Chapter 4 Exploration in Socialist Road

1. Sub-Theme 2 Modernization and Transformation of China Chapter 4 Exploration in Socialist Road Topic 2: Socialism with Chinese Characteristics

2. Year Events 1977 Deng Xiaoping was rehabilitated 1978 Deng Xiaoping initiated his Reform and Openness Policy 1979 One-child family policy introduced 1980 Four Special Economic Zones were established 1982 Deng Xiaoping suggested to build socialism with Chinese characteristics Socialism with Chinese Characteristics Time Track

3. Socialism with Chinese Characteristics Deng’s thoughts and vision • He was a pragmatist • He thought that Socialist construction in China must have Chinese characteristics • He followed Zhou Enlai’s idea of “Four Modernizations” •  agriculture, industry, science and technology, and defence • He carried out Reform and Openness Policy •  a dual policy of economic reforms and opening up the • country to the outside world • At the same time, the socialist principle of distribution should be maintained

4. Socialism with Chinese Characteristics Economic development • Reforms in agriculture • Provide greater material incentives • Loosen control mechanisms  Household Responsibility System﹕ • Each household received a plot of land • They have full responsibility over its planning and cultivating • They could also keep or sell surplus crops in the free market

5. Socialism with Chinese Characteristics • Reforms in industry • In the early 1950s: central planning and emphasized the development of heavy • industry  Deng’s reform﹕ • Aim﹕to raise the enthusiasm for work, to release the full potential of workers • and to improve the standard of living • Core of the reform: Industrial Responsibility System • More work could yield more pay • People were also allowed to own and operate their small businesses • “No matter whether the cat is black or white, so long as it catches mice”

6. Socialism with Chinese Characteristics • The openness policy • Since 1972, limited commercial relations with foreign countries began • Foreigners were encouraged to visit China and invest capital  The establishment of the Special Economic Zones: • Served as laboratories for Chinese economic reforms • In 1980, four Special Economic Zones were opened: Shenzhen, Zhuhai, • Shantou and Xiamen • After that, many more of China’s major ports and coastal cities were • opened to foreign trade and investment

7. Socialism with Chinese Characteristics The results • Growing prosperity in the rural areas and substantial improvement in the living • standards of the peasants • Urban life had became more substantial and modern • Commercial and scientific interaction with foreign countries grew rapidly Problems brought by economic reforms • Gap between the rich and the poor widen • Problems of corruption and serious crime • Rapid inflation • Reform on state enterprises led to unemployment

8. Socialism with Chinese Characteristics Social development • Reforms in education • Restored tough examinations for admission to universities • Time spent on political education and manual work was decreased • Birth Control • ‘The One-child’ family policy was introduced in the early 1980s • It was the system of reward and punishment • Although the birth rate slowed down, but the policy was not popular

9. The End