The Chinese economy from 1970 to 1984
Currently China tries to become the world’s largest economy thanks to its new economic model. According to a report that was published by the Organization for Economic Co-operation and Development in 2020 China could become the first economic giant with nearly half the world’s economic output and GDP rate of 20 billion dollars. A model that has been founded by Deng XIAOPING (general secretary of the Chinese Communist Party and architect of the economic reform of China), in 1992, he implemented a policy frequently referred to under the socialist market economy name, insofar as it combines elements of the Maoist era (authoritarian political control of the economy, proactive industrialization plans and major projects) and some economic liberalism. This ideological synthesis allows China to gradually open its economy while maintaining its political system.
Deng XIAOPING provides a new theory in the economic policy that completely focuses the government’s goal on improving the economic system — a new system called social economic system despite the difficulty of the system change that was founded by Mao during the years before 1970, Mao’s policies in those years led to the isolation of the country’s economy and stoped China’s economic relations with other countries.
Imperialist countries make other countries follow their order just for their own benefits but China was the country that did not fall into the trap set by these countries. China, unlike the European economics idea, improves its economic system by paying attention to its traditional agriculture sector between 1919 and 1949, and finally they tried not to accept the financial restructuring, they find their own way to achieve their object. In other words, the structure of China’s economic was based on his agriculture between these years.
But according to the political reform, they changed the basis of this system, used the socialist market economic system since 1979, and used the privatization process to modernize their economic sector.
Economic reforms between 1978 and 1984
1: Implementing socialist market economic as the execute phase
2: Increasing the price of agricultural products by government
3: Privatizing the agriculture market
4: Attracting foreign investors
5: Propagating the export
6: Increasing the production capacity to attracting other countries to floating their budget to use of china’s potential in production
7: Increasing GPD (Gross Domestic Product) from 0.1% to 7% in 10 years
étudiant en Master Commerce électronique à l’Université de Strasbourg