Welcome
2 [18]1 Phase 2, 1978 to 2013: The Deng and Deng Successors Phase of Gaining Strengths Through Economic Reforms and Opening Up Without Creating Threats to Other CountriesChapter 6: The Big Cycle of China and Its Currency2020-10-09Journal1 Phase 2, 1978 to 2013: The Deng and Deng Successors Phase of Gaining Strengths Through Economic Reforms and Opening Up Without Creating Threats to Other Countries2 Phase 2, 1978 to 2013: The Deng and Deng Successors Phase of Gaining Strengths Through Economic Reforms and Opening Up Without Creating Threats to Other Countries3 Phase 2, 1978 to 2013: The Deng and Deng Successors Phase of Gaining Strengths Through Economic Reforms and Opening Up Without Creating Threats to Other CountriesDeng Xiaoping became China’s paramount leader in 1978 at age 74 with a wealth of experience under his belt.  He was a “reformer,” so from 1978 until he died in 1997 Deng Xiaoping’s most important policies were conveyed in a single phrase: “reform” and “opening up.”  Reform meant “market reforms” which meant using the market to help allocate resources and to help motivate people, and “opening up” meant interacting with the outside world to learn, improve, and trade.  This led the Chinese Communist Party to start to bring capitalism into the mix\[20\] and open up to the outside world.  Deng knew that these two related directions—to greater “reform” and greater “opening up”—would make China stronger financially if it was not disrupted by the far more powerful foreign powers wanting to prevent the development of the weak China that he inherited, so the key was to pursue these directions in ways that benefited and didn’t threaten those foreign powers, most importantly the United States.  In 1979 Deng established full diplomatic relations with the US, which was consistent with his strategy to open up and reform China.  At the time China was extremely poor—per capita income was less than $200 per year—so China needed the improvement and was no threat to developed countries, especially the US. Continue reading… Index 1 Phase 2, 1978 to 2013: The Deng and Deng Successors Phase of Gaining Strengths Through Economic Reforms and Opening Up Without Creating Threats to Other Countries 2 Phase 2, 1978 to 2013: The Deng and Deng Successors Phase of Gaining Strengths Through Economic Reforms and Opening Up Without Creating Threats to Other Countries 3 Phase 2, 1978 to 2013: The Deng and Deng Successors Phase of Gaining Strengths Through Economic Reforms and Opening Up Without Creating Threats to Other Countries Continue reading…