[SAJC] Transformation of China economies 2024

Saint Andrew’s Junior College (2024) 9174/01 H2 History Paper 1 Theme II: The Development of the Global Economy 1 The development of the Global Economy Topic 2: Transformation of East Asian Economies: China (1978- 2000) SAJC History Unit, 2024 Learning Outcomes (from the Examination Syllabus) 5 Essential Questions for this topic: 5 Guiding Questions for this topic: 5 1. Introduction 6 2. China’s economy under Mao Zedong (1949-1976) 6 2.1 Orthodox Maoism (“Mao Zedong Thought”) 7 2.1.1 Peasants as source of revolution 7 2.1.2 People’s War 7 2.1.3 New Democracy 8 2.1.4 Continuous class struggle / Permanent revolution 8 3. Socialist Construction (1949-1957) 9 3.1 Rural sector policies – Cooperatives, Collectivisation 9 3.2 Urban sector policies – Anti-bourgeoisie policies (Five year Plans) 9

Saint Andrew’s Junior College (2024) 9174/01 H2 History Paper 1 Theme II: The Development of the Global Economy 2 3.2.1 The “Hundred Flowers” Campaign, 1957 and the “Anti-Rightist” Campaign 1958 10 3.2.2 The (failure of) the Great Leap Forward, 1958-1962 10 3.2.3 Mao’s Reaction to the Great Leap Forward 11 3.2.4 The (chaos of) the Cultural Revolution, 1966-1976 11 3.2.5 The succession of Mao 12 3.2.5a Overview of power struggles within the Communist Party leadership in 1970s 12 3.2.5b Rise of the Gang of Four 13 3.2.5c Power struggle after Mao's Death and Rise of Hua Guofeng as his successor 13 4. The Reform Era under Deng Xiaoping, 1978-2000 and reasons for the rise of China’s economy 14 4.1 Statistical facts of China’s economy before and after reforms began 14 4.2 The Role and Leadership of Deng Xiaoping 16 4.2.1 Deng’s philosophy / approach = pragmatism and gradualism 16 4.2.1a Pragmatism 18 4.2.1b Gradualism 17 4.2.2 “The Four Modernisations” - Agriculture, Industry, Science and Technology, National Defence 17 4.2.3 Socialism with Chinese Characteristics 18 4.2.4 Significance first steps to start reforms = reversal of earlier policies 18 4.2.4a Rehabilitating the ‘rightists’ 18 4.2.4b Rehabilitating the ‘sent-down youths’ and changes to University education 18

Saint Andrew’s Junior College (2024) 9174/01 H2 History Paper 1 Theme II: The Development of the Global Economy 3 4.3 Deng’s economic reforms 19 4.3.1 Rural reforms 19 4.3.1a Increasing of payment for and lowering state acquisition of agricultural produce 19 4.3.1b End of collectivisation and communes & introduction of the household responsibility system 20 4.3.1c Commercialisation of rural agriculture 20 4.3.1d Revival of markets and encouragement of rural enterprises and the rise of TVEs 20 4.3.2 Urban market reforms 21 4.3.2a Less emphasis on heavy industries with more emphasis on light industries 21 4.3.2b Reforming state enterprises 22 4.3.2c Gradual privatisation 22 4.3.2d Price Liberalisation 23 4.3.2e Rise in prices accompanied by wage increases, state subsidies and the supply of affordable consumer goods 24 5. Special Economic Zones 24 5.1 The Opening of China’s doors (Open Door Policy) – Special Economic Zones (SEZs), Foreign Investment and an export-oriented focus 24 6. Post-Tiananmen and the significance of Deng’s continued leadership and pursuit of economic reforms 25 6.1 Basic Financial Markets 26 6.2 The Rule of Law 26

Saint Andrew’s Junior College (2024) 9174/01 H2 History Paper 1 Theme II: The Development of the Global Economy 4 7. Deng’s political strategies 27 7.1 Gradualism (contrast China as compared to the USSR & Eastern Europe) 27 7.2 Winning over the different sectors of Chinese society 27 7.3 Suppression of dissent 28 8. Market Oriented Reforms 29 9. International Developments (Trends) 30 9.1 Adoption of international strategies and practices 30 9.2 Coastal Development Strategy of the 1980s and 1990s 31 10. Strategic State Intervention 32 11. Conclusion 33

Saint Andrew’s Junior College (2024) 9174/01 H2 History Paper 1 Theme II: The Development of the Global Economy 5 Learning Outcomes Students are able to: ● evaluate the factors that contributed the factors that contributed to the economic transformation of China over time ● Identify the various facets of Mao Zedong China ● Understand why there was a need for change by the late 1970s. ● Understand Deng Xiaoping’s changes in ideology for China ● Understand Deng Xiaoping’s economic reforms in 3 key areas: Rural, Urban and Special Economic Zones ● Evaluate the significance of continued economic reforms into the late 1980s and 1990s ● Understand Deng Xiaoping’s political strategies ● Assess and evaluate the various reasons for China’s rise as a new economic power Essential Questions for this topic: • How did the global economy develop? • How did the development of the global economy impact different countries? *Questions set will not require candidates to compare the economic transformations of Japan and China. Guiding Questions for this topic: • What are the economic conditions of China in the 1970s, 1980s and 1990s? • What are the market-oriented reforms that primarily drove China's economic growth between 1978 and 2000? • What are the international events that played a crucial role in driving China's economic expansion between 1978 and 2000?

Saint Andrew’s Junior College (2024) 9174/01 H2 History Paper 1 Theme II: The Development of the Global Economy 6 • How did the state intervention play a cruc ial role in China's economic development between 1978 and 2000? • What are the challenges faced by the Maoist economy that contributed to China's economic expansion between 1978 and 2000. • What are economic liberalisation measures implemented that attributed to China’s economic ascension in the post-Mao Era? • How did the creation of Special Economic Zones (SEZs) play a key role in driving China's economic growth during the 1980s and 1990s? 1. Introduction • In 1949, when China turned ‘red’, the communist bloc was vastly enlarged as Asia’s largest country led by Mao Zedong ended decades of civil conflict and more than a century of upheaval to unite and take the socialist path. • Then within a quarter of a cent ury after Mao’s death (1976), China has transformed itself from a desperately poor country into one of the fastest growing and largest economies of the world. • Hence, more effective than the rise in political power that Mao so craved and sought to establish during his lifetime is China’s rise in economic power ever since his successor Deng Xiaoping initiated reforms in 1978. • Now, experts are predicting that it could possibly overtake the USA as the world’s largest economy within the next two decades. In fact, China has just taken over from Japan as the world’s second largest economy in early 2011. • Thus, the question everyone should be asking now is - what were the reasons for the spectacular rise of China as an economic power in the post-Mao era? 2. China’s economy under Mao Zedong (1949-1976) • To understand the context of the rise of the China as an economic power in the post-Mao era, one needs to know briefly the characteristics of China’s economy during the Maoist era. • This would enable us to appreciate the fundamental shift in policies and the significance of the changes under Deng.

Saint Andrew’s Junior College (2024) 9174/01 H2 History Paper 1 Theme II: The Development of the Global Economy 7 • Under Mao Zedong's leadership from 1949 to 1976, China's economy was largely driven by socialist principles and policies. The government implemented various economic reforms and initiatives aimed at achieving rapid industrialisation and collectivising agriculture. • During this period, the Chinese economy experienced significant changes, including the establishment of state-owned enterprises, the implementation of central planning