Coastal SEZs and Economic Reforms in China

A key policy adopted in China in 1978, shifting the focus of the government from class struggle to economic development and socialist modernization.

A system in which individual households are responsible for their own agricultural production, but land remains under collective ownership. This system was introduced in China in 1978.

A key goal of China's economic reforms, including the 'three-step' strategy, which aimed to double the Gross National Product (GNP) by the end of the 1980s and again by the end of the 2000s. This objective was also aimed at improving living standards and achieving modernization by 2050.

A strategy adopted by China to achieve economic modernization, consisting of three phases with specific goals related to GNP growth, living standards, and overall development.

China's economic reforms aimed to create a society with a relatively comfortable standard of living by achieving a moderately prosperous society.

A goal set for China's economic modernization, aiming to reach the level of a moderately developed country by 2050.

A policy in China that focused on opening up certain coastal areas to foreign investment and trade, aiming to attract foreign capital and technology for economic development.

A set of policies aimed at regulating and controlling the Chinese economy, including fiscal and monetary policies as well as administrative measures. This approach is used to manage economic growth, inflation, and investment.

Special Economic Zones (SEZs) were designated areas along the coast of China, established in 1980, to attract foreign investment and promote economic growth. They offered favorable terms to foreign companies, such as tax breaks and low labor costs, creating a catalyst for economic development. Shenzhen, Zhuhai, Shantou, Xiamen, and Hainan were among the first SEZs.

The 'more work, more pay' policy, implemented in the 1980s, aimed to boost agricultural production. Farmers were allowed to sell their surplus crops on the open market after submitting a certain percentage to the government, creating an economic incentive for increased productivity. This policy led to a significant increase in crop production by 49% between 1978 and 1984.

The Peoples' Communes, a collective farming system, were gradually phased out in the 1980s, replaced by individual peasant households as the primary production units. This shift reflected the move towards a more market-oriented economy.

Township enterprises, established in the 1980s, were businesses run by local communities in rural areas. They focused on processing agricultural by-products, providing services, and engaging in light industry. These enterprises played a significant role in absorbing surplus labor, stimulating rural economies, and diversifying production within local communities.

In 1984, 14 coastal cities, including Shanghai and Tianjin, were opened to foreign investment. While these cities offered similar incentives to those offered in SEZs, they were confined to specific geographical locations. This decision aimed to expand the reach of economic reform beyond the SEZs and facilitate further economic growth.

Economic Open Zones (EOZs), established in 1985, were designated areas that offered generous incentives for foreign investment and trade. They focused on promoting export-oriented industries, processing industries, and resource production. The Zhujiang Delta and Changjiang Delta were among the areas designated as EOZs.

The Chinese government actively encouraged foreign investment in the 1980s by establishing various incentives and flexible ownership structures. Three primary types of foreign-funded enterprises emerged: Sino-foreign joint ventures, Sino-foreign cooperative ventures, and enterprises solely based on foreign capital. This strategic move attracted numerous multinational corporations like Panasonic and Sony, injecting significant foreign capital and advanced technology into China's economy.

The factory director responsibility system, introduced in the mid-1980s, gave state-owned enterprises (SOEs) more autonomy. Factory directors gained greater control over production, pricing, hiring, and dismissing employees. They were responsible for paying taxes on their profits to the government and could retain surplus earnings. This system aimed to improve the efficiency of SOEs and make them more competitive.

A policy implemented in 1986 that introduced 9 years of free education in China.

A Chinese government initiative launched in 1990 to establish around 100 universities and strengthen certain academic areas. It aimed to upgrade higher education in China.

China's economic model shifted from solely public ownership to a diverse mix, including private enterprises.

The number of private enterprises in China significantly surged from 110,000 in 1979 to 820,000 in 1996, indicating a significant increase in private sector participation.

The 'Grand Western Development Programme' was a government initiative launched in 2000 to address the developmental gap between Eastern and Western China, focusing on infrastructure, energy resources, and overall economic development.

The 'Reform & Opening Up' policy significantly relaxed control on speech and political expression in China, leading to a more open atmosphere.

China's aerospace technology advanced significantly during the Reform & Opening Up period, even surpassing the USSR and the USA in satellite launches.

The Reform & Opening Up period allowed China to introduce Western ideas, which contributed to a broader range of intellectual and cultural influences in the country.

The process of shifting focus from rural areas to urban areas, leading to challenges in agriculture, rural development, and peasant livelihoods.

China's participation in international organizations like the United Nations, World Bank, IMF, and APEC, aiming to improve its global image and economic standing.

The increase in agricultural production in China, mainly due to reforms and opening up policies that incentivized farmers.

China's economic transformation, with a growing role of the secondary and tertiary sectors compared to the traditional agricultural sector.

The period of reforms and opening up in China, marked by significant economic growth but also facing challenges in political reforms and legal development.

The lack of democratic reforms in China during the Reform and Opening Up era, despite public demand and intellectuals advocating for change.

Problems with corruption within the ruling party and cadres, contributing to social discontent and unrest.

The 1989 Tiananmen Square protests, triggered by widespread social discontent, challenging the government's authority.

A situation where the government spends more than it earns, leading to a large debt and potentially triggering inflation.

A rapid and uncontrolled increase in prices, leading to a decline in the purchasing power of money.

The government invested heavily in infrastructure, using large amounts of paper money to fund such projects. This contributed to the growing deficit and subsequent hyperinflation.

Unusually high unemployment rates caused by the influx of new workers to the market due to the reforms, with many laid off from state-run enterprises.

The gap between the rich and poor widened, particularly between coastal and inland regions, and urban and rural areas.

The one-child policy along with cultural preference for boys led to a significant imbalance in the number of males and females.

Limited resources and funding allocated to education, reflected in a lower percentage of national income dedicated to education.

Increasing trade disputes with foreign countries due to China's rising competitiveness, leading to tariffs imposed by foreign countries to protect their domestic industries.

Increased trade volume between China and other Asian countries, spurred by China's economic reforms and growing economic influence.

Japan provided significant economic aid and loans to China, contributing to the growth of trade between the two countries during the period of Reform and Opening Up.

China's cooperation with neighboring countries in building infrastructure and providing assistance, showcasing its growing influence and commitment to regional development.

The volume of trade between Russia and China saw significant growth during the Reform and Opening Up period, reflecting the complementary nature of their economies.

China's participation in regional trade organizations and development plans, such as APEC and ASEAN, demonstrating its commitment to free trade and regional integration.

Increased civil exchanges between China and other Asian countries, such as student exchange programs, reflecting closer cultural and societal ties.

China's efforts in the 1990s to resolve the refugee crisis in Laos by cooperating with the UN Refugee Agency and facilitating refugees' return.