Download 1. Deng Xiaoping 2. The Economic Reform 3. The Open

Deng Xiaoping’s
Economic Reform
1978-1997
Contents
1. Deng Xiaoping
2. The Economic Reform
3. The Open-door policy
4. Economic miracle
5. Foreign policy
6. Deng Xiaoping’s Legacy
1. Deng Xiaoping
1904-1997
Family background: a landlord
Work-Study in France
Joined the Chinese Communist Party
Deng and Mao
The Economic Reform and the open-door
policy
Deng Xiaoping & the Transformation of
China – Ezra F. Vogel
2. Deng Xiaoping Resumed his Power and
Launched China’s Economic Reform in 1978
2-1 A Major Shift in Thinking
Seek truth from facts
Deng Xiaoping: It doesn’t matter
whether its is a white cat or a black cat,
it is a good cat as long as it catches
mice”
Pragmatism
Cross the river by stepping over stones
(Doing by learning)
2-2 Agricultural Reform
The household responsibility system
Township & village enterprises
2-3 Centrally-planned economy
transformed into market economy
“ Planning and market forces are not the essential
difference between socialism and capitalism. A
planned economy is not the definition of socialism,
because there is planning under capitalism; the market
economy happens under socialism, too. Planning and
market forces are both ways of controlling economic
activity.”
“We mustn't fear to adopt the advanced management
methods applied in capitalist countries (...) The very
essence of socialism is the liberation and development
of the productive systems (...) Socialism and market
economy are not incompatible.”
2-4 Breakthrough
Market-determined price
Breaking the “iron rice bowl”
The Tiananmen Square Confrontation
Gate of Heavenly Peace of – Carma Hinton
70% of China’s GDP is in the private
sector
2-5 Reform in Education
Resumed the College Entrance
Examination
Encouraged study aboard
Resume the college entrance
examination in 1977
3 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
Deng Xiaoping in the US
Deng and Carter
Deng Xiaoping and Overseas
Students
4. China’s Economic Miracle
1.
2.
3.
4.
GDP has grown at an annual average rate of
10 % for 30 years
China becomes world’s second largest
economy
Largest exporter, second largest importer,
second largest trading nation in the world
Foreign reserves: $2,447 billion (Mar 2010;
ranked 1st), 1 billion per day
Improvement of Living
Standards
Since 1978 400 million people have been
lifted out of poverty in China—about 75
percent of the world's total poverty
reduction over the last century.
Agriculture tax exempt in 2006
Free education up to 9th grade
life expectancy reached 73 by 2010
China’s Progress in Technology
• China’s GPS
• Walk in the space
•
•
Canton-Wuhan high-speed train at speed
of 165 miles per hour; 4 hours from
Beijing to Shanghai (600 miles)
It now has the second largest R & D
budget
Examples of Speed of
Development
1.
2.
3.
4.
Total length of highways: 39th in world in 1997,
2nd in 2002; The total length of China's
expressways is 65,065 km in 2009 (19892009), the second longest only after the
United States.
Number of telephones: 83 million in 1997, 1.1
billion in 2010
5 million college graduates a year, including
700,000 engineers, 10 times as many as the U.S.
Largest auto maker and consumer (more than
10 million in 2009)
In two decades China has experienced the same
degree of industrialization, urbanization and social
transformation as Europe did in two centuries Newsweek, Issue 1, 2008
“Rome is not built in one day.” But a new
“Manhattan” appeared in Shanghai in 15 years.
In 2007 China contributed more to global
growth than the United States, the first time
another country had done so since at least
the 1930s.
Since 1978 400 million people have been
lifted out of poverty in China—about 75
percent of the world's total poverty reduction
over the last century.
Lawrence Summers has recently pointed out
that during the Industrial Revolution the
average European's living standards rose
about 50 percent over the course of his
lifetime (then about 40 years). In Asia,
principally China, he calculates, the average
person's living standards are set to rise by
10,000 percent in one lifetime!

Newsweek, Issue 1, 2008
China’s Influence in the World
The Beijing Consensus vs. the Washington
Consensus
 The Forum of China-African Cooperation of
2006
 Chinese language is fastest growing foreign
language in the US while other foreign
languages declined significantly
 “People should pay attention to China. It is a
phenomenon in every respect.” Bill Gates

China and
Chinese are
Everywhere!
Thanks to Chinese art, films, cuisine, martial arts,
acupuncture and high school world history courses,
Chinese culture is becoming more mainstreamed into
the American way of life.
5. China’s Grand
Diplomatic Strategy
“Bide time, hide brightness, don’t take
the lead, but do something.”
Peaceful rise/development
To be a responsible great power
5. Comparison between Mao’s Cold
War Mentality
& Deng’s PostCold War Mentality
Mao: China should make preparations
“for an early world war, a major war and nuclear war.”
If you are not with us, you are against us.
Deng: China’s foreign policy in the 1980s, and in fact in
1990s, even in the 21st century, can be summarized
in two sentences. China makes efforts to maintain
world peace and oppose hegemony. China always
belongs to the third world.”
If you are not against us, you are with us.
“Missions impossible”
Accomplished in China
Centrally-planned economy transformed
into market economy, with growth the fastest
ever
New rising power has not resulted in a war,
territorial expansion, or a challenge to the
world order
Relations between China & other powers &
neighbors better rather than worse
5. Deng Xiaoping’s Legacy
• Pragmatism becomes dominant force
• Creates an economic miracle
• Raises Chinese people’s living
standards significantly
• Competes in soft power rather than in
hard power war
• Brings China into the world
Thank you!
Questions?