China: the basic national condition
and experience of reform & open-
up
Dr. Prof. HE Wenping
Institute of West Asian & African Studies,
Chinese Academy of Social Sciences
Outline
1. China's basic national condition
2. Chinese Economic Reform and Open-up:
From Mao to Deng
2. Experiences of China’s Economic
Development
3. New Challenges we are facing: Develop
Green Economy and Coping with Income
Inequality
• 1. China's basic national condition
The main three features:
No. I population country: 1.41 billion (the recent 7th
census), Guang Dong province (120 million) almost equal
Russia (144 million), 56 ethnic groups
more than 5000 years history, long under emperor dynasties
Socialist country
---State-owned economy is the leading force in the national
economy, private business creates most jobs
---multi-party cooperation and political consultation led by the
CPC(the Communist Party of China), NPC(National People’s
Congress)
The biggest developing country: per capita GDP is
low, rich & poor gap
• 2. Chinese Economic Reform and Open-
up: From Mao to Deng
Three Generations of Chinese leadership
• Chairman Mao Zedong (1893-1976)
• Leader Deng Xiaoping (1904-1997)
• President Xi Jinping (1953- )
From Planned Economy to Market Economy,
From Poor to the Second Biggest Economy
Mao’s Era: Politically stand up
national unity, people’s liberation
well organized state with large population
and vast territory
Deng’s Era: Economically stand up
reform and opening-up
economic takeoff and prosperity
Now in new Era under Xi’s Leadership
Many challenges: politically economically;
domestically internationally
• The Journey of China’s anti-poverty
Per capita GDP was only $ 158 by 1978
shortage economy: “three essential
things” for getting married
China: “Bicycle country”
more than 80% Chinese lived below the
poverty line, while sub-Saharan was 46%
China was even poorer than Malawi by
then
Beijing in early1980
• GDP: 9.5% per year (1980-1990s
average)
• From 2001-2007, China's GDP grew by
10.5% every year.
• 2008: 9% 2009: 8.7%
2010: 10.3% 2011: 9.2%
2012: 7.8% 2013: 7.7%
2014: 7.4% 2015: 6.9%
2016: 6.7% 2017: 6.9%
2018: 6.6%；2019: 6.1%；2020：2.3%
• From1978 to the end of 2018, China's rural
absolute poverty rate reduced from 770 million
to 16.6 million.
• From 2013 to 2018, more than 12 million people
were lifted out of poverty each year, and the
incidence of poverty fell from 10.2% to 1.7%
• China becoming the first developing country in
the world to achieve the UN Millennium
Development Goals (MDGS）, UN Secretary-
General Antonio Guterres praised "China as the
country that has made the greatest contribution
to global poverty reduction".
The Geopolitics of Global Trade
3. Experiences of China’s Economic
Development
I) Politically： “Four Self-confidences”
development road confidence,
theoretical confidence,
confidence in the system)
(Shoe fits feet, not another way around, 道路
⾃信、理论⾃信、制度⾃信) “削⾜适履”故事
National Culture confidence
3. Experiences of China’s Economic
Development
I) Politically：Consensus building-“Four
Self-confidences”
development road confidence,
theoretical confidence,
confidence in the system)
(Shoe fits feet, not another way around, 道路
⾃信、理论⾃信、制度⾃信) “削⾜适履”故事
National Culture confidence
衡Keep balance and handling well among
three key issue: Reform, Development and
Stability
改⾰、稳定与发展的关系
Reform
Devel
Stabilit
opme
y
nt
20
2) Economically, Seeking truth from facts (not
from books, suitable development path)
“no matter white cat and black cat, as long as it
catches the mouse, it is a good cat”
“Across River by touching the stone”
Selective learning and adaptation (US, Japan,
South Korea, etc.)
Try and error (gradual and soft-landing policy)
Special Economic Zone in coastal cities
Township enterprises
Reform sequence: from easy sector to hard
sector (agriculture-industry-finance)
4. New Challenges we are facing: Develop
Green Economy and Coping with Income
Inequality
1) From “speed matters” to “quality matters”
“no matter white cat and black cat, as long
as it catches the mouse, it is a good cat”
---- now need “the green cat”, no longer just
chasing the GDP growth rate, economic
“new normal” (quality rather than speed)
(⼜快⼜好——⼜好⼜快——持续健康发展）
2）Economic Growth must be Genuine and
not Inflated
Inclusive development;
Balance between Growth and Development
3) Open Wider to the Outside World
4) Build A better environment for a beautiful
China
increasing input on anti-pollution
develop renewable energy
transition to innovation-driven Growth
◆ In conclusion: Seven Ideas of Governance
behind China‘s Success
1. Keep balance and handling well among three
key issues: Reform, Development and Stability
2. Seeking truth from facts (not from books, suitable
development path)
3. Primacy of people’s livelihood (economy matters)
4. The importance of holistic thinking (five-year plan,
now the 13th) and visionary leadership
5. Good governance matters more than
democratization
6. Selective learning and adaptation (“reform and
opening up”)
7. Try and error (gradual and soft-landing policy)
THANK YOU.
