3 China_Reforms_QA_Study_Cards Flashcards
What characterized China’s economy before 1978?
Centrally planned economy, collectivization, focus on heavy industry, inefficiencies, shortages, and limited industrialization.
What were the social conditions in China before economic reforms?
Class struggles, limited personal freedoms, economic isolation, and politically driven education and healthcare systems.
What were Deng Xiaoping’s goals for economic reform?
Modernization, economic growth, and global market integration.
What were the key principles of these reforms?
Reduce state control, lower market entry barriers, and provide decision-making autonomy.
What was the Household Responsibility System (HRS)?
A reform where land was leased to households, allowing them to sell surplus freely.
What were the impacts of the HRS?
Increased productivity, higher incomes, and market diversification.
What was the purpose of SEZs?
To attract foreign investment and implement liberal economic policies.
What were some key SEZs?
Shenzhen, Zhuhai, Shantou, and Xiamen.
What were the impacts of SEZs?
Economic growth, technology transfer, and increased employment opportunities.
How did the Dual-Track System work?
It allowed enterprises to fulfill quotas under state prices (planned track) and sell surplus at market prices (market track).
What was the outcome of the Dual-Track System?
Reduced state-controlled goods from 95% to less than 10% by 1992.
What changes were introduced in SOE reforms?
Contract Responsibility System (CRS) with increased autonomy, profit retention, and performance rewards.
What were the goals of SOE reforms?
Improve efficiency, profitability, worker morale, and reduce government burden.
What changes occurred in China’s banking system after 1983?
Creation of specialized and commercial banks, while the People’s Bank of China became a central regulatory body.
How did the 1998 Asian Financial Crisis impact reforms?
Asset Management Companies (AMCs) were established to manage bad loans, and banks were recapitalized.
