over the last 40 years china has been transformed out of all recognition

the scale of its growth and the sheer speed of change is astonishing
nothing like this has ever happened before
but as china rises others will fall in the 21st century the balance of power
in the world is changing
so how did an impoverished and backward communist country become an engine of global
capitalism
[Music] just forty years ago china had a new leader a five foot tall chain smoking
veteran of the long march with a reputation for pragmatism over ideology
deng xiaoping under done china renounced class
struggle and embraced the market it saw the biggest lifting of people out of poverty that has
ever taken place
in human history china became a global economic force
predicted to become the world's biggest economy in a couple of decades but what actually
happened 40 years ago and how did china do it
china has 1.4 billion people a fifth of all humanity
for the last two centuries they've been engaged in a long-running struggle over the different
pathways
to modernity [Music] china was a leading nation over 1 000
years until the early 17th century then china began to close door
[Applause] we don't need these western gadgets you know we are so powerful we have
everything on the earth so from there china begins decline china
closed off complacent
the chinese call what followed the century of humiliation
and its memory has marked china to this day [Music]
it suffered colonial oppression japanese invasion and then civil war 14 million chinese
people died in world war ii alone
and in the countryside the people were reduced to starvation
[Music] from 1840 the first open world with uk
the longest continued stability for china with no more than 10 years so china's
modernization process was interrupted again and again and by
former aggression by peasant uprising by civil wars so the communist triumph
of 1949 they hoped would bring peace but soon economic
disasters led to the great famine and then in the 60s the class struggles of the cultural revolution
when chairman mao waged war on china's traditional culture
china had struggled with modernization because previously china had tried to modernize
in keeping china's old traditional way of doing things and the cultural revolution essentially
was an attack on china's traditional way of doing things
by the early 70s the country was traumatized and exhausted its economy in ruins the people
wer
desperate for a new pat
most people would say ordinary people were fed up with this excessiv
radical ideological campaigns one after another
so denzel ping personified this kind of demand for change
dung had been a party stalwart from the time of the long march in the civil war but in the cultural
revolution he was purged for criticizing mao exile to the countryside he worked as a
fitter in a tractor factory dung had been in the top leadership ever
since 1949 and then he spent about
three years in the countryside a lot of the greatest leaders churchill
de gaulle abraham lincoln they all had been in very high positions fell and then had time to think
and dunk's conclusion was that rigid ideology had wrecked china's economy
in the 1970s china was an agricultural country 80 percent of the people worked the land
and after three decades of communism they were still poor now
when i was growing up hunger always haunted me
almost every day the sort of finding something to each was was always there the overriding
priority
was to lift the people out of poverty and in 1976 when mao died the
opportunity came deng xiaoping returned from exile determined to change
china's direction dung had a vision and it was that china should become more
prosperous he shared mao zedong's concept that the
only way for china to become more prosperous was to have stability and he believed as did now
that the only way you could have stability was through one party rule by a communist
party that kept all of the power in its own hands but mao's concept
was not really stability it was permanent revolution and dung didn't accept that so when dun
came back after mao died his vision was that get rich is glorious
and that you do it in the most efficient way but to achieve that dung first needed to
outflank the hard-line conservatives in the party leadership and when he came back he asked
first
the first step was to undo the damage caused by mao's war on the middle class
at 66 when the cultural revolution broke out they closed down universities they closed down all
the examinations
there were a few people who received party recommendations to go to school but schools were
not operating the way
they should [Music]
when i finished my high school i went to a factory in shanghai i did not have any
hope to enter university a whole generation of china's youth had
been sent to the countryside for what was called re-education through hard manual labor
to learn what it was like to be a peasant i was the the probably last cohort of
people from high school that you have to go to the countryside to receive re-education
i was thinking of my life was just you know i stayed there for for my lifetime just gonna be in that
village
and then in summer 1977 dung called a conference in beijing on the future of education high
education department professor liu dauyu he told me
you are invited by the thing so being tomorrow in the
the great hall you know in beijing i go to the the people grew up
but the no people speak because at that time you know that
after cultural revolution they are very fair you know people were scared yeah
yeah yeah then the things are being said you can't take any opinion
freely comfortably and did you speak i propose to the
tension being i have an opinion i proposed 16 words
for the inter of the university those 16 words would change modern china
exams should start again as soon as possible they should be free fair and open to all not just
the party
dung agreed and the first exams took place that december of 1977.
when the news announced that actually we can take the examination to get into college
we're just it's so we're just so happy and it was exhilarated it's just
uh you know such a life-changing you know sort of moment for us
[Music] it was very tough 5.7 million
candidates applying for the exam only less than five percent were admitted and
ages varied from 18 to 35 you know in my
class i was 20 at that time
they were coal miners they were farmers they were soldiers they were
workers young apprentice like me so that exam changed life for many
people in a culture that had for so long
believed in the value of education it was a transformational moment
[Music] it was the first step in his path to
power the following year 1978 he emerged as preeminent leader
he wasn't fully in charge hua guafang was still officially the top leader but
it was clear that he had been given the authority by his colleagues to be the dominant figure
he realized that all those people who had spent their lives working for mao including himself was
started in 1922
that what they had been thinking about was completely wrong and to be able to lead that kind of
dramatic change to get several hundred million people to accept
something quite new and quite different was absolutely necessary
when i graduated from college in 1978 i could feel the strong wind of change
the chinese many people like me the chinese started to face the world and rediscover the world
and also to learn from the world in may 1978 dung sent a five-week
fact-finding mission to europe led by gumu
they were shocked by what they saw they've been taught that capitalist countries brutally
exploited their workers were backward and decadent but now they saw for themselves how far
communist china had fallen behind
himself now went on a mission to singapore and japan dun was one of the few communist
leaders
in china who was exposed to the outside world he spent almost six years in france
as a part work part studies student so this kind of international outlook
helped him
in japan dung understood the extent of china's backwardness
[Music] foreign
he saw the modern robots in the factory making cars he saw the most modern steel plant in
the world at that time he talked to matsushta who the great electronics man
and he could see the extraordinary technology and he was excited like a little kid and
seeing all those things dung wanted the chinese people to see for themselves how
others lived he asked specifically the essential television crew to
film people's life he said please focus on how ordinary people in japan
lived in singapore lived it's an eye-opening for
for chinese at that time you know when the chinese source with television japanese workers
have refrigerators at home you know it's awakening it's a it's a shock
in 1978 there were no fridges and tvs in the chinese countryside hundreds of
millions worked the land in a rigid system of collective farms huge communes on the stalinist
model but it had been a total failure china was still
starving this is feng young in anhui province
a fifth of the county had died in the great famine in the early 1960s
and here the seeds of change were beginning to sprout at the grass roots that winter of 1978
in the village of xiaogang desperate local farmers broke with the commune system of collective
farming
in this house on the 24th of november they secretly swore a pact
to go back to family farms selling their surplus
it was against the law and the penalties were severe but in this room risking their lives
they put their thumbprints to what they called a life or death contract
what did you what were the words that you put on the document what was the agreement you
made together
and were you were you scared that the the government might find out was it dangerous to to do
that
without
[Music] so the ordinary people of china wanted
change the party leadership though was stillsplit over the course china should take between the
reformers and the hardliners
who feared opening up the market would betray the revolution
sensing the mood in the nation that autumn deng xiaoping convened a conference
about labour in beijing
the big grey building on the corner is the jinji hotel it's quite difficult to find there's no
sign saying it's a hotel and not everybody can book in there
especially if you're a foreigner although if you look it up on tripadvisor it says that the the decor
is lovely and the staff are extremely good looking and very well trained but it's owned by the
people's
liberation army and many important meetings of the communist party taking place there over the
last few decades
showing the path of china's future but none of them so important as the meeting in december
1978.
[Music] 200 delegates from all over china met here in this room
to discuss the economy and the commune system of agriculture
still under mao's shadow they were divided about the future so maneuvering against the hard-
liners
dung prepared a short keynote speech that crystallized all he'd thought about
in his years in the countryside the key dung said was to reject ideology
from now on we must seek truth from facts
we have to think about what we've done we're too poor too backward i honestly
feel sorry for the people from now on he said we must embrace
science and technology and open up the market to change the backward condition of our
country
[Music] the conservatives were shocked the
reformers were excited dun concluded the time has come to
liberate our minds
[Music] [Applause] but that winter dung was also looking abroad
the usa recognized the nationalists in taiwan not the communists on the mainland as
the legitimate rulers of china but now beijing and the us were in secret negotiations
stapleton roy was there our relations with china for 20 years were frozen
in a pattern of total hostility during those 20 years the relations between china and the
soviet union deteriorated and we couldn't take advantage of that and that's what this secret
negotiations
were all about we had to break relations with the friendly government we had to end a security
treaty with a friendly
government and we had to remove all of our military forces from taiwan
and so president carter was given the choice did he want to only get a partial
relationship with china or was he prepared to take the enormous steps necessary
in order to get a full diplomatic relationship with china it was very awkward before we began the
negotiations we
briefed the top leadership in congress both the republican and democratic
leadership in congress as to what our bottom line was in the negotiations
and what they told us was you're doing the right thing but we are going to criticize you right
so in other words they were supportive of what we were doing but for political reasons they were
going to criticize the way it was done
on the 1st of january 1979 the u.s recognized the people's republic and
then in mid-january dung went to washington to meet president jimmy carter [Applause] [Music]
today we take another step in the historic normalization of relations which we have
begun this year [Music]
the eyes of texas were on dongxiao king today as the chinese vice premiere continued
his tour of this country in an eight-day trip dung visited seattle atlanta
and nasa in houston he even had time to get down home at a texas rodeo but
behind the fun was a cool calculating brain he needed the us
to help his reform work
done engagement had a number of goals some of
which were self-serving on our part uh some of which had to do with changing china
at which the west has been extraordinarily successful there's no question about where the lion's
share of
influence has flowed and much of the energy of engagement and i'm not talking
about government to government but the institutions universities in some cases cities counties
churches that were
involved in engagement it really was about development for a lot of them about lifting people out
of poverty and
improving their lives as a matter of human sympathy
to finance the first stage of the reform dung asked the un for help he'd already made a speech
there in 1974
calling for a new economic order and china he dreamed would one day lead
it
the person sent to china to begin the un's aid program was a young tech consultant jack
fensterstock in the summer of 1978 i was contacted by a ranking official at
the u.n asking me to come to new york to discuss with them a highly secretive project
and they told me that uh when i at the meeting that by the end of the year china was
going to announce its opening up to the world and that it was felt that they would need some
technical assistance
so i was asked to lead this sort of programming mission to try to figure out what china wanted to
do and how the un
could help in in the area of computing which by the late 70s was clear was going to be the
future the third industrial revolution they were way behind they were way behind
and they realized this and the money was used for the equipment
mainframes and what they call that time mini computers the training of their people better ways
of storing and retrieving you know the world's science technological and industrial information
we put in a rudimentary hospital information system china just had all these pieces of paper
there was no way of it being organized so we set up a database system and then getting into
the area of how to
you know do database modeling you know econometrics models and
you know all of this they took off very very quickly
so in early 79 the stage was set for the reforms guangzhou on the pearl river in south
china was to be the testing ground china's historic commercial capital the city had gone
into a steep decline since the revolution of 1949. when you came here 40 years ago what you
saw was
a skyline of decaying factories with old-fashioned machinery poor infrastructure almost no cars
in
the streets guangzhou said a local communist party official
has become the tired old man of the pearl river delta and the reason was very simple what good
is production without consumers
my first visit at design was 1973 and at that time i remember in guangzhou
there were still dog carts there were a lot of people without clothes who were so thin that you
could not
you know wonder if they were going to make it on his return from the states dunn came
down south to initiate the economic reforms a short drive into the pearl river delta
you could look straight across to hong kong then still under british rule
40 years ago this was a vision of the promised land this strait was the gateway to a better
life for thousands of poor chinese whose dreams of wealth often ended in bitter disappointment
and even tragedy seven hundred thousand people mainly young men had attempted to cross
over to hong kong but many of them swimming directly across a hundred and forty thousand
made it
most were turned back but many drowned one of the coves here became known as the cove of
corpses the reasons for the
migration of course were economic you could earn over there a hundred times the daily wage
of a labourer here in guangzhou to change that deng xiaoping found an
ally in the new boss in guangdong an old revolutionary comrade who shared his views on
reform
xi jong-shun the father of today's president xi jinping
elementary
huge deals for local industry unleashing the potential of the new economic
reforms here in shenzhen then just a rocky peninsula opposite hong kong
a local entrepreneur proposed a business plan involving foreign investment a no-go
since 1949. he had a plan to create a breakers yard
here where old chinese merchant vessels and there were lots of them
would be broke into pieces and sold a scrap metal to hong kong merchants
the other side of the water to feed the construction boom over there now of course there
there was no space for such an enterprise but there was here so on the 31st of january 1979
barely a
month since the plenum meeting in the jinji hotel in beijing the deal was signed the first foreign
investment contract in the history of the people's republic of china
dung had warned xi that central government had no money to give him but they devised a plan
to try to free
the economy through local enterprise they called it a special economic zone
this was totally typical of deng xiaoping's approach they set up these four experimental
zones near hong kong and macau and they permitted market forces to operate in
those zones but not elsewhere in the country and when the zones were wildly successful
in large measure because hong kong took advantage of the cheap labor available on the
mainland and
moved their production facilities into these special zones and this
then became the model for the entire country in a system stifled by bureaucracy and
ideology dung's idea was to give more freedom to local initiative
i think this is really the key test something at the local level see if it works if it works expand it on
a regional level if there's push back pull it back and re-tool it and expand it again thousands of
small
businesses were now allowed to spring up everywhere across china the first on the coast of
jejung
at wenzhou which had always been less controlled by beijing because of its location you can
see how
wenzhou's been shaped by geography hemmed in by the mountains cut off from
the interior it's always been an outward looking place from the sung dynasty onwards its
merchants have sailed down the river up the coast to the yangtze delta cities
down to the pearl river and on to vietnam so when the great opening up happened 40 years ago
this city with its
clan based businesses was ideally situated to take advantage of the new opportunities
and when joe was the first city in china to establish a system of small private enterprise
wenzhou would be the birthplace of china's private economy a hundred and thirty thousand
small
businesses from noodle bars to china's first private airline
and the first private business certificate in 1979 was issued to a young woman selling
knitting in the street she's still here
so how did you get into buttons then how did the button story come because
for something
foreign so china embarked on an economic and
social experiment mixing the communist command economy with the energy of capitalist
xiaoping took a position of absolute pragmatism and the view was it doesn't matter if
it's socialism or market as long as it works and this idea of combining both at that
time was something that international economists western economists imf world bank did not
accept
but that's what they did the communist party could push through
big construction projects quickly providing the infrastructure for growth
but they also needed to liberate talents lower down the chain of command as deng xiaoping put
it to democratize
economic production the big thing that we realized is that they had
to somehow release sort of penta productive forces and since the biggest component
of productive forces is the human capital element they spent a lot of effort on this so
they changed from one man rule into collective leadership no longer could decisions just be
made
up at the top so they gave people downstream the responsibility and the authority to make
decisions so
motivated and talented middle people were really important in this the most important these
were the real
people who got everything done and to train the managers of the future
chinese students were sent to foreign universities without party control in the next twenty
years over two hundred thousand studied in the us alone i remember i think it's brucing national
security advisor to to jimmy carter asked them you know how many students you want to send
to
the united states and then said how many you can receive
yeah for us no limit it's a lot of courage because that
living standard between china and the west was so different you know china was much lower
and many were
concerned that students may not choose to return to china and then said at
internal party meetings if one out of ten can return to china this policy
will be a victory for us but success in the universities depended
on standards in schools and a major feature of the reform process was a huge investment in
primary
and secondary education especially for women i remember when i
was inthe middle school in my class there were lots of students from the countryside from
nearby
villages and there were very few girls and even the few in our class
they were constantly urged by their parents to quit study and go home
but all these have changed as the society has progressed now you see in the countryside boys
girls are in schools and they can decide their own future
by the early 80s the signs of reform were everywhere from the schools to the cars on the
streets where once there were only bicycles and a huge demographic change began
a key feature of china's modernization process has been urbanization the rural population of
china has been
moving into the cities at a rapid pace now to understand china's rapid economic
growth the productivity of a rural worker
who moves into a city and gets a factory job increases about 20 times with a fast
growing middle class production had to keep pace with consumer demand
and though big centrally controlled factories dominated tens of thousands of small enterprises
accounted for a growing percentage of national output in construction materials and
clothes and leather this shoe factory in wenzhou was a typical early eighties success
story [Music]
so in just four years china's agriculture education and industry were reformed
private business allowed to flourish they even opened a stock exchange
the energies of the chinese people were being liberated you're talking about social
transformation economic transformation psychology changing all of these things
have moved at such a huge pace it's often baffles people here not to say foreign
observers who are trying to catch up and understand what's happening
but deng xiaoping's concept of political reform was still only within one party rule
he embraced only economic liberalization he rejects political liberalization
or globalization the western style he said we must be very cautious on the political front
[Music] i call his political reform is rationalization not democratization
chinese discourse of modernization since 1978 has been distinct from what we call
modernity in the west china has never claimed interest in liberal ideas and values it has claimed
that it is pursuing modernization by which it means economic and technological
well-being economically this meant seeking new
relationships and trade deals around the world but politically the absolute power of
the communist party was reaffirmed dumb was a pragmatist his famous quote
you know is it doesn't matter whether a cat is black or white if it catches rats it's a good cat and
he was experimental in looking for the best way to accomplish something but the real
changes to socialism in china occurred after
done so after decades of struggle china's
path to modernization had been set at the beginning china's low production
costs offered huge opportunities to the outside world what was happening was the valve was
opening i worked on a lot of the early inbound investments i did the very first
deal for exxon mobil for roche pharmaceutical for buyer chemical i negotiated
ericsson's first joint venture here and with its fast expanding urban
workforce china's gdp would increase nearly 70 times in 40 years the reform and openness
policies have been wildly successful in modernizing chinese society and its
economy but china has what i call a pre-modern political system
it's based on this concept that power should be concentrated in the hands of the rulers and all
modern political systems are
based on the concept of power corrupts and therefore it needs to be checked and balanced and
that the just powers of
governance are derived from the consent of the government so there needs to be some sort of
legitimization process china does not accept
those modern concepts and so the contradiction between the way that china is being ruled
and the nature of the society that has been transformed through the success of the
reform and openness policies is a fundamental contradiction in china
but 40 years on that's not a contradiction to the chinese government who proclaim their
marriage of one party
rule and capitalist enterprise as the chinese way
and their economy is changing now big chinese companies have seized their chance in a global
environment so 1999 the the time when alibaba was
founded the name let's always link to the story open sesame so open sesame that means
like how we can help the small and middle-sized enterprises
to do the business open the treasure across the whole world exactly okay
maybe like people have not realized i bought from day one is a kind of globalization of the
symbol
because the first website of alibaba is in english
[Music] so as companies like alibaba reach out to the world
economic liberation has enabled the growth of a huge chinese middle class with its own tastes
and desires china's middle class it's about 400
million it's bigger than the population of the united states getting bigger
and these are people who are early adapters of technology who value education
extremely highly and will suffer for it individually and as family there are also people who
believe in increasing their national prestige
the rate of accumulation of wealth of course is slowing but it's still fairly high and not only
are they early adapters of technologies but they are adapting technologies and developing
new products new markets in a still relatively unregulated market
where they don't face the kinds of consumer product protections that a lot of countries in the
west and many in the east have
so they're moving forward very quickly
and that lack of regulation has helped china catch up very fast with western technology
often playing fast and loose with intellectual property
i don't buy into this that everything has been copied what they did was called learning by doing
and what they did was
they imported know-how and technology they weren't so interested in the how of it the theory of
it
let's put it to work let's start putting people to work let's start heading to the economy and we
have time
you know later on to figure all this out
but they started their own programs they don't want to be dependent anymore on outside
people for technology
a key example is china's high-speed train workshops
chinese
how big is the the network now is it is the network expanding every year
army
that's incredible 25 000 kilometers of high-speed network looking at the future
the network is still expanding how do you see the future
and now the chinese government is pursuing globalization through their belt and road initiative
linking up the trade of asia europe and beyond by land and sea
searching for new markets and raw materials it's an infrastructure project of extraordinary scale
and ambition right back in the middle ages chinese junks and arab dolls carried the
produce of china tea and silk and especially ceramics to the persian gulf and the west and now
they're doing it again from these container ports of ships are
flooding across the world and wherever you live whether you're in the states or africa or asia
there'll be something
here that ends up on your table
and with growing economic power comes increasing political and cultural influence
the balance of power in the world is shifting very quickly china is very adept at spreading
its practices or getting acceptance for its practices through money through the markets and
this is not a nefarious plot this is happening in the broad light of day and largely with the
complicity of american corporations
that want to sell into china but it has an impact here and i think that the most telling
example is hollywood hollywood's profit model is the blockbuster
china has the world's highest box office if you want to be a blockbuster you therefore must play
in china
china censors films heavily the result is that american filmmakers
hollywood and these are the people who would claim to be the architects of soft power and the
celebrants of the human spirit human
freedom they won't greenlight a script that can't show in china so we have
handed to them a direct channel for influencing what we see here at the multiplex
money talks they china will become the taste makers to the world both at the supply and the
demand side
because they have the numbers [Music]
but china's influence will go beyond economics and culture
its sheer size means that it will join the us as a leader in a.i too
ai will be the next phase of their superpower rivalry [Music]
the ai is the fourth industrial revolution the initial steam engine industrial revolution
electricity uh the digital revolution of the 90s and now ai
the oil that makes the ai machine run is data and china will have more data because of
its people and because it is able to direct and use their data as they wish so china may be very
well positioned
to be one of the two leaders in artificial intelligence
to pursue that goal china is now encouraging big business to work with new tech universities
many run by foreign educated scientists who've come home
this area is one of the most economically developed area in china nowadays
and by combining hong kong and macau the central government has a plan to
develop the whole pro data area into one of the biggest bay areas in the world
to become competitive as compared to tokyo bay and san francisco bay and already
chinese corporations like tencent alibaba and huawei are spreading their
influence around the globe challenging the supremacy of u.s corporations
but they're also positioning themselves to take the lead in the greatest problem facing the world
toda
climate change having inflicted huge damage on their own environment
china signed up to the paris climate agreement and they're now massively investing in
green technology which they see as another growth opportunit
economically and politically especially as the us has walked away from the paris accord
china will lead on environment it will be the global leader in the fight against climate change it's
also going to be one of the global leaders if not the leader on technology it's already the largest
investor in ai ai is not just about robots serving you coffee it's
about all the technology required for environment this involves massive data to manage
water hydro solar all of these systems because this will create all kinds of jobs
this is not the environment preventing growth the next growth opportunity is in fixing
the environment that long-term vision on the face of it looks unstoppable
but commentators in the west think that china's unwillingness to embrace western-style
democracy might impede the
country's progress in the future china is not necessarily committed to the idea that
electoral democracy can provide stability in china but people like it when the party no longer
tells them
where they can go where they can work where they can study what they can read where they
can travel
all those freedoms emerged in china over the last 40 years [Music]
but the danger is if you're open to the outside world it's hard to maintain ideological conformity
on the part of
your population china wants to become a world leader in
artificial intelligence in robotics in a whole bunch of areas that require
educated workforce require highly educated people and
if china closes itself off from the outside world in order to maintain ideological conformity they
cannot
sustain the same pattern of rapid growth
how things will work out in the future no one can tell
western commentators have repeatedly predicted that china's mix of capitalism
and one-party rule was bound to fail
[Music] so far they've been proved wron
when china started its reform four decades ago china's per capita gdp was lower than
tanzania kenya with the level of malawi now china is the second largest economy by official
exchange rate and largest economy by ppp purchasing power parity and obvious china done
something right
this old idea that a consumerist middle class would become an advocate for democracy tends to
presume that these people are locked in place but if you look at the way that people
live in beijing in shanghai in shenzhen they go down to thailand a few times a year they go to
the paris the french open they go to turks and caicos they can import dairy from new zealand
they can go to
special hospitals for the rich their children are at school in the uk in canada in the us
the system the party has brought them to this it has brought them this abundance
these opportunities so i think that the day of reckoning and that's a western
way of speaking not a chinese way of speaking is probably a lot further off than we
China's transformation into an economic powerhouse can be attributed to a series of strategic
decisions and reforms initiated by Deng Xiaoping, marking the beginning of a new era around
1978. Here are key factors contributing to China's economic success:

1. Reform and Opening Up Policy (1978): Deng Xiaoping's pragmatic approach

emphasized the need for economic reforms. The policy involved a shift from rigid
socialist ideologies to a more market-oriented economy.
2. Combination of Socialism and Market Economy: Deng's approach was marked by
absolute pragmatism, asserting that it didn't matter if the economic system was socialist
or market-oriented, as long as it worked. This unique blend of socialism and a market
economy was contrary to international economic norms at the time.
3. Liberalization of Education: To fuel economic growth, Deng prioritized education. A
massive investment in primary and secondary education, particularly for women, helped
create a skilled workforce and foster innovation.
4. Sending Students Abroad: Over two hundred thousand Chinese students were sent to
foreign universities, mainly in the United States, without party control. This move aimed
to train the managers of the future and incorporate global knowledge and expertise.
5. Infrastructure Development: Large-scale infrastructure projects were undertaken, led
by the Communist Party, to support economic growth. This included the development of
transportation networks, factories, and educational institutions.
6. Special Economic Zones: Deng initiated the creation of Special Economic Zones (SEZs)
like Shenzhen, where market forces were permitted to operate more freely. These zones
served as experimental grounds for economic reforms and became successful models for
the entire country.
7. Opening Up to Foreign Investment: Deng attracted foreign investment by allowing
businesses to operate in the SEZs, leading to collaboration with major global companies
and the influx of technology and know-how.
8. Urbanization: The rapid urbanization of China's population contributed significantly to
economic growth. The movement of people from rural areas to cities increased
productivity and created a more dynamic workforce.
9. Globalization through Belt and Road Initiative: China's Belt and Road Initiative (BRI)
aimed at global connectivity through infrastructure projects. It sought new markets, raw
materials, and geopolitical influence by linking Asia, Europe, and Africa.
10. Integration of Technology and Innovation: Deng's focus on science and technology,
combined with the adaptability of Chinese companies, led to rapid advancements in
various sectors, including artificial intelligence (AI) and green technologies.
11. Shift towards Consumerism and Middle Class Growth: The rise of a massive Chinese
middle class, driven by economic liberalization, increased consumer demand. This
growing middle class became a driving force for economic development.
12. Global Expansion of Chinese Corporations: Companies like Alibaba, Tencent, and
Huawei expanded globally, challenging the supremacy of U.S. corporations and
establishing China as a major player in the international market.
13. Green Technology and Climate Change Mitigation: China invested heavily in green
technology as part of its commitment to address climate change. This move not only
contributed to environmental sustainability but also created new economic opportunities.
 14. Adaptation of Western Technologies: China, initially labeled as a copycat, shifted
towards learning by doing and importing know-how and technology. This adaptation,
along with indigenous innovation, allowed China to catch up with and sometimes surpass
Western technology.
15. Political Stability and One-Party Rule: Deng's political reform focused on
rationalization rather than democratization. The one-party rule of the Communist Party
provided stability, allowing for long-term planning and implementation of economic
policies.

Despite Western skepticism and predictions of failure, China's unique blend of socialism and
market-oriented reforms, coupled with strategic investments in education, infrastructure, and
technology, has propelled it to become one of the world's leading economies.

One striking example of China's pragmatism, experimentation, and the release of productive forces is the
establishment of Special Economic Zones (SEZs) in the late 1970s. Deng Xiaoping initiated this
experimental economic strategy in selected regions, such as Shenzhen and Zhuhai, aiming to attract
foreign investment and foster economic growth.

In these zones, China implemented market-oriented reforms, providing businesses with more autonomy,
reducing bureaucratic hurdles, and offering tax incentives. This approach allowed for the rapid
development of export-oriented industries, attracting foreign capital and technology. The success of SEZs
demonstrated China's willingness to experiment with new economic models and pragmatically adopt
measures that facilitated the unleashing of productive forces, ultimately contributing significantly to the
country's economic transformation.

Over the past four decades, China has undergone an extraordinary metamorphosis from a closed,
impoverished nation to an economic powerhouse. Deng Xiaoping's pragmatic approach to reform in
1978 marked a turning point. Abandoning rigid ideology, he initiated economic liberalization while
maintaining one-party rule. This shift unleashed the entrepreneurial spirit, leading to the creation of
special economic zones and a surge in private businesses.

The reform extended beyond economics, with substantial investments in education, primary healthcare,
and infrastructure. Deng's emphasis on pragmatism, experimentation, and the release of productive
forces spurred rapid development. China strategically embraced globalization, integrating into the global
economy and becoming a manufacturing hub.

As a result, millions were lifted out of poverty, and a burgeoning middle class emerged, transforming
consumption patterns and shaping global markets. The pursuit of knowledge was prioritized, leading to a
well-educated workforce, while technological advancements positioned China at the forefront of the AI
revolution. This economic success, however, coexists with a political system resistant to Western-style
democracy.

China's influence has expanded globally, challenging established norms in trade, technology, and even
Hollywood. The Belt and Road Initiative showcases China's commitment to infrastructure development
and its ambition to lead on climate change. While Western commentators have predicted China's
eventual failure, its resilience, adaptability, and long-term vision have defied these forecasts.
In essence, China's journey reflects a story of pragmatic economic transformation, technological
prowess, and global integration, all underpinned by a unique political model that has propelled the
nation to the forefront of the 21st century.

China's journey from bicycles to high-speed trains, from closed-off policies to global initiatives, is a tale
of resilience, reinvention, and remarkable pragmatism. Deng Xiaoping's philosophy—whether the cat is
black or white, if it catches rats, it's a good cat—encapsulates a mindset that turned a nation into an
economic powerhouse.

What stands out is the fusion of socialism and market forces, an unconventional dance that baffled many
but orchestrated China's economic symphony. The emphasis on education, sending students abroad, and
liberating talents downstream underscored a commitment to not just catch up but leap ahead.

China's economic transformation isn't just about numbers; it's a saga of people choosing their destinies,
of villages turning into cities, and a nation embracing global interconnectedness. The Belt and Road
Initiative, AI prowess, and green technology investments showcase not just economic might but a
conscious effort towards shaping a sustainable future.

In a world of doubters, China's success story challenges conventional narratives. It's not just about
copying; it's about learning by doing. The marriage of one-party rule and capitalist enterprise might
seem paradoxical, but it's the Chinese way, a unique blend that defies textbook expectations.

As we marvel at China's ascent, it's a reminder that success isn't always scripted; sometimes, it's about
reimagining the script altogether. The question now isn't whether China will continue its rise but how the
rest of the world adapts to this new chapter in the economic story.

Before the reform initiated by Deng Xiaoping in 1978, China faced several challenges:

1. Economic Stagnation: The country was mired in economic stagnation due to rigid central
planning and state control, leading to inefficiencies and low productivity.

2. Poverty: The majority of the population lived in poverty, with limited access to basic necessities
and a lack of economic opportunities.

3. Isolation: China was largely isolated from the global economy, resulting in limited international
trade and technological exchange.

4. Lack of Innovation: The closed, state-controlled system stifled innovation, hindering

technological advancements and industrial progress.

5. Inadequate Infrastructure: The country's infrastructure was underdeveloped, hindering

transportation and communication networks essential for economic growth.

6. Educational Gaps: Education was not universally accessible, especially in rural areas, leading to a
lack of skilled workforce and hindering overall development.

7. Political Instability: The political environment was marked by ideological campaigns and political
purges, causing instability and disrupting governance.
 8. Agricultural Challenges: The agricultural sector faced inefficiencies and issues related to
collectivization, resulting in lower agricultural productivity.

9. Limited Foreign Relations: China's diplomatic relations were limited, and it was largely viewed
with suspicion by the international community.

10. Healthcare and Welfare: The healthcare system and social welfare programs were inadequate,
impacting the overall well-being of the population.

The reform period aimed to address these challenges by introducing pragmatic economic policies,
encouraging entrepreneurship, and opening up China to the global community.

Deng Xiaoping's ambition to reform China was primarily driven by the recognition of the shortcomings
and failures of the existing socio-economic and political systems. Several factors influenced Deng's
determination to bring about comprehensive reforms:

1. Economic Stagnation: China faced economic stagnation and inefficiency under the rigid centrally
planned economy. Deng recognized the need for a shift towards market-oriented policies to
stimulate economic growth, encourage innovation, and improve productivity.

2. Poverty Alleviation: Widespread poverty and a large population living in dire conditions were
pressing issues. Deng aimed to lift millions out of poverty by fostering economic development
and creating employment opportunities through market reforms.

3. Global Comparative Development: Deng observed the success of market-oriented economies in

other parts of the world, especially in East Asia. He sought to learn from their experiences and
implement similar strategies to accelerate China's development.

4. Technological and Industrial Modernization: Deng emphasized the importance of technological

advancement and industrial modernization. He recognized that China needed to catch up with
the rest of the world in terms of technology and infrastructure to become globally competitive.

5. Desire for Stability and Order: Deng sought to bring stability to a country that had experienced
political turmoil, including the Cultural Revolution. His pragmatic approach aimed to restore
order, create a predictable environment for development, and avoid radical ideological
movements.

6. Recognition of the Limits of Ideology: Deng acknowledged the limitations of strict ideological
adherence. He moved away from rigid Maoist ideology and emphasized a more pragmatic and
flexible approach, prioritizing practical solutions over ideological purity.

7. Opening to the Outside World: Deng believed that China needed to engage with the global
community to benefit from international trade, technology exchange, and foreign investment.
Opening up to the outside world became a key aspect of his reform agenda.

8. Social Harmony: Deng aimed to improve living standards and social harmony. Economic
development was seen as a means to enhance the well-being of the population, reducing social
disparities and improving overall quality of life.
 9. Military Modernization: Deng recognized the need for a modernized and technologically
advanced military. Economic reforms were crucial to generating the resources required for
military modernization, contributing to national security.

In summary, Deng Xiaoping's ambition to reform China stemmed from a pragmatic assessment of the
country's challenges, a desire for economic prosperity, and a recognition of the need to adapt to global
trends. His leadership marked a departure from ideological rigidity in favor of practical solutions to
propel China into a new era of development and global engagement.