Lecture 3 China's Reforms

Question 1

What were farms like pre-CCP?

Answer 1

Landlords owned almost half of rural land, and leased these out to land-owners.
farms were small and family-operated
market-based economy

Question 2

What was industry like pre-CCP

Answer 2

the market-based economy was competitive
heavy industrialisation by japan
western countries industrialised ‘light and consumer goods’ through ports
hyper inflation

Question 3

What were the CCP land reforms in 1953?

Answer 3

• no longer feudal bondage
• peasants owned or rented land
• sold crops in village markets which were dominated by the power of local elites.
• surpluses used to support industrial sector
• food allocated to size of household

Question 4

What was the Hukou system?

Answer 4

It was a system of household registration according to where people lived, which aimed to limit migration and dictated what services people could receive

Question 5

What happened in the great leap forward?

Answer 5

Instead of only taking surplus agricultural products, they expected increased yield despite reducing the supply of labour

Question 6

What were the economic conditions like pre-1978?

Answer 6

The economy was centrally planned (focused on heavy industry instead of consumer goods)
Collectivised agriculture and land ownership
Limited industrialisation in key areas (controlled by state)
Inefficiency and shortages esp essential g/s

Question 7

What were the social conditions pre-1978?

Answer 7

• class struggles +cultural revolution
• education and health
• limited personal freedoms
• economic isolation

Question 8

Who became the leader in 1978 and created the ensuing reforms?

Answer 8

Deng XiaoPing

Question 9

What did Deng XiaoPing’s reforms aim to do on?

Answer 9

Modernising, increasing economic growth and opening up to the world

Question 10

What were the 3 key principles of Deng XiaoPing’s reforms?

Answer 10

1. reducing monopoly power of planners
2. lowering entry barriers to business
3. giving ordinary people somedecision-making authority

Question 11

What did Deng XiaoPings economic reforms achieve?

Answer 11

• They decollectivised agriculture
• created SEZ’s
• created a market-oriented economy
• grew private enterprise

Question 12

How did the HRS system work?

Answer 12

The household responsibility system meant:
- the land was still owned by the village or commune
- each household has a 15-30 year land lease, equipment and production quota
- once it achieves the quota, they can decide what and how much to sell
created in 1978

Question 13

What was the impact of the HRS?

Answer 13

• productivity increased
• rising incomes
• economic diversification
• market development
  -policy shift

Question 14

Where is a SEZ

Answer 14

Shenzhen

Question 15

Impact of SEZ’s

Answer 15

• economic growth
• employment opportunities
• technology transfer
• model for reform

Question 16

What was the dual-pricing system?

Answer 16

Where people buy resources from state cheaply and sell expensively, leading to large fiscal deficit

Question 17

what did the dual track system involve

Answer 17

the state owned enterprises continued to operate under the state system, fulfilling state quotas at the specified price

on the market track enterprises could sell excess g/s at market prices

Question 18

What should be done to modernise the Hukou system?

Answer 18

• facilitate urbanisation and migration
• ensure equal access to public benefits like income support, education, healthcare and housing
• promote rural infrastructure and industry development
• streamline administrative processes and transparency
• address social inequality
• policy experimentation and adjustment