How did economic reformers in China approach the "iron rice bowl" system?

Economic reformers in China approached the "iron rice bowl" system by implementing policies designed to break this longstanding social and economic safety net. The "iron rice bowl" referred to the system where the state guaranteed job security, housing, and basic welfare for workers, particularly in state-owned enterprises. This system, while providing stability and support for a large number of citizens, was seen as a hindrance to economic efficiency and growth.

As China began its economic reforms in the late 1970s under Deng Xiaoping, the focus shifted towards creating a more market-oriented economy. Reformers believed that the rigidities and inefficiencies of the iron rice bowl needed to be dismantled to allow for a competitive labor market and to promote individual initiative and entrepreneurship. Policies included the introduction of performance-based pay, layoffs in state-owned enterprises, and encouraging private enterprise and foreign investment. This transformation facilitated a shift in economic structures and helped to drive China's phenomenal economic growth in subsequent decades.

Thus, breaking the iron rice bowl was a critical step in the broader process of modernizing China's economy and making it more competitive on a global scale.