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It was a fascinating system! When I went to China in 1984, my first time behind the bamboo curtain, it was so other worldly to be in a place where money didn't matter. Since it was a shortage economy, there were other means of allocating sought after goods, however.
I can remember buying a ticket for the relative of a Chinese teacher who insisted on accompanying me back to my hotel, as is the custom. As we were about to step into the carriage in her provincial hometown someone materialized out of nowhere to say, "Cadre only."
I thought it would a treat for her to ride in comfort and avoid cattle car myself. Instead I was ushered in she was sent back. The ticket was fully refunded but I'm afraid it scared her, people survived by avoiding such dealings with any type of security personnel.
She dared not come close to the hotel because, again, she would have been told she had no business there. At least I was able to buy the family a carton of Marlboro so they could have the currency of bribes.
If you want to see how it's done, watch "Four Months, Three Weeks and Two Days." That's a walk down memory lane for anyone who ever lived under state socialism.