China's Reforms and Reformers

By Alfred K. Ho | Go to book overview

CHAPTER 5
Deng's Economic Reforms

Following the Chinese tradition, the basic policies of the Communist Party are to fulfill the fundamental objectives of the country, which are economic development and military strength, or, in Chinese, fuguo chiangbing. Economic development for the country calls for the sustained growth of the gross national product (GNP), which can be promoted by the following factors: population, agricultural output, industrial output, technology, trade, foreign capital, a free market, macroeconomic control of the state, and a management system providing material incentives.

The Chinese population is large and has a tendency to grow rapidly. A policy will be needed to slow down population growth to prevent longterm unemployment and a declining standard of living.

Agricultural output, industrial output, and technological growth are basic to economic development.

China will have to be opened to the outside world to encourage trade, and foreign capital will need to be secured through a joint venture system where Chinese firms and foreign firms join hands in business endeavors.

The planned economy will have to be gradually replaced by a freemarket economy. The management system will have to be modified to provide material incentives to encourage hard work and competition.

In 1975, Zhou Enlai, then the premier, proposed a two-stage plan for the economic development of the country. In the first stage, from 1975 to 1980, China should concentrate on industrialization; in the second stage, from 1980 to 2000, China should pursue a program of four modernizations: agriculture, industry, defense, and technology. It was hoped that China would be able to catch up with the advanced countries through

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China's Reforms and Reformers
Table of contents

Table of contents

  • Title Page iii
  • Contents v
  • Acknowledgements vii
  • Introduction ix
  • Chapter 1 - The Revolution 1
  • Chapter 2 - The Wars 21
  • Chapter 3 - Development under Mao 51
  • Chapter 4 - On the Eve of the Reforms 75
  • Chapter 5 - Deng's Economic Reforms 81
  • Chapter 6 - Deng's Political Reforms 115
  • Chapter 7 - Military Modernization 127
  • Chapter 8 - Reforms in Foreign Affairs 131
  • Chapter 9 - Loss of the Leader 159
  • Conclusion 161
  • Glossary of Names 163
  • Selected Bibliography 167
  • Index 171
  • About the Author 175
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