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Reform of Economy (1976-1997)
Revival of Deng Xiaoping
After the fall of the "Gang of Four", Hua Guofeng placed himself in a position to succeed Mao as chairman by affirming Mao's belief in the "continuance revolution under the dictatorship of proletariat," wholly.
He suggested that the people should protest the direction towards socialism, keeping the revolutionary spirit and proceed with modernization on the basis of this theory. Hua continued to criticize such leaders as Deng, as he made light of the revolutionary spirit.
Among the movement to "criticize Gang of Four", the criticism against the CR rose as well, and revival of Deng and reconsideration for Tiananmen flared up. Although Hua resisted this, Deng was restored to the Party and state position as vice chairman and vice premier of the state council again in July, 1977.
In regards to the economy, Hua determined the production target as "Four Modernization", that is "modernization of agriculture, industry, national defense, and science and technology". Hua planned to implement these goals to reach the front lines of the world. He began to embark on the import of goods from other countries, and planned for construction and modernization on a large scale as well.
At the Eleventh National Congress, Hua declared "the end of the first Cultural Revolution" in his political report, and appealed that China be a "great socialist country" within the 20th century. But in this time, Hua concluded with Mao's evaluation for the Cultural Revolution as "70% is result, 30% is mistake" and said that something like the Cultural Revolution may be needed again in the future.
On the other side of things, Deng took an opposing attitude toward Hua's vision. Deng felt that China should focus on progression rather than regression; and regression would be anything similar to the Cultural Revolution. He wanted reevalutate Maoist thought inside the party, and called for the CCP to look toward modernizing china for the 20th century. Deng would remain the most significant leader in the party until his death in 1997.
Deng eventually got his way. In the Third Plenum of the Party's Eleventh Central Committee, the past political line was changed and it was decided to put emphasis of policy on "the construction of socialism modernization".
Finally the theory of "continuance revolution under the dictatorship of proletariat" was denied, and in essence, Maoist thought was laid to rest. Deng rehabilitated many officers and intellectuals who had been imprisoned or confined during the Cultural Revolution. Many leaders felt that the Red Guards had been to hard on them, and that many of Mao's practices were unfair and served only to hurt China.
Deng carried out reform and liberation rapidly. Reform was started in the field of agriculture first. In a rural district, peasant autonomy was honored, and a responsibility system was introduced. Peasants were allowed to farm the lands freely, and given government contracts. This gave many peasants an incentive to produce, and consequently the output in 1984 exceeded four hundred tons. Eventually, the Mao's "People's Commune" was dissolved, and a more capitalist attitude took place in the countryside. New companies were encouraged to form, and many of them accepted the peasant class into their employment
In October 1984, "the decision about the reform of economic line" was adopted. In Deng's program, those who had condition for wealth could be rich rapidly. In fact, household annual income grew, and households making ten thousand yuan or above, became commonplace. Through his programs, domestic economy began to improve, but capital from foreign countries was still needed for modernizing the economy.
Economic liberalization in the fourteen regions including Shanghai began to open in 1984; a program that opened up China to outsiders. With that, companies from Hong-Kong and Taiwan began to advance to these regions. The South in particular was developed rapidly because of the advance of foreign-affiliated companies.
Foreign Lelations
In addition, foreign relations also became important to the Chinese government. The CCP reconsidered the policy that aimed at establishing an anti-Soviet Union line. But rather than create hostility, China developed a policy that improved relations between all countries, based on the five principles of peace. With this decision, China proceeded to improve the relation with the Soviets, as well as keeping ties to the United States and Europe.
In May1989, Gorbachev visited China and in a summit conference the relation between China and the Soviet Union was formalized. It was after an interval of twenty years that each premiere finally met. After this, China made an effort to improve its relations with surrounding countries, which had deteriorated in the past. In September 1990, relations with Vietnam were formalized and in October 1992, diplomatic relations with Korea was established.
The People's Desire for Democratization
In the early half of 1980's, the CCP coordinated the basic strategy that proceeded economic reform and the open door policy. However, the CCP had become divided into radical wing members and conservative wing members. They argued over the tempo and pace of the open-door policy, as well as many other issues.
At the end of 1986, movements demanding democratization occurred all over the China, and arguments over the evaluation for the movement happened within the ranks of the CCP. The conservative wing demanded the responsibility fall on to Hu Yaobang, who had been administering the projects, and whom they felt was responsible for public sentiment. Hu was removed, and Zhao Ziyang was made secretary-general.
Tiananmen Massacre
In April 1989 Hu Yaobang died, and with that came national mourning. During this time, people began to express their upset with the Chinese governmental system. The most famous incidents in recent history took place at Tiananmen Square. Massive demonstrations were held everyday in Beijing, and advancement for democratization was called for.
Although martial law was proclaimed in Beijing, massive demonstrations including those who worked in government posts, were carried out openly on May 23. This demonstration reflected that not only was dissention occurring in the minds of the student protesters, but within the CCP as well. The CCP had already divided into the Liberal and Conservative wings, and as a result, the fustration had been long built.
The masses of students and citizens wouldn't withdraw from Tiananmen
Square. And finally on June 4, martial force occupied Tiananmen Square and opened fire on the crowd. During the progression more than two hundred people died; the figure was published by the CCP. The Tiananmen Incident was broadcasted throughout the world through satellite broadcasting. Consequently, China's reputation rapidly deteriorated.
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