Reform and Opening Up (Pinyin: gǎigé kāifàn; Simplified Chinese: 改革开放) is a policy of internal reform and external opening that China began to implement at the Third Plenary Session of the Eleventh Central Committee in December 1978 . China's internal reforms started with the rural areas. In November 1978, Xiaogang Village, Fengyang County, Anhui Province implemented the household contract responsibility system (Lump Sum Contract Responsibility system ) of "dividing land to households and responsible for their own profits and losses ".
On July 15, 1979, the central government officially approved the implementation of special policies and flexible measures in foreign economic activities in Guangdong and Fujian provinces, which marked a historic step towards reform and opening up. Opening up to the outside world has become a basic national policy of China. The road is a powerful driving force for the development of the socialist cause. Reform and opening up established a Socialist Market Economy. In 1992, the Southern Talk announced that China's reform had entered a new stage. Reform and opening up have brought about tremendous changes in China. The 14th National Congress of the Communist Party of China held in October 1992 announced that the most distinctive feature of the new era is reform and opening up, and China's reform has entered a new reform period. In 2013, China entered a new era of comprehensively deepening reforms . Deepening reform and opening up requires adhering to the direction of socialism.[1][2]
Reform and opening up is one of the two basic points of the basic line of the Communist Party of China in the primary stage of socialism . Since the Third Plenary Session of the Eleventh Central Committee of the Communist Party of China, the general principles and policies for socialist modernization are the road to a strong country and the source of vitality for the development and progress of the party and the country. Reform, that is, internal reform, is to consciously adjust and reform the aspects and links between production relations and productive forces, superstructure and economic base that are not compatible with each other under the premise of adhering to the socialist system, so as to promote the development of productive forces and various undertakings. progress in all aspects and better realize the fundamental interests of the broad masses of the people. Opening up, that is, opening up to the outside world, is an inevitable choice to accelerate my country's modernization drive, conforms to the characteristics of the current era and the general trend of world development, and is a basic national policy that must be adhered to for a long time.[3]
Historical Background
Precursor
The first economic reforms took place in 1972 with the implementation of the 43 Plan proposed by Zhou Enlai.[4] Roughly 4.24 billion US dollars worth of financial investment from over 20 countries from Capitalist countries, primarily Japan and the USA. However, in 1978, in accordance to the 82 Plan proposed by Hua Guofeng, 7.8 Billion US dollars worth of financial investment of roughly around 22 projects. The 43 Plan implemented under Mao and 82 Plan implemented under Hua Guofeng differed only in amount. The contents were consistent, even as early as the 1972, reform was the inevitable path forward for the CPC.
Mao Zedong and Zhou Enlai, Premier of the State Council, initiated a new wave of importing advanced foreign technologies and equipment in 1972. After one of Mao’s service staff told Mao that she queued for hours to buy some Dacron fabric, Mao had a conversation with Zhou about buying Western technologies for producing chemical fibers. Then Zhou instructed the State Council Working Group and the State Planning Commission (SPC) to prepare a report on importing chemical fibers and chemical fertilizer producing equipment. "The Report on Importing Complete Sets of Chemical Fibers and Chemical Fertilizers Producing Equipment" proposed to import four complete sets of chemical fiber producing equipment with capacity of 240,000 tons, two complete sets of 300,000-ton synthetic ammonia-producing equipment, and key equipment, spare parts and steel for construction or renovation of other chemical fertilizer factories, with a budget of US$400 million. Zhou and Mao approved the plan in February 1972. The Ministry of Light Industry and the Ministry of Fuel and Chemical Industries were responsible for implementing the plan. [5]
Other ministries also wanted to import advanced foreign equipment in their fields and proposed more projects. Zhou Enlai instructed the SPC to combine their proposals into a single plan. The SPC submitted the Request for Instruction on Increasing Equipment Import and Expanding Economic Exchange to the State Council on January 2, 1973. It proposed to import complete sets of equipment worth US$4.3 billion in the next 3 to 5 years, hence it was called the 43 Plan.
It included 26 projects to build 7 petrochemical complexes for producing chemical fibers (240,000 tons) and plastics as well as chemicals, 13 chemical fertilizer plants (with capacity to produce 4 million tons of ammonia and 6.3 million tons of urea), 3 power stations (with a total capacity of 870,000 kilowatts), and 1 steel rolling plant (with capacity of 2 million tons), 1 chlorinated pellets plant for iron and steel production (with capacity of 300,000 tons), and 1 alkyl benzene plant (with capacity of 100,000 tons). It also included 43 sets of fully-mechanized coal mining machines, and many other machines for various industrial sectors. The proposed imports were completed between 1976 and 1982, and the chemical fibers, fertilizers and electricity produced by those plants and factories played a key role in meeting the demand for clothes, food and electricity in the early 1980s. The large increase in grain output after 1978 was accompanied by large increases in fertilizer consumption. This was the second wave of importing foreign equipment and technologies, in which Deng Xiaoping was little involved, while Hua Guofeng played a part a member of State Council Working Group. The first wave had been the 156 industrial projects assisted by the Soviet Union in the 1950s.
Political Background
The resolution of the Central Committee of the Communist Party of China on certain historical issues of the party since the founding of the People's Republic of China (unanimously adopted at the Sixth Plenary Session of the Eleventh Central Committee of the Communist Party of China on June 27, 1981) reviewed the history of the 28 years before the founding of the People's Republic of China, and completed the 30-year history of the founding of the People's Republic of China. The seven years of socialist transformation and the ten years of building socialism in an all-round way have made basic estimates and evaluations.
Regarding the 10 years of the "Cultural Revolution", the document mentioned:
The 10 years of the Cultural Revolution caused the party, the country and the people to suffer the most serious setbacks and losses since the founding of the People's Republic. History has proved that the thesis of the "Cultural Revolution" did not conform to China's reality and did not conform to Marxism-Leninism. These theories were completely wrong in their estimation of the class situation in China and the political situation of the party and the country at that time. Practice has proved that the "Cultural Revolution" was not and could not be a revolution or social progress in any sense . It does not "disorder the enemy" at all, but disrupted China. Therefore, it was never been possible to achieve this supposed social progress in the first place. History has proven that the "Cultural Revolution" was a civil strife wrongly launched by leaders and exploited by counter-revolutionary groups, which brought serious disasters to the party, state and people of all ethnic groups. It was a social regression. In October 1976, the conspiracy of the Lin Biao and Jiang Qing Ultra-Leftist counter-revolutionary clique was smashed, the party was saved from danger, the revolution was saved, and China entered a new period of historical development.[6]
Economic Background
Economically, as of 1978, although China's gross national product reached 362.4 billion renminbi, more than double the 171.6 billion renminbi in 1965, with an average annual growth rate of 6.8%, and established an independent, categorically complete industrial system.[7] But the people are still poor, the technology is relatively backward, and after the Cultural Revolution, the CPC has a certain degree of governance crisis and crisis of trust. An estimated 30 percent of rural residents, about 250 million, lived below the poverty line, relying on small loans for production and state grants for food.[8] Despite the rise in grain output, earnings per capita in the 1970s were almost the same as in the mid-1950s[9] Housing showed almost no improvement during the 1960s and 1970s[10] Even by 1978, per capita levels of rural consumption – nearly thirty years after the start of the socialist era – of almost every food in an absolute sense were low, only 1.1 kilograms of edible oil and 6.4 kilograms of meat per year[11]
According to Professor Luo Yuanzheng, Deputy Director of the Institute of the World Economy, Chinese Academy of Social Scienes stated that in 1979:[12]
But our country is very backwards in terms of production; the eight hundred million people living in the countryside are basically manual labourers. Per capita production does not exceed on the average exceed 2,000 jin; in france it is 30,000 jin and in the USA, 147,000 jin. Basically, industrial automation and the levels of specialization have remained at the level of the 1940s and 1950s. The gap is even greater with new and developing industries. Work efficency in industry is also very low. Per capita annual steel production for workers employed in the steel industry is approximately 10 tons. While in Japan it is 300 tons.
In the construction industry, for example there was always a marked decline in economic results, as measured in per hundred yuan of fixed assets from 1957 to 1976. Industrial enterprises under the ownership of the state (or the whole people) declined for the same time period by 48.8 per cent from 23.6 yuan in 1957 to 12.1 yuan in 1976.[13]According to The Chinese Steel Industry's Transformation[14]
In 1978 China's total steel production was only 32 million tonnes, less than three weeks of current output levels. The per capita steel production was merely 33 kg, a fifth of the world average levels. The industry's technology, equipment, product variety and quality, as well as technical and economic indicators, all lagged far behind developed countries. For example, when the world average ratio of open-hearth steel-making to total steel-making fell below 20 per cent in the late 1970s, China's ratio still stood at 35.5 per cent. When the ratio of continuous casting was more than 50 per cent in Japan and 30 per cent in Europe, China's was merely 3.5 per cent. As a result of obsolete technologies, out of total production, the energy consumption per tonne of steel was as high as 2.52 tonnes of standard coal.
Due to political turmoil from the cultural revolution, output was significantly affected. In 1966, Steel output was at 15 million tons, then dropped to 10 million tons in 1967, then dropped to 9 million tons in 1968. In 1968 only 40% of it's steel capacity was being used, 13 million potential tons of steel went unmade. In 1973, China's steel production peaked at 25 million tons. It is only in 1977 did Steel production output beat the previous peak , at 31.7 million tons.[15] Labor productivity in industry was stagnating from 1970 to 1982.[16]
Per capita grain production had never risen above the historical peak in 1955 by the end of 1976.[17] Total factory productivity peaked in 1958, but fell and never reached that peak by the time of 1976. In fact, in 1976, agricultural TFP fell to an all time low.[18] Labor productivity in agriculture from 1952 to 1978 only grew by 0.2%[19] Labor productivity was declining from 1958, falling into below 1952 levels in 1960, never rising above 1952 levels until 1979.[20]
Labor productivity in industries peaked in 1966 and never recovered by the end of 1976, constantly rising and falling sharply.[21] In fact, the gap in productivity being the USA and China had widened over the period of the 60s and 70s. Total Factor Productivity rose only 0.9% between 1965 and 1978.[22] By the end of 1978, the level of manufacturing productivity was a mere 5.9 per cent of that of the USA, only marginally up on the 5.3 per cent recorded in 1952. GVA per capita only grew by 0.5% as a percentage of the USA's from 1952 - 1978.[23]
There was also an issue of Abseenteism/Loitering and lack of worker's efficiency in the workplace that still persisted well after Deng Xiaoping's Reform and opening up. For some time, customs continued in the public sector as described by a witness and Western scholar, “even the last attendant […], if he wants to, can decide to do nothing, stay home for a year or two and still receive his salary at the end of the month.” The “culture of laziness” also infected the expanding private sector of the economy. “The former employees of the State […] arrive late, then they read the newspaper, go to the canteen a half-hour early, leave the office an hour early,” and they were often absent for family reasons, for example, “because my wife is sick.” And the executives and technicians who tried to introduce discipline and efficiency into the workplace were forced to face not only resistance and the moral outrage of the employees (who considered it infamy to impose a fine on an absent worker caring for his wife), but sometimes even threats and violence from below.[24]
The phenomenon of “loitering labor” [was] such that by the late 1970s, the same farm tasks … were taking one and a half times as long to accomplish as they required under family management.[25] Similarly, this was recorded in a book which defends the Maoist collective farms, stating that farmers during the cooperative [collective] days used to work all day, every day, year-in and year-out, but got almost nothing done – work a little, take a break, work a little more, take another break. They felt harassed and they produced very little. What they were doing looked like work but in fact they were stalling around. Now they make every minute count.[26]
In order to accelerate economic development as soon as possible, the Party Central Committee with Deng Xiaoping at the core began to solve these problems one by one, and tried to change the deep-rooted image of the Communist Party and socialism in the people's minds. The purpose of this reform movement was to maintain the socialist system as the premise and change the management system and policies that are not suitable for production development, and the establishment of a Socialist Market Economy. The economic aspect of this reform made the first breakthrough in the countryside, and then quickly implemented reforms in various economic fields across the country. Deng Xiaoping came to power for the third time, trying to carry out all-round reform of the domestic economic system at that time, and trying to transfer China's economic system to the Socialist Market Economy. Deng Xiaoping's efforts and reform attempts were enthusiastically supported by the people.
Turning Point
From December 18 to 22, 1978, Deng Xiaoping held the Third Plenary Session of the Eleventh Central Committee of the Communist Party of China. It is a great turning point with far-reaching significance in the history of our party:
1. The Third Plenary Session of the Eleventh Central Committee is a meeting that continues the past and ushers in the future. Specifically, it re-established the Marxist ideological line of seeking truth from facts, downplayed the slogan "class struggle as the key link" that is not applicable to the current socialist society, and decided to shift the focus of the work of the whole party to socialist modernization.
2. The Third Plenary Session of the Eleventh Central Committee is a meeting that creates the future. The plenary session clearly pointed out that the party's historical task in the new era is to build China into a modern socialist country, which opened the prelude to socialist reform and opening up.
3. Starting from the Third Plenary Session of the Eleventh Central Committee, the Chinese people have entered a new era of reform, opening up and socialist modernization. Starting from the Third Plenary Session of the Eleventh Central Committee, the Party Central Committee with Deng Xiaoping at its core gradually opened up a road of building socialism with Chinese characteristics. Over the past 40 years, the Chinese people have made remarkable construction achievements along this road. The meeting opened the prelude to China's socialist reform and opening up. In December 1978, China began to embark on the road of reform and opening up.
Deng Xiaoping said: "Any nation or country must learn from the strengths of other nations and countries, and learn from other people's advanced science and technology." So he took the lead in proposing to implement reform and opening up in China, and contributed to China's reform and opening up. He has made indelible contributions and is known as the chief architect of China's socialist reform, opening up and modernization.
The Only Way
1. The status quo of the country needs to be changed
The " Cultural Revolution " left a serious situation for the country: the slow development of productive forces, the lack of food and clothing for the people, and backwardness in science and technology and education. This situation cannot be changed. How to change? There is only one answer: reform.
2. China needs a second revolution
New China was established and the new democratic revolution was completed. However, after the founding of New China, the highly centralized planned economic system established by blindly imitating the Soviet Union and China's isolationist policies had seriously hindered the development of China's productive forces. China needs a second revolution to unleash the productive forces. This situation cannot be changed. How to change? There is only one answer: reform.
3. The socialist system needs self-improvement and development
At each historical stage of socialist society, it is necessary to continuously promote the self-improvement and development of the socialist system in a timely manner according to the requirements of economic development, so that the socialist system is full of vigor and vitality. Where does vitality and vitality come from? There is only one answer: reform.
4. Realizing socialist modernization requires new thinking
The new idea is to establish and continuously improve the socialist market economic system, actively and steadily promote the reform of the political system, develop socialist democracy, build a socialist political civilization, and promote the reform of the cultural system. Where are the new ideas? There is only one answer: reform.
Formation Process
The Reform Begins
Before 1978, Xiaogang Village , Fengyang County, Anhui Province was a well-known "three-dependence village" in the county where "edible food depends on resale, money depends on relief, and production depends on loans". Every year after the autumn harvest, almost every family goes out to beg for food. On November 24, 1978, 18 peasant households in Xiaogang Village, with the courage to be the first in the world, pressed 18 fingerprints and set up a production responsibility system, which opened the prelude to China's rural reform. Perhaps it was a coincidence of history—shortly after these farmers pressed their fingerprints, the Third Plenary Session of the Eleventh Central Committee of the Communist Party of China was grandly opened in the Great Hall of the People in Beijing. At a critical historical juncture that concerns the fate and future of the country, China's top politicians represented by Deng Xiaoping and the peasants jointly turned a new page in history. Xiaogang Village thus became the birthplace of China's rural reform.
Emancipate the Mind
On May 11, 1978, "Guangming Daily" published a special commentator's article "Practice is the only criterion for testing truth" on the front page, triggering a nationwide discussion on the issue of truth standards. Under the leadership and support of the older generation of proletarian revolutionaries such as Deng Xiaoping, relying on the close cooperation of the theoretical circles, the press, and comrades engaged in practical work, this discussion finally broke through the shackles of the "two whatevers" The Central Plenary Session re-established the ideological line of Marxism and made theoretical and public opinion preparations, which had a significant and far-reaching influence in the historical process of the party and the country. [27]
To speed up China's economic development, we must further emancipate our minds, accelerate the pace of reform and opening up, and not be bound by some abstract debates about "social" and "capital". If socialism wants to gain an advantage over capitalism, it must boldly absorb and learn from all advanced management methods and management methods that reflect the general laws of modern socialized production and commodity economy from all countries in the world. Foreign capital, resources, technology, talents and the market economy as a beneficial supplement should all be and can be used by socialism. Power is in the hands of the people, and there is a strong public economy. Doing so will not harm socialism, but will only benefit the development of socialism.
Deng Xiaoping and his successors and other reformers withstood the onslaught of domestic conservatives and succeeded in making reform and opening up one of the cornerstones of the People's Republic of China's policy and irreversibly bringing China into the world economy , closely integrated with the world economy. From 1978 to 2000, the People’s Republic of China transformed from an isolated country with 200 million people living below the poverty line into a prosperous economy and reduced a fifth of the entire world's population living below the poverty line.
China is also advancing rapidly on the road to industrialization, becoming the new factory of the world. China has successfully realized the Socialist Market Economy and has become an important driving force for China's economic growth. The introduction of foreign capital has also become an important way to fuel China's economic growth, and China is the country that attracts the largest amount of foreign capital in the world (the introduction of funds from Hong Kong, Macao, and Taiwan is also counted as foreign capital).[28]
Policy Formation
In 1978, the Third Plenary Session of the Eleventh Central Committee of the Party made a major decision to implement reform and opening up.
In 1979, the Party Central Committee and the State Council approved Guangdong and Fujian to implement "special policies and flexible measures" in foreign economic activities, and decided to pilot special economic zones in Shenzhen , Zhuhai , Xiamen , and Shantou . One of the open provinces. On April 13, 1988, the Seventh National People's Congress passed a resolution on the establishment of the Hainan Special Economic Zone, establishing the Hainan Special Economic Zone . The successful creation of Shenzhen and other special economic zones has accumulated experience for further opening up, and has strongly promoted China's reform, opening up and modernization process.
After the Third Plenary Session of the Eleventh Central Committee in 1978, the national economy entered a period of adjustment. The Fourth Plenary Session of the Eleventh Central Committee in September 1979 passed the "Decision on Several Issues Concerning Accelerating Agricultural Development", allowing farmers to adapt to local conditions under the guidance of the unified national plan, guaranteeing their management autonomy and giving full play to their enthusiasm for production.
On August 18, 1980, Deng Xiaoping delivered a speech entitled " Reform of the Party and State Leadership System " at the enlarged meeting of the Political Bureau of the Central Committee , which pointed out the direction for the reform of China's political system in the new era.
In September 1980, the Central Committee of the Communist Party of China issued "Several Issues Concerning Further Strengthening and Improving the Agricultural Production Responsibility System", which affirmed the socialist nature of household production contracting .
By the beginning of 1983, the rural household contract responsibility system had been fully promoted across the country.
In April 1984, the Party Central Committee and the State Council decided to further open the 14 port cities of Dalian, Qinhuangdao , Tianjin, Yantai, Qingdao, Lianyungang, Nantong, Shanghai, Ningbo, Wenzhou, Fuzhou, Guangzhou, Zhanjiang, and Beihai . Gradually set up economic and technological development zones.
In October 1984, the Third Plenary Session of the Twelfth Central Committee of the Party systematically raised and clarified a series of major theoretical and practical issues in the reform of the economic system, and confirmed that China’s socialist economy is a planned commodity economy based on public ownership . It is a programmatic document for carrying out comprehensive economic system reform. The reform of the political system and the reform of the economic system are basically carried out simultaneously.
In the mid-1980s, China's reforms in various fields such as science and technology, education, and culture also started.
Since 1985, economic open zones have been successively opened up in the Yangtze River Delta , Pearl River Delta , southeastern Fujian and the Bohai Rim .
In 1988, the Hainan Special Economic Zone was added, making Hainan the largest special economic zone in China.
In 1990, the Party Central Committee and the State Council made a decision to develop and open the Shanghai Pudong New Area from the perspective of the long-term strategy of China's economic development. A new situation has emerged in China's opening up.
Opening Up Pattern
1. China's opening-up pattern
China's opening to the outside world has developed from the coast to the inland, forming a special economic zone-coastal open city- coastal economic open zone -inland, such an all-round, multi-level and wide-ranging opening pattern.
2. China's 6 Special Economic Zones
Shenzhen (327.5 square kilometers)
Zhuhai City (121 square kilometers)
Xiamen City (131 square kilometers)
Shantou City (2064 square kilometers)
Hainan Island (33920 square kilometers)
Kashgar
After Shenzhen was established as a special economic zone , it became a modern and prosperous city in just a few years, becoming a representative of China's special economic zones and known as the "window" of China's opening up to the outside world.
The Hainan Special Economic Zone is the only provincial-level special economic zone in the country and the largest special economic zone in China. On April 13, 1988, the First Session of the Seventh National People's Congress passed a resolution on the establishment of Hainan Special Economic Zone, designating Hainan Island as Hainan Special Economic Zone, implementing a more open and flexible system and policy than other special economic zones in China, and authorizing the Hainan government to be more Great autonomy.
3. China’s ports open to the outside world
Ports are ports, airports, stations, passages, etc. for people, goods and vehicles to enter and exit the country. Ports are divided into first-class ports and second-class ports .
1. Class I ports:
Class I ports refer to ports approved to be opened by the State Council (including ports managed by the central government and some ports managed by provinces, autonomous regions, and municipalities directly under the central government); Class II ports refer to ports approved to be opened and managed by provincial people's governments;
2. Second-class ports:
1. Relying on other ports to send people to the loading and unloading point, starting point, and delivery point of national ship foreign trade transportation for entry-exit inspection and inspection procedures;
2. Ports for small border trade and personnel exchanges with local governments of adjacent countries;
3. Ports of entry and exit for border residents only.
There are mainly three types of ports open to the outside world in China, namely water transport (sea transport) ports, land transport (railway, public transport) ports and air (airport) ports.
Airports:
Lhasa, Tianjin, Dalian, Shenyang, Changchun, Mudanjiang, Hangzhou, Fuzhou and Qingdao
Wuhan, Shenzhen, Meizhou, Sanya, Hailar, Nanchang, Guiyang, Shantou, Harbin, Wuyi Mountain, Luoyang, Hohhot, Hefei, Changsha, Zhangjiajie, Guangzhou and Zhanjiang
Haikou, Nanning, Chengdu, Kunming, Shijiazhuang, Xi'an, Lanzhou, Wenzhou, Guilin, Beihai, Chongqing, Xishuangbanna Urumqi, Qiqihar, Jiamusi, Jinan and Yantai
Kashi, Yanji, Shanghai, Ningbo, Huangshan, Xiamen. Weihai, Yichang, Yinchuan, Beijing and Nanjing
Rail ports:
Tumen, Dongguan, Guangzhou, Dandong, Suifenhe, Pingxiang, Alashankou, Manzhouli , Shenzhen, Foshan, Zhaoqing, Hunchun, Ji'an , Erenhot , Harbin and Zhengzhou
Highway port:
Quanhe, Huanggang, Dongning, Wenjindu, Hengqin, Friendship Pass, Shuikou, Ruili, Wanding, Ganqimao Road, Linjiang, Nanping, Mishan, Geelong, Turgat, Gongbei, Heyuan. Dongxing, Jinshui river, Alashan Pass and many more.[29]
The Ten Combinations
Since Reform and Opening up, the CPC and China have created and accumulated rich practical experience while making remarkable achievements in socialist modernization. On the basis of summarizing the staged experience of reform and opening up at the 13th, 14th, 15th, and 16th National Congresses of the Party, the 17th National Congress of the Communist Party of China focused on summarizing the entire historical process of reform and opening up in the past 30 years, closely linked to the How can a large developing country with a population of more than one billion get rid of poverty, accelerate the realization of modernization, consolidate and develop socialism, comprehensively and vigorously summarize the valuable experience of the "ten combinations".
The first combination said that the key to the success of China's reform and opening up is not to lose the "old ancestors", but also to develop the "old ancestors"; not only to constantly create new prospects for career development, but also to constantly open up new realms of Marxist theory. Such a combination promotes the emancipation of people's ideas and concepts and the emancipation of social productivity.
The second combination says that Chinese socialism can show vigor and vitality in the new era because it is a socialism that implements reform and opening up; the reason why China's reform and opening up can develop healthily is that it is conducive to the consolidation and development of socialism. Socialist reform and opening up. Such a combination has created a truly active socialism and created a socialism that further benefits the people.
The third combination is that in the process of reform and opening up, we not only rely on the strong leadership of the party and the government, but also respect the pioneering spirit of the people at the grassroots level, especially the localities . This kind of combination enables China to effectively maintain the harmony and unity of the country and the integration of society under the circumstances of diversification of interests caused by reform and opening up.
The fourth combination is that the new system of Socialist Market Economy, as an unprecedented creation, is closely linked with the basic system of socialism. Such a combination makes the socialist market economy an institutional model that not only meets the general requirements of a market economy, but also conforms to the essence and direction of socialism .
The fifth combination is that we attach importance to both economic system reform and internal superstructure reform including political system reform; while promoting political system reform, we also combine the expansion of democracy with the improvement of the legal system. Such a combination has created a political system model that combines the strengths of both democracy and centralization.
The sixth combination is that in China's reform, opening up and modernization drive, it not only attaches importance to the development of "things", that is, the development of social productive forces, but also pays attention to the development of "people", that is, the improvement of the civilized quality of the whole people. Such a combination unifies the all-round development of human beings and the all-round progress of society in the practice of modernization construction.
The seventh combination refers to the fact that in leading the reform, opening up, and modernization drive, the Party timely combines promoting development and improving efficiency with emphasizing social fairness and promoting social harmony. This kind of combination not only makes Chinese society full of creative vitality continuously, but also helps to avoid polarization and achieve common prosperity.
The eighth combination is that China, a large developing country with a population of more than one billion, cannot develop without participation in economic globalization , let alone independence. This kind of combination enables us to make good use of both domestic and international markets and resources at the same time, and achieve mutual benefit, universal benefit, and win-win results in equal competition that seeks advantages and avoids disadvantages .
The ninth combination is that in the process of reform and opening up, China pays attention to the coordination of the relationship between the intensity of reform, the speed of development and the degree to which the society can bear. This combination not only avoids the severe economic recession and social shocks that have occurred in many countries in transition, but also enables the fruits of reform and development to truly benefit all the people.
The tenth combination is that our party combines the transformation of the objective world with the transformation of the subjective world to provide a strong political and organizational guarantee for reform, opening up and modernization. This combination not only promotes the great cause of socialism with Chinese characteristics, but also advances the new great project of party building , thus continuously improving the party's leadership level, governance level and ability to resist corruption and prevent change.
The Achievements'/Successes of Reform and Opening Up
Poverty Reduction
From the beginning of Reform and Opening Up to 2022, poverty has been reduced significantly. The number of people living below the poverty line (1.90 USD a day) has fallen by around 800 million people. China has contributed to around 75% of the worlds total poverty reduction.[30] The rural poverty rate declined from 97.5% to 1.7%.[31] By 2020, absolute poverty was eliminated in China, being the first country to reach the UN goal of "No absolute poverty".[32] From 1981 to 2015, China's poverty rate declined from 88% to 0.7%.[33] When discussing relative poverty of 2.15 USD or below a day, from 1981 to 2019, 91.62% declined to 0.14%. And less than 3.65 USD a day, fell from 2.15 to 0.14%.[34] And in regards to discussing relative poverty of 6.85 USD or below a day, from 1981 to 2019, fell from 99.98% to 24.72%.[35]
China's Engels coefficient (% of income spent on food) was 57.5% for urban residents, 67.7% for rural residents in 1978. Which declinded to 29.3% in 2016 for urban residents and 32.2% for rural residents.[36] Total Engel's Coefficient fell to 29.8% in 2021.[37] China's domestic population share suffering under Global Multidimensional poverty fell from 9.47% in 2010 to 4.21% in 2014 and fell to 3.9% in 2023. Lack of clean drinking water, malnutrition and use of solid cooking fuel are the largest contributors.[38]
While global absolute poverty (measured as less than $1.25/day) declined from 40.5 to 25.2 per cent between 1981 and 2008 (a 15.3% reduction), China begin the period with a much higher rate (84.0 per cent) and succeeded in reducing it to 13.1 per cent (a 70.9% reduction). Moreover, China even substantially reduced relative poverty (defined as living below 50% of mean income) from 85.2 to 41.0 per cent while the developing world's poverty rrate scarcely changed (Less than 10 percent change over the same time period of which being 1981 to 2008). By 1996, China's relative poverty was already below the relative poverty rate of the developing world.[39]
Agriculture & Food Security
Grain production per capita finally exceeded the 1955 peak in 1978[17], while the total factor productivity in agriculture finally exceeded the 1958 peak in 1983.[40] After Deng Xiaoping implemented the household responsibility system, agricultural output increased by 8.2% a year, compared with 2.7% in the pre-reform period, despite a decrease in the area of land used. Food prices fell by by nearly 50%, while income rose.[41]
The real gross value of crop output per arable acre rose by around three quarters during the reform period. The average annual real grown of net farm output per worker accelerated sharply from only 0.3 per cent between 1957 to 1978 to 4.3 per cent from 1978 to 1991[42] During a two-year period in rural China, 1979-81, agricultural productivity increased by 18 per cent.[43]
From 2012 to 2022, food security in China ranked according to the Global Food Security index rose from 55 to 74.2.[44] China is ranked 25th out of 113 countries on overall score, placing it in the top 20 percent. China is ranked 2nd out of 113 countries on food availability, 33rd on food affordability (top 29%), 46th on food safety (top 40%) and 55th on sustainability and adaption (top 48%)
In 2022, China's prevalence of under nourishment is at 2.5% compared to the global average of 9.8%. 4.7% of children are stunted compared to the global average of 22%. China's rate of underweight children is 2.4% while the global average of 2021 is 12.6%. China's rate of obesity is 6.6% compared to the global average of 13%.
China has had a 100% positive change in food costs compared to the mean index of 78%. A 100% positive change in food safety net programmes compared to the mean of 72.4%. A score of 78.9 compared to the mean of 57.6 of access to agricultural input for farmers. A score of 98.6 for food volatility compared to the mean of 68.7. A score of 69.3 for supply chain infrastructure compared to the mean of 61.9. A score of 100 for commitment to input food security policies compared to the mean of 47. A protein quality of 83.8 compared to the mean of 68.5 and a food safety of 92.4 compared to the mean of 76.4.[45]
In 2012 it was found by the Food and Agriculture Organization that China (-96 million) and Viet Nam (-24 million) amounts to 91 percent of the net numerical reduction in undernourished people since 1990-92. Scholars associate land reform with China’s advance against hunger (and SOFI12 acknowledges small farmer access to land in China as key); to understanding the progress of China and Viet Nam, experts cite egalitarian land reform as a key. In both countries, small holders secured access to land through state policies. SOFI12 also notes the “situation of relatively equal access to farmland and human capital” in China as important in China's striking progress against hunger.[46]
Labor productivity increased in the post-reform area, the annual growth rate of GVA per worker was only 0.8 per cent per year between 1955 and 1981, whereas it grew at a rate of nearly 5 per cent per year after 1981.[47] From 1981 - 2006, the gross output value of farming was 4.3% and gross output value of agriculture was 5.5%. Compared from the period of 1954 - 1981 of 2.9 and 3.3% respectively. In terms of value added overall, it was 4.2% for 1981 - 2006. And 2.7% for 1954 - 1983.[48]
Real Gross Value Added was 4.5% from 1978 to 2003, up from the growth rate of 2.2% from '52 to '78.[19] Labor productivity from 1957 to 1978 declined by 0.19%, but from 1987 to 1994 it increased by 3.05%. In terms of aggregate gross value added, from 1957 to 1978, it was 1.72% compared to 5.52% from '87 to '94.[49] Labor productivity from 1952 to 1978 only grew by 0.2% per anum, from 1978 to 2003 it grew by 4% per anum. Over the course of 1952 to 1978, labour productivity in agriculture only increased by 4.3%. While labour productivity from 1978 to 2003 increased by 3.65x[19]
The effect of decollectivization and the improvement in the intersectoral terms of trade was to eliminate much of underemployment (in the form of loitering); labour inputs (in terms of hours worked) surged in the late 1970s and early 1980s. Following the second land reform, every minute was made to count on the family farm.[26]
Economic Growth
According to a study from the National Bureau of Economic Research, "reforms yielded a significant growth and structural transformation differential. GDP growth is 4.2 percentage points higher and the share of the labor force in agriculture is 23.9 percentage points lower compared with the continuation of the pre-1978 policies."[50]
From 1952 - 1978, GDP growth averaged at 4.8%. While GDP growth from 1978 to 1995 averaged at 7.8% according to Angus Maddison.[51]
Unlike the massive privatization and use of "Shock Therapy" in the collapse of the Eastern Bloc, China has avoided the pitfalls that the model has caused for the former USSR and nations of the Warsaw Pact. The Eastern bloc economies saw declines of 13% to 65% in GDP at the beginning of reforms, while Chinese growth has been very strong since the beginning of reform.[52] China also managed to avoid the hyperinflation of 200 to 1,000% that Eastern Europe experienced.[53]
Chinese GDP growth since 1978 to 2021, averages around 9%.[54] From 1978 to 2017, China's GDP increased by 33.5 times at constant prices, with an average annual growth rate of 9.5%, doubling every 8 years on average. [55]China has had the greatest economic growth out of any nation on planet earth within a 39 year period. Skyrocketing it to becoming the second largest economy, just behind the United States of America. All within a much smaller period of time and much larger growth, surpassing the Asian tigers.
In 2007, the total GDP of Guangdong Province surpassed that of Taiwan, becoming the first province in Mainland China whose total GDP surpassed that of Taiwan. After 2012, the GDP of Jiangsu, Shandong, Zhejiang, and Henan successively surpassed that of Taiwan, among which the GDP of Guangdong reached more than double. In 2018, the GDP of Sichuan and Hubei also surpassed that of Taiwan.
In 2007, China's total GDP surpassed that of Germany; in 2010, China's GDP surpassed that of Japan, becoming the world's second largest economy after the United States. In 2018, China's GDP was equivalent to 13.6 trillion U.S. dollars, in 2019 it exceeded 14 trillion U.S. dollars, and in 2021 it was 17.7 trillion U.S. dollars, ranking second in the world; its GDP calculated by purchasing power parity reached 25.5 trillion U.S. dollars, ranking first in the world.
Overall from 1952 - 1978, the labor productivity in China grew by 1.6% per annum. This sharply increased to 5.8% from 1978 to 2003. Real Value Added was 4.4% in '52 to '78, which increased to 7.9% from 1978 to 2003.[19] Value added per capita in China from 1995 to 2018 grew by 7.8%, compared to 5% for India, 4.3% for Bangladesh, 5.4% for Vietnam, 4.4% for Sri Lanka and 3.7% for the Republic of Korea.[56]
GDP per capita, Wage Growth and Household Consumption Growth
From 1978, the GDP per capita skyrocketed from 156 USD to 12,556 USD by 2022, a more than 55 times increase.[57] For the period 1978–2005, Chinese GDP per capita increased from 2.7% to 15.7% of U.S. GDP per capita, and from 53.7% to 188.5% of Indian GDP per capita. Per capita incomes grew at 6.6% a year. [58] The per capita GDP of some coastal provinces and cities in the east has exceeded US$20,000.[59]
GDP per capita growth from 1952 to 1978 averaged at 2.35%. While from 1978 to 1995, it grew by 6.3%[51]
Per capita income in China doubled in the decade from 1980, whereas it took Britain six decades to achieve the same after the Industrial Revolution in the late eighteenth century and America five decades after the Civil War.[60]
China had the greatest rate of household consumption (a type of expenditure used ot purchase needs and wants for a household) increase in a 38 year period. And the greatest increase of total consumption (use of goods and services) within a 26 year period.
Chinese wages increased six-fold between the period of 1978 and 2005.[61] In advanced G20 economies, real wage growth fluctuated between 0.4 and 0.9 per cent, while rising more rapidly – between 3.5 and 4.5 per cent annually – in emerging G20 countries. Between 2008 and 2019, real wages more than doubled in China, meaning an 18% increase annually.[62] Richard D. Wolff in his video, Economic Update: China's Economic Record and Strategy[63] from 8:38 to 12:51 demonstrates that The real wage in China (IE the wage adjusted for the prices you pay) has gone up 4x in the past 25 years, more than any other country.
This is staggering considering it's the most populous country on the planet. The US real wage by comparison is lower in 2019 than it was in 1973. Once you account for disposable income, it has increased 1,000% within 2002 and 2022.[64]
Arthur Kroeber writes that between 1988 and 2008, average per capita income in China grew by 229 percent – “ten times the global average of 24 percent, and far ahead of the rates for India (34 percent).”[66] Per capita income in China doubled in the decade from 1980, whereas it took Britain six decades to achieve the same after the Industrial Revolution in the late eighteenth century and America five decades after the Civil War.[67] Economist Arthur Kroeber also notes that workers’ wages have increased continuously, pointing out that, in 1994, a Chinese factory worker could expect to earn a quarter of what their counterpart in Thailand was earning; just 14 years later, the Chinese worker was earning 25 percent more than the Thai worker.[68]
As of 2011, Chinese labor cost's were higher than every single developing asian country with the exception of Thailand and Malaysia.[1] By 2015, the average monthly wage of manufacturing workers reached 4126 yuan (US$635) by the end of 2015 which is far below the US (US$3099 per month) but is nearly the same as in Brazil and significantly greater than in other emerging markets (Malaysia, Thailand, Mexico, Vietnam and India).[2]Chinese labor is no longer "cheap", between 2013 and 2022 manufacturing wages doubled, to an average of $8.27 per hour. Malaysian, Filipino, Vietnamese, Indian and Thai wages do not exceed $3 per hour.[3]
Out of all developing economies, China has had the greatest growth when it comes to disposable income that can be spent on needs and wants. Especially in comparison to other capitalist developing nation models.
Water/Sanitation treatment
Prior to the early 1980s, China lacked a proper municipal water waste plant, which was first constructed in Nanjing.[69] Subsequently, China engaged in what is possibly the largest wastewater treatment investment program in history. It has been estimated that in 2006 there was sufficient capacity to treat 52% of municipal residential wastewater[70] By 2010, that number had increased to 77.5%.[71] Between 1990 and 2012, access to improved water supply increased from 67% to 92% and improved sanitation went from 24% to 65%.[72] From 2006 to 2021, urban sewage treatment jumped from 55.7% to 97.8%[73]
37% of the population has gained access to improved sanitation since 1990, while 40% of the population has gained access to improved drinking water sources over the same period of time. By 2015, 76% of the population has access to improved sanitation and 95% of the population has access to improved drinking water sources.[74] Access to basic sanitation from 2000 to 2020 has increased from 57 to 92%[75] In the same period of time, rural sanitation has increased from 45 to 88%.[76] And urban sanitation increased from 78 to 95%.[77]
Electrification and Literacy
By 1980, roughly only 70% of the population had full electrical coverage. Which in 2015 became the first large developing economy to achieve full electricity access. Indeed, China’s success in providing electricity to 900 million people between 1949 and today stands out as, numerically, the most impressive achievement in the history of electrification. China has addressed rural electrification on two distinct waves of effort. The first, which was synonymous with economic development of the country, ran through the late 1990s and resulted in China enabling electricity service to 97 percent of the population [2]. About four-fifths of the rural population gained access through extension of the power grid while the rest were electrified by interconnecting small hydro and small (<50 MW) coal-fired plants into local and regional grids
The second front of effort, to provide electricity for the last 3%, was much harder and offers perhaps the lessons of greatest relevance to other countries that are struggling to sending electricity to remote, poor populations. In this end game for remote rural electrification China made notably advances by extending and renovating rural grids. But grid extensions could not reach everyone in a cost-effective manner, which is why in 2012, the central government released its Electricity for all three-year action plan (2013-2015) that outlined a plan to assure electricity supply to the last 2.73 million people. Success on this last front is what has allowed China to declare full electrification in 2015.[78]
China's literacy rate also increased from 65% in 1982, jumping up to 97.15% by 2022.[79]
Industrialization and Automation
From a semi-industrial nation in 1978, China is now the world's biggest producer of concrete, steel, ships and textiles, and has the world's largest automobile market.[80] From 1975 to 1992, China's automobile production rose from 139,800 to 1.1 million, rising to 9.35 million in 2008.[81] Light industries such as textiles saw an even greater increase. Chinese textile exports increased from 4.6% of world exports in 1980 to 24.1% in 2005. Textile output increased 18-fold over the same period[82] China is a world manufacturing superpower, owning a 28.7% share of the global manufacturing output, the largest in the world.[83]
The Chinese experience is based on industrialization: industry represented 35% of GDP in 1970 to 42% in 1990. The decline in percentage terms of agriculture, went from 38% of GDP in 1970 to 27% in 1990… The pattern of industrial growth during the 1980s has favored light industry, much of it in collective enterprises and, to a lesser extent, private firms as compared to substantially lower, though supposedly still rapid, growth in heavy industries in state-owned enterprises.[84]
Chinese robotic installations have grown rapidly, becoming the world leader in robotics by 2019. The fastest growth in robotics installation out of any country. By 2016, China has become the largest operational stock of robots.[85]Even when compared to the USA, a supposed first world developed country, China's robot density (robots there are per 10,000 workers) outpaces them.[86] China's commitment to automation can be seen in the rural sector, such as intelligent green houses with more commitment to robotizing the farming industries. With the mechanization rate in urban sectors at around 70% by 2020, the number is bound to increase.[87]
Labor productivity improved dramatically after reforms too. Labour productivity per worker peaked in China in 1966, and went under periodic rises and dips over the course of 1966 to 1976. It was only in 1978 that industrial productivity beat the historical 1966 peak.[21] For state enterprises, total factor productivity from 1980 - 1996 increased 1.7% per year, meaning a 27.2% increase within the 16 year span.[88] Compared to only 0.9% in 1965 to 1978.[89] For light industry's output value grew by 8.7% per anum from 1952 to 1978. From 1978 - 1999, it grew 15.25%. For Heavy industry, it was 11.9% from 1952 to 1978, but 14.75% from 1978 to 1999.[90]
Between 1978 and 1998, Chinese value-added per worker in manufacturing more than doubled in real terms, and in the process rose more quickly than in any of Japan, the USA and Russia. A process of catch-up was under way, especially in respect of Russia; the ratio of Chinese to Russian labour productivity narrowed from 16 to 54 per cent, as a result of poor Russian and improved Chinese performance.[91] Value added per worker from 1990 to 2003 increased by 600%. During the same time period, Brazil and Mexico had stagnant growth, not exceeding more than 20% during the same time period.[92]
At the end of 1952, China's gross value added in manufacturing was 3.4% of the American level. By 1978, the gross value added in manufacturing of China was roughly around 14% of the USA's level. By the end of 1994, that number has risen to 45%. From 1952 - 1978, China's GVA as a percentage of the USA's grew by 10.6%. From 1978 to 1994, that number grew by 31%. This means that the GVA in manufacturing for China increased 2.9 fold post-reform compared to pre-reform. GVA per capita as a percentage of the USA was around 5.8% at the end of 1978 (with a 0.5% growth rate from 1952 to 1978), that number increased sharply by the end of 1994 with it being 9.5% (with a 3.7% growth rate from '78 to '94) This means that from 1978 to 1994, per capita growth increased 7 times over the pre 1978 level.[23]
From 1952 to 1978, labor productivity in industry and construction increased 2.11x, while from 1978 to 2003, it increased 6.21x. In yearly measurements, from 1978 to 2003 grew 6.5% per annum, compared to the 3.7% from 1952 to 1978.[19] Labor productivity as a percentage relative to the USA grew by 4.3% from 1978 to 1994, compared to 0.4% from 1952 to 1978.[23]
Ferrous Metal Production
Chinese steel output quadrupled between 1980 and 2000, and from 2000 to 2006 rose from 128.5 million tons to 418.8 million tons, one-third of global production. Labor productivity at some Chinese steel firms exceeds Western productivity. In 2002, the top Chinese firms (which are SOEs) were able to outperform international standards. Achieving 395.35 kg of coal per ton for iron smelting compared to the international norm of 400 kg. And achieving 56 kwh of electricity per ton of electric furnace steel (versus a norm of 350 kwh/ton).[80]
During the 14 years from 1978 to 1992, more than 700 advanced technologies were introduced and US$6 billion in foreign capital was utilized. In particular, two modern large steel enterprises, Baoshan Iron and Steel Corporation (launched in 1978 and put into operation in 1985) and Tianjin Seamless Steel Tube Corporation (launched in 1989 and put into operation in 1996), were established. Meanwhile, many old steel plants were rebuilt and restructured. These notable changes to the technology structure of the country's steel industry saw the gap between it and world-class practices narrow.
In the years between 1978 to 1992 saw significant achievements in output. By 1992 there was a 1.6-fold increase in steel production; the domestic market share had increased by 17 per cent, the ratio of open-hearth steel-making to total steel-making was reduced to 11 per cent, the ratio of continuous casting to the total rose to 30 per cent, and the total production energy consumption per tonne of steel output fell to 1.6 tonnes of standard coal or by 62 per cent. This period saw the fastest structural adjustment of the steel industry.[94]
By the end of 2000, open-hearth steel-making was almost eliminated, five years earlier than planned; the ratio of continuous casting reached 87 per cent, surpassing the 75 per cent target and catching up with world averages; and the total energy consumption per tonne of steel output fell to 885 kg of standard coal, a decrease of 56 per cent from 1992.
Any shortage of steel in China may now be consigned to history. Since the reform and opening up of 1978, and especially since 2000, China's steel production capacity has expanded rapidly. The industry underwent a period of extraordinary growth in both total sales and total profits which increased at an average annual rate of 32 and 44 per cent respectively over the period 2001- 2007. The end of 2010 saw China's total steel production reach 630 million tonnes, 18 times the output in 1978. The crude steel production grew at an annual growth rate of 17.2 per cent after 2001. China's share of global steel production increased from 4.4 per cent in 1978 to 15 per cent in 2000 and to 45 per cent in 2010, a share which has been unprecedented in the entire history of industrialization.
The industry also experienced a remarkable rate of technological progress, resulting in improved technical and economic indicators. Many indicators of domestic productivity are outstripping those of developed countries. For example, since 1978 to 2012, the overall ratio of rolling steel being produced has increased to over 95 per cent from 75 per cent; total production energy consumption per tonne of steel has fallen from 2.5 tonnes of standard coal to 605kg of standard coal; freshwater consumption per tonne of steel has fallen to 4 tonnes; and labour productivity per tonne per person-year has increased from 33 tonnes to 400 tonnes.
Highspeed Railway
The high-speed rail (HSR) network in the People's Republic of China (PRC) is the world's longest and most extensively used – with a total length of 42,000 kilometres (26,000 mi) by the end of 2022.[95] [96] The HSR network encompasses newly built rail lines with a design speed of 200–350 km/h (120–220 mph). China's HSR accounts for two-thirds of the world's total high-speed railway networks.[97] Almost all HSR trains, track and service are owned and operated by the China Railway Corporation under the brand China Railway High-speed (CRH). The CR400 "Fuxing" trains run at a commercial maximum of 350 kph (217 mph) but have successfully reached 420 kph (260 mph) on test, making it the fastest HSR bullet train in the world.
According to Martin Raiser, World Bank Country Director for China.[98]
“China has built the largest high-speed rail network in the world. The impacts go well beyond the railway sector and include changed patterns of urban development, increases in tourism, and promotion of regional economic growth. Large numbers of people are now able to travel more easily and reliably than ever before, and the network has laid the groundwork for future reductions in greenhouse gas emissions,”
The Study, "China's High-Speed Rail Development" by Lawrence,Martha B. Bullock,Richard G and Liu,Ziming states the following: [99]
"A key enabling factor of the success in China's Highspeed Railway Program is the development of a comprehensive long-term plan to provide a clear framework for the development of the system. China’s Medium- and Long-Term Railway Plan looks up to 15 years ahead and is complemented by a series of Five-Year Plans. In China, high-speed rail service is competitive with road and air transport for distances of up to about 1200 km. Fares are competitive with bus and airfares and are about one-fourth the base fares in other countries. This has allowed high-speed rail to attract more than 1.7 billion passengers a year from all income groups. Countries with smaller populations will need to choose routes carefully and balance the wider economic and social benefits of improved connectivity against financial viability concerns.
A key factor keeping costs down is the standardization of designs and procedures. The construction cost of the Chinese high-speed rail network, at an average of $17 million to $21 million per km, is about two-thirds of the cost in other countries.
The rate of return of China’s network as of 2015 is estimated at 8 percent, well above the opportunity cost of capital in China and most other countries for major long-term infrastructure investments. Benefits include shortened travel times, improved safety and facilitation of labor mobility, and tourism. High-speed networks also reduce operating costs, accidents, highway congestion, and greenhouse gas emissions as some air and auto travelers switch to rail."
State planning for China's current high-speed railway network began in the early 1990s under the leadership of Deng Xiaoping. He set up what became known as the "high-speed rail dream" after his visit to Japan in 1978, where he was deeply impressed by the Shinkansen, the world's first high speed rail system.[100]
In the 1980s, China's railways faced the dilemma of insufficient transportation capacity. The speed of trains was lower than 120 km/h, and the contradiction between passenger and cargo running mixed increased. According to the analysis of relevant experts from the former China Ministry of Railway Research Institute: limited by the economic technology and market environment at that time, the development of high-speed railways in China needs to be carried out in stages. Only when the conditions are ripe will it be possible to build a new high-speed passenger dedicated railway. During the same period, the Guangzhou-Shenzhen section of the Guangzhou-Kowloon Railway started the electrification renovation project, and planned to introduce pendulous EMU trains to increase the speed to 160 km/h, making it an optimal test line for the development of quasi-high-speed railways in China.[101]
History of Reform and Opening Up
From 1978-2018, a total of 40 years.
1. The Third Plenary Session of the Eleventh Central Committee was held in 1978
From December 18 to 22, 1978, the Third Plenary Session of the Eleventh Central Committee of the Party was held in Beijing. The meeting made a decision to shift the focus of work to socialist modernization and to implement reform and opening up; the ideological line, political line and organizational line of Marxism were re-established, and my country entered a new period of socialist modernization.
2. Special economic zones were established in 1979
On July 15, 1979, the Central Committee of the Communist Party of China and the State Council approved and forwarded the reports of the Guangdong Provincial Committee and the Fujian Provincial Committee on the implementation of special policies and flexible measures for foreign economic activities, and decided to set up trial special zones in Shenzhen, Zhuhai, Shantou and Xiamen. On August 13, the State Council issued the "Regulations on Several Issues Concerning Vigorously Developing Foreign Trade and Increasing Foreign Exchange Income", the main content of which is to expand the foreign trade authority of localities and enterprises, encourage the increase of exports, and run export special zones well. On May 16, 1980, the Central Committee of the Communist Party of China and the State Council approved the "Meeting Minutes of Guangdong and Fujian Provinces" and named it " Special Economic Zone ".
3. In 1982, the reformed household contract responsibility system was established
On January 1, 1982, the Central Committee of the Communist Party of China approved and forwarded the "Minutes of the National Rural Work Conference" , pointing out that various responsibility systems implemented in rural areas, including fixed-rate payment for small-scale labor contracting, professional contracting and joint production calculation, joint production to labor, contracted production to households, to Groups, etc., are the production responsibility system of the socialist collective economy ; in 1983, the central government issued a document, pointing out that the joint production contract system is a great creation of Chinese farmers under the leadership of the party , and it is the practice of Marxist agricultural cooperative theory in China. new developments in.
4. In 1984, the planned commodity economy was put forward
On October 20, 1984, the Third Plenary Session of the Twelfth Central Committee of the Communist Party of China was held in Beijing. The meeting unanimously adopted the " Decision of the Central Committee of the Communist Party of China on Economic System Reform ", clearly stating that further implementation of the policy of invigorating the economy at home and opening up to the outside world, and accelerating the pace of reform of the entire economic system focusing on cities is the key to the development of the current situation in China. urgent need. The basic task of reform is to establish a socialist economic system with Chinese characteristics, full of vigor and vitality, and to promote the development of social productive forces.
5. In 1986, the reform of enterprises owned by the whole people started
On December 5, 1986, the State Council issued "Several Regulations on Deepening Enterprise Reform and Enhancing Enterprise Vitality". The "Regulations" propose that small enterprises owned by the whole people may actively try leasing and contracting operations. Large and medium-sized enterprises owned by the whole people should implement various forms of management responsibility system. All localities may choose a small number of qualified large and medium-sized enterprises owned by the whole people to carry out joint-stock pilot projects.
6. In 1987, the basic line of "one center, two basic points" was put forward
From October 25 to November 1, 1987, the Thirteenth National Congress of the Communist Party of China was held. Zhao Ziyang made a report on " Advancing Along the Road of Socialism with Chinese Characteristics ". The report expounds the theory of the primary stage of socialism, and puts forward the party's basic line of " one center and two basic points " in the primary stage of socialism: economic construction as the center, the four basic principles as the foundation of the country , and reform and opening up as the foundation. The road to power. It formulated a three-step development strategy to achieve modernization by the middle of the next century, and put forward the task of reforming the political system.
7. In 1988, "Science and technology is the primary productive force" was put forward
On September 5, 1988, when Deng Xiaoping met with President Husak of Czechoslovakia , he put forward the famous thesis that " science and technology are the primary productive forces ". On March 13, 1985, the Central Committee of the Communist Party of China made the "Decision on the Reform of the Science and Technology System". The "Decision" pointed out that modern science and technology are the most active and decisive factors in the new social productive forces, and the whole party must attach great importance to and give full play to the huge role of science and technology. At the same time, it stipulates the main tasks of the current reform of the science and technology system.
8. In 1992, the goal of socialist market economic system reform was established
From October 12 to 18, 1992, the Fourteenth National Congress of the Communist Party of China was held in Beijing. Jiang Zemin made a report titled "Accelerate the pace of reform, opening up and modernization, and win greater victories in the cause of socialism with Chinese characteristics". The report summed up the 14 years of practical experience since the Third Plenary Session of the Eleventh Central Committee, and decided to seize the opportunity to accelerate development; determined that the goal of China's economic system reform is to establish a socialist market economic system; proposed to use Comrade Deng Xiaoping's theory of building socialism with Chinese characteristics Arm the whole party. The congress passed the "Constitution of the Communist Party of China (Amendment)", which included the theory of building socialism with Chinese characteristics and the basic line of the party into the party constitution. For the first time in the history of the party, the goal model of establishing a socialist market economic system was clearly stated.
9. Establishment of modern enterprise system in 1993
From November 11 to November 14, 1993, the Third Plenary Session of the Fourteenth Central Committee of the Communist Party of China was held. The plenary session passed the " Decision of the Central Committee of the Communist Party of China on Several Issues Concerning the Establishment of a Socialist Market Economic System ." The plenary session pointed out that the socialist market economic system is combined with the basic socialist system.
10. In 1993, fiscal and taxation system reform was carried out
On December 15, 1993, the State Council made a decision on implementing the tax-sharing financial management system. On December 25, 1993, the State Council made the "Decision on Financial System Reform".[102]
11. Comprehensive reform of the foreign trade system in 1994
On January 11, 1994, the State Council made the "Decision on Further Deepening the Reform of the Foreign Trade System", proposing that the goals of China's foreign trade system reform are: unifying policies, opening up operations, equal competition, self-responsibility for profits and losses, combining industry and trade, and promoting the agency system , and establish an operating mechanism that adapts to the prevailing international economic rules.
12. In 1992 and 1994, the market-oriented reform of medical care and housing was implemented
In 1985, under the background of China's reform and opening up, the medical and health system also started the process of reform. The core idea of medical reform is to decentralize power and transfer profits, and expand the autonomy of hospitals. The government's attitude towards health care reform is: give policies but not money. Its policy is to increase the price of medicines by 15% to make up for the lack of government investment. In the 1990s, medical reform made waves again. In September 1992, the Ministry of Health, based on the opinions of the State Council, proposed that hospitals should "subsidize doctors with work" and "supplement the main with subsidy". In 2000, the reform gradually developed in depth, touching on institutional, institutional, structural and other deep-seated issues. In March 2000, the General Office of the State Council forwarded the "Guiding Opinions on Urban Medical and Health System Reform" issued by eight ministries and commissions, commonly known as the "Fourteen Articles" of medical reform; Guiding Opinions on Reform".
13. Housing market reform
On July 18, 1994, the State Council made the "Decision on Deepening the Reform of the Urban Housing System", which clarified the basic content of the reform of the urban housing system, including changing the way of housing welfare distribution in kind to monetary wage distribution based on distribution according to work methods, establishing a housing provident fund system, etc. The promulgation of the "Decision" opened the door to the commercialization of urban housing and marked the establishment of China's comprehensive housing market reform. Its greatest significance lies in the steady promotion of the sale of public housing. By selling the original public housing to urban workers , the The Process of Housing Privatization in China. On July 3, 1998, the State Council issued the " Notice of the State Council on Further Deepening Urban Housing System Reform and Accelerating Housing Construction ". It is precisely because this document abolishes the system of housing distribution in kind , sweeps away the "competitors" for the development of commercial housing , and thus establishes the dominant position of commercial housing in the market.
14. In 1995, the goal of "two fundamental changes" was put forward
From September 25 to 28, 1995, the Fifth Plenary Session of the Fourteenth Central Committee of the Communist Party of China was held. The plenary session passed the "Central Committee of the Communist Party of China's Proposal on Formulating the Ninth Five-Year Plan for National Economic and Social Development and the 2010 Vision". The "Proposal" proposes that the key to realizing the "Ninth Five-Year Plan" and the long-term goal of 2010 is to implement two fundamental changes of overall significance. One is the transformation of the economic system from the traditional planned economic system to the socialist market economic system . The mode of economic growth has changed from extensive to intensive.
15. Significant progress was made in the reform of the foreign exchange management system in 1996
On December 1, 1996, China began to accept Article 8 of the Agreement of the International Monetary Fund , implementing the convertibility of RMB under the current account.
16. The "Fifteenth National Congress" in 1997 put forward the basic program of the party in the primary stage of socialism
From September 12th to 18th, 1997, the Fifteenth National Congress of the Communist Party of China was held in Beijing. It systematically and completely proposed and discussed the basic program of the party in the primary stage of socialism: building a socialist economy with Chinese characteristics, It is to develop a market economy under socialist conditions, continuously liberate and develop productive forces ; to build a socialist politics with Chinese characteristics means to rule the country by law and develop socialist democratic politics under the leadership of the Communist Party of China and on the basis that the people are the masters of the country; The culture of socialism with Chinese characteristics is guided by Marxism , with the goal of cultivating citizens with ideals, morality, culture and discipline, and the development of a national scientific public that is oriented towards modernization, the world, and the future. socialist culture. This meeting included Deng Xiaoping Theory as the party's guiding ideology into the party constitution.
17. In 1999, it was clarified that the non-public economy is an important part of the socialist market economy
In 1997, the report of the "Fifteenth National Congress" stated for the first time that "the non-public economy is an important part of the socialist market economy".
From March 5 to 15, 1999, the Second Session of the Ninth National People's Congress was held in Beijing. The meeting passed the amendment to the Constitution of the People's Republic of China , making it clear that the non-public economy is an important part of China's socialist market economy, which has greatly promoted the development of social productivity.
18. In 1999, the western development strategy was put forward
On March 22, 1999, " Several Opinions of the State Council on Further Promoting the Development of the West " put forward ten opinions on further promoting the development of the West.
19. In 2001, China officially became a member of the WTO
On November 11, 2001, the Fourth Ministerial Conference of the World Trade Organization (WTO) held in Doha, Qatar passed the legal document of China's accession to the WTO, which marked that after 15 years of hard work, China finally became a new member of the WTO. . It marks that China's opening up to the outside world has entered a new stage.
20. The "16th National Congress" in 2002 determined the goal of building a well-off society in an all-round way
The 16th National Congress of the Communist Party of China, based on the fact that China has solved food and clothing and people's lives have reached a moderately prosperous level , further proposed the idea of building a moderately prosperous society in an all-round way, that is, in the first 20 years of the 21st century, concentrate efforts to comprehensively build a society that benefits more than one billion people. A higher level of well-off society will make the economy more developed, democracy more sound, science and education more advanced, culture more prosperous, society more harmonious, and people's lives more prosperous. This meeting included the important thought of " Three Represents " as the party's guiding ideology into the party constitution.
21. In 2003, the strategy of revitalizing the old industrial bases in Northeast China was put forward
On September 10, 2003, the executive meeting of the State Council studied and implemented the revitalization strategy of old industrial bases such as Northeast China, and put forward the guiding ideology, principles, tasks and policy measures for the revitalization of Northeast China.
22. In 2004, the "Nine National Measures" promulgated to promote the development of the capital market
On January 31, 2004, the "Several Opinions of the State Council on Promoting the Reform, Opening, and Stable Development of the Capital Market" was promulgated, clearly stating that vigorously developing the capital market is of great significance to China's strategic goal of quadrupling the national economy in the first 20 years of the 21st century.
Bank of China Limited and China Construction Bank Corporation were established on August 26 and September 21, 2004, respectively. The two wholly state-owned commercial banks were restructured into joint-stock commercial banks controlled by the state .
24. In 2004, the protection of personal property was included in the Constitution
On March 14, 2004, the Second Session of the Tenth National People's Congress deliberated and passed the Fourth Amendment to the Constitution . Contents such as "citizens' legal personal property shall not be violated" and "the state respects and protects human rights" were incorporated into the Constitution. It adapts to the objective needs of protecting private property, expands the scope of protection of personal property , and further improves the system of private property protection. Strengthening the protection of citizens' legal personal property is conducive to upholding and improving the basic economic system and promoting the development of the non-public sector of the economy; it is conducive to ensuring the realization of citizens' rights and promoting the rule of law ; Build a moderately prosperous society.
Note: Translations directly from mandarin have it been called "protection of private property". A distinction has to be made what the CPC meant regarding this.[103] Land ownership leases have to be renewed every 40-70 years depending on the type of land ownership, to renew the lease requires money. The land itself cannot be directly owned by a single individual or company and can be retracted.[104][105]Under the Hukou responsibility system, as of 2023, an individual household is only allowed to have 2 housing properties (for example, 1 house leased under their name in Shanghai, another house leased under their name in guangzhou)[106]
25. The 2005 Agricultural Tax Regulations Repealed
On December 29, 2005, the Nineteenth Meeting of the Standing Committee of the Tenth National People's Congress passed the "Decision on Abolishing the Regulations of the People's Republic of China on Agricultural Tax". Thousands of years of taxation came to an end.
26. In 2005, the major historical task of building a new socialist countryside was put forward
On October 11, 2005, the Fifth Plenary Session of the Sixteenth Central Committee of the Communist Party of China passed the " Suggestions of the Central Committee of the Communist Party of China on Formulating the Eleventh Five-Year Plan for National Economic and Social Development ", which clarified the goals and objectives of China's economic and social development in the next five years. The action program puts forward the major historical task of building a new socialist countryside, and points out the direction for doing a good job in the " three rural " work at present and in the future .
With the approval of the State Council, the China Securities Regulatory Commission issued the "Notice on Issues Concerning the Pilot Reform of Share Separation of Listed Companies" on April 29, 2005, announcing the start of the pilot work of share structure reform.
28. In 2006, a major decision was made to build a harmonious socialist society
The Sixth Plenary Session of the Sixteenth Central Committee held from October 8 to 11, 2006 passed the " Decision of the Central Committee of the Communist Party of China on Several Major Issues Concerning the Construction of a Socialist Harmonious Society ." For the first time in the history of our party, "improving the ability to build a harmonious socialist society" is clearly stated as an important aspect of the party's ability to govern. The presentation of this important thesis is an important enrichment and development of Marxist theory, and another theoretical sublimation of our party on what is socialism and how to build socialism.
29. In 2007, the " Property Law " was promulgated
The Property Law of the People's Republic of China was passed by the Fifth Session of the Tenth National People's Congress on March 16, 2007, and came into effect on October 1, 2007.
30. In 2007, the Scientific Outlook on Development was written into the Party Constitution
The scientific concept of development, its connotation is a comprehensive, coordinated and sustainable development concept. It is the inheritance and development of the important thoughts on development of the three generations of central leadership collectives of the party. It is a concentrated expression of the Marxist world outlook and methodology on development. Marxism-Leninism, Mao Zedong Thought , Deng Xiaoping Theory , and the important thought of the "Three Represents" are scientific theories that both inherit in one continuous line and keep pace with the times. strategic thinking. Incorporating the Scientific Outlook on Development into the Party Constitution is the scientific positioning of the Scientific Outlook on Development made by the 17th National Congress of the Communist Party of China, and it is also an important historical contribution of the 17th National Congress of the Communist Party of China.
31. In 2017, the Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era was written into the Party Constitution
After the 19th National Congress of the Communist Party of China on October 24, 2017, Xi Jinping Thought was added into the party constitution. It consists of the Chinese Dream, the rejuvenation of the Chinese nation and the two aims: to become a moderately-well society by 2021 (achieved as of that year) and to become a fully developed nation as of 2049. The Chinese-style modernization is also a core tenet of Xi Jinping Thought. It also has 14 basic points and is characterized by 21 features.
During Xi Jinping's leadership, China has made enormous advancements, such as eliminating extreme poverty in 2021, 10 years ahead of schedule and becoming the nation with the largest GDP worldwide.
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