Transcript China-06: The Global significant of its Rise

From Mao to Deng:
from Crisis to
Opportunity
1950s-1990s
Session 4
Table of Contents
China in Mao’s Era
II. Deng’s Economic Reform & the Open Door
Policy
III. Economic Miracle
IV. China’s Foreign Policy
V. Conclusion
I.
I-1. China in Mao’s Era
• Mao’s utopian idealism, war-oriented mentality,
class struggle policy, economic fantasy and lifelong rule put China into a crisis by 1976
 A utopian society- an egalitarian society
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“Chinese have stood up from now on.”
Land redistribution
Stimulated economic development
From each according to his ability, to each according to his need,
Marx
war-oriented mentality
The Korean War from 1950-53
 The Vietnam War
 Split and military confrontation with the SSUR
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Continue
 Class
Struggle policy
 The Anti-rightists campaign in 1957
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Let One Hundred Flowers Bloom, One
Hundred Schools Contend
550,000 intellectuals had been labeled as
rightists
Economic Fantasy
The Great Leap Forward in 1958
 “Surpass Great Britain and catch up the US in 15
years”
 Famine for three years from 1959-61
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Mao-the
Cultural
Revolution
I-2. Consequences of the Cultural Revolution
1966-1976
Red Guards: abolish of Old Customs, Old Culture,
Old Habits, and Old Ideas
Economy at edge of collapse
Education to a virtual halt for almost 10 years.
Psychological scar for almost everyone
almost anyone with skills over that of the average
person was made the target of political “struggle” in
some way.
 Hundreds of thousands of people lost their lives.
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I-3. China in 1976
Zhou Enlai passed away on Jan. 8
Tiananmen demonstration in April
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2 million people appeared in Tiananmen to
commemorate Zhou, resent unfair treatment of
Zhou
Protest the Gang of Four directly and the
Cultural Revolution indirectly
Worry about China’s future
Marshal Zhu De died in July
The Earthquake of Tangshan in July
A rumor that Mao lost the Mandate
of Heaven wide spread in China
Mao passed away on 9/9/1976
The Cultural Revolutiona national crisis
Historian Anne F. Thurston wrote that it
"led to loss of culture, and of spiritual
values; loss of hope and ideals; loss of
time, truth and of life..."[98]
II. Deng Xiaoping Resumed his Power and
Launched China’s Economic Reform in 1978
II-1. Major Shift in Thinking
Deng remarked that “a liberation of thoughts”
was necessary and the leadership must
“seek truth from facts” - Third Plenum of the Eleventh CCP
Congress, Dec. 1978
Deng’s Pragmatism:
“It doesn’t matter whether its is a white cat or a
black cat, it is a good cat as long as it catches
mice”
 Cross the river by stepping over stones (learning
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by doing)
II-2. Centrally-planned Economy
Transformed into Market Economy
“ Planning and market forces are not the essential
difference between socialism and capitalism. A
planned economy is not the definition of socialism,
because there is planning under capitalism; the market
economy happens under socialism, too. Planning and
market forces are both ways of controlling economic
activity
We mustn't fear to adopt the advanced management
methods applied in capitalist countries (...) The very
essence of socialism is the liberation and development
of the productive systems (...) Socialism and market
economy are not incompatible
II-3. Agricultural Reform
The household responsibility system
Of the population of 120, 67 peasants died
 A harvest larger than previous 5 years combined
 Per capita income: 22-400 yuan
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Township & village enterprises
II-4. Breakthrough
Market-determined price
Breaking the “iron rice bowl”
70% of China’s GDP is in the private sector
(2010)
The economic reform and social transition
led to the Tiananmen Square Confrontation
(occupation of the Wall Street)
Movie: the Gate of Heavenly Peace
Discussion
• Is there any way to avoid the tragedy of
the Tiananmen Square Incident when
China experienced a radical social
transition from socialism to capitalism?
Could Deng find an alternative solution?
II-5. Reform in Education
Resumed the College Entrance
Examination in 1977, among 5.7 million
candidates, only 273,000 passed.
III. The Open-Door Policy
• 15 years effort to enter the WTO
• China’s tariffs dropped to 9.8%
from an average of 15.3% in five
years
• Welcome international trade &
foreign direct Investment
• Study abroad and welcome
foreign students to China
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Three “ten thousands”
IV. China’s Economic Miracle
1. GDP has grown at an annual average
rate of 10 % for 30 years
2. China becomes world’s second largest
economy in 2011
3. Largest exporter, second largest
importer, second largest trading nation in
the world in 2011
4. Foreign reserves: $2,447 billion (Mar
2010; ranked 1st).
China’s Progress in Technology
• China’s GPS
• Walk in the space
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Canton-Wuhan high-speed train at speed
of 165 miles per hour; 4 hours from
Beijing to Shanghai (600 miles)
It now has the second largest R & D
budget
In 2007 China contributed more to global growth than
the United States, the first time another country had
done so since at least the 1930s.
Since 1978 400 million people have been lifted out of
poverty in China—about 75 percent of the world's
total poverty reduction over the last century.
Lawrence Summers has recently pointed out that
during the Industrial Revolution the average
European's living standards rose about 50 percent
over the course of his lifetime (then about 40 years).
In Asia, principally China, he calculates, the average
person's living standards are set to rise by 10,000
percent in one lifetime!
In two decades China has experienced the same
degree of industrialization, urbanization and social
transformation as Europe did in two centuries Newsweek, Issue 1, 2008
V. China’s Foreign Policy
Peaceful rise/development
To be a responsible great power
Created a peaceful world environment
Normalization with the US in 1979
 Normalization with the Soviet Union in
1989
 Visited Japan in 1978
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Comparison between Mao’s Waroriented Mentality
& Deng’s Peace-oriented Mentality
Mao: China should make preparations
“for an early world war, a major war and nuclear war.”
If you are not with us, you are against us.
Deng: China’s foreign policy in the 1980s, and in fact in
1990s, even in the 21st century, can be summarized in
two sentences. China makes efforts to maintain world
peace and oppose hegemony. China always belongs to
the third world.”
If you are not against us, you are with us.
Deng Visited Japan in 1978
"China is striving to build itself into a modernized
socialist power. We need a peaceful international
environment and we are willing to develop friendly
and cooperative ties with all countries. Despite
different social systems in China and Japan, the two
countries should and can coexist in peace and
friendship."
Deng and Carter
Deng Xiaoping in the US
Deng and Mikhail Gorbachev
Conclusion
Deng’s Economic Reform:
Transferred the Crisis into an Opportunity
Missions impossible” Accomplished in China
• Mao lost Mandate of Heaven and led China into
a critical crisis in 1976.
• Reestablished the Mandate of Heaven through
replacement of Communist ideology with
pragmatism.
Continue
• Centrally-planned economy transformed into
market economy, with growth the fastest ever,
made China a second largest economy.
• New rising power has not resulted in a war,
territorial expansion, or a challenge to the
world order, relations between China & other
powers & neighbors better rather than worse.
Questions?
谢谢!