STANLEY WANGPERIOD 7

Political and Economic Change: China

-One Child Policy for Dummies

History of Political Change

Dynastic Rule up to the year 1911: Xinhai Revolution Ruled under the Qing European Imperialism creates anti-foreigner sentiments Opium Wars/ Seizure of Canton and Hong Kong

Formation of the Provisional Government in Nanjing 1911-12 Based around Western philosophy of democracy Sun Yat-Sen Takes Office as First President of the Provisional Government

General of the Beiyang Army: Yuan Shi Kai Seizes Control Warlord Era (1916-1928)WWI and the May Fourth Movement-1919Nanjing Decade (1928-1937)World War IISeizure of Power by the Communist Party October 1st 1949

The Long March

Engines Of Reform

External Pressure Globalization (Ability to Compete) International Relations

Internal Evolution: Government Policy Industrialization

Communist Leaders prided success on providing better material lives for citizens. Mao-1949-1976 Deng-1978-1992 Jiang Zhe Ming 1992-2002 Hu Jin Tao 2002-2012 Xi Jin Ping 2012-

Foundation of CCP and The Soviet Years

1949 Victory by the Chinese Communist Party drew major support from the Soviet Union, pouring aid money and expertise in. Mao and the Communist Party tackle countries glaring

social issues:- Land: Redistribution of property from the rich to the

poor to increase productivity - Civilian: Free People from opium addiction to rejuvenate

the workforce and work on legal rights for women.Five Year Plans – Nationalization of industry and

collectivize agriculture and instill socialist beliefs

The Great Leap Forward 1958-1966

Mao pushes China away from the Soviets- Nationalism

Utopian effort to transform China into an egalitarian society

- Development of all industries- Mass Mobilization of the workforce to produce more- Decentralization of government

regulation

Why the Great Leap Forward Failed

Political Corruption- Decentralization of the government caused high fragmentation and corruption on local bureaucratic governments

Mismanagement of Resources- Limits on what can be produced and the lack of technology hindered efforts to expand resources, Stretched too thin (Scientist Farmers)

Low Scientific and Education base- No Technology to alleviate bad weather

Utilization of the Workforce- Lack of training and state-ownership of industry left people unable to expand industry and no motivation to do so.

Cultural Revolution: 1966-1976

Goal was the purify the party and the country through radical transformation and emphasize:• the ethic of struggle • mass-line theory• collectivism • egalitarianism • unstinting service to societyremove all vestiges of the old China and old emphasis on inequality.

Scholars were sent into the fields to work, universities and libraries were destroyed. Emphasis was put on elementary education - all people should be able to read and write - but any education that created inequality was targeted for destruction.

Deng XiaoPing Escapes and Climb to Power

Death of Mao leads to the arrest of the Gang of Four (Radicals) by Hua Guofeng (Moderate)

The QingMing Festival 1976Deng Xiao Ping is freed from collective farming camp.Political descendant of the late Premier Zhou Enlai (Moderate)Party Control and head of government by 1982Changes so that China could compete WestSeparation of government from the Party (Bai Mao- Hei Mao) to

put in place policies which would differ from communist ideologies

Economic Policy Under Deng Xiao Ping

Implements the “Four Modernizations” founded by his teacher: “Open door” trade policy Reforms in Education Institutionalization of the Communist Party

Ten Year Plan 1978 Hua GuoFeng/ Deng XiaoPing Enhance the economic sector and heavy industry Competition with the West Foreign Investment kicked in lots of startup capital (US, West

Germany, Japan) Steel, Oil and Metal Mining Spurred in the South and North Vast trade and industry centers set up in Xian, Shanghai, Xiamen, and

Beijing Advance in infrastructure

The SE Zone• Established a

series of special economic zones

• SE Zones give free market based economic policies and flexible governmental measures.

• Opening cities and industry to foreign investment

Economic Policy under Deng Cont.

Ten Year Plan turns out to be too ambitious for the government to handle- repealed efforts

Private incentive to accomplish the Ten Year PlanTrade with the West provided new technologyFocused on quality of its products, diversification of its

exports, the devaluation of the Yuan and built up its currency reserves Move away from manual labor Production of own product instead of import Control over technology for themselves

China’s Big Banks

Under Deng’s Administration, state banks of China witnessed a reinvention of policy to promote investment and new government supervision targeted to attract foreign investment

Bank of China- Founded 1912 China Construction Bank- 1954Industrial and Commercial Bank-1984 Agricultural Bank of China-1949

Market valuation for each bank today is just shy of $15-20 billionControl of more than half of all public project loans and 30-40% of market shares in private sector loans.

Publicly traded stocks on both Hong Kong and Shanghai Stock Exchanges

Political Unrest Under Deng

With economic development came a wish for political changeLeftist members worried that China's socialist goals would be

lost by the new economic changes and the trade with the WestDemocracy-The Fifth Modernization- Wei Jing Sheng- 1978-79Deng focused efforts on economic reform, spent much of his

time abroad finding new markets and aligning China with developing countries.

In 1986 demonstrations were held encouraging students to get involved in local government.

Political Unrest Continued

In 1987 Hu Yaobang, General secretary of the Part, and advocate for political liberalization resigned from his post.

The students demonstrations were not joined by workers and so when exams came around the demonstrations faded 

Deng worried about another power struggle within the Party, he was getting old but had no intentions of handing over his leadership 

1989 Tiananmen Square Demonstration

Hu YaoBang dies April 1989 sparking students looking for democratic reform.

Zhao Ziyang, Hu's successor, tried to prevent violence from the governments side by working with the pro-democracy groups.

Gorbachev visiting China, making the demonstrations public to the world

Deng Xiao Ping- Central Military Commission calls in the People’s Liberation Army

Demonstrators had no real leadership, and no clear idea what they wanted

Deng resigns in 1989. Remains architect in the background with his successor.

Current Policies

Promoting political conformity to the PartyRise of the “Technocrats”Opening Economy with key state-owned industries (telecom, oil,

banking)Focus more on Household Responsibility in AgricultureIntegration in the global market, while resisting pressures from foreign

influencesSome democratic reforms can be seen in these ways:

• Some input from the National People's Congress is accepted by the Politburo

• More emphasis is placed on laws and legal procedures • Village elections are now semi-competitive, with choices of

candidates and some freedom from the party's control

Economic Challenges China Faces

Stagnating Economic GrowthGrowing local government debtPrivate debt by the middle class- Property MarketGrowing inflation of the YuanWorker Deficit-One Child Policy and Population ControlThe “China Price” shifting away to less developed

nationsSustainable growth with education

Political Issues

Political Corruption – Enacts the death penalty and has been an ongoing war since 1978.

The emergence of large internet companies and more people on social media (50,000 cyber police for 600 million users)

Demand for reform from a growing educated population.Formation of a highly influential, wealthy elite.

Pandonomics

Cost Per Year to Lease a Pair of Pandas: 1milTax for Panda Cub: 200k , Cub Death

Tax:500kChina retains ownership of all the giant

pandas around the world, which are selectively loaned to other countries. 

Panda Diplomacy- Using pandas to negotiate trade and technology investment deals

Belgium- Newest country to receive pandas for a 15 year lease- Coincides with new bilateral trade agreement: $26.2 billion

http://money.cnn.com/2013/10/14/news/economy/china-panda-trade/

The Game

Each of the 4 teams will start with 1000 points.Teams will be read questions, which will be read once- 30 seconds to discussThe other three teams may place bets up to 200 in favor of the team getting it

wrong If the team with the question gets it right, they receive the combined bets in

points and the other teams lose their betsIf the team with the question gets it wrong, they lose up to 300 of the total bets

and other teams gain their respective bets.Wrong answers are then passed on to the next team where they have 5

seconds to begin their answer. A right answer will allow you double your bet, but wrong answers are not penalized and the question may then be passed on again to the next team.

Rounds 5-10 depending on time

Congratulations Winning Team

There is but one bunny, so we will be playing THE PRISONER’S DILEMMA

Heads down and you will vote A or BIf you vote A:

Everyone else is B, you win. Otherwise, all A’s proceed to a new round while all B’s are eliminated Vote all A’s and you all lose

If you vote B: Everyone else is A, you win Vote all B’s and you all win (a smaller prize though)

Other non-participating players: Catch a cheater, get an extra piece of candy