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Post-Mao China
Who Was Deng Xiapoing?
Man of the Year
• 1980: Deng Xiaoping
became the leader of
China
• New focus: economic
not political concerns
Deng: “less empty talk and
more hard work”
• Four Modernizations
– Agriculture
– Industry
– Science
– Defense
• Praise for scientists and intellectuals vs. peasants
• Peasants allowed to sell crops from their land
• Special economic zones created to create more trade
and development.
Deng’s Ten Year Plan (way better
than Mao’s Five Year Plans)
• Driven by incentives and catching up: FOUR
MODERNIZATIONS
• Military:
– Modernize technology
• Science and Technology:
– Reform education, send students overseas
• Industry:
– Heavy industry, SOE’s, limited autonomy
• Agriculture:
– Mechanize, Household Responsibility System
• Deng’s policies more practical and responsive to the economic
times
• Willing to alter Communist ideologies for what’s best for the
country
The Open-Door Policy
• Work hard to join the world
• Welcome international trade & foreign direct
Investment
• China entered the WTO in 2001
• China’s tariffs dropped to 6% from an average of 41%
in five years
• Study abroad
Special Economic Zones
• An “open door policy” announced 1979
– Four “Special Economic Zones” were created
with
• Tax incentives
• Foreign exchange provisions
• Lack of regulations
• Markets function!
Special Economic Zones
• Special tax incentive for foreign investment in the SEZs
• Greater independence is provided for International
trade activities
• Products are primarily export oriented
• Market driven economic activity
• Attracts and utilizes foreign capital
• Means to China’s booming manufacturing industry
flowing through these zones
• Locations
– Guangdong Province, Fujian Province, Hainan Province,
Hunchun, Pudong Development Zone (Shanghai)
The Result: an Example
• Shenzhen, a small border town, changed into
a modern city
• Per capita GDP was 7 times the nation’s
average
• Foreign investment and exports have been the
primary engines of economic growth
Shenzhen: The Early 1970s
Shenzhen: Today
An Economic Miracle
• China’s economy has grown at about 8% yearly
per person for the last 30 years—about a tenfold
increase in output per person.
• By some measures, China now has the secondlargest economy in the world.
• When Deng became leader, over half China’s
population was poor by global standard. Now the
figure stands at 10% or less.
• At the same time, there are about 28 Chinese
billionaires today.
Tiananmen Square
Tiananmen Square
• People wanted
political reform
• 1978, people began to
criticize the gov’t
• 1986 arrested key
leaders
• April 1989, students
held a demonstration
in Beijing.
Tiananmen Square
• Gov’t officials refused
to talk to students
• Demonstrations
continued
• Martial law was
imposed - citizens
helped students
Tiananmen Square
• June 3, 1989, army
began to use force
• Red Army moved in
(700 –3,000 deaths)
• No democratic
reforms occurred
One Child Policy
Success or Failure?
One Child Policy 1979
• 1980 China has 1 billion people
• Began as a temporary measure but lasts to
today and will continue (reassessment in
2010)
• Has been limited to urban populations
• Fines, pressures to abort a pregnancy, and
forced sterilization accompanied second or
subsequent pregnancies
Effects of One Child Policy
• Caused a disdain for female babies
– abortion, neglect, abandonment, and even
infanticide
• 114 males for every 100 females (world average is
105:100)
• “Little Emperor Syndrome” of spoiled only children
• Estimated to have lowered the population by 300
million
• 80’s generation now of childbearing age and are
allowed to have two per couple (if you don’t have
siblings)