ABSTRACT
During the summer of 1988, China's economic reform policy suddenly changed from a gradual strategy to a radical one, and then soon moved on toward stagnation. Deng Xiaoping tried to push an extensive price reform; however, his policy met with resistance from both conservative politicians and the masses, leading to socioeconomic instability and finally stagnation for the whole reform program. In the spring of 1988, China's economic growth rate was quite high, but the limited nature of the urban reforms to date had resulted in inflation and corruption. People's dissatisfaction with the reforms was obviously increasing, and signs of social instability emerged. Contradictory currents were evident throughout the policy design phase. Zhao Ziyang hoped to promote thorough reforms by taking advantage of the favorable situation created by Deng. His opinions, however, met with tacit refusal in the Politburo and in the State Council.
