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11 Cards in this Set
- Front
- Back
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Mao Zedong
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Confusion and economic disaster stemmed from his policies developed the People' Republic of China.
- Great Leap Forward (58-60) - Cultural Revolution |
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Mao's Great Leap Forward
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soviet style central planning, forced industrialization, steel mill in every back yard
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Mao's Cultural Revolution
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- red guards (who denunciated an perecuted chinese teachers and intellectuals, book burnings, and mass relocations) and permanent revolution
- remove all productive people ("capitalist roaders") to countryside |
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Reforms of Deng Xiaoping
Phase 1: |
Reform the Countryside (74-78
- deng restructured incentives, making it profitable for peasants to produce |
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Reforms of Deng Xiaoping
Phase 2 |
Financial and Enterprice Reform (83)
- SOEs had to meet quota but then could sell any excess in markets - managers set wages, made investments, and retained profits |
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Reforms of Deng Xiaoping
SEZ's |
Special Economic Zones
- special open regions to foreign investment, markets rather than central direction - reormed experience for inland regions, promote inflows of foreign invest. tech, and managerial tech - Domestic decentr., no planning from center, tax incentives to foreign invest ***GDP was 7 times the nation's ave |
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Reforms of Deng Xiaioping
Phase 2 (cont) |
Financial and Enterprise Reform
- Economic boom but there was political rebellion (tiananmen square) and subsequent retrenchment |
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Jiang Zemin
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Success of Deng
- legal system has been reofrmed to prevent any further cultural revolutions - process of democratization began at same time as economic reforms |
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China - Can a Market and plan be combined?
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- overall economic direction protecs inefficient industries, fixes value of yuan, statist planning.
- they pick industries, subsidize, and protect them. Tendency to pick identical industries and have excess capacity |
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China's trade policies
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- maintain undervalued yuan to promote exports (to sell yuan in foreign currency market and buy dolalrs), keep U.S. export market open and buy US bonds to make money on reserve holdings
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Why does china buy our bonds?
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-they have about 200 bil dollars invested already
-retain our export markets -US bond have higher yields than other countries |
