ABSTRACT
The rise of the Chinese economy during the past two decades has been a striking phenomenon. Of course, China has always been a significant world power with its large population and a vast territory. But in terms of economic strength, it lagged far behind Western nations, or even other countries in the Council for Mutual Economic Assistance (CMEA) community. Things began to change decisively at the eleventh party congress in 1978. Recognizing the poor performance of its collectivist system, and facing a collapsing communist bloc, Chinese leaders under Deng Xiaoping had little choice but to opt for reforms. Their initial aims were modest. They still had faith in the central planning system, but wanted to liberate production incentives in order to propel economic growth.
