Economic development: Four Modernisations, market socialism

Four Modernisations

One of the changes Deng implemented was in terms of China's economy, termed Gaige Kaifang (Reform and Openness). It was summed up in the Four Modernisations.

Modernisation was given importance over socialism as characterised by the privatisation of agriculture wherein collectivisation was abandoned. Industrialisation was also given precedence, as villages were developed and commercial enterprises were established.

1. Agriculture
2. Industry
3. National Defence
4. Science and Technology

Open Door Policy

Economic areas were also established, signifying the country's openness to free trade. The first Special Economic Zone was Shenzhen and marked China's Open Door Policy.

Results were gradually felt as China's grain production fell at first and inflation began to worsen. By 1986, China began to show signs of an 'economic miracle' as it became the 2nd largest producer of coal in the world. The country's Gross Domestic Product (GDP) began to improve and the per capita income of ordinary peasants nearly tripled.