Economic Developments and the Four Modernizations
- Deng Xiaoping reshaped China’s economy by abandoning strict Maoist planning and introducing a market-driven system to modernize agriculture, industry, science and defense.
- Deng promoted pragmatism, arguing that economic results mattered more than ideological purity.
- The Four Modernizations targeted agriculture, industry, science and defense to rebuild China after the Cultural Revolution.
- Deng encouraged foreign investment, technology transfer and trade, opening China to the global economy.
- The government created Special Economic Zones (SEZs) where private business and foreign companies were allowed.
- Market reforms increased production, lifted millions out of poverty and laid the foundation for China’s future global rise.
Case study
Agricultural Reforms and the Household Responsibility System (late 1970s–1984)
Transition Away from Collectivization
- Rural communes were replaced by the Household Responsibility System, allowing families to lease land and make production decisions.
- Peasants could keep surplus crops after meeting state quotas, encouraging higher productivity.
- The disappearance of collective dining halls and forced labor structures ended many unpopular policies from Mao’s era.
- Agricultural markets reopened, allowing farmers to sell goods at higher prices.
- Food shortages declined rapidly as grain output surged.
Economic Transformation and Social Impact
- Increased incomes improved rural living standards, especially in coastal and central provinces.
- Village enterprises expanded, creating new jobs outside traditional farming.
- Rural inequality grew as some families prospered more quickly than others.
- The success of agricultural reform demonstrated the power of market incentives.
- The model encouraged Deng to deepen reforms across industry and urban areas.
Definition
Household Responsibility System
Policy allowing rural families to control land use and production in exchange for meeting state quotas.
Definition
Special Economic Zones (SEZs)
Areas where foreign investment, private business and market experiments were encouraged.
Political Developments and the Tiananmen Movement (1989)
- Deng strengthened the CCP after Mao by promoting collective leadership, economic reform and political stability, but he refused to allow political liberalization.
- While Deng encouraged economic openness, he insisted on political control by the CCP.
- Students and intellectuals demanded political reform during the 1980s, inspired by rising expectations and global democratization.
- Economic reforms created inflation, unemployment and corruption, increasing public frustration.
- Party conservatives and reformers disagreed about how much political openness should accompany economic change.
- The political crisis peaked in 1989 with the Tiananmen Square protests.
Case study
Tiananmen Square Movement (1989)
Causes of the Protest
- Students demanded an end to corruption, greater political freedom and dialogue with government leaders.
- The death of Hu Yaobang, a reform-minded leader, triggered mourning that evolved into pro-democracy demonstrations.
- Rapid economic changes caused inflation and job insecurity, fueling dissatisfaction among young people.
- Western political ideas entered China through study abroad, media and foreign contacts.
- The CCP leadership split between reformers, who wanted negotiation, and conservatives, who demanded forceful suppression.
Effects and Consequences
- Troops entered Beijing on June 3–4, killing and injuring protesters and bystanders.
- China faced international condemnation, sanctions and temporary diplomatic isolation.
- Deng reasserted Party control, emphasizing stability and rejecting political liberalization.
- Long-term economic reforms continued, but political reforms were halted.
- Tiananmen strengthened the CCP’s commitment to stability-first policies that shaped governance after 1990.
Definition
Hu Yaobang
Reformist leader whose death sparked the Tiananmen protests
Definition
Political liberalization
Policies aimed at expanding political freedoms and participation.
China Under Jiang Zemin and the Post-Deng Era (1993–1997)
- Jiang Zemin emerged as the central figure after Deng, leading China toward deeper economic reform and preparing it for global integration.
- After Tiananmen, Jiang Zemin rose through Party leadership with Deng’s support.
- Jiang promoted the “socialist market economy,” blending state direction with private enterprise.
- China expanded trade, encouraged foreign investment and prepared for future entry into the World Trade Organization (WTO).
- Economic growth accelerated, urbanization increased and coastal cities became major industrial centers.
- Jiang focused on Party unity and ideological control to prevent political instability.
Common Mistake
- Treating Deng as a liberal democrat rather than a reformer committed to one-party rule.
- Ignoring the political causes of Tiananmen by focusing only on economic problems.
- Underestimating Jiang Zemin’s role in stabilizing China after 1989 and continuing reforms.
Exam technique
- Link economic reform directly to political tension, especially in the 1980s.
- Use case studies such as Household Responsibility System, SEZs, Tiananmen Square, and the Southern Tour.
- Clarify that Deng created a mixed system combining capitalism and socialism.
- Explain how political repression coexisted with rapid economic change.
Theory of Knowledge
- How does economic freedom interact with political control in shaping a society?
- Can a government maintain legitimacy without offering political participation?
- To what extent does historical memory influence public understanding of political protest?
Self review
- Assess the impact of Deng Xiaoping’s economic reforms on China between 1978 and 1997.
- Examine the causes and consequences of the Tiananmen Square protests of 1989.
- To what extent did Jiang Zemin continue Deng Xiaoping’s policies?
