China’s Capitalist Revolution (Part 9 of 9)

July 6, 2010

Because of what happened in Tiananmen Square, foreign investors pulled out of China. Western businessmen fled. Foreign leaders and Deng’s Western friends criticized him.

The Maoists were back in power. Jiang Zemin said private companies had benefited from the reforms but in the turmoil, they supported the students against the government. We need to destroy them.

Deng Xiaoping was forced into retirement and his policies were reversed. Peasants were encouraged to reform collectives and private business was banned from competing with state enterprises.   The Maoists decided to clean house and close China’s doors to the West.

Desperate to save his reforms, at 87, Deng set out to save his reforms.  He went to Shanghai to encouraged supporters there to speak out.  When they did, the Maoists wanted to know who was criticizing them in the newspapers. Deng said he was responsible—don’t attack anyone but me.  Then Deng met with his old comrades in the People’s Liberation Army and the army announced they would protect Deng’s reforms and anyone who resisted would be dealt with.

Deng said, “Without reform and the Open Door policy, economic growth and improved living standards —any path for our country will be a dead end.” Deng’s call to arms worked.  In 1994, Jiang Zemin switched sides to support Deng. It was okay to get rich again.

Deng Xiaoping died in 1997. The country he inherited from Mao was the one of the world’s poorest. Today, it is one of the wealthiest.

Return to China’s Capitalist Revolution Part 8 or start with Part 1

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Lloyd Lofthouse is the award-winning author of The Concubine Saga. When you love a Chinese woman, you marry her family and culture too. This is the love story Sir Robert Hart did not want the world to discover.

To subscribe to “iLook China”, look for the “Subscribe” button at the top of the screen in the menu bar, click on it then follow directions.


China’s Capitalist Revolution (Part 4 of 9)

July 2, 2010

When the first US businessmen arrive in China, they complained. It took years to gain approval to open manufacturing plants in China. Then the trickle of investors turned into a flood as foreigners scrambled to cash in on a cheap and willing workforce.

The new industrial zones were sealed behind fences from the rest of China. The economies in the industrial zones doubled every three years. Wages were higher than the rest of China and people came looking for work. Investments poured in.

Deng’s popularity was at an all time high. He says, “We have given the highest priority to modernization. Our economy has grown more vigorously than ever.”

However, high ranking Maoists fear a capitalist country with a Communist flag. In 1983, the hardliners start a campaign against spiritual pollution—code for Western ideas.

The hardliners attack journalists who write for the People’s Daily. Top editors are fired for being corrupted by Western values.  The hardliners now control the media.  If you don’t follow the party line, your future becomes grim.

Next, the hardliners pressured the banks to stop lending money to the industrial zones.  Deng has to force the banks to loan the money.

Return to China’s Capitalist Revolution Part 3 or go to Part 5

_________________________

Lloyd Lofthouse is theaward-winning author of The Concubine Saga. When you love a Chinese woman, you marry her family and culture too.This is the love story Sir Robert Hart did not want the world to discover.

To subscribe to “iLook China”, look for the “Subscribe” button at the top of the screen in the menu bar, click on it then follow directions.