An introduction to the chinese economic reform

Before the collapse of international trade that followed the onset of the Great DepressionChina's share of world trade and its ratio of foreign trade to GDP achieved levels that were not regained for over sixty years. By the time Deng took power, there was widespread support among the elite for economic reforms.

An introduction to the chinese economic reform

Hua had demonstrated a desire to continue the ideologically based movements of Mao. This last area was particularly troubling. It had become clear to members of the CCP that economic reform would fulfill a political purpose as well since the party felt, properly it would seem, that it had suffered a loss of support.

The traumatic experience of the Cultural Revolution had eroded popular trust in the moral and political virtue of the CCP. Confucius himself had posited in the fifth century BCE that those individuals who best demonstrated what he referred to as moral force should lead the nation.

Using this principle as a guide, China had for centuries attempted to choose at least its bureaucratic leaders by administering a test to determine their moral force. Needless to say, that which constituted correct consciousness was often determined and assessed by Mao.

Nevertheless, the ideal of moral force was still a potent one in China even after the Communist takeover. Thus, paradoxically, by demonstrating their expertise in a more practical area of competence, the leaders of the CCP felt they could demonstrate how they were serving the people.

But Shirk feels that, in those pre-Tienenmen days, such a move came about also as a result of an attempt by CCP leaders to demonstrate, in a more practical and thus less obviously ideological manner than Mao had done, their moral force.

This is not to say that the idea of economic reform was embraced enthusiastically by all members of the leadership of the Chinese Communist Party in To a great extent, the issue of economic reform became politicized as the issue was used as a means by Deng Xiaoping to attain the leadership of the Chinese Communist Party.

An introduction to the chinese economic reform

Deng took advantage of this economic crisis to discredit Hua and aim for leadership of the party. Once Deng and his faction had prevailed, it was necessary for some sort of economic reform to evolve. The initial form the new economy took was not a radical one.

However, as time passed, some basic aspects of the old system were altered either by design or via the process of what might be called benign neglect.

A brief history of China’s economic growth | World Economic Forum

As Shirk points out, in rural areas, decollectivization was occurring: Infurther reforms were introduced. For example, long-term sales contracts between farmers and the government were established.

This allowed a great percentage of the populace to become involved in private enterprise and investment in family or group ventures. The conditions also allowed rural Chinese to leave the villages and become involved in industry in urban centers Shirk The economy grew so quickly that inflation occurred and the government had to reinstitute price controls.

An introduction to the chinese economic reform

Another important aspect of Chinese economic reform was the decision of China to join the world economy.Introduction. Between and , under Mao Zedong’s 毛泽东 leadership, the Chinese Communist Party (CCP) implemented socialist economic policies. Chinese economic reform.

Jump to navigation Jump to search History of the People's Republic of China (PRC) – Mao era With the introduction of the dual-price system and greater autonomy for enterprise managers, productivity increased greatly in the early s.

The Chinese Economy: Transitions and Growth. Cambridge, MA: MIT Press, E-mail Citation» After providing background information on China’s geography and on the economic developments before , Naughton analyzes the reforms in both agriculture and industry and developments in .

Video: Deng Xiaoping and Chinese Economic Reform After Mao's death in , reformer Deng Xiaoping led China's economy through a transition from state ownership to . Over the past 37 years, China’s economic reform has been successful, making it become a major economic power. It has been the second largest economy measured by GDP, the largest exporter and holder of foreign exchange reserves, and one of the biggest host countries, as well as home countries, of foreign direct investment.

China’s economic reform has been successful, making it become a major economic power. Largely relied on low-cost investment, cheap and abundant labour and use of natural resources to support growth, China has faced a number of challenges including high debt to GDP, demographic changes and.

Chinese economic reform - Wikipedia