Travel Reference
In-Depth Information
The time of Deng is referred to as the period of reform and opening up. He developed
a whole new way of thinking for the Communists. Though a proponent of Leninism and
Marxism, he devised “socialism with Chinese characteristics”—a mixture of state-owned
enterprises with a market economy. Deng could see the errors of Mao; however, he took a
diplomatic approach and refrained from trashing his former leader's name. Mao was “sev-
en parts good, three parts bad,” Deng said and advised that Mao's “accomplishments must
be considered before his mistakes.” So, respecting the people's lingering loyalty for Mao,
Deng pushed forward with profound economic and social changes. He removed class bar-
riers. Those of the old landlord class, who had suffered severely during Mao's regime,
were again allowed to find work, and even capitalists could join the Communist Party. The
massive ineffective farming communes were broken up and peasants were permitted to earn
a profit. China's market was opened up to foreign trade, and companies such as Boeing and
Coca-Cola soon began to develop relationships with China. Deng also improved relations
with the United States, Japan, Singapore, and Britain, and successfully negotiated the return
of both Macau and Hong Kong from Portugal and Britain, respectively.
In his time, Deng stipulated three bold financial goals, and he came close to achieving
all three within his own lifetime. The first was to double the 1980 gross national product
(GNP) so as to ensure the Chinese could actually clothe and feed themselves; he did this
in 10 years. The second was to double this number again before the year 2000. He accom-
plished this five years ahead of schedule. The third, due for a completion check in 2050
and clearly well on its way, was to raise the GNP level per capita to a level equal to that of
medium-developed countries.
Deng had a strong influence on the government long after he stepped down from any of-
ficial roles, and even after his death in 1997, his policies have continued to help succeeding
leaders drive the economy. In 2001 China entered the World Trade Organization, resulting
in further economic liberalization and deregulation.
Figures from the World Bank highlight various impressive gains made by China over
the last few decades. In 2004 those living below the poverty line in China accounted for
2.8 percent of the population—down from 6 percent in 1996—while gross national income
(GNI) per capita was at US$4,930 in 2011, up from US$1,100 in 2002. At the end of Mao's
reign the GDP was at about US$152 billion. Deng's reforms took a while to kick in, but
by 1990 the GDP had risen to US$357 billion, and just eight years later it hit the trillion
mark. In 2011 China's GDP was at US$7.298 trillion, about US$7.8 trillion behind the Un-
ited States.
