dec 1, 1978 - Deng Xiaoping's reforms
Economic reform began under Zhou Enlai in 1972 with the four modernizations, but Deng Xiaoping solidified his power through a series of his own reforms. The reform began with agriculture: Maoist communes and large collective farms were broken down into smaller subdivisions, and the government took a step away from controlling the market through prices and sales quotas -- this reform was successful, but farming peasants today are in overabundance and make very little. The next reforms were privatization of corporations and profit/efficiency maximization of state-owned enterprises. Foreign entry into Chinese market was encouraged by special economic zones -- included incentives such as better tax rates. Some negative outcomes of the reforms include uneven wealth distribution, ethically questionable benefits for guanxi, and a decline in China's environmental health.
(Ch. 10 Comparative Politics)
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