Political and Economic Change: China

1. Political and Economic Change: China -One Child Policy for Dummies Stanley Wang Period 7

2. History of Political Change • Dynastic Rule up to the year 1911: XinhaiRevolution • Ruled under the Qing • European Imperialism creates anti-foreigner sentiments • Opium Wars/ Seizure of Canton and Hong Kong • Formation of the Provisional Government in Nanjing 1911-12 • Based around Western philosophy of democracy • Sun Yat-Sen Takes Office as First President of the Provisional Government • General of the Beiyang Army: Yuan Shi Kai Seizes Control • Warlord Era (1916-1928) • WWI and the May Fourth Movement-1919 • Nanjing Decade (1928-1937) • World War II • Seizure of Power by the Communist Party October 1st 1949

3. The Long March

4. Engines Of Reform • External Pressure • Globalization (Ability to Compete) • International Relations • Internal Evolution: • Government Policy • Industrialization • Communist Leaders prided success on providing better material lives for citizens. • Mao-1949-1976 • Deng-1978-1992 • Jiang Zhe Ming 1992-2002 • Hu Jin Tao 2002-2012 • Xi Jin Ping 2012-

5. Foundation of CCP and The Soviet Years • 1949 Victory by the Chinese Communist Party drew major support from the Soviet Union, pouring aid money and expertise in. • Mao and the Communist Party tackle countries glaring social issues: • Land: Redistribution of property from the rich to the poor to increase productivity • Civilian: Free People from opium addiction to rejuvenate the workforce and work on legal rights for women. • Five Year Plans – Nationalization of industry and collectivize agriculture and instill socialist beliefs

6. The Great Leap Forward 1958-1966 Mao pushes China away from the Soviets- Nationalism Utopian effort to transform China into an egalitarian society - Development of all industries - Mass Mobilization of the workforce to produce more - Decentralization of government regulation

7. Why the Great Leap Forward Failed Political Corruption- Decentralization of the government caused high fragmentation and corruption on local bureaucratic governments Mismanagement of Resources- Limits on what can be produced and the lack of technology hindered efforts to expand resources, Stretched too thin (Scientist Farmers) Low Scientific and Education base- No Technology to alleviate bad weather Utilization of the Workforce- Lack of training and state-ownership of industry left people unable to expand industry and no motivation to do so.

8. Cultural Revolution: 1966-1976 Goal was the purify the party and the country through radical transformationand emphasize: • the ethic of struggle • mass-line theory • collectivism • egalitarianism • unstinting service to society remove all vestiges of the old China and old emphasis on inequality. Scholars were sent into the fields to work, universities and libraries were destroyed. Emphasis was put on elementary education - all people should be able to read and write - but any education that created inequality was targeted for destruction.

9. Deng XiaoPing Escapes and Climb to Power Death of Mao leads to the arrest of the Gang of Four (Radicals) by Hua Guofeng (Moderate) The QingMing Festival 1976 Deng Xiao Ping is freed from collective farming camp. Political descendant of the late Premier Zhou Enlai (Moderate) Party Control and head of government by 1982 Changes so that China could compete West Separation of government from the Party (Bai Mao- Hei Mao) to put in place policies which would differ from communist ideologies

10. Economic Policy Under Deng Xiao Ping • Implements the “Four Modernizations” founded by his teacher: • “Open door” trade policy • Reforms in Education • Institutionalization of the Communist Party • Ten Year Plan 1978 HuaGuoFeng/ Deng XiaoPing • Enhance the economic sector and heavy industry • Competition with the West • Foreign Investment kicked in lots of startup capital (US, West Germany, Japan) • Steel, Oil and Metal Mining Spurred in the South and North • Vast trade and industry centers set up in Xian, Shanghai, Xiamen, and Beijing • Advance in infrastructure

11. The SE Zone • Established a series of special economic zones • SE Zones give free market based economic policies and flexible governmental measures. • Opening cities and industry to foreign investment

12. Economic Policy under Deng Cont. • Ten Year Plan turns out to be too ambitious for the government to handle- repealed efforts • Private incentive to accomplish the Ten Year Plan • Trade with the West provided new technology • Focused on quality of its products, diversification of its exports, the devaluation of the Yuan and built up its currency reserves • Move away from manual labor • Production of own product instead of import • Control over technology for themselves

13. China’s Big Banks Under Deng’s Administration, state banks of China witnessed a reinvention of policy to promote investment and new government supervision targeted to attract foreign investment Bank of China- Founded 1912 China Construction Bank- 1954 Industrial and Commercial Bank-1984 Agricultural Bank of China-1949 Market valuation for each bank today is just shy of $15-20 billion Control of more than half of all public project loans and 30-40% of market shares in private sector loans. Publicly traded stocks on both Hong Kong and Shanghai Stock Exchanges

15. Political Unrest Under Deng With economic development came a wish for political change Leftist members worried that China's socialist goals would be lost by the new economic changes and the trade with the West Democracy-The Fifth Modernization- Wei Jing Sheng- 1978-79 Deng focused efforts on economic reform, spent much of his time abroad finding new markets and aligning China with developing countries. In 1986 demonstrations were held encouraging students to get involved in local government.

16. Political Unrest Continued In 1987 Hu Yaobang, General secretary of the Part, and advocate for political liberalization resigned from his post. The students demonstrations were not joined by workers and so when exams came around the demonstrations faded  Deng worried about another power struggle within the Party, he was getting old but had no intentions of handing over his leadership 

17. 1989 Tiananmen Square Demonstration Hu YaoBang dies April 1989 sparking students looking for democratic reform. Zhao Ziyang, Hu's successor, tried to prevent violence from the governments side by working with the pro-democracy groups. Gorbachev visiting China, making the demonstrations public to the world Deng Xiao Ping- Central Military Commission calls in the People’s Liberation Army Demonstrators had no real leadership, and no clear idea what they wanted Deng resigns in 1989. Remains architect in the background with his successor.

18. Current Policies Promoting political conformity to the Party Rise of the “Technocrats” Opening Economy with key state-owned industries (telecom, oil, banking) Focus more on Household Responsibility in Agriculture Integration in the global market, while resisting pressures from foreign influences Some democratic reforms can be seen in these ways: • Some input from the National People's Congress is accepted by the Politburo • More emphasis is placed on laws and legal procedures • Village elections are now semi-competitive, with choices of candidates and some freedom from the party's control

19. Economic Challenges China Faces Stagnating Economic Growth Growing local government debt Private debt by the middle class- Property Market Growing inflation of the Yuan Worker Deficit-One Child Policy and Population Control The “China Price” shifting away to less developed nations Sustainable growth with education

20. Political Issues Political Corruption – Enacts the death penalty and has been an ongoing war since 1978. The emergence of large internet companies and more people on social media (50,000 cyber police for 600 million users) Demand for reform from a growing educated population. Formation of a highly influential, wealthy elite.

21. Pandonomics Cost Per Year to Lease a Pair of Pandas: 1mil Tax for Panda Cub: 200k , Cub Death Tax:500k China retains ownership of all the giant pandas around the world, which are selectively loaned to other countries.  Panda Diplomacy- Using pandas to negotiate trade and technology investment deals Belgium- Newest country to receive pandas for a 15 year lease- Coincides with new bilateral trade agreement: $26.2 billion http://money.cnn.com/2013/10/14/news/economy/china-panda-trade/

22. The Game Each of the 4 teams will start with 1000 points. Teams will be read questions, which will be read once- 30 seconds to discuss The other three teams may place bets up to 200 in favor of the team getting it wrong If the team with the question gets it right, they receive the combined bets in points and the other teams lose their bets If the team with the question gets it wrong, they lose up to 300 of the total bets and other teams gain their respective bets. Wrong answers are then passed on to the next team where they have 5 seconds to begin their answer. A right answer will allow you double your bet, but wrong answers are not penalized and the question may then be passed on again to the next team. Rounds 5-10 depending on time

23. Congratulations Winning Team There is but one bunny, so we will be playing THE PRISONER’S DILEMMA • Heads down and you will vote A or B • If you vote A: • Everyone else is B, you win. • Otherwise, all A’s proceed to a new round while all B’s are eliminated • Vote all A’s and you all lose • If you vote B: • Everyone else is A, you win • Vote all B’s and you all win (a smaller prize though) • Other non-participating players: Catch a cheater, get an extra piece of candy