Conflicts to Watch in The New Millennium

1980s, involved the de-collectivization of agriculture, the opening up of the country to
foreign investment, and permission for entrepreneurs to start businesses. However,
most industry remained state-owned. The second stage of reform, in the late 1980s and
1990s, involved the privatization and contracting out of much state-owned industry and
the lifting of price controls, protectionist policies, and regulations, although state
monopolies in sectors such as banking and petroleum remained. The private sector
grew remarkably, accounting for as much as 70 percent of China's gross domestic
product by 2005. From 1978 until 2013, unprecedented growth occurred, with the
economy increasing by 9.5% a year. The conservative Hu–Wen Administration (of Hu
Jintao and Wen Jiabao) regulated and controlled the economy more heavily after 2005,
reversing some reforms.
The success of China's economic policies and the manner of their implementation
resulted in immense changes in Chinese society, including greatly decreased poverty
while both average incomes and income inequality have increased, leading to a
backlash led by the New Left. In the academic scene, scholars have debated the reason
for the success of the Chinese "dual-track" economy, and have compared it to attempts
to reform socialism in the Eastern Bloc and the Soviet Union; as well as to the growth of
other developing economies. Additionally, these series of reforms have led to China's
rise as a world power and a shift of international geopolitical interests in favour of it over
Taiwan.
Since the presidency of Xi Jinping, who generally opposes the reforms, some of the
Deng-era reforms have been rolled back as the Communist Party reasserts control over
different aspects of Chinese society, including the economy. This de-liberalization is
seen by international and Hong Kong commentators as part of the subject of the
present US–China trade war, in which the United States alleges the Chinese
government is giving unfair and discriminatory competitive advantages to Chinese stateowned
and private companies.
Chinese Economy Prior to Reform
During the 1930s, China developed a modern industrial sector, which stimulated modest
but significant economic growth. Before the collapse of international trade that followed
the onset of the Great Depression, China's share of world trade and its ratio of foreign
trade to GDP achieved levels that were not regained for over sixty years.
The economy was severely disrupted by the Second Sino-Japanese War and its
continuation as the Second world war and the Chinese Civil War from 1937 to 1949,
after which the victorious communists installed a planned economy.
The economic performance of the People's Republic of China was poor in comparison
with other East Asian countries, such as Japan, South Korea and rival Chiang Kaishek's
Republic of China. The economy was riddled with huge inefficiencies and
malinvestments, and with Mao's death, the Communist Party of China (CPC) leadership
turned to market-oriented reforms to salvage the failing economy.
Page 102 of 438