text: After the Chinese economic reform (Gaige Kaifang) policy was implemented in the late 1970s, the Communist system Mao had instituted disintegrated in the face of economic development. In the countryside, communes had disappeared by 1984. State-run enterprises known as danweis began to lay off workers, "smashing the iron rice bowl" because of their expense and inefficiency. The previous "two classes and one stratum" theory underwent many changes during this time as both the working and peasant class were divided further. However, the peasant class decreased in size while the working class saw significant growth.
  In 1978, Deng Xiaoping stated that science was a productive force and that scientists were workers. These statements had a significant impact in lifting the class stigma associated with intellectuals since 1949.
  The years leading up to the 21st century brought great economic growth and industrialization for China, but this growth did not translate to the rate of social development as the income gap between urban and rural areas of China continued to widen. By 1993, approximately 22.4% of the working class population accounted for 51.8% of China's GDP. By this point, the social structure was no longer as hierarchical in comparison to the early years of the reform.
  In 1992, social inequality became a large topic of debate, as wealth continued to accumulate within a small minority population of the country. This was a result of the corruption of bureaucratic capitalism which, in turn, lead to the middle working class having access to very few resources. The imbalance of social structure at this time became evident as both the working and peasant class were marginalized.