Discuss how Deng Xiaoping was instrumental in helping China abandon its orthodox communist doctrines and help its economy incorporate elements of the free-enterprise system? Do you think the modern China has moved away from Deng’s philosophy? If Yes, write a brief note on it. (200 Words)
The Great leap forward and Commune policy introduced by Mao causes mass starvation and deaths and economic stagnation of China . Thus , Deng Xiaoping introduced market reforms which marks a shift from communism, to a free enterprise system . For growth, the initiatives taken by Deng are
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Adopted ‘market socialism’ as an economic system, prices of goods would be determined by ‘free price system’
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From a self- reliant economic focus, export oriented economy gained primary importance
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Huge investments were made by local provinces into the most profitable businesses locally, encouraging light manufacturing which required less capital, brought revenues and high foreign-exchange earnings and revenues on export .
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Relation with technologically advanced countries in the West and Japan were improved and trade with them enhanced by purchasing machinery and advanced technologies.
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A series of special economic zones were set up to attract foreign companies and capitals by providing cheap land and labour, quick and easy clearances by cutting down red tapism
However, modern China seems to have moved away from the Deng’s philosophy, particularly on political and foreign policy matters:-
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Contrary to the Deng’s led initiative of ‘hide our capacities and bide our time ‘ and friendly, non-aggressive overtures towards neighbors, the new China is assertive in territorial disputes and it’s dealing with old-rival Japan and the ASEAN nations with repeated incursion into disputed waters of South China Sea, land reclamation and multi-scale construction of artificial islands .
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Contrary to Deng’s policy of ‘be good at maintaining a low profile’ and ‘never claim leadership’, the new China seeks greater leadership role internationally by showcasing it’s military and economic strength globally and presenting an alternative ideology and model of development, different form the West.
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Its shift from export led growth to consumption led growth , as its foreign reserves have surged and world markets have stagnated