ABSTRACT

China's economic opening is a process closely intertwined with the gradual changes introduced in the domestic economy. Domestic and foreign transformations have multiple interactions and mesh together in the strategy of development. This strategy, introduced in 1978 and explained in Chapter 3, was meant to release the economy from the fatigue of the Cultural Revolution and the lack of social progress in the 1970s. Technological progress in agriculture, available in the late 1970s, could only be converted to rural income if farmers were able to sell their surplus upon planned output.