Deng reform - more

Question 1

What was the significance of the Third Plenum on economic planning?

Answer 1

It marked a shift towards Deng’s agenda, making the Four Modernisations as the economic resolution, stating
that China ‘requires changes in all methods of management, actions and thinking which stands in the way of
growth in the productive forces. Socialist modernisation is therefore a profound and extensive revolution’.

Question 2

What was ‘socialism with Chinese characteristics’ (3)?

Answer 2

1) The economic system that Deng wished to build, believing China could benefit from the ‘dynamic’
capitalist system and foreign trade with capitalists.
2) Deng allowed enterprises to make decisions on production based on market forces and the pursuit of
profit.
3) China adopted an Open Door Policy on foreign trade. This exposed Chinese companies to competition and
force them to become more efficient in order to keep their costs down.

Question 3

What did the slogan ‘To get rich is glorious’ encourage?

Answer 3

To encourage people to work harder, take risks and maximise their personal wealth.
Deng believed that China would benefit from competition, the pursuit of profit and individual opportunity.
Deng insisted that this would not alter China’s socialist nature.

Question 4

Why did Deng introduce the slogan ‘To get rich is glorious’?

Answer 4

Deng believed that China would benefit from competition, the pursuit of profit and individual opportunity.
Deng insisted that this would not alter China’s socialist nature.

Question 5

What were the 2 main agricultural changes made by Deng Xiaoping?

Answer 5

1) Communes were broken up and replaced by the xiang, smaller communes based on towns and villages.
Peasants could lease land from the xiang to farm by themselves, although each xiang had to meet output
targets set by the state.
2) The work brigades of the commune system were abolished and replaced by the ‘household responsibility
system’, allowing peasants to make decisions about the land they farm. As long as peasants paid taxes and contributed to the procurement quotas set by the state, they could keep profits made from selling surplus food
(in rural markets) or from ‘side occupations’.

Question 6

What were the xiang?

Answer 6

Smaller communes based on towns and villages. Peasants could lease land from the xiang to farm by
themselves, although each xiang had to meet output targets set by the state.

Question 7

What was the ‘household responsibility system’?

Answer 7

Replacing the work brigades of the commune system, it allowed peasants to make decisions about the land
they farm. As long as peasants paid taxes and contributed to the procurement quotas set by the state, they
could keep profits made from selling surplus food (in rural markets) or from ‘side occupations’.

Question 8

What was the average annual growth in grain production for China 1957-78?

Answer 8

2%.

Question 9

What was the average annual growth in grain production for China 1978-84?

Answer 9

5%.

Question 10

What was the average annual growth in grain production for China 1984-88?

Answer 10

-1%

Question 11

What were Special Economic Zones (SEZs)?

Answer 11

Areas where trade laws differ from those of the rest of the country in order to encourage foreign trade and
investment.

Question 12

What were ‘development triangles’?

Answer 12

Areas that were given the same concessions as the Special Economic Zones.
1) The Pearl River delta in Guangdong province, centred on Guangzhou.
2) The Min River delta in Fujian, centred on Xiamen.
3) The Yangzi River delta in southern Jiangsu and northern Zhejiang provinces, centred on Shanghai.

Question 13

What was the significance of SEZs for China’s economy 1979-84 (4)?

Answer 13

1) The first 4 zones were established in coastal areas near Taiwan and Hong Kong, to allow for cross border trade, in 1979.
2) In these areas, foreign capitalists were encouraged to invest in joint enterprises through low tax rates, state investment in transport links and the building of factories by the state to the specification of foreign
companies.
3) In these areas, China’s main export industries were established, with foreign investment initially only allowed in companies producing goods for export.
4) The SEZs were so successful in attracting inward foreign investment that in 1984 the programme was
extended to 14 more coastal cities, with special attention given to developing high-technology industries in
these areas.

Question 14

What was the impact of SEZs and ‘development triangles’ on China’s export trade and inward foreign
investment 1981-91?

Answer 14

Between 1981-91:
China’s export trade grew by 500%.
Inward foreign investment grew by 400%.
In 1978: importing 10.9 billion dollars worth + exporting 9.8 billion dollars
In 1989: importing 59.1 billion dollars, exporting 52.5 billion dollars

Question 15

What were the negative impacts of the development of the SEZs (4)?

Answer 15

1) The abolition of customs duties between Shenzhen SEZ and Hong Kong led to a rapid increase in imports,
straining China’s foreign currency reserves.
2) The investment on infrastructure (roads, railways, airport) was a burden on state finances.
3) Despite the relaxation of controls and reduced taxes in the SEZs, foreign businesses complained that the
Chinese bureaucracy was slow to make decisions.
4) There were fears within China that the emphasis on developing the coastal cities would widen the gap with
the inland areas, leaving them deprived them of investment and lagging behind in development.

Question 16

Why did state-owned enterprises (SOEs) not fit into Deng’s ‘socialist market economy’ (2)?

Answer 16

1) The state controlled all decisions on prices, wages and the size of the labour force. This meant there were
no incentives to work hard or penalties for poor performance, since employees enjoyed job security.
2) In 1986, new labour contracts introduced incentive payments and short-term contracts, but only for new
employees.

Question 17

How did Deng phase out SOEs from the Chinese economy in the 1990s (3)?

Answer 17

1) Deng exposed them to market forces by removing state subsidies, forcing them to make efficiency savings.
2) Many were converted into joint public/private enterprises, and others declared bankrupt and forced to
close.
3) Deng increased competition by allowing foreign-owned enterprises to sell their goods in the Chinese
market.

Question 18

What was the state of education in China before 1979 (2)?

Answer 18

1) Despite the educational reforms of the 1950s, many Chinese had limited educational opportunities prior to
1979. More than 73% of peasants received no education beyond primary school level.
2) Amongst Party cadres, less than 6% had been educated to degree level, whilst 27% had no education
beyond primary school.

Question 19

How did Deng modernise China’s education system from 1978 (3)?

Answer 19

1) Deng reintroduced university entrance exams in 1978.
2) In the 1980s, private universities were once again allowed to be opened, and their was a major expansion
of universities of all kind.
3) For the first time since 1949, Chinese students were allowed and encouraged to travel to the West for
university education.

Question 20

How did Deng expand business expertise in universities in the 1990s, and why?

Answer 20

As well as expanding scientific education, Deng needed to develop managerial expertise, leading to a rapid expansion of business-related courses in universities. In 1990, a mere 86 Chinese students were enrolled on
MBA (business degree) courses. By 1999, the number had increased to 23,500.

Question 21

How did Deng modernise China’s scientific development (2), and why?

Answer 21

Following the purging of intellectuals and the closing of universities in the Cultural Revolution, China was
short of technical expertise, and far behind the West in scientific and technical development. In order to fix this, Deng reopened research stations closed during the CR, and reinstated their technical staff. Deng also launched projects to develop laser technology, space science, electronics, medical research and crop science.

Question 22

How did Deng modernise defence (2)?

Answer 22

1) In 1979, much of the PLA’s equipment was based on Soviet technology from the 1950s. In the 1980s, the
PLA acquired modern weaponry and delivery systems from purchasing equipment from the West and by
developing its own arms industries.
2) The PLA was reformed, with a focus on improving officer training.

Question 23

Why did Deng abandon self-sufficiency as a guiding principle of economic policy?

Answer 23

Deng believed that China could not grow and develop on its own, abandoning self-sufficiency as a guiding
economic principle in favour of integrating China into the global economic system, with the aim of gaining a
greater share of world trade.

Question 24

What was the state of China’s trade surplus in 1992 (2)?

Answer 24

1) As the Chinese manufacturing sector became more established, exports increased, and China moved into a
trade surplus, which they sustained for most of the period.
2) By 1992, China was the 10th largest exporter in the world, and its share of total world trade had grown to 2.5%.

Question 25

What were the negative impacts of China’s integration into the global economic system (2)?

Answer 25

1) China became exposed to the economic cycle of booms and recessions. 2) China became prone to price fluctuations, with inflation becoming a problem for Chinese policymakers, especially in the 1980s.

Question 26

How did inflation threaten the Chinese economy in the 1980s and 1990s (2)?

Answer 26

1) In 1989, inflation reached 18.1%, leading to political unrest., as living standards were threatened. Employees of the state were the hardest hit, as their wages were fixed. 2) In 1994, inflation rose to 24.1%, forcing Deng to impose price controls.

Question 27

What was China’s inflation rate in 1994?

Answer 27

24.1%

Question 28

What was the the one-child policy of 1980 (3)?

Answer 28

1) An initiative to control the population by limiting families to one child (1980-2015). 2) There were financial penalties for exceeding the limit, and the state could order pregnant women with a child already to undergo an abortion and sterilisation. 3) The policy did not apply to ethnic minorities, and there were regional variations of the policy.

Question 29

What was the Revised Marriage Law of 1980?

Answer 29

It set a minimum age for marriage at 22 for men and 20 for women, with married couples only allowed one child.

Question 30

What did the World Banks’s 1997 report on China’s industrial pollution conclude (2)?

Answer 30

1) Hundreds of thousands of premature deaths and incidents of serious respiratory illness were caused by exposure to industrial air pollution. 2) Many of Chinese waterways were seriously contaminated by industrial discharges and were largely unfit for human use.

Question 31

What were the social impacts of the privatisation of SOEs in the 1990s (1+ , 3-)?

Answer 31

1) SOE workers had been provided with free education and healthcare for their families, despite low wages. Privatisation in the 1990s removed this safety net and exposed workers to job insecurity. 2) Unemployment, which did not exist officially in China before the 1980s, grew during the 1990s. It was estimated that the unemployment rate was 10% in 1997. 3) There was growing labour unrest during the 1980s and 1990s, with strikes becoming more common. 4) The economic growth created new jobs, and although wages were low in factories by international comparison, there were new opportunities for Chinese workers to gain skills and earn more. Many former SOE employees became taxi drivers or street vendors.

Question 32

What was the reality of working within the SEZs (3)?

Answer 32

1) Millions of migrant workers, many of which were rural women, worked long hours for low wages, enduring tough regulations which governed their working lives and leisure time. 2) Regulations included bans on talking at work and restrictions from going to the toilet. Workers had to live in dormitories within factory compounds and needed permission to marry or leave the compound. 3) Punishments included deductions from wages and physical beatings. Health and safety regulations were so weak that workplace accidents were very common.

Question 33

Who were the main beneficiaries of ‘To get rich is glorious’ (2)?

Answer 33

1) Party cadres and their relatives, the first to know about development plans, who could manipulate the situation to their advantage. 2) Farmers who owned land in areas scheduled for development and sold it for a high price.

Question 34

What social problems arose from Deng’s economic reform (4)?

Answer 34

1) China became more prosperous generally but also a more unequal society due to economic reform. 2) Social problems such as crime, drug abuse, prostitution and widespread corruption increased in the 1980s. 3) In the 1980s, corruption amongst Party cadres fuelled public unrest. Bribery, misappropriation of public funds and cadres’ involvement in business deals in order to enrich themselves were common forms of corruption. 4) The economic reform programme provided more opportunities for corrupt officials to enrich themselves, undermining the credibility of the CCP’s rule.

Question 35

What were the ‘feudal elements’ among the Party bureaucracy according to Deng (2)?

Answer 35

1) Party cadres had the privilege of a job for life, as long as they survived the purges. Many, even at the higher levels of the Party, were poorly educated, old and resistant to change. 2) Officials in the Party bureaucracy who abused their power, enriching themselves and their families, and behaving like feudal overlords over the Chinese people.

Question 36

What were Deng’s institutional reforms (6)?

Answer 36

1) The clearing out of ageing Party members at all levels and replacing them with younger people, with a better education and more technical expertise. 2) He wanted a robust system for the supervision and removal of corrupt cadres. 3) He abolished the post of Party Chairman, replacing it with General Secretary, whose office was staffed with young and educated cadres. 4) Deng made the Party leadership more collective. Hu Yaobang and Zhang Ziyang occupied key roles as reformers. A rule was introduced the Party members could not stand above the law or make major decisions on their own. 5) He wanted the Party and the State to be more clearly separated. 6) He reformed the PLA, with older officers pushed into retirement, budget cuts and the restoration of military ranks (abolished during the CR). The PLA had representation on the Politburo.

Question 37

Who was Wang Zhen?

Answer 37

A former PLA commander during the Civil War, and was known for being ‘incorruptible’. He was an advocate for the use of military force against Tiananmen Square protests in 1989.

Question 38

What was the ‘conservative faction’?

Answer 38

A group, mostly consisting of ageing cadres, who were resistant to Deng’s changes. Instead, they defended elements of MZT.

Question 39

Why was there an ideological divide in the struggle over political reform in the 1980s?

Answer 39

Many of the conservative faction were veterans of the Long March, and although many fell foul of Mao in the CR, they were steeped in Mao’s values. They were concerned that Deng’s economic reforms were undermining many of his socialist values which they had fought for their whole lives, and that his political reforms were depriving them of influence over events.

Question 40

What was the Central Advisory Commission (CAC)?

Answer 40

Est. in 1892 and abolished in 1992, it was chaired by Deng Xiaoping (1882-87) and Chen Yun (1887-92). Membership was only offered members of the Central Committee with forty years or more of service, making it an important forum for the Eight Elders to remain formally involved in politics, and have a supervisory role over Party decisions.

Question 41

How did the Open Door Policy increase pressure for political change in the 1980s (2)?

Answer 41

1) The Open Door Policy on trade and investment exposed China to foreign influences and pressures. An intellectual debate over ‘socialist humanism’ in 1983, leading to demands for equality before the law and respect for human rights, was partly stimulated with contact with the outside world. 2) Western leaders visiting China raised issues of human rights violations with PRC leaders, and Western governments had contact with leading activists (e.g. Fang Lizhi).

Question 42

How did economic reforms increase pressure for political change in the 1980s (2)?

Answer 42

1) Pressure was put on consumers and workers by price and rent rises, lay-offs from factories to reduce costs and raise efficiency and harsh working conditions. This led to strikes. 2) Increased migration by peasants to the cities placed pressure on housing, leading to homelessness and begging in cities. An increase in crime, including armed attacks by gangs on trains and road transport, added to the perception of social instability.

Question 43

How did corruption amongst Party cadres increase pressure for political change in the 1980s?

Answer 43

1) Corruption among cadres damaged the credibility of the CCP. Party officials took bribes, got involved in corrupt land deals, and used their contacts to help family and friends. Despite periodic anti-corruption drives, with 150,00 members expelled 1883-87, problems persisted. 2) The CCP’s justification for dictatorship had always rested on its claim to represent the people. Corruption eroded this image, with fewer and fewer interested in joining the Party, and a growing cynicism among normal Chinese people towards it.

Question 44

When did Deng Xiaoping die?

Answer 44

19 February 1997.

Question 45

How did Deng preside over factional rivalries in the CCP throughout his rule (3)?

Answer 45

1) He presided over a Party riven by factional struggles, and like Mao, never committed wholeheartedly to one or another. 2) This allowed him to keep his power as the ultimate arbiter in the power struggle, allowing him to shift blame when things went wrong. 3) He was ruthless in dealing with protest movements appearing to threaten his or the CCP’s position.