Deng Xiaoping's Economic Reform

Since the market orientated economic reforms were introduced in 1978 (Khan, Hu (1997, P103) China’s economy has seen a 10% increase in Gross Domestic Product (GDP) Per year (Vincellete, Manoel,

Many factors such as, growing liberalization, economic disparities, and inflations. led to the protests. During Mao Ze Dong's leadership, the Chinese government collectivized industries and agriculture. After his death, his successor Deng Xiao Ping implemented the Gai Ge Kai Fang policy, de-collectivizing industries and agriculture. (Huenemann 2017) This policy also allowed citizens greater freedom. Some academics even received encouragement from the government to take an active political stance. (The Editors of Encyclopædia Britannica) Following the privatization of agriculture and industries, China experienced great economic growth. Unfortunately, this also caused the rate of corruption, and economic disparities to surge. China also experienced price inflations as it

In 1949 china was under the expression of a communist state. The regime of china was set up in similarity to the regime of Vladimir Lenin in the Soviet Union. Mao Zedong was part of the communist party. He followed the vision of Karl Marx, by envisioning a society under his regime that all shared equal prosperity and communism. In order to bring this vision to reality, he wanted to eliminate all capitalism and its emphasis on property rights, profits, and free-market competition. In the 1950’s in the rural of china, Mao banned free markets, which involved peasants selling farm products. However the trade of capitalism still existed through the private enterprise of remnants. Mao was dissatisfied with the outcomes towards an economy of Marxism. So he strived for a stronger approach by coming up with the Great Leap Forward. However, after the intense economic development that china had suffered from the great leap forward, it left millions of individuals throughout china suffering from the masses and deaths from the collapse of the food system. Because of the major consequences that were suffered from this approach it was unable to be left unnoticed. So, in 1960 after Moa Zedong declined all responsibility towards the disaster from the Great Leap Forward, Lui Shao-chi and Deng Xiaoping were left to rectify and administer the crisis. However, their attempt to repair the economic damages towards china, only led to the reverse of Mao’s earlier policies. That were

Since the implementation of the "reform and opening-up" policy in 1978, China's economy has been undergoing a rapid and healthy development. Over the past 27 years, China's annual GDP growth has averaged 9.4 per cent, more than doubled that of the world as well as more than two folds that of the developed nations over the same period. In 2004, China's GDP reached USD1650billion, an increase of 9.5 per cent over 2003.(The Embassy of the People's Republic of China in Australia, June 2005)

China has always been renowned for being successful in the domains of science and arts, however in previous decades, China has been ravaged by famines, civil discomfort and foreign outsourcing. China was consumed by this injustice until well after the Second World War when Mao Zedong introduced Communism adapted from the U.S.S.R, and created an autocratic socialist system which imposes firm constraints upon the Chinese social, political and economic system. It wasn't until the 1980's China's following leader Deng Xiaoping who focused focused on developing China into a

China has reached a milestone in terms of achieving its centenarian goal of making China a prosperous nation once again. One of the ways that it has done this is by having steady economic growth even in the midst of an economic crisis. Not only has China’s economy grown, but its standard of living has also improved, it has achieved this by spending 70 percent of its fiscal revenue towards improving people’s standard of living. China has also pushed more anti-corruption reforms and has made efforts towards widening its economy by setting up freer trade.

In about a short period of a couple month's, Deng has already gotten people off the street's and focused on expanding large businesses so that other people can work in the business. This was a big boost so that China can help more people who were struggling at the time.

Deng Xiaoping became China's influential leader in 1977 at the age of 72. China was a very poor country in result of this Deng decided that free enterprise would help China's economy. Although many communists were against free enterprise Deng still was still determined to help China’s economy. He allowed farmers and business owners to make profits and many new factories were started. Deng allowed the United States and other countries to have more trade with China which resulted in china’s economy to grow stronger.

In light of the economic changes that had occurred from the Maoist period (1949-1976) to the post-Maoist period (1978-2011) of China, the system of economic distribution of China under Mao Zedong’s and Deng Xiaoping’s leadership created a notable contrast of the standards of living for Chinese citizens. Mao Zedong’s establishment of collectively owned lands and state entitlement in the 1950s to 1970s put an end to private ownership and created a system whereby the earnings of Chinese citizens were paid per capita basis, reducing income differences. Upon the death of Mao Zedong and his system, Deng Xiaoping’s establishment of the privatization of lands and economic liberalization under his “Four Modernizations” reform goal created a system

He decided to keep China as a communist country, while using socialist ideas to improve economy and lifestyle. To fix the problem of agriculture and communal farms, Deng allowed families to own small amounts of farmland, resulting in the growth of food. He also improved technology in rural areas to facilitate the productuction of crops. For industries, he convinced other countries to lease land so that China could build plants. Used loans to drill for oil, built tourist sites, hotels, and airports to increase tourism and revenue.

China's transition from the leadership under the iron fist of Mao Zedong to the more liberal Deng Xiao Ping gave the People's Republic a gradual increase in economic freedom while maintaining political stability. During Mao's regime, the country focused on bolstering and serving the community, while subsequently encumbering individual growth and prosperity. Deng advocated a more capitalist economic ideology, which established China as an economic force in the global community while endowing its citizens with more liberties and luxuries than previously granted.

Feeling this was not enough to boost the economic up, Deng loaned money from IMF and the World Bank “to upgrade machinery and establish new manufacturing and industrial development” (Benson, 48). He opened a total of five towns and villages as SEZs and allowed foreign investors to build factories and hire Chinese to work for them. It might not be the best way to reform the economic as a whole, but it played an important role because it benefited the Chinese workers, the investors, and the Chinese government. During the 1980s, Deng promoted the “open door” policy to encourage foreign investment and to trade with the world. China needed larger quantities of raw materials to fuel its industrial growth so they signed contracts for minerals, timer, and so forth. It had not only provided China with raw materials that were needed, but also improved the relations with other neighbor counties and the US.

This paper was prepared for GD530 Economics and the International System, taught by Professor Snow

(Slide 1) From 1981 until the death of Deng Xiao Ping and the termination of Deng Era in 1997, Deng Xiao Ping was the paramount leader of the People's Republic of China after Mao Zedong’s death in 1976.

Before this reform China was a closed off country that gave no opportunity to allow foreign investment. Deng Xiao Ping opened up that rule as he wanted money to start coming in from other countries to raise China’s economy. As money was coming in from foreign benefactors China’a now had a vast source of income and future potential income. The industrial reform also created large factories to produce goods that it could trade with other countries once again to open up a new source of income. Factories started to sing up creating millions of jobs for the Chinese population. More people started to earn a steady income. This meant that now people had more money they could spend on luxury good which improved the countries cash flow once again. Other garment leaders feared that allow foreign countriese to invest in china would become a risk to China’s wellbeing and made Deng Xiao Ping’s planes much harder to be past and in the end took longer for them to