The Significance of Reform and Opening - up
In 1978, China adopted a historic policy of reform and opening-up. Reform and opening-up marks a great and successful historical turning point in China— from a closed and semi-closed society to all-round opening up, and the economic system changed from a poor and underdeveloped centrally-planned one into a market one, resulting in a rocketing economy. Forty years of reform and opening-up has transformed China fundamentally, not only promoting China to achieve a miracle of economic and social progress, but also injecting powerful impetus into the global development, making a great contribution to world peace and development. Today, China’s foreign exchange reserves, manufacturing capacity, and international trade volumes are all number one in the world.
In the past 40 years, China has remained committed to reform and opening-up, regarding it as a basic national policy and making it a win-win strategy in China’s cooperation with other countries. There is every reason to believe that the Chinese Dream of national rejuvenation will be realized as China presses ahead on the journey of reform and opening-up anew. Based upon historical experience, China’s high- quality development in the future can only be achieved by adhering to the same policy.
In the new era, the policy of reform and opening-up will be further enforced so as to secure a decisive victory in building a moderately prosperous society in all respects and accomplish a more prosperous and peaceful world. China currently has a big population which is a driving force for reform and opening-up. The Chinese people are advancing toward realization of the Chinese Dream of national rejuvenation. The central government has developed new ideas and taken new measures to lead the way forward. From this new starting point, reform and opening-up will only continue its steady progress.
The Catalyst: Deng Xiaoping's South Tour Speeches
Deng Xiaoping is the chief architect of China’s reform and opening-up. It was his landmark speeches during his famous “Southern Tour” of China in 1992 that moved China further forward on the path of reform and opening-up.
To lead China to prosperity, Deng Xiaoping proposed the reform and opening-up policy, opening the door of China to the world. With this policy, China began actively trading with other countries, attracting overseas capital, technologies and management expertise. In order to attract more foreign investors and stimulate rapid economic growth, some special economic zones were set up which proved to be effective and fruitful. China’s economy surged after the opening-up.
In 1992, Deng Xiaoping gave several far-reaching speeches and proposed the idea of “development is the absolute principle”, putting an end to the disputes over China’s development and making way for China’s economic system reform that aimed at a market economy.
Deng urged the Chinese people to further emancipate their minds, be bolder and develop faster than before in conducting reform and opening-up to the outside world. Deng’s talk, which helped bring China’s reform program on track, is considered to have had far-reaching historic significance for the country’s economic development.
Special Economic Zones: Engines of Growth
There are some key measures taken by Chinese government to motivate reform and opening-up and, undoubtedly, the establishment of Special Economic Zones (SEZ) is a critical one. China’s SEZs are areas in which foreign and domestic companies can trade and invest without the same control and regulations from the government as other parts of China. These areas are designed to encourage overseas investment in China and boost the country’s economic growth.
SEZs were first developed in 1980 as part of Deng Xiaoping’s drive to open up China to the rest of the world and solidify China’s place on the global stage. In 1980, China set up special economic zones in Shenzhen, Zhuhai, Shantou and Xiamen. Today there are in all 7 Special Economic Zones in China.
In the new era, in order to further deepen reform and opening-up, China is exploring new ways of mobilizing greater vitality of economic development so that market can play a more significant role in allocating social resources. A free trade zone is an experiment playing the role of reducing any trade barriers and is an exclusive area within special economic zones. Shanghai became the first pilot Free Trade Zone (FTZ) in 2013, followed by three others in 2015 and seven more two years after that. The establishment of pilot free trade zones represents China’s major move to adopt a more proactive strategy of opening-up adjusting to the new trend of global economic development.
In 2018, Hainan became the 12th FTZ of China. It is designed to help China participate in globalization and become an open economy at a higher level. Therefore, establishing the Hainan FTZ is not just about improving the economy of Hainan province, but is also designed to contribute to China’s development as a whole.
More significantly, the establishment of the Hainan FTZ can facilitate the implementation the Belt and Road Initiative (BRI). The South China Sea is regarded as China’s key artery for international shipping. The Hainan FTZ is China’s “key gateway to the Pacific and Indian Oceans”, so it has strategic significance for the development of China.
On April 1, 2017, President Xi Jinping announced a plan to transform Xiong’an in China’s Hebei province into a green and innovative city. The Xiong’an New Area will be China’s 19th national-level new district and new economic zone. Xiong’an’s development program is regarded as “a millennium strategy”, which could see it become the next Shenzhen and Pudong, China’s main business centers.
The new area will relocate Beijing’s non-capital functions. Some of Beijing’s universities, hospitals, business headquarters, public services, and financial institutions will be relocated to the Area. It will become the hub for cutting-edge technology industries in China. Xiong’an will give priority to investments in high-tech industries, including information technology, biotechnology, and new materials. Xiong’an will set the example of “dream urban space” for Chinese people. It will be developed into a modern city characterized with greenness, intelligence, and livability by 2035. The government has set a target of achieving 100 percent clean power in Xiong’an, which will be powered by renewable and lower-carbon energy sources.
The establishment of Special Economic Zone is an important measure to deepen the reform and opening-up in China, and it is a window through which China knows better about the west. On the journey of furthering reform and opening-up and realizing the Chinese Dream of China, special economic zones will play a more important role.
China: The World's Second - Largest Economy
With the implementation of the reform and opening-up policy, Chinese economy surged dramatically. In the past four decades, an average annual growth rate of more than 9% is maintained and China’s share in the world economy increased from 1.8% in 1978 to 18.2% in 2017; China’s GDP increased 224 times, ranking second in the world.
China has benefited a great deal from the launching of reform and opening-up, especially after it was accepted into the WTO from 2001. Reform and opening-up has reset the mindset of the Chinese people launching the country into the fast lane of economic growth. In the meantime, China has become a major contributor to the world’s economic growth. According to the statistics of World Bank, China’s annual growth has contributed over 30% to the world’s economic growth since 2002.
