Taking a look at Transformations in China

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According to McCormick ( 2010 pg,291), the first transformation in China was the proclamation in 1978 of an open door policy aimed at opening up production to factors of supply and demand, expanding trade, reducing the role of central planning and introducing incentives for workers and peasants farmers including; promotions, wage increases and bonuses. The light industry was given great emphasis over the heavy industry and there was expansion of production in consumer goods. Greater support was also given to domestic research and development and China was more open to the idea of importing foreign technology. Further young Chinese were sent abroad to learn while foreigners were let in into the country. For example between the year 1979 and 1989 some 75,000 Chinese students received visa to study in the United States. The students had greater access to foreign publications and were able to take advantage of the explosion of publishing outside China itself (Smith et al, 2012, pg 329). Other important reforms as noted by Goldstein & Pevehouse (2011, 463) included peasants being allowed to work in their own fields instead of collective farms, entrepreneurs starting companies, hiring workers and generating profits while the state gave more initiatives to managers to run their own companies and spend their profit as they saw fit. As a result of these reforms foreign investment flooded into southern China taking advantage of its cheap labor, its location and relative political
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