ABSTRACT
China's opening to the outside world had its origins in the political choices of its leaders, responding to economic circumstances rather than any ideology. Deng Xiaoping and the Communist Party decided beginning in 1978 that foreign interests, especially capitalist multinational corporations, could play a constructive long-term role in the development of Chinese socialism. Published Chinese analysis of the opening policies accords the state a crucial role as benign protector of national interests. State intervention was equally central to China's policy after 1979 of welcoming foreign capitalist investment. The state's reaction to undesired aspects of foreign investment consisted of reaffirming investors' legal opportunities while trying to pressure foreign business into higher-technology, export oriented capital contributions. Economic and political conditions in China limited the pace at which the goals of the opening up policies could be realized, regardless of the intentions of national leaders.
