GFPP2333

Rise of Deng Xiaoping, the immortal

Deng Xiaoping overcame three downfall in his lifeDuring the war against KuomintangTwice during the Cultural revolutionMao Zedong (1976) Hoa GuofengDeng Xiaoping support Hoa Guofeng1978: Chairman of Chinese Peoples political consultative conference

Chinas Economic Reform
()

Chinas Economic Reform was initiated by Deng Xiaoping: reform of Chinas domestic system Re-establish diplomatic and economic relationship with other countriesopen up China for market Application of Market economy 1977 1992Four ModernizationsSocialist Market economy 1992 -

Four Modernizations

Original idea as introduced by Zhou Enlai in 1974Modernization in 4 fields: Industry, Agriculture, National defense, Science and technologyThe 1st step: establishment of complete industrial system and national economic system (15 years, until 1980)The 2nd step: modernization of agriculture, industry, national defense and science and technology (by the end of the 20th C.)1977: Deng Xiaoping began to reorganize Peoples revolution army after the cultural revolution1977: Den Xiaoping began to restore education system, and re-started national examination for universitiesIt is a goal of Deng Xiaopings reform

the place and the people that have condition to become rich go ahead and become rich, the rest will become wealthy later

PRC and USA

Re-establishing relationship between China and USAWorsening relationship between China and USSRCross fire incident over territoriesUS Worsening situation in the Vietnam war1971: Secret visit of the secretary of state, H. Kissinger 17-hour meeting with Zhou Enlai 1972: Richard Nixon visited PRCNormalization: Normalization of two countries will be the benefit of the world.

PRC and Japan

1972: Japan and China had agreed for normalization of their diplomatic relationship. China abandoned rights of war reparationJapan recognized that Taiwan is Chinas inseparable integrated territory One China PolicyTerritorial dispute ( leave on the side

Inspiration from visiting Japan

1978: Deng Xiaoping came to Japan for signing of Treaty of Peace and Friendship between Japan and the Peoples Republic of ChinaMeeting with Japanese emperor and prime ministerVisited various areas of Japan, including Shin Nittetsu iron foundry, Tokai Bullet train, Toyota car factory, Nissan car factory, Matsushita electric appliance factoryNegation: Imperial Japan = backward country

Inspiration from visiting USA

1979: Establishment of Diplomatic relationship between PRC and USADeng Xiaoping visited USAMeeting with the President Jimmy CarterVisited industrial areas of Huston, Seattle, and Atlanta, and visited rocket industry, airplane industry, car industry and communication industry

Application of Market economy 1977 1992

At the country side:Household responsibility systemDissolving peoples commune (Self- management of production: Each farmer has responsible for production Aim to increase productionAt the urban areaOpen Door policy Establishment of Special Economic Zone along the coastal area1992, open up border cities, and opened all the capital cities of inland provinces and autonomous for economic developmentAddition to the Special Economic zone, Economic and technological development zones, and high-tech industrial development zone were established

Special Economic zone
Economic & technological development zones

Chinese government encouraged foreign business to invest and to establish business in these zonesBring in row materials manufacture in China products are exported to foreign market (other than China)

For foreign companies For China

Low labor cost employment

Low energy cost foreign currency

Three steps to develop Chinas economy (1987)

The 1st step attained in 1980sdouble the 1980 GNPEnsure people have enough to eat and to wearThe 2nd step achieved in 1995quadruple the 1980 GNP by the end of the 20th centuryThe 3rd stepincrease per capita GNP to the level of the medium-developed countries by 2050

Democratic movement and establishment of Deng Xiaoping regime

Economic reform produced people demanding democracyDeng Xiaoping utilized the climate to chase away Hoa Guofeng from the power.Hoa Guofeng kept Mao Zedong ideologyAn article criticizing Hoa Guofeng by Hu Yaobang () was published on various newspaper

Democracy wall movement

Emergence of a bulletin board Democracy Wall: people wrote down their opinions Beijing springCriticizing Hoa Guofeng & Supporting Deng Xiaoping 1981 Hoa Guofeng was removed from Chairman of the Communist Party of China & Chairman of the central Military Commission of Communist Party of ChinaEstablishment of Deng Xiaoping regimeHu Yaobang (: General Secretary of Communist Party of ChinaDeng Xiaoping: Chairman of the Central Military Commission of Communist Party of ChinaZhao Ziyang (): Premier people Republic of China

Tiananmen incident (June 4th Incident)
(1989)

The pro- democracy movement organized by students suppressed by the military1989 April: Death of a pro-democracy official, Hu Yaobang He was removed from position of General secretary of Communist Party of China due to re establishment of Hundred Flowers (1987)Students gathered in Tiananmen square to morn Hu Yaobangs death and also demand democratization of ChinaThe students occupied the square and carried out strike

Tiananmen incident (June 4th Incident)
(1989)

The movement spread out side of Beijing and also overseaMay (20th): Martial LawPro vs. anti Martial Law in the Communist PartyStudents sympathizer, Zhao Ziyang lost his position (May 23rd)June: Peoples liberation army crashed into the demonstrators

The news of Tiananmen square ran through the world

The images of military crashing unarmed citizens and students ran through the worldThe western nations called back their foreign ministers from ChinaEconomic supports were suspendedEU: condemned the government response and cancelled all high level contacts and loansJapan: froze loans to ChinaTaiwan: strongly condemning the mainland Chinese responseSouth Korea: "grave concern" USA: suspended military salesUSSR: Call for reform

Socialist Market economy
(1992 -)

Deng Xiopings legitimization of economic reform in China after Tiananmen incidentSeeking establishment of socialism through market economyDeng Xiaoping argued that it is possible to adapt market economy under socialism."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."

Socialist Market economy 1992 -

Chinese government shifted its policy to encourage foreign business to produce products for China.Reformation of national business encourage joint venture between Chinese companies and foreign companiesEncourage foreign investment outside of Special Economic zoneEncourage various foreign companies to work in the Chinas domestic market: durable goods, car, textile, fast food

Socialist Market economy 1992 -

2001 China joined World Trade Organization (WTO)Accepting global standard in finance, accounting system and business managementFree tradeDecrease tariffFree capitol transfer1978-2003 (25 years) GDP annual growth 3 times more than world averageThe amount of trade: the 22nd in the world (1980s) the 7th (1990s)

Gross Domestic Produce (GDP) ()
By Organization for Economic Co-operation and
Development(OECD)

Chinas takeover of foreign companies

Economic Intelligence Unit (April 3, 2010) 298 cases of takeover by Chinese companies80 % of Chinese companies = state-owned companies

Chinas investment to Africa

NationAgriculture, Fishing, PasturageMining industryManufacturing industryService IndustryEgyptCottonGas, OilTourism, construction, tradeSudanGas, OilGeological research, constructionAlgeriaGas, OilconstructionMauritaniaFishingMaliFruits, vegetable oilGoldcommunicationNigeriaGas, OilTrade, Construction

Chinas investment to Africa

NationAgriculture, Fishing, PasturageMining industryManufacturing industryService IndustryKenyaTrade, ConstructionTanzaniaHempZambiaGrainCupper, GoldMozambiqueFisheryNamibia FishingZincMadagascarFishing, FisherySouth AfricaChrome steel, SteelCDTrade, Construction, Financial business, Transportation

Problems of diverging differences (Income)

There are differences between city and agrarian villagesThe Eastern coastal area has developed while Western inland area has been left behindChanges in Social Welfare system

Environmental problem

Air pollutionAcid RainWater pollutiondesertification

The 2nd largest Economy (2011-)

Some problematic issues

Territorial disputes Anti- Japanese movements effects on diplomatic relationshipsProblems of Made in China productsEthnic unrestDemocratic movements ( Social media)Human rights issues

Liu Xiaobo & Nobel Peace Prize (2010)

A literary critic, writer, professorHe participated in Tiananmen square protestHe get involved in compilation of Charter 08 Charter 08 is a manifesto to promote democratization and political reform of China which was signed by over 350 Chinese intellectuals and human rights activists2008 detained 2009 he was arrested for suspicion of inciting subversion of state power