently suspected by the authorities of using their connections to secure jobs for their relatives or clients (see Informal Mechanisms of Exchange , this ch.).

Data as of July 1987