The reform and open policy needed in China
Name:Zhang Tuya Student ID：s07375
Research paper supervisor:Dr.Seku Conde
Minzu University of China
2007-2008 Academic Year
Abstract：
China's policy of openness and reform initiated by Deng Xiaoping owns special place in Chinese development and also indispensable part for China’s modernization of economic development. It is precisely because this policy takes an extremely important position that we need to analyze the necessities for it applying in China，in other words, the reasons for the reform and open policy offered in China. This paper will analyze this from the following three aspects: (1) it is the necessary result of the globalization. The most noticeable characters of the recent economy are related more closer than never before and any countries can’t develop quickly if isolating with the outside. This international trend as regards to economic development requires us to do so; (2) it is the objective requirement for China’s reform in economic system. As an economic system in human history, the market economy originated in the capitalist countries come into being in modern times and is flourishing nowadays. Especially for Chinese economic system, of which build upon the socialist, there aren’t any successful experience we can directly get from other countries, so we must take every rare opportunity to perfect it through opening to the outside and innovate the domestic economy; (3) Chinese economic development requires us to take this policy. There is no doubt that the impressive economic development of China, since the reform processes were put into place. Comparing to the past, before 1978, the speed of economic development has been accelerated and the place of it heads high in the world. Even there also existing challenging opinions for China taking this policy, but after the balanced consideration, it is not only sensible, but also essential for Chinese future development.
Key words: the reform and open policy, international trend, market system and economic development
Introduction：
Deng Xiaoping as a great leader whose talent and farsightedness impressed many. During his leading time, he have made many contributions for the state, and the policy of openness and reform is one of his most important legacy he lead us. He was a thinker, a philosopher and the architect of China's reform and opening up.
In December 1978, the Central committee of the Communist Party of China held an historic meeting in Beijing, at which two important decisions were made. One was to open the door of China to the outside world and the other, to invigorate the national economy through reform. As it turned out, the meeting marked a new page in the annals of China. Since then, China has embarked on a gradual switch from the planned economy to what we now call the socialist market economy, this all owning to the unique policy initiated by Deng Xiaoping.
Australian Prime Minister John Howard said that: Australia and the international community have watched with great admiration China's progress in economic reform from communist revolution to capitalist evolution over the past 20 years.[1] Chinese Chairman Hu Jintao ,when participates in discussing with Shanghai delegation in 16th “National people’s congress ”on March 6th ，2007 said that: “we must continue to carry forward the reform deeply and enlarge the openness, firmly insisting on the reform……”.（report of the government in the 16th “ National people’s congress ”）From these words, we know that this policy has not only benefited the Chinese people, enabling the Chinese people to realize greater prosperity and the benefits of modern living, but also paved the way for the close trade and economic relationships China now shares with the international community.
The first reason ——international trend
“The world now is an open one ……” Deng Xiaoping said[2].Open being the predominant economic character of the current world, and it is impossible for any countries to develop quickly isolating with the outside world. The reform and open policy, developing the international economic exchanges, are not only the objective requirements of social development, but also an important symbol of human progress. During the natural economic period, self-sufficient economic model taking the ruling position, the scale of economic exchanges with each other, which did not account for an important position in the usual life, is very limited. Only after the capitalist society, with the emergence of large industrial machines and the continuous improvement of social production, the commodity economy was taking in the dominant position. Capitalism has greatly promoted the development of productive forces and the expansion of social division of labor, thus forming the international division of labor across the national and regional boundaries. International division of labor have deepened economic ties with the international community, thus forming the world market; on the basis of the international division of labor and the world market ,further attains the capital from the internationalization. As Marx said: “Because of the world market, capitalism makes all national production and the expense become worldwide. ......In the past, that kind of self-sufficient situation has replaced by the mutual intercourse in various aspects of various nationalities and has formed the worldwide economical relation.”[3]
After World War II, science and technology developed rapidly, more and more countries entering into the modern market economy, so the scale of social production have been enlarged and produced more commodities allocated to the entire world. Any country’s economy in the world developed more quickly than any time in the history and the world has entered into a new developmental stage centered in international economic activities. In such an international economic and social background, the success in a country or a region depends largely on whether the economy in the word adapt to the developmental changes in the world , whether enter in the international market, and whether economic and technological cooperation and exchanges develop positively with all countries in the world. It is impossible for any country to progress smoothly in a closed, isolated environment, because any country's economic development must be restricted by the land's natural resources, industrial structure, financial conditions and so on. Even a rich and powerful country or region, they can not own enough resources for their economic development, because of interdependent economic ties between countries in the world reaching an unprecedented level and so do the international flows of goods, capitals, technologies and labor mobility. The economy in the entire world has increasingly become an organic entity, so any countries must make themselves enter into the international economic pattern to accelerate the development of the national economy. Comrade Deng Xiaoping grasp this historical trend in time, explicitly pointed out: “If any countries want to develop, it is impossible to close the borders and isolate with the outside.”[4]It is inevitable trend of economic development in the world to open up. Concluding on the basis of our country’s history and the lessons drawing from the conservative policy of closing to the outside, Deng Xiaoping sensibly offered that if achieving modernization, catching up with and surpassing the developed countries, it is necessary for us to implement the policy of opening to the outside, attaining the necessary resources for China's construction of modernization and making good use of domestic and foreign markets to establish our own advantages. Only in this way, we can accelerate the pace of development. He also said: “In order to realize the four modernizations, we must be good at learning, attaining international advanced technology and advanced equipment from the international help. ”[5] He also said that: “Opening to the outside world is of great significance to the development of any country. It is not possible to develop quickly without strengthening international exchanges, introducing the advanced experience, science, technology and capital of developed countries . ”[6]
It is beneficial for us to use foreign funds to make up for China's inadequate funds for constructing modernization. China's modernization is a catching-up one, owning obvious characteristics of high-speed, high objectives, which requires large amounts of funds to ensure that. Since reform and opening up, we not only relying on domestic accumulation, but also absorbing foreign funds, through attracting foreign direct investment and loans of foreign government, which is essential to the success of China's modernization.
Furthermore, the foreign advanced technology can cultivate China's high-tech industries to develop quickly. A country's competing level is depending on the level of technological and industrial development. Since reform and opening up, China introduce a large number of advanced technology through purchasing patents, joint ventures, cooperative enterprises and other modes to develop many high-tech industries and strengthen their competitiveness on the international market. Clearly, after China's opening to the outside world, it is accelerating our economic development because of saving time and resources for China's modernization process.
Moreover, we can use international contacts to get more economic information. The present era is the era full of information. Anyone who can absorb wealthy information not only can advance in the marketable competition and occupy a favorable position, but also be able to grasp the developmental trend of the international economical and political movements. Comrade Deng Xiaoping pointed out: “It is extremely unfavorable for us to implement policies of closing to the outside. Isn’t it important for us to take [...]
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