Question

Under Deng Xiaoping, how did China make progress?

Answer 1

Hint:
- He was a Chinese politician and revolutionary.
- From December 1978 to November 1989, he was the supreme leader of the People’s Republic of China (PRC).
- He joined the CCP (Chinese Communist Party) in 1924.

Complete answer:
Deng’s first reforms focused on agriculture, a sector that the Chinese Communist Party had long mismanaged. Peasants were able to gain formal control of their land under the new policy as long as they sold a contracted part of their crops to the government. Between 1975 and 1985, this move boosted agricultural production by 25%, setting a precedent for privatizing other sectors of the economy.
In order to increase productivity, reforms were also introduced in the urban sector.

A dual-price system was implemented, allowing state-owned firms to sell any excess production above the Plan quota, and goods were sold at both plan and market prices, allowing people to avoid the nationalist shortages.

For the first time, since the Communist takeover, private enterprises were allowed to operate, and they gradually began to account for a larger share of Industrial Output. The service sector was also expanded as price flexibility was improved.

Note:
- China is a country in East Asia that is formally known as the People’s Republic of China (PRC).
- With a population of around 1.4 billion people, it is the world’s most populous country.
- By area, it is the world’s third or fourth largest country.
- China has undergone numerous expansions, fractures and reunifications.
- Since replacing the ROC (Republic of China) in 1971, the country has been a permanent member of the United Nations Security Council.