📌 Week 4: Deng Xiaoping’s Reforms and Economic Opening (1978–1989) Flashcards
How did Deng Xiaoping differ from Mao in economic policy?
Focused on pragmatism, market reforms, ‘socialism with Chinese characteristics.’
What was the Household Responsibility System?
Allowed peasants to farm their own plots after meeting state quotas.
what were SEZ? What was their purpose)?
Attract foreign investment, boost exports, create jobs.
5️⃣ Special Economic Zones (SEZs) – Designated areas with relaxed economic regulations to attract foreign investment, encourage exports, and promote economic reform, first introduced in China in the late 1970s.
What was dual-track pricing?
Goods had both state-set prices and market prices to encourage competition.
What was ‘Growing out of the Plan’?
Gradual transition from a planned economy to a market economy.
What were some negative consequences of Deng’s reforms?
Corruption:privatization of industries led to officials selling state assets for personal gain.
Growing Inequality: Rural vs. Urban Divide – Coastal cities and Special Economic Zones (SEZs) grew wealthy, while rural areas lagged behind.
Social Instability and Protests:Workers in State-Owned Enterprises (SOEs) faced layoffs as privatization expanded.
Tiananmen Square Protests (1989) – Many Chinese citizens, especially students, demanded political reform, but the movement was violently suppresse
How did conservatives react to economic reforms?
Feared capitalism, loss of socialist control, rise of corruption.
What was the ‘Reform without Losers’ approach?
Gradual economic reform without large-scale layoffs in state enterprises.
Cultural Revolution
The Cultural Revolution was a sociopolitical movement launched by Mao Zedong in 1966 to reassert his control over the Chinese Communist Party (CCP) and revive communist ideology. It lasted 10 years and led to political purges, social chaos, and economic disruption.
Can you explain deng xiopings reforms?
A. Agricultural Reforms – Decollectivization & the Household Responsibility System
B. Industrial Reforms – State-Owned Enterprises (SOEs) & Township and Village Enterprises (TVEs)
C. Special Economic Zones (SEZs) & Foreign Investment
D. “Reform Without Losers” Strategy
E. Openness to Global Markets (“Opening Up”)
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what is State Owned Enterprises? Township and Village Enterprises?
SOE: were state-run and focused on heavy industry, slow, SOEs received gov funding.
Purpose: To maintain government control over key industries (banking, energy, heavy industry) while introducing market incentives.
✔ Reformed, but did not eliminate SOEs – some were privatized, others modernized.
✔ Introduced profit incentives – SOEs had to become more efficient and self-sustaining.
✔ Allowed some private competition but kept strategic industries under state control.
✔ Used “dual-track pricing” – SOEs could sell excess production on the market
TVEs were locally owned and focused on small-scale production. Allowed TVEs to operate like private businesses while remaining locally controlled.
✔ Gave rural areas economic freedom to invest in light industry, small manufacturing, and services.
✔ Attracted foreign investment and encouraged local entrepreneurship.
✔ Helped reduce rural poverty and provided an alternative to urban migration
Politburo standing committee
decision-making body in CCP responsible for setting national policies and governing China.
