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In January 1962, the CPC Central Committee convened a Central Working Conference. A total of 7,000 representatives from all levels of the Party from the county upwards, attended. In a series of frank exchanges, they discussed the problems confronting them.

Subsequently, a policy was introduced of readjustment, consolidation, filling gaps and raising standards. This helped China adjust its economy and recover from the downturn.

From late 1964 to early 1965, the First Session of the Third National People's Congress was held in Beijing. For the first time, the goal was set, of building China into a strong socialist country with modern agriculture, modern industry, modern national defences and modern science and technology. The meeting also confirmed the strategic goal of realizing industrialization in two stages. The two goals served as a major blueprint and motivation for uniting every ethnic group in the country in an unremitting struggle.

By late 1965, the adjustments to the national economy were completed. Total industrial and agricultural output reached record highs.

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