China’s Development Strategy
New Chinese Nuclear Power Plant BACKGROUND TO CURRENT DEVELOPMENT STRATEGY China began its new development strategy in late 1978 after the death of Mao and his disastrous economic policies. Under Deng Xiaopeng, collective farms were broken up and family farms were created by leasing land from the government. Special economic zones were created to attract foreign companies and their technology. Private Chinese companies were allowed. But the state still controlled much of manufacturing and the financial system. Through state-owned heavy manufacturing companies and control of capital allocation through the financial system, the Chinese government still directed China's economic development. The Chinese Communist Party continued to have total political control. This version of "state capitalism" or a "socialist market economy" could draw on three East Asian examples - Japan, South Korea and Singapore. As China's economy grew rapidly and modernized, China o...