How did China's doors open?

How did China's doors open?
  • 2019-01-08
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Perhaps best described in the remarks by the Chinese president at the 40th anniversary of the country's reform, which said that China was not seeking hegemony and imposing its power on the international system.

According to Iran's International Stone Exhibition, Beijing, the Chinese capital a few days ago celebrated its 40th anniversary of economic reform, called Open Door Reform. The reform, known as the Open Door, has been forty years since it was implemented in 1978.

It was after these reforms that China became the world's second-largest economy, the largest producer, owns the world's largest trade and commodity trading, and its share of world GDP increased from 1.8 percent to 5.2 percent in 2018. China owns thirty percent of all global growth data. To put it a bit clearer, to explain this thirty percent, one third of the growth of the world economy over the past at least a decade has been due to the growth of the Chinese economy.

How did China's doors open?

When the 11th Committee of the Communist Party of China held its plenum on December 18-22, 1978, inviting members and other party committees, it probably never imagined that this meeting would be the introduction of far-reaching changes in China.

It was announced at the meeting that the party would then focus on political development on economic development and would use all available means to achieve this goal.

In the winter of that year, for the first time since the establishment of the Chinese Communist system, the communal lands of the heavily impoverished Xiaoang village in Anhui province were handed over to its inhabitants and the government decreed that they would buy their produce.

A year later, the village, which had already suffered from poverty and famine, pioneered the sale of private sector agricultural products in China, and the pattern of privatization spread to other rural and agricultural areas of China. At the next meeting in 1979, the Communist Party also moved to change land ownership laws.

On the other hand, legislative reforms to the recognition of private ownership of agricultural land paved the way for China to join the WTO, and since 1986 China has been subject to a general tariff agreement after eight years of privatization of agricultural land. And trade (GAT), renamed WTO in 2001.

The abundance and cheapness of China's labor force, on the one hand, and the change of ownership laws to facilitate the entry of foreign companies in the 1980s have made China's gateway to the world open at once, with Chinese entry points witnessing the arrival of American and European employers. They were looking for cheap labor and tax-free profits.

But many have said that China's reforms would never have been able to reach the open door without Deng Xiaoping. This is not irrelevant because Deng had been dismissed on two occasions, including during the Cultural Revolution of the 1960s, and only after Mao's death in 1978 until he came to power in 1978 and took the lead in reform. It was in 1976 that he returned to the party, gradually taking over the leadership of Chinese communism.

Brett Hoffman, author of an essay Reflecting China's Economic Reform After Forty Years, has outlined four key features of China's economic reform success:

Step-by-step: One of the reasons for the success of China's open door reforms has been its step-by-step nature. In fact, China's doors were gradually opening to the global economy. The first phase of reform began only in one village, and a year later, the other included the privatization of agricultural land. This step-by-step procedure is in contrast to the trend in many Third World countries that announce reforms and changes in various sectors with general rules at the outset of universal and universal work.

Decentralization: Deng Xiaoping, despite his interest in decentralization in the Communist Party, was less strict in granting provincial authorities some authority and left the hands of mayors and governors to attract foreign resources, such as the laws of recruitment in the 1980s and 1990s. Capital varied from province to province like the two countries, each with their own advantages and disadvantages. It is said that at the time of administrative decentralization in China, the provinces were like pseudo-governments, each in some way competing to attract foreign capital and create business.

Motivation: Among the other important things that made China's economic reforms successful was the impetus for growth so that the promotion and promotion of party members who were among the governors was based on the amount of capital invested and economic growth and the provinces that received the most capital. The upper levels of the Communist Party's leadership committee were influenced.

Ideological Pragmatism and Elimination: In the conditions where the Chinese communist economic system determined the price of goods, goods and services before the start of reform, the free market of goods and services also shifted to free markets with the expansion of administrative decentralization and the recognition of private ownership. And the government recognized the price discovery system between supply and demand without limit. This shift in the government's view of the market, in addition to ensuring profitability for the private sector, also proved the pragmatism and pragmatism of the Communist Party and eliminated the ideological view of the market.

China's attempt to promote international political standing

Four decades after its reforms, China today has occupied the liberal western consumer market and has become the world's second-largest economy after the US in 2016.

According to statistics, the last decade, from 2008 to this year, has been the decade of China's economic boom, as the amount of foreign investment in the country in 2008 amounted to fifty-five billion dollars in 2018 to one hundred ninety six and two and a half. Has reached a billion dollars.

All of this is as much a threat to the position of powerful economies, especially the United States, as it is to the promotion of China's global standing.

However, despite China's very large economy, it still does not fall into the Group of Seven industrialized and large economies. The same situation suggests that Western-based economic groups are more political in nature than economic function.

In fact, despite the undeniable promotion of its economic position, China is facing the challenge of Western competitors in the international political arena, and the Chinese have not been silent in this regard and are pursuing measures to enhance their political standing.

International institutionalization: Less than fifteen years after its economic reforms began, China began to move into the international political arena, and with the initiative of the Shanghai Cooperation Organization in 2001, it showed that it was seeking international and non-Western institutionalization.

In fact, the Shanghai Cooperation Organization, as an international organization in the field of security and economy, with Russia and Asian membership, above all, has a political function vis-à-vis the security and political institutions of the West, including Group Seven, and its future prospect is to expand member cooperation to security. And it is a system that can be seen as an eastern alternative to NATO, though that is a long way from achieving that goal.

Uninterrupted Chinese Political Order: Chinese leaders, unlike Western leaders, have never claimed to impose their desired political norms on their political and even strategic partners. Unlike Western leaders in Washington, London or Paris who have repeatedly criticized their dissenting human rights slogans, China has never emphasized political norms in deepening relations with its partners.

Perhaps best described in the remarks by the Chinese president at the 40th anniversary of the country's reform, which said that China was not seeking hegemony and imposing its power on the international system.

Indeed, China is trying to show a non-interfering order in its political behavior, in contrast to the Western grammatical foreign policy approach, in which it is sensitive to other countries' political developments as human rights or other liberal norms.

Deepening Political Influence in the Light of China's Globalization of the World Market: According to UN data released in Bloomberg, in 2015, the United States exported $ 500,662 billion from China and $ 166 billion Although Trump has reduced imports of Chinese goods to the US market, Trump's entry into the US market has more than doubled US exports to China.

The same situation is seen with little change in China's trade relations with other Western and European countries, Asia and Africa, and the so-called world market Chineseization is due to the widespread position of Chinese goods in world markets, especially in other countries. Markets In the West, South Asia and even Africa, China's economic role is much more intense and less restricted.

In September 2018, Chinese President Xi Jinping announced that his country would give $ 60 billion to Africa without receiving any political concessions. China is investing heavily in the South Asian region, both in Pakistan and simultaneously in Afghanistan, and is becoming its economic partners. In Central Asia and the Middle East, the scope of work for the Chinese has not been limited, with the exception of China's presence in the Zionist port of Haifa, which has received US backlash, but China's presence in other regions, including the Arab Gulf states, is rapidly expanding. Is.

Such a broad economic link to China in various regions is not naturally without political appreciation and deepening of influence for China, and there is no doubt that deepening China's economic influence will also deepen its political influence.

For this reason, now, in 2018, forty years after China's open door economic reforms began, it has been able to deepen its political influence in various regions by expanding its economic ties with world markets. Even if China's political development is not acceptable to the West in light of its economic growth.