30 Years of Reform & Opening up and Looking forward

1. 30 Years of Reform & Opening upand Looking forward LSE, 3 December 2008

2. In December 1978, the Chinese government shifted its priority from political struggle to economic development, thereby initiating a new era of reform and opening up in China. Deng Xiaoping: We must catch up with the times, and this should be the objective of the reform.

3. I. Four stages of reform and opening up • The initial stage: from December 1978 to September 1984 • The period of comprehensive progress: from October 1984 to January 1992 • The period of institutional innovation: from February 1992 to October 2002 • The period of ‘storming the fortress’: from October 2002 onward

4. The initial stage: The reforms started in the rural areas. Farmers obtained the right of land use

5. 4 special economic zones set up 14 coastal open cities designated The three-stage strategy put forward by Deng Xiaoping SHENZHEN

7. The second stage: Reform priority shifted to the cities Reform of state owned enterprises introduced

8. Township and village enterprises flourished • Special economic zone in Hainan and development area of Pudong, Shanghai declared

9. The third stage: The objective of ‘a socialist market economy’ embraced Reform of SOEs a major priority

10. Accession to the WTO • The principle of building rule of law enshrined in Constitution

11. The fourth stage: Further improvement of the socialist market economy The objective of building a moderately prosperous society

12. The theory of scientific outlook on development Protection of lawful private property enshrined in Constitution

13. II. major achievements of reform and opening up Sustained and fast growth and qualitative leap of comprehensive national strength

14. Farewell to the shortage economy and explosion of consumption

15. Substantial reduction in poverty

16. Close integration with the global economy

17. 1978—2007 IMPORT&EXPORT (billion US dollars)

18. A vibrant and dynamic economy and society

19. Progress in building democracy and rule of law

20. III. experiences gained in the past 30 years • Clearly defined objectives and Scientific outlook on development • Three-step strategy： • First step: doubling per capita GDP during the 80s from $250 to $500. • Second step: doubling per capita again by the end of the 20th century to $1,000 and increasing overall GDP to $1 trillion, turning China into a moderately prosperous society. • Third step: quadrupling per capita GDP to $4,000 in 30 to 50 years.

21. Adherence to reform and opening up in light of China’s national conditions

22. Improving living standards and social stability

23. Commitment to peace, development, cooperation and win-win outcome

25. IV. Major challenges and difficulties facing China • Pressure of population and employment

26. Resource scarcity and environmental pollution

27. Uneven urban-rural and regional development

28. Imbalances in economic structure

29. V. the Chinese economy amid the global financial crisis • 2008 is termed ‘the most difficult year’ for the Chinese economy.

30. The financial crisis is hitting China. Many SME closures this year • China’s counter-measures: a six hundred billion dollars stimulus package

31. VI. Prospectsin the coming 10 to 20 years Development programme and strategy

32. Stability in macroeconomic managementUpgrading of industrial structure

33. More efficient use of resources and lower energy intensity

34. Central and western expansion LANZHOU

35. Fast urbanization

36. Expanding Transport Infrastructure

37. Better public services in education and health care

38. Higher standard of living for all the people

39. Emerging civil society

40. VII. factors underpinning sustained growth in China • abundant labour force • a big domestic market

41. rich capital reserves (savings and foreign exchange reserve)

42. 30 Years of Reform & Opening upand Looking forward LSE, 3 December 2008