30 Years of China's Reform and Open Up

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30 Years of China’s Reform and Opening Up

In the year of 2008, China arranged two mega projects for the whole nation. The country was chosen as the host for summer Olympics game. Also, the great progress of China’s space program to a space walk. The accomplishments of these two projects bring up a national pride and haplessness for the Chinese people. Actually, these two projects are just a part of transformation and opening up of the country over the past of 30 years. As a result, the 30 years of China’s reform and opening up have led China to change in many aspects which are historical, economical, changes as well as experiences and achievements of nine categories, and the future challenges.

In the past, China realized on a high centralization, plan economy, and a semi- close country which could not reduced the poverty in the rural areas, and push China into one of the world leader country. During the late 1970s, Deng Xiaoping, the Chinese leader and other senior leaders arranged The Third Plenum of the 11th Central Committee of the Communist Party of China (Xinhua, 2008). The subject of this convention was about the decision on reform which represented a significant change in the history of Communist Party of China. Actually, the beginning of story started from a small village. In December 1978, eighteen farmers in Xiaogang village, in east Anhui Province, signed a secret agreement to divide communally owned farmland into individual pieces called household contract (Wu Nanlan, 2008). Therefore, it was a beginning for China's rural revolution. Then, this action was supported by Deng Xiaoping and local government. Therefore, it was the beginning of the system of contracted responsibilities, which based on the household in rural areas. In 1979, Communist Party of China began to open the special economic zones, which located in the cities of Shenzhen, Zhuhai, Shantou, and Xiamen. In addition, the Chinese government changed some of their policies by giving more authority for foreign economic activities. Before the reform and opening up, China had been in a closed and semi-closed state with very few economic relations with the international community. Opening the special economic zones and changing some of foreign economic policies, the Chinese economy has grown rapidly as a result of foreign trade. China’s total foreign trade volume accounted for 35.5 percent of the GDP in 1996, and then it grows up to almost 70 percent of the GDP in 2008. Last year, the GDP growth rate was 11.4 percent (National Bureau of Statistics plan report, 2008). In 2001, China joined the World Trade Organization (WTO), and became the 143rd member. After joining the World Trade Organization, Chinese government has been try to improve a whole of country economy. The government tries to put itself into the multi channels of trading system, in order to expand the market and economy. Moreover, the Chinese government had dropped the tariffs, canceled non-tariff measures, and opened up its market after joining the World Trade Organization. On July 21, 2005, the Chinese government launched reforms of the exchange rate system because the government wanted to introduce a managed floating foreign exchange rate system after refusing the former foreign exchange regime pegged to the U.S. dollar (Xinhua, 2008). This action was directly aimed to build a managed, floating exchange rate mechanism based on the country’s market supply and demand. In addition, it could help the Yuan’s to maintain stability at a reasonable equilibrium. The Chinese government also opened its financial sector to foreign banks for two years ago (Ibid).

The thirty years of reform and opening up was not just bringing a huge change for China’s economy. However, it also give a significantly change for Chinese people in the country. During 1978 to 2007, China’s gross domestic product had grown by 9.6 percent annually from 216.5 billion U.S. dollars to 3.6 trillion...
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