||The Chinese government seemed to have been successful in eradication private business after consolidating their power, especially in the urban areas. The state began actual socialist transformation in 1953, the same year that the First Five Year Plan got underway. The process was expected to end in 1962. Through a process of joint ownership and then buying out of private shares the state took over large and medium private industrial firms. The state declared the victory of peaceful socialist transformation in 1956 when even the complete collectivization of agriculture was accomplished. China had thus gone very far in elimination the legal private sector and much of the second economy, urban and rural.