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世联翻译公司完成“基本总结”英文翻译

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世联翻译公司完成“基本总结”英文翻译

If we divide the China's reform and opening-up period into two different stages, then from 1978-1991 was the first stage, its’ the stage of Deng Xiaoping initiated the reform and open-up, it’s also the stage of China get rid off the traditional planned economic system and transform to socialist market economy system, it’s also the important stage of China back to the socialist democratic political system, it’s also the rapid development stage of rural area substantially reduce absolutely poverty-stricken population, and it’s the “First step” that achieved “Solve the problem of food and clothing”.

Why China need reform? What are the direct reasons? What are the indirect reasons? What are the political reasons? What are the economic reasons? How to evaluate the achievements of China’s reform over this period? What is the nature of China's reforms? What are the fundamentally different between China and other socialist countries? What are the characteristics of the reform in China? Does it have any advantages? Or disadvantages? What is the reform strategies of China implemented? What will this lead to the result? Why China's reform is successful? What is the secret of the reform? Why the China’s reform wasn’t smooth? What historic limitations have been existed in China’s reform over that period? What important lessons of that? We did a main evaluations and basic summary for that as the last chapter of this book.

Section one, the reasons about China's reform and opening-up

The direct reason of China’s reform and open-up was from the failure of the “Great Cultural Revolution”. This included two political meanings: first one is the start of reform and open-up must be rely on the termination of “the Great Cultural Revolution”, the period of reform and open-up must be tread on the heels of “the Great Cultural Revolution”, there are internal, political and historical development logic between them two; second one is the successful of reform and open-up must rely on the failure of “the Great Cultural Revolution”, exactly, the success of the Deng Xiaoping's reform and opening up was based on the failure of Mao Zedong, it fulfilled the saying of “Failure is the mother of success”.

The objective of Mao Zedong launched the “Great Cultural Revolution” because he wants to prevent the ruling party turn into revisionist party, prevent Khrushchev wield power, and prevent the restoration of capitalism. But its result is ten years long, paid huge costs and end up in failure, against to Mao’s good subjective wishes, “Poles apart”; it means the “Time inconsistency”. The failure of Mao Zedong was not by accident, the failure of him was not only for himself, it’s also belongs to the Chinese Communist. This because the Party cannot restraint him to launch the “Great Cultural Revolution”, and also cannot stop the “Great Cultural Revolution”, everything they could do was depending on the laws of nature and waiting for Mao Zedong goes end of his life. This was a painful failure, this was also profound failure. It’s a bad thing in the short run, because the “Great disorder under heaven” of 10 years, but it’s a good thing in the long run, it made a few decades “A well ordered world” come over, then China will goes to economic prosperity, social progress, rapid rise and start the great rejuvenation of Chinese nation.

After the “Great Cultural Revolution” finished, the Chinese Communist started the cognitive process of self reflection of “Recall a painful experience” and the self correcting process of “Mistakes must be corrected whenever discovered”. It did not realize the serious political mistake of Mao Zedong in the start with, and did not realize the serious drawbacks of China's political system. As soon the termination of “the Great Cultural Revolution”, the successor of Mao Zedong--CPC central committee president Hua Guofeng on the contrary affirmed “the Great Cultural Revolution”, he continued carry out the political line which just same to the old age of Mao Zedong. Obviously, this was an old way, and its’ a failure way, only if “Be practical and realistic and bring order out of chaos”, this should be the new and right way.

A political game started between two sides, one side was the healthy strength which represented by Deng Xiaoping and Chenyun, the opposite side was the “Benefited from the Great Cultural Revolution” which represented by Hua Guofeng and Wang Dongxing (It has been called “Maoism” people in foreign), one side has won a decisive victory on central work conference in 1978 and third plenary session of the 11th central committee, its important symbol was Chenyun has been elected to the Politburo Standing Committee, and formed to 3:2 political pattern. 3 means Ye Jianying, Deng Xiaoping and Chenyun, 2 means Hua Guofeng and Wang Dongxing. Deng Xiaoping proposed the reform path of “Emancipating the mind, seeking truth from the facts”, and broken the “Cult of the individual and Personality cult” of Mao Zedong, and through the “historic resolution” of 1981 to completely rejected “the Great Cultural Revolution”, this was made sufficient political preparation for “Reconstruct and Rebirth” the communist party of China and the socialist system, and also laid a good start for reform and opening up. Therefore, from the start, the China’s reform has dropped off the “Dictatorship of the proletariat to revolutionary theory” and dropped off the non human rights and non-institutionalized radicalism measures of “the Great Cultural Revolution”, such as “Seize power”, break the national machine and “Make a new start”, and “Self-renovating” from the top to the bottom and from the bottom to the top for serious drawbacks what existed in economic system and political system, and adopted the incrementalism reformation to take over it.

From the point of international background, Chinese leaders especially Deng Xiaoping has clearly recognized that will not well developed if just stand still and refuse to make progress and extremely arrogant under the conditions of economic globalization and economy opening increasingly, this is also the primary cause of why China long-termed backward. He took the lead visited Japan and U.S.A and more recognized the difference between China and developed countries. He took full advantage of the strategic opportunity which created by Mao Zedong in 70s, and signed <China-Japan Peace and Friendship Treaty>, and achieved the establishment of diplomatic relation between China and U.S.A, and resolutely implemented the open-door to the outside world, and proposed 20-years grand strategy of the international peaceful environment, it made China gained a god-given “Best location at the best time” throughout history.

China took the lead in economic reform in socialist countries. In 20s of 20th century, there was about one third population over the world started the experienced large scaled economy transition, it means from the planned economy turn to market economy. It included 28 countries of China, Vietnam, Mongolia, the Soviet Union, and Eastern Europe etc. Although the Soviet Union and Eastern Europe were also reformed the original system before the China’s economic reform, but they all did not get great achievement, and did not get significant progress as well. As the designers and implementers of China's planned economic system in 1950s, Deng Xiaoping, Chen Yun and Li Xiannian have deeply recognized the shortcoming of this system, they were successively made such a deep introspection and criticism for this. They were not really agree the method of “the Great Cultural Revolution” on Mao Zedong, therefore they used the method of incrementalism to instead of it, and reached a political consensus, they clearly proposed that we should reform all of the productive relations if only not suitable to the productivity, and reform all the superstructure if only not suitable to the economic foundation requirement, sure about that, China was the forerunner in this large-scale economic reform, China was also the innovator of the original new system in socialist market economy system. Around 1980s, China was not really have any good experiences or ready-made theories could refer to, China was continues exploring the route of socialist modernization and innovate boldly the socialist market economy system. Afterward facts shown that, two countries of China and Vietnam that they insisted on socialist political direction were the most successful countries in 30 of economy transition countries.

Section two, the evaluation to China’s development（1977-1991）

What is the important symbol for evaluate the successful of China’s reform? How to evaluate the economic development and social progress over that period from the points of objectively and historical? How to prove the China’s reform was the most success one in international comparison? We are going to evaluate that now from the test of practice of history test.

One, the evaluation of economic growth

China was still one of the poorest countries over the world when Deng Xiaoping just started the reformation; the per capita GDP was equals about half of the world’s lowest income standard, there were about 0.7billion of population in international poverty line (The Per capita daily spending lower than 1 dollar), and there were about 0.25 billion population in national poverty line. So, “Poor means the change will coming soon”, Change means reform, reform means quickly get rid off the poverty and seek rich; this was being a huge energy of China’s economic reform promotion. When the era of Deng Xiaoping is over, the poverty population was big decreased.

After 1978, China entered into the stage of economic take-off, and appeared sustained high growth. From 1978-1991, the GDP increased in 3 times, and the average annual growth rate was 9%, it obviously higher than 5.2% which from 1966-1976, it also means higher than 7.2% which proposed on the 12th Party Congress as a target. According to the statistics (1990 PPP) which provided by Angus Maddison, China's GDP accounted for the proportion of total world was increased to 8.23% in 1991 from 4.93% in 1978; and the GDP difference between China and U.S.A has shrink to 2.55 times in 1991 from 4.37 times in 1978, very close to GDP of Japan already (Just 6% less), in 1992, China's GDP has exceed Japan and became to the world's second largest economy.

Over this period, China's per capita GDP growth was 2.6 times, and the average annual growth rate was7.5%, this means the figures doubled in every 7 years, and it also higher than 2.7% which from 1966-1976. From the point of international comparison, China has already entered into high-growth countries in the world, We've just slightly lower than Korea and Botswana at the same period, we were in the third place of the world. The more important thing was China better than the big developing country of India, and we one step ahead in open-door to the outside world. Just like what Lewis said:" once the economic start to growing, then the system will more and more tend to the direction that having advantages in economic growth, and strong promote each power in economic growth."

From the analysis of economic growth source, during the 10 years (1966-1976) of "the Great Cultural Revolution", although the input factor growth rate was high, but the total factor productivity was negative growth, therefore the GDP average growth rate was just 5.2%; and from 1978-1990, the input factor growth rate was still very high, and the total factor productivity was positive growth, the proportion was 3.7%, the contribution rate to economic growth was 40%, therefore the GDP average annual growth rate was 9% (See table 10-1). This was full reflected the economic reform was indeed increased the efficiency of resource allocation, and promoted the technical progress.

Table 10-1 The estimation of the source of China's economic growth (1966-1990)Unit：%

GDP Capital stock Labor force Human capital Total factor productivity

Growth rate

1966-1976 5.2 8.51 2.68 4.50 -0.40

1980-1985 10.7 8.34 3.32 2.19 5.71

1985-1990 7.9 8.99 5.36 1.98 2.07

1978-1990 9.0 8.64 4.06 2.13 3.70

1980-1990 9.3 8.66 4.33 2.08 3.89

Rate of contribution

1966-1976 100 65.9 15.6 26.1 -7.7

1980-1985 100 31.2 9.3 6.1 53.4

1985-1990 100 45.7 20.4 7.5 26.3

1978-1990 100 38.3 13.5 7.1 41.1

1980-1990 100 37.4 14.0 6.7 41.9

Notes: the stuff in brackets is the contribution rate from productivity to economic growth. The GDP and capital stock growth were all actual growth rate, the capital stock is calculated by perpetual inventory method, and the allowance for depreciation calculation formula is Di+1=Di+2/n, it means, the rate of depreciation in next year, is calculated by last year’s depreciation rate plus 2 and divide by total years. The computing weights are capital input 0.4, labor input 0.3 and human capital investment 0.3.

Two, the evaluation of rural development and poverty reduction

The added value of agriculture has increased by nearly 2 times, and the average annual growth rate has reached to 5.3%, it obviously higher than 2.2% from 1966-1976, China was also one of the highest growth rate countries in agriculture output over that period. In fact, Chinese rural inhabitant’s agricultural acreage was not enough half hectares, and the average labor force was just 1.4, because farmers were re-gained control and management rights for lands, therefore it greatly improved the production enthusiasm of farmers, and also the agricultural labor productivity and land productivity were improved as well. China has already being a great country in the world wide in agricultural product production, until 1990, the grain, meat; unginned cotton and rapeseed were on the top of the world, peanuts and tea were on second of the world, soybean was on third, sugarcane and fruits was on fourth. China has solved the problem of food and clothing for 20% of population over the world with just 10% cultivated land and 6.5% water resource.

The per capita net income of rural households has increased by 3.2 times, the average annual growth rate has reached 9.3%, and it’s higher than the urban disposable income growth (6%) for same period. But the growth was extremely slow during 1988-1991, it’s only 2%.

The absolute poverty in rural areas has declined to 94 million people in 1991 from 0.25 billion in 1978 and the poverty incidence also declined to 10.4% from 30.7%. From the international poverty line (Daily consume spending less than $1.25 per person), according to the estimation of the World Bank, the poverty incidence will decline to 60.2% from 84% from 1981-1990. The World Bank thought that: in such a short time, China has done a greatest reduction for poverty population, this was unprecedented.” You can think of that, from the beginning of the China’s economic reform, the vast peasantry especially the impoverished people were all get well benefits, it was the typical sharing reform and sharing growth.

Since the reformation, the township enterprises just like a new force suddenly rise, it made Chinese farmers find out a good way to participate in industrialization, therefore the development mode of Chinese industrialization was completely changed; under the conditions of urban-rural segmentation of “one nation, two systems”, the rural areas have launched industrialization and promoted industrialization, it improved labor division standard of rural economic, it also accelerated the transformation of rural labor force from agricultural sectors to non-agricultural sectors, it also played a positive effect in the aspects of conventional agriculture transform and non-farm income improvement. Township and village enterprises sector and traditional agricultural sector have constituted a unique dual economic structure in Chinese rural; in addition with the town formal economy sectors, the Chinese economy society has turned to the ternary structure from dual structure.

Three, evaluation of social development

The education level of the population was constantly increasing. And all levels of education enrollment were also increased. The net enrollment rate of school-age children has increased to 97.8% in 1990 from 95.5% in 1978; the Junior high school enrollment rate has reached to 66.78% in 1990; The senior high school gross enrollment rate has reached to 21.9% in 1990;； And the higher education gross enrollment rate has reached to 3.4% in 1990. Adult literacy rate has also increased to 77.8% in 1990 from 65.51% in 1982; the adult literacy number has increased to 643.12 million from 442.18 million; meanwhile the adult illiteracy rate has sharp decreased, from 34.49% to 22.2%, The illiterate population number also decreased 21.2% which from 232.8 million to 183.51 million. All kinds of level of education people also improved, such as the proportion of primary education has increased to 37.2% in 1990 from 35.2% in 1982; the proportion of secondary education has increased to 23.3% from 17.8%; the proportion of senior high school has increased to 8% from 6.6%, the population of high school education has increased to 91.47 million from 67.09 million, the rate was 36.3%; the junior college or above proportion has increased 1.4%; The population of junior college or above has increased to 14.22 million from 6.15 million, the increasing rate was 1.31 times; the population mean by education period has also increased to 5.5 years from 4.6 years, the average annual growth rate was 2.3%.

The population health indicator was also improved. The infant mortality rate in 1981 was 3.47%, and it decreased to 3% in 1990, It dropped 0.047% every year in average. The population average life expectancy has increased to 68.55 years old in 1990 from 67.77 years old in 1982, it just raise 0.78 year, it increased 0.1 year every year in average. This reflected when all populations were great improve their income, but the people's health indicator was not did really well, there into the rural collective medical insurance system and public health service agencies were almost collapsed with the demission of people's commune.

Human development index has obviously improved. According to the human development index (HDI) that provided by UNDP, the Chinese HDI was reached 0.53 in 1975, it’s better than the 0.50 of medium level of human development, and the pursue coefficient to U.S.A was 0.61; in 1990, the China’s HDI was reached to 0.634, that was 0.104 increased, and the pursue coefficient to U.S.A was 0.69, (See table 10-2), it reflected the China’s HDI not just gained absolute progress, and also it gained relativity of progress.

Table 10-2 the international comparison of HDI (1975-1990)

Countries 1975 1980 1985 1990 Variation between 1975-1990

U.S.A 0.87 0.89 0.904 0.919 0.049

China 0.53 0.559 0.595 0.634 0.104

India 0.419 0.45 0.487 0.521 0.102

China/U.S.A 0.61 0.63 0.66 0.69

India/U.S.A 0.48 0.51 0.54 0.57

Note: Data source: UNDP: <HDI> (2007-2008).

Four, the evaluation of opening to outside

The China’s reform and opening-up was just met a new round of globalization process, and it fully used of this god-given historic opportunity, and then quickly integrated into the world economy. After 1978, the national was gradually stopped the policies of close the country to international intercourse and self-sufficiency, and then the national step by step reformed foreign trade, foreign investment system, and built special economic zones and technology development zone, and also constantly adjust RMB exchange rate, it also extremely played the comparative advantage of China, and extremely improved competitiveness which China in the international markets.

First one was China's foreign trade is growing fast, and became to a new engine. China used to be a typical small trade country in 1978 and the import and export of goods was just 20.64 billion dollars, it ranked 29 over the world; but in 1990, the total volume of import and export trade was reached to 115.44 Billion dollars, it equals to 5.6 times compare to 1978, the rank was went up to No.15, and average annual growth rate was 15.4%.

The second one was got a large number of foreign capitals. In 1978, China was a country that didn't have foreign debt and didn’t have investment from foreign, but until 1990, China has totally get 57.22 billion of dollars from the foreign capital. Those foreign capitals were mainly included two types of forms and sources: extensive use of foreign borrowing, from 1979-1990, the cumulative foreign borrowing was 40.82 billion dollars; the borrowing in each year was 3.4 billion dollars in average. Most of them were long-term loan, because the Chinese government was always have good credit, in addition our foreign exchange reserves were constantly increasing, so we have never been default any foreign debt, this was completely different to Asia, Latin America, Soviet Union and some countries in Eastern Europe. We have large quantities absorbed foreign direct investment, it was reached to 3.49 billion dollars in 1990, that was equals 0.9% of GDP, from 1979-1990 we did get 16.4 billion dollars, the foreign direct investment in each year was 1.37billion dollars in average. There into, most of them were long-term investment; it also being the new investment source of China, in 1990, the foreign capital was 28.64 billion RMB in total investment in fixed assets, it occupied 6.3% of aggregate investment. The characteristic over that period was majority in absorb foreign loan, and supplement as get foreign direct investment.

The third one was China has imported plenty of foreign technology; it brought benefits to make China catching well economic. There were two channels of technology importing: one was directly purchase technology, it can be shown with foreign technology contracts, and it was become to the main source of China’s enterprise importing and innovation; another one was indirectly import technology, it can be shown with foreign direct investment, we were mainly taken use of their technology spillover effect, and it was became to the new source that the domestic enterprise imitate to. If we deem the domestic research and development spending as the source of domestic self-developed technology, and proportioned compare with those three funds in GDP (see table 10-3), we can be seen that, over this period, China's source of technological innovation was mainly depends on import foreign technology, and secondly depends on self-innovation. This was extremely promoted take use of “Two kinds of technology” under the condition of globalization, and also huge saved technical development costs.

Table 10-3 the major source of technology in our country (1983-1991)

Year R&D funds（0.1billion Yuan） Research and development spending as a share of GDP（%） Foreign technology contracts outsourcing Foreign technology contract as a share of GDP（%） FDI（0.1 billion Yuan） FD as a share of GDP（%）

1983 18.10 0.30

1984 33.02 0.46

1985 93.93 1.04 57.44 0.64

1986 154.79 1.51 77.48 0.75

1987 74.03 0.61 111.10 0.92 86.13 0.71

1988 89.50 0.59 132.07 0.88 118.88 0.79

1989 112.31 0.66 110.06 0.65 127.71 0.75

1990 125.43 0.67 60.94 0.33 166.79 0.89

1991 159.46 0.73 184.15 0.85 232.42 1.07

Data source: Zhangping: <The leading edge of China's economic growth II—theory and policy research of structural balanced growth>, page 244, Beijing, China Social Sciences Publishing House, 2011.

Five, international comparison of economic and social development

From the international comparison, from the 28 economy transition countries, we are selected and used two types: one is China and Vietnam, they still insisted on the political orientation of socialism, and still insisted the socialist road; two is Russia and Eastern Europe countries, they were already turned to capitalism. We selected three important indicators: first is GDP total amount (PPP, by the international U.S.A dollar prices in 1990); second is the Per Capita GDP (PPP, by the international U.S.A dollar prices in 1990); third is HDI. The international comparison shown that, in the first 14 years of the reformation, only China and Vietnam were best in these three indicators; Russia was the worst one, it did not really exceed the level in 14 years before until the No. 14 year; Eastern Europe countries were just between them, but, only GDP and per capita GDP have slightly increased, and the HDI indicator did not improved (See table 10-4).In the presence of the international competition, the economic transformation of any countries is all clear at a glance. At the same time also shows that, only China and Vietnam that they insisted on socialist political direction were the real successful economic transformation.

Table 10-4 the main indexes of early stage of the reform in China, Vietnam, and Russia and Eastern Europe countries (E.E.C)

Reform of year 1 Reform of year 5 Reform of year 10 Reform of year 14

GDP

China（1978-1991） 100 127 201 227

Vietnam（1986-1999） 100 121 179 224

Russia（1990-2003） 100 65 61 74

E.E.C（1990-2003） 100 87 105 115

per capita GDP

China（1978-1991） 100 121 178 191

Vietnam（1986-1999） 100 110 149 179

Russia（1990-2003） 100 65 61 75

E.E.C（1990-2003） 100 87 106 116

HDI

China（1978-1991） 100 106 114 117

Vietnam（1986-1999） 100 107 116 123

Russia（1990-2003） 100 95 96 97

E.E.C（1990-2003） 100 93 96 99

Note: the China’s reform started in 1978, Vietnam’s reform started in 1986, Russia and Eastern Europe countries reform started in 1990; Eastern Europe countries are included Albania, Bulgaria, the Czech Republic and Slovakia, Hungary, Poland, Rumania and Yugoslavia.

Data source: Angus Maddison, Statistics on World Population, GDP and Per Capita GDP, 1-2008 AD, 2010, http://www.ggdc.net/MADDISON/oriindex.htm; UNDP, Human Development Report 1995, 2002 and 2009.

Anyway, the most important achievements of China in this period was opened up the road of socialist modernization with Chinese characteristics, and gained huge achievements within just a decade. Until October of 1992, Jiang Zemin announced on 14th Congress of CPC, the problem of food and clothing for 1.1 billion people is roughly solved now. The economic construction and comprehensive national strength in China is already standing on a higher stage. This means, China already opened up the road of socialist modernization with Chinese characteristics. China finished the first step of the “Three steps” of socialist modernization with Chinese characteristics which proposed by Deng Xiaoping, it’s also laid a solid foundation for the second step “well-off level” in next 10 years.

Section three Why are China's reform success?

Why China and Vietnam were the most successful two countries in the first decade in 28 reforming countries? We have many ways to say that, if China was the gradualism reform, then other countries were the radicalism reform But this analysis is not the primary cause, because the China’s economic reform was the socialist economic reform from the beginning, but not the capitalism economic reform, this was involved to a fundamental problem, how did Chinese leaders treat and deal with the political legacy which left from Mao Zedong era. This is included 3 aspects:

First one is how to correct recognize and evaluate Mao Zedong’s mistakes and historical status. Deng Xiaoping and Chenyun were direct participated in decision-making process of the Soviet Union negative Stalin in middle of 50s, and they did not agree the method of “Self-denial” and “Fully denial” which from Khrushchev to Stalin. Deng Xiaoping thought that, "be against to Mao Zedong, the country will get troubles". Chen Yun has also clearly proposed, the evaluation from us to Chairman Mao, will not same to Khrushchev and Stalin. Because they were deepen knew that if against to Mao, it means against to Chinese Communist Party. Because those historical memory and historical experience, Deng Xiaoping and Chen Yun have proposed that should be practical and realistic to evaluate “the Great Cultural Revolution”, and appropriately evaluate right and wrong of Mao Zedong, Meanwhile we should fully recognize the historical position of Mao Zedong; his contributions should be always before his mistakes. Therefore China has indeed avoided what happened in the Soviet Union, the Soviet Union was firstly discredit and denying Stalin, and then they criticize and denying the Communist Party of the Soviet Union, and then they overthrow the leadership of the communist party of the Soviet Union, finally they disintegrated the whole Soviet Union and turned to capitalist country.

Second one is how to correct recognize and inherit political legacy from Mao era. Deng Xiaoping was inherited from Mao and innovated on this basis. He inherited the most important political legacy of Mao Zedong and played the political advantage on basic socialist political system. It included a whole set of basic political system that created by Mao Zedong, such as the system of people's congress, system of multi-party cooperation and political consultations and system of regional ethnic autonomy. This basic political system was not same to “two-chamber system”, “two-party system” and “multi-party system” that implemented in western countries, it can not just ensure the democratization, institutionalization and sequencing for national major policy decisions, it can also promote the efficiency of decision-making and executive capacity, and also kept the political advantage of “National unity” and “Concentrate resources to accomplish large undertakings”; this basic political system was not same to the “federal system” which implemented in Soviet republics, we ensured the 56 nations communion in aspects of political, economic, cultural and society, it also promoted the Chinese nation integrative development and harmonious development, and together build the big family of Chinese national, and achieved the great rejuvenation of Chinese nation. Meanwhile, Deng Xiaoping has built the system of Community Level Self-Governance, and reformed the political system, since that, the political system was more suitable to China‘s national condition.

Deng Xiaoping has really clear about the disadvantages of capitalist system, and very confident to the advantages of China's socialist system. He said, we always talk about democratization when we reforming the political system, but the meaning of democratization are not really clear. The democracy that in capitalist society is the bourgeois democracy, actually it is monopoly capitalist democracy; it cannot be multi-party election, separation of three powers and bicameralism. Our (socialism) system is the people's democratic system which under the leadership of the Communist Party, we cannot be same to western countries. There is a biggest advantage in socialist country, it is if we want to do something, we will straightaway to do that, and we never lose time. So, if from this point, our efficiency is high. This is our advantage; we should keep on this advantage and ensure the superiority of socialism. This shown Deng Xiaoping was deep understanding the advantages of China's socialist system. On the basis of this kind of political system, in order to achieve the three targets, Deng Xiaoping has consciously reformed the political system: to strengthening the vitality of the Party and the state system, to improve the economic efficiency, administrative efficiency and organization efficiency, and fully arouse the enthusiasm of the masses of the people.

The third one is how to correct recognize and inherit the socialist road that existed in Mao Zedong era. The socialist road is different to the capitalist road, There will be both success and failure, this is need constantly explore, constantly adjust, constantly carry forward and constantly innovation. Although, Mao Zedong's socialist road exploring was experienced serious setback, but it does not meaning this road is in wrong direction, and still doesn’t meaning we should abandon this road and use capitalist road instead of it. Deng Xiaoping was very clear and very firm for that. He repeatedly stressed, the China’s reform is the reform of socialism. The general objective of the reform is for consolidate the socialist system, and bring benefits to the Party’s leadership, and bring benefits to productivity development. This was because, since the start of the reform, China was not just faced to a risk of return the old way, and also we faced to another risk of go astray, therefore a kind of social forces of “democracy” and “liberal” appeared, they were deemed the leadership of the Communist Party as “Dictatorship”, they suggested China should be “Comprehensive westernization”, and advocate China should be “colonization”, adopted political democracy that implemented in western countries, suggested bourgeois liberalization, and then overthrow the communist party and change dynasties. Just like what Deng Xiaoping said, the mind of liberalization always existed in before and future, it existed in both social and internal of the Party. Although this kind of forces were not the mainstreams in social and internal of the Party, but it has got great social influence, and gained supports from western anti-China forces. For those social forces of “democracy and liberal”, Hu Yaobang and Zhao Ziyang did not really oppose openly, they were expressed sympathy firstly, and then did not follow the instruction of Deng Xiaoping, and did not efficient handling this social turmoil, so this social forces started to get protect from the national, finally they were being the political flightism when the country just experiencing the critical moment of major political crisis. Just like what Deng Xiaoping said, both of them were failed, and it is not the because of the economic problems, they were all failed in the problem of bourgeois liberalization. Fortunately Deng Xiaoping has throw himself into the breach in the critical moment, and timely adjusted leaders of the CPC central committee, he resolutely put a stop to the social unrest and continued “great order throughout the land”, and firmly resisted the western sanctions and the public westernization, avoided the “Great Schism”, “Great disintegrate” and “Great setback” that happened in the Soviet Union and Yugoslavia.

Under the correct leadership of Chinese Communist Party, China was continuing insisted on the route of reform and opening-up, and implemented the reform with step by step, planned, schemed and adjusted; but it did not turn the direction and abandon the socialist principles and establish the capitalist society, they were insisted on the direction of socialism, and guaranteed China was always on a right way, and continues innovate the road of socialist modernization with Chinese characteristics.

To strengthen the learning system and improve the party central committee collective democratic decision-making mechanism will help to reduce the decision-making misplay and correct the mistakes in time. This was being a political consensus and political aspirations in central collective leadership.

In December of 1979, Li Xiannian has specially emphasized the problem of learning strengthening, it was, the good or bad of China's economic development is depends on the good or bad of leaders learning.

Formally set up the learning system and build a study-oriented Party. In 5th-Oct-1977, the Central Committee of the Communist Party made <The decision about do well in Party school>, then the national Party schools at all levels were in succession restored. In 3rd-Oct-1982, the Central committee and the State Council made the <Decision about party and government cadres education work>, it has regulated, and all of cadres in the central party and government organs should leave the current job and learn for half year in each 3 years, this should be a kind of system.

In March of 1980, Li Xiannian has summarized the concepts of China’s reform as “12 words (12 Chinese words, 5 English words in translation)”: Positive, careful and advance steadily. He expressed, should tightly hold the reform in the beginning, and then should take bigger steps after we get experiences. History has proved that, this was an actively method.

In September of 1981, Li Xiannian has summarized the Mao era’s historical lessons as “twice toss about”: on politically, it did the toss about in “the Great Cultural Revolution” and “As key link with class struggle”; on economically, the toss about means the high indicators, such as the great leap forward in 1958. Nowadays, the Central committee will not toss about again; I trust I can hold it. This was because both Deng Xiaoping and Li Xiannian have experienced the “Twice toss about”, they were witnessed how dose Mao Zedong failed, how does Mao Zedong made heavy losses, and how do they paid huge costs to corrected it. This means as long as the “Two toss about” can be avoided, and then the China’s reform will be smooth. This was the exactly historical origin and historical memory of “Do not toss about” that proposed by Hu Jintao. On one hand the major direction of the reform was “Do not toss about”, and the major policy was “Stand firmly”; and on another hand, the mistakes that if appeared in the process of reform, should timely correct it, “Do not stubborn and do not rigid”.

In June of 1983, the state president Li Xiannian said something on the sixth National People's Congress meeting, vast of people wish we could try best to do works, and strive to avoid faults. We should not live up to the expectations of the people. This is the public political commitment to national people.

In 15th-July-1985, Deng Xiaoping spoken to foreign guests, “The results of reformation should be always two, success or failure. I believe we will be successful. It does not matter if we made some mistakes during the process, we will correct them soon. If this way we don't succeed, just change another way. Anyway, we will timely and frequently draw lessons from the past”.

In 16th-Sep-1988, Deng Xiaoping spoken to Japanese guests, for a huge country with 1 billion people, we should seek to stabilize. And we should take one step and look around before taking another, our principle is timely correct any small mistakes before they become to big mistakes.

Deng Xiaoping said that in April of 1989, the phenomenon of economic overheating at the moment, if we start to pay attention in 5 years ago, maybe the situation would be better; even if we start to pay attention to that in 3 years ago, the situation now also would be much better. We should be on the alert to avoid the mistakes when business running too smooth. We should considerate what new problems will appear when the developing very speedy. We should try best to avoid the decision making mistakes.

In January of 1993, Deng Xiaoping has talked about prevent loss, especially for the great loss. It does not really matter for such small losses, because we can timely sum up the experiences and correct them. We have to correct any mistakes as long as they appeared, so this can avoid the small mistake growing to big mistake, even lead to disaster.

The theoretical basis of China’s reform was not actually complicated; it’s mainly for the “two theories” of Deng Xiaoping. One is “Cat theory”; it means “A good cat should be good at catching rats, whatever the color of the cat”. “Cat theory” was from an old saying of SiChuan rural; it used to be a kind of new military affair views of militarist Liu Bocheng, in order to make difference to regardless of the consequences of military doctrine. In early of 60s, Deng Xiaoping has many times taken use of “Cat theory” as a theoretical foundation to deal with China's rural economic adjustments, especially for the implementation of responsibility field and fix farm output quotas on the household basis. “Then it is legitimating”. The Deng Xiaoping’s “Cat theory” bear the bitterly attack from Mao Zedong, Mao thought Deng Xiaoping still followed the old way, but this “mass criticism” of Mao on the contrary made the “Cat theory” of Deng Xiaoping widely known and all the world knows, actually Deng Xiaoping was not mention about the “Cat theory” anymore in the early stage of the reform, but this thinking has been fully embodied in <Selected works of Deng Xiaoping>, people were understood this thinking was based on the actual conditions and the “Cat theory” is the pragmatism, and also they have formed a “common view” in China's national conditions and reform. After that, Chen Yun has summarized this pragmatism theory to be “15 words Realism” (15 words in Chinese, 42 words in English translation), it was “Some of the questions he raised that showed how he avoided the blind faith in the books or the leaders' will, which even I couldn't give a good answer to immediately, made me a secret admirer of him. Exchange, comparison and repetition.” He said, in these 15 words, the first 9 words are materialism, and the last 6 words are dialectic, therefore it is materialistic dialectics in totally. This was the summary of Chen Yun in his whole life; it’s also penetrating generalization of Marxist philosophy.

The second theoretical basis of Deng Xiaoping was “Move steadily”. This was firstly proposed by Chen Yun. Wan Li has expressed the “Move steadily” theory in 1998, he said, there is no anyone knows how to do the socialism with Chinese characteristics, it means we do not have another selection apart from “Move steadily.” We should go deep among the masses and listen to their wishes and opinions; we should understand the pulse of history and the trend of history. This is our hereditary treasure, but the leftist-inclined mistakes made us lost it. We did really well in rural reform because we carried forward that. This was a very important experience, and never loss it in future.

The reform and opening-up is a great experiment, it neither have successful experiences for reference, nor have ready-made theory for instruction, therefore the mistakes are cannot avoid. How to deal with it? The reform just like river crossing, we need always feel the stone in the river, and be very serious with each step. In another word, when face to some dangerous reforms, we should be keep free to go forward or back out, and avoid drop into the trap. "Move steadily" is included a method that handling uncertainty: it is, to do the adjustment according to feedback, and eliminate the possibility of change radically at any points. The "Move steadily" has been deemed as a philosophy methodology of the whole economic system reform.

The reform is a continuous learning process, it does not have having foresight or fixed rigid modes, it just like the trial and error of economics, "Do works from learning, and learn from doing works".

What is the biggest feature of “trial and error”? It’s for solve the asymmetry, it’s also for reduce the maximum cost and risk of information obtaining, it has the both features of advance gradually and stability, it’s also consistent. Reform is always based on the evolutionary approach to constantly evaluating, developing and changing; the reform does not have any pre-design, and doesn’t have any great blueprint, whatever the objective, process or style of the reform, they all do not have any pre-design, because the huge China has got great information uncertainty and great political risk.

Encourage the local innovation and respect people's initiative. The China’s reform and innovation are mainly from the local and grassroots; it reflected the innovation and practical of people. In early of 1992, Deng Xiaoping said that when he visited Zhuhai:” our successful of the reformation was not because of the spoken, it was depends of the practical and realistic. Such as the household contract responsibility system, the right of invention was farmers. We have many things that in the reform were actually created by the grassroots. Practice is the sole criterion for testing truth.

The essence of the reform is to establish a new and good effective mechanism which could inspire people to innovate; we call that “Comply with the aspirations of the people”. Why the reformation of Chinese Communist Party could get people's supports and gained unexpected success in this period? In 21st-March-1982, Hu Yaobang said to Professor Li Zhengdao, now, Chinese people’ heart are seeking stable, rich, strong and unity, therefore we should adapt this trend and conform to the public opinion. The reason why our Party and national could get such great achievement, because we did conformed to people’s opinions. The historical experiences told as, the one who will be failed if violated people’s mind. That is why Mao Zedong failed the “Great Cultural Revolution” alone with his life finishing, that is also why the reform and opening- up still goes on when Deng Xiaoping finished his life.

The Chinese leaders who represented by Deng Xiaoping have selected the pragmatic gradual reform route. The China’s reform was based on socialist innovation, it’s personal transformation, self-renewal and self-improvement, but not the self-denial, self-abnegation and self-abandon to socialism. Deng Xiaoping thought that, China must stick to socialism. Otherwise China will loss everything and getting trouble. Then we cannot do anything.

How to evaluate the China’s reform? What kind of road of China going to choose? This was existed different opinions in both China and foreign. Deng Xiaoping was really clear about that. Deng Xiaoping said that in August of 1985, there are two kinds of comments to China’s reform. Some of reviewers thought the reform may get China give up socialism; some other reviewers thought the reform will not make China stop socialism. The second opinion is wiser. All of our reforms are just for one objective, which is removing the social productive forces development obstacles. The summarization of our economic reform is actually for activate internal and open to outside. Activate the internal also means open to internal, through the opening to mobilize the national people's enthusiasm. He also said, our reform is not just for China, it’s also a kind of experience in the range of international, we are sure it will be successful. Once we succeed, we can offer these experiences to socialist causes and other developing countries.

So, what is “Chinese experiences”? What are the implications? Hu Jintao get China’s reform and opening-up summarized to ten combinations (See special column 10.1).

Special 10.1 Hu Jintao: the precious experiences of China's reform and opening (2007)

In the historical process of reform and opening up, our Party has combined together with basic principle of Marxism and localization of Marxism in China, combined together with adhering to the four cardinal principles and adheres to the reforms and opening up, combined together with respect people's initiative and improve the leadership of the Party; combined together with adhere to the basic socialist system and developing market economy; combined together with economic basis change promotion and superstructure reform; combined together with social productive forces development and cultural and ethical quality enhancing; combined together with efficiency increasing and social equity promoting; combined together with independent and economic globalization; combined together with reform and development promoting and social stability maintaining; and combined together with great cause of socialism with Chinese characteristics promoting and great new Party-building Program promoting. Those ten combinations were made the huge China get rid off the poverty, accelerated the modernization and gained precious experiences for consolidate and develop socialism.

The primary causes of the achievements of the reform and opening up are: opened up the road of socialism with Chinese characteristics, and formed to the theoretical system of socialism with Chinese characteristics. We are upholding the great banner of socialism with Chinese characteristics, the most fundamental thing just adhere this route and this theoretical system.

Data source: Hu Jintao: <Uphold the great banner of socialism with Chinese characteristics, and struggle for build well-off society in an all-around way----the report on the 17th national congress of the communist party of China> (15th-Oct-2007).

Section four, Deng Xiaoping became to the key factor of success of the reform

How to evaluate the historical function of Deng Xiaoping? Let us have a look the third-party evaluation of foreign scholars:

David Lampton (A famous a China watcher and a director of China Studies Centre in Johns Hopkins University) thought that, since 1978, the western analysts were all underestimated the abilities of Chinese leaders in each turning points. Maybe this is understandable in 1978; people who experienced the movements of “Great leap forward” and ten years of “the Great Cultural Revolution” cannot foresee the (History) changes from Mao Zedong to Deng Xiaoping. This has explained why the governments, Medias and analysts of western countries were always wrong underestimated China, not to mention the miscalculation of China after the “Eight and nine disturbance”. Lampton said that, as a leader, Deng Xiaoping was having three contributions: (1) redefined the politics and national goals, from the class struggle transfer to economic growth; (2) combined the China’s future and global integration; (3) trained a batch of state affairs management meritocracy and made them institutionalization. Those views made China accessed into a track of sustainable development.

Deng Xiaoping was the key factors in both of China’s economic reform and China’s political reform. His great political wisdom was he deeply learned lessons from Mao Zedong’s mistakes, and implemented the new political leadership; this was a precious legacy for successors.

In 29th-June-1981, Hu Yaobang said that on the 6th plenary session of 11th final sitting, who has made most contribution in recent years? The comrades of the Political Bureau and standing committee were all made some contributions in their own position after the “Gang of Four” smashed. But, still the older generation of revolutionaries made more contribution than other people. For example Deng Xiaoping, he has got special experiences and he always full of energy, in addition with his huge prestige, of course he played better effects. Deng Xiaoping is the main decision maker of Chinese Party currently.

Although Deng Xiaoping was the main decision maker and chief designer of the reform of Chinese Communist Party, but he has correct handled the major political relations, it mainly shown as:

Deng Xiaoping handles correctly the relationships between personal and the Party. Something in common between Mao Zedong and Deng Xiaoping was they were all the core of the collective, they were not only political core but also they were the theory core. But the biggest difference between them two is Deng Xiaoping has never been the top leader for the Party and the national, he has only been on the highest military leader (That means the chairman of the communist party of China central military commission). That means he was always just a member of the leading group, this avoided he override the Party Central Committee.

Firstly, Deng Xiaoping didn’t hold the post of the Party Central committee chairman or secretary. Ye Jianying have spoken highly of Deng Xiaoping on meeting of the political bureau of the Central Committee in the end of 1980:” Xiaoping has made a great contribution for the Party. He was always proposed a lot of keened and decidedly decisions and opinions in each critical junctures after the “Gang of Four” smashed. In my point of view, Deng Xiaoping has got remarkable ability of good administration and stability, he will be worthy of the commander-in-chief of the army.” Although Deng Xiaoping used to be the general secretary during 1956-1966, although he has got plenty of political experience, but he still refused to be the general secretary position when everybody wish he to do so on the sixth plenary session of 11th in June of 1981. He thought the China has got the problem of leader aging, so the leader should be younger, it would better to make younger people to hold this post. On this meeting, Hu Yaobang has been elected as the Chairman of China committee, he said, I have been put on this position it just because the special historical conditions. Originally, the will of the Party most of the comrades, this position should be taking over by Deng Xiaoping. Whatever in standard or level, many of other old comrades is more suitable than me. But I think I have a responsibility to instruct to the whole conference, two terms will definitely keep on: one is the role of old revolutionaries will keep on; another one is my standard will keep on. On the 12th of the first plenary session in 1982, Hu Yaobang has officially taken over the position of general secretary of CPC central committee.

Secondly, Deng Xiaoping hasn’t been taken the post of Chairman of China. In 1954, when Mao Zedong was creating first of the People's Republic of China constitution, he creatively proposed should establish the system of national Chairman, and it should be one of the most important system in China. Himself has elected as the Chairman of China in same year, and he officially quit this position in 1959 and that was taken over by Liu Shaoqi. In 1970, Mao has abolished the system of state president because he did not want to be the president anymore, just for this; he rejected majority suggestions of the Political Bureau of the Central Committee, and meanwhile, he had a sharp political struggle with Li Biao. In 20th-Feb.-1982, someone said the vacancy of Chinese chairman can only taken by Deng Xiaoping, but Deng Xiaoping has immediately said that: some other people will be Ok for this position as well apart from me. In 23rd of Feb, when the Political Bureau of the Central Committee again discuss the vacancy of Chairman, Deng Xiaoping said that: if the national have to establish the Chairman, then we cannot just think about one individual person (It means himself). Obviously, Deng Xiaoping thought do not establish the system of China preside is more important than take over the Chairman by himself. In Dec of 1982, the 5th meeting of the NPC passed this draft constitution, and re-established the position of China’s chairman; the Politburo Standing Committee Li Xiannian holds the post of China’s chairman.

Why Deng Xiaoping didn’t want to be the general secretary or the national chairman? He had a big idea for this. Deng Xiaoping has indicated that in 1988: I have a point of view, that is, it’s not that good if a Party or a country entrust the whole wishes to just one or two persons. If so, if this person happened something, then the overall situation will be instability as well. This is why I rejected those positions after the third plenary session of the 11th central committee of the Chinese communist party. On the 13th plenary session, some of old leaders and me were all quit the core leadership. It means the China’s future will depends on the new leading group.

Deng Xiaoping taken the lead of collective decision-making mechanism establishment, and correct handled the relationship between the individual leadership and collective leadership. This was because Deng Xiaoping learned lessons from personality cult in late years of Mao Zedong. He said that in November of 1981, since the third plenary session of the 11th in December of 1978, all of the guidelines and policies were made by collective, yes I do not deny some of private functions, for example I have done the effect which I should done, but for most of specific policies or issues, were decided and created by everybody, there were not just made by me. I will say that, all of the issues were discussed and decided by collective. We also have one experience, that is, it’s not good if any individual person touched too much in one question. In some sense, the late year’s mistakes of Mao Zedong were just related to this. Deng Xiaoping was always listening to the opinions and comments from other leaders, and meanwhile he was always respects to the “intellectual property” of those leaders. He has never “Greedy for the world”. For example he mentions again and again, the implementation of revolutionization, rejumvanation and specialization of cadres were firstly proposed by Chen Yun. In April of 1985, when Deng Xiaoping met with the vice president Tanzania Ali Hassan Mwinyi, Mwinyi said:” the China’s reform is especially striking, and you are the designer of this reform”. The reform is from people’s ideas, it’s also the requirement of people, Deng Xiaoping humbly said.

Deng Xiaoping correct handle with the contradictions within the Party. On the issue of how to deal with the contradictions within the Party, Deng Xiaoping adopted complete different method if compare with Mao Zedong, firstly, he abandoned the formulation of two lines struggle which used by Mao Zedong, therefore the two lines struggle in the Party has terminated. He thought, for this formulation of Mao Zedong we did not correctly used in before. In principle we should not use the two lines struggle formulation anymore. Because since the jobs of the Party converted into economic construction, so we do not have any lines struggle, therefore he decidedly terminated the irregular method of lines struggle. And then Deng Xiaoping has carefully handled the problems of Party leaders, stopped broaden the scope anymore. When Deng Xiaoping was dealing with the political issues of Hua Guofeng, Hu Yaobang and Zhao Ziyang, he just lightly mentioned about it and expressed the nature of the mistake, but did not use the formulations of "Lines struggle and representative personage", meanwhile the political escalation wording has not shown again, and also did not involved other leaders into it, that was made the political leaders indeed started to enjoy the political sense of security, and made the conflict degree that in the internal political leadership group has declined to the lowest point, therefore the stability and continuity of China's political leadership have well ensured.

Furthermore, Deng Xiaoping adopted moderation of attitude of “One-convince people by reasoning, two-wait patiently and three-based on facts” to deal with different opinions in internal of the Party, this was completely different with the radical approach of “One-public criticism, two-cruel struggle and three-relentless strike” of Mao Zedong. Under the complicated national conditions, the unprecedented reform will bring different opinions and different reorganizations in of course; the thing is how to treat to them. Deng Xiaoping said, the reform policies would not understand from everybody in the beginning, we should through facts to make people general agree with it. Deng Xiaoping said that in Feb. of 1991, reform will brings different opinions, but this is a good thing because people must be out of kindness, because they are unused or scare new troubles, of course, we cannot be too rush for that, we need facts to prove it. At that moment when we implementing the household contract responsibility system, many people were not agree with it, they thought the household contract responsibility system means push the socialism out, so they did not want to implement it, and we have to wait. Many methods that Deng Xiaoping adopted were easy to reach to the political consensus by the internal of the Party in significant problems and the form to the Party's political decision making through group decision making.

Deng Xiaoping was magnanimous and good at unite people who used to opposed to him. He said something when he talked to Wang Zhen and Deng Liqun in 24th-May-1977, someone (Hu Qiaomu) has been said something really bad to me in 1976 when “criticism of Deng Xiaoping” movement goes on, I do not care about it, I will never mind for that, I can easily forgive them. So I hope those people could forget it as well.

Deng Xiaoping taken a lead to “quit” all positions, and terminated the “lifelong tenure leader”. When Deng Xiaoping interviewed from TV interview of Columbia broadcasting system in 2nd-Sep-1986, he has public expressed to advocate the lifelong tenure and establish the retire system, he said the leaders should retire in rest of their life, but should still follow the Party’s decision, and follow people’s willing. Deng Xiaoping has quit the Central Committee and did not hold the post of Politburo Standing Committee anymore in 1978. In order to make Deng Xiaoping continue hold the post of Chairman of the central military commission, the 13th plenary session has changed the “The party's central military committee members will decided by Central Committee. And the central military committee chairman must generated from the Standing Committee of the Political Bureau” to be “The central military committee members will decided by Central Committee” in <Party constitution>.Deng Xiaoping was constantly required for “Retire completely” when he hold the post of Chairman of the State Military Commission and clearly said do not ask any daily works anymore, and when the Central Committee and leading group asked some important issues to him, he was always respect and support to the majority ideas.

Deng Xiaoping disapproves to get one’s contributions or faults attributed to “Latent rules”, but should be attributed to “leading group”. Mao Zedong was an exactly example for “Latent rules”. When Mao was alive, every credits were all gone for him, and it seems other people did not have any credits, even if yes, maybe only a little bit of credits for Liu Shaoqi and Lin Biao, and then those credits were all gone for Mao Zedong again while finished. After Mao Zedong dead, people put all of faults such as “great leap forward” and “the Great Cultural Revolution” to Mao Zedong one person. This is a great malpractice in collective system. As a highest leader, they did not make decision by group decision making, but they make the decision by the individual decision making way, then the “Success in this failure here also”, people will easy to get whatever the credits or mistakes into this leader. Deng Xiaoping said “Our leading group should be responsible for that as well”.

The valuable point of Deng Xiaoping was “Self-knowledge”; he publicly recognized he also had mistakes. He said, Mao Zedong also knew he always make mistakes by himself. It will never have one individual person always do right things and always speak right words. He said:” it will be great if one person did 70% right thing in whole life, if people can evaluate like this to me after I died, then I will be happy with that.” Deng Xiaoping said that on CPC fifth plenary session of the 11th:” take me for example, if people think I am forty-sixty ratio, it means I did 60% good job and 40% bad job, I will be very satisfied for that already.” When the Italian journalist interviewed Deng Xiaoping (August of 1980):” How do you evaluate yourself?” He answered:” I think I will be pretty good if I did 50% thing correct, please remember my words, I did a lot of things wrong, for a lot of faults of Mao Zedong made is also partly my fault, but I will say, my faults were kindly faults.” “We cannot drop all of faults to Mao Zedong”. Historical fact shows that, Deng Xiaoping outstripped Mao Zedong, and also outdid him, the most important thing was he avoided made mistake what Mao Zedong made in his late years, and converted those mistakes to be an important source of success.

Deng Xiaoping opposed to write any personal autobiographies or draw any personal portraits to leaders. In 21st-Feb-1986, Deng Xiaoping has formal replied to the letter from Lin Guangda (Canada's McGill University, director of the East Asian institute):” I personally do not agree to write autobiography for me.” Lin Guangda said, the American bantam publishing company wish me to write a <The length of Deng Xiaoping>, so I am now asking for you. At 2nd-Sep of the same year, Deng Xiaoping answered the question from Columbia broadcasting system:” Why we did not see any of your pictures in China's public?” “Because I am not suggesting doing it, I am just one single person in all of us, and things were done by everybody, not just me, that is why I am disapproving to write autobiography”. Deng Xiaoping has many times rejected foreigners write him autobiography. In Sep-1989, he said:” I have been work for the Party for decades already, certainly I have both credits and mistakes, but if you just put all the credits into autobiography, then that are not autobiography, that is singing the praises of me and advertise myself, I do not want to do that.”

Deng Xiaoping was constantly put forth effort establish a good Politburo standing committee in order to ensure the China’s political stability. He indicated that when he talked to Jiang Zemin and Lipang, the core thing of China is the Communist Party should have a good Political Bureau; especially we should have a good standing committee of the politburo. As long as the Political Bureau keeps well, China will be roots of the mountain.

This was the political science principles when Deng Xiaoping handling the Chinese issues. That is, on the premise of the stability China political, is the Chinese Communist has to be stability first; and on the premise of the stability Chinese Communist, is the Chinese communist party's political leadership core has to be stability first. China can be aggressive tackle each kind of challenges at home and abroad only on the condition of the political “As firm as a rock”. So, from this political science principle of China, the replace old cadres with younger ones of China's political leadership must be ensured as institutionalization, sequencing and standardization.

Section five, the historical limitations of China’s reform

As a historic figures, what are the limitations of history of Deng Xiaoping has got when he leading the China? Firstly let’s have a look how did Deng Xiaoping treat to it. In fact, he did not avoid answering these questions, and also he has got deep understanding to these questions. In 16th-Sep-1988, Deng Xiaoping said that, now it’s the time to do a good summarize for the reform and opening-up. The ten years developing made us very happy, but it also brought some new problems in.

And then let's have a look how did we (As the participants and researchers of the reform) recognized that under that conditions. Indeed, the literatures at that period was not only talk about the historical limitations of Deng Xiaoping, it was mainly talked about the historical limitations of China’s reform under the specific historical background and conditions, and many of problems have not been resolved with evolution of history, it also reflected the deep basic contradiction in the China’s reform process.

One, not stable development

Since the state founded, and since the reform started, there are two different ideas which always existed in economic development guidelines: first one was accelerate development, as quick as we can, this idea was the mainstream, and that was predominantly in most of times; second one was stable development, especially the macroeconomic stability maintaining under the conditions of economic imperative and resource imperative, the idea for that was “more haste less speed”, and stand for “Do not toss about”, this idea was always in the edge zone, for short time it may taken the lead when the economic crisis comes around, but once the crisis gone, the accelerate development will being the mainstream again, therefore the China formed the “Policy cycle”.

In the era of Mao Zedong, Mao was represented the first one, he suggested “Rash advance” and preferred “Great leap forward”, this was get supports from Liu Shaoqi and Deng Xiaoping; Zhou Enlai and Chen Yun were represented the second one, they were suggested “Anti-rash advance”, and also get supports from Li Fuchun, Li Xiannian and Bo Yibo. In the era of Deng Xiaoping, Hua Guofeng and Deng Xiaoping were represented the first one, it also including Hu Yaobang and Zhao Ziyang, they were suggested accelerate development, but they were different with Mao Zedong, they did not want to “Great leap forward”, and they were suggested “Steps theory”, they were not stubborn like Mao Zedong when met the economic crisis, they were practically to do the adjustment; But Chen Yun and Li Xiannian were represented the second one, it also including Li Pang and Yao Yilin, they suggested stable development and harmonious development. This reflected their otherness in reorganization of China's basic national conditions, and also reflected the different ideas in China's economic development. This was the economic policy reasons of China's economic fluctuation; therefore it formed to the “Extremely unstable” economic growth in Mao era, there into the “Great leap forward” happened, and also economic fluctuation coefficient was very high, it was up to 154%; In the era of Deng Xiaoping, there were successively appeared two big economic adjustments in the “Unstable period”, although the economic fluctuation coefficient was reduced, but still higher than 35.8% (from 1977-1991).

We have done some special researches and historical analysis for that, XXXXXX .In June of 1989, the research report of Zhao Tao and Yao Zengqi indicated that, as a big developing socialist country, develop is the eternal theme. So, if the China's economic long-term development is not the fundamental guidance in the short term, what it should be? After the 40 years of China’s economic development, what kind of deep understandings we should have for that? “Sustained stable and coordinated development”, this is the most important historical summary of 40 years China's economic development, it will also be the China's long-term economic development guidelines in future. Sustained is focused on pursuit of total output value and inefficiency, it is seeking long-term sustained economic development, and the comprehensive substantial social progress and keep the harmony between human and nature; Stable is focused on economic fluctuations significantly, reduce the cycle variation and avoid the sharp fluctuations in economic growth; Coordinated is focused on national economy great imbalance and unreasonable of economic structure, it is aimed at maintain the appropriate growth between various industrial departments and reasonable proportion relationship, and well promote the vertical and horizontal linkages between each departments, and speed up rationalization and modernization for industrial structure. This policy and suggestion have quickly got accept from the Party Central.

In 9th of November, the communist party of the 5th plenary session of the 13th has officially passed the <Decision about further adjust and deepen the reform from the Central Committee>, it indicated that “Must always keep the economic policies of sustained, stable and coordinated development. In the process of economic development in our country, the out of the state conditions, beyond the national power and be anxious for success are the important lessons in recent forty years. This kind of mistakes is serious damaged the enthusiasm of people, and it usually caused massive loss; it is the critical question in economic work. Therefore we need learn this lesson whatever in the improvement and rectification or after the improvement and rectification, we have to based on the basic condition in China, and fixing the guiding ideology of sustained, stable and coordinated development, and we should firmly avoid just one-sided ask the high development speed”.

In 3rd of November, the Central working conference all agreed that: the construction, reformation and improvement and rectification cannot be anxious for success.

After a short while, the accelerate development again became to the mainstream ideology. In the early of 1992, Deng Xiaoping issued the speech of speed up the development as the theme when he visited south of China; In October of the same year, Jiang Zemin proposed “Two speed up”, they were “Speed up the reform and opening up and speed up modernization pace”. He has indicated that in the report:” in 1990s, China’s economic development of rate GNP has increased 6% in each year, bur from the international and domestic situation, it can be faster. According to preliminary estimates, the 8-9% of increasing is possible, we should to this goal.” “Currently, we should seize opportunities to speed up the development, and try better and better, we should encourage everything as long as it has got high quality, good profits and adapt to market changes at home and abroad”. At the same year and next year (1993), again China has overheated economy, the GDP increase rate was reached to 14.2% and 14%, and it was forced to macro-control in the second half year of 1993. This reflected the guiding ideology of blind high-speed development was haunted; it was also being the political roots of sharp fluctuations in economic growth. Until 1997, China has first time achieved the macro-economy “soft landing”, and then the “Unstable” economy growth has converted to “steady” growth.

Two, Unfair development

China has got different ideas for how to develop since the state founded: first one was the idea of Mao Zedong, which was fair development, balance development and sharing development, he was suggested to shrink and take off the “Three gaps” (Gap between the workers and peasants, between urban and rural and between knowledge workers and manual laborers). This socialism concept of him was absolutely correct, and also it was being the historical origin of “Common prosperity”. However, he was not really success by his methods, that was mainly included two aspects: first one was establish the planned economic system, and that was planned, controlled and managed by the national, not the market; the second one was implemented the nationalization and collectivization (It means the urban collective ownership) in urban, and exterminated private and individual economy, he implemented cooperation and co-operatives in rural, therefore the people community movement has launched, and then issued the “May 7th Directive” in the period of “the Great Cultural Revolution”, and he forces all walks of life in China have to do the “communist school”. These were the theoretical exploration and social practice which built by Mao Zedong, but he didn't succeed, and we can say a lot of aspects were failed, of course the Chinese were not became to rich.

The second one was the idea of Deng Xiaoping. His political idea was communicated with Mao Zedong; he also adheres to the socialist road and suggested “Common prosperity”. But his path was completely different with Mao Zedong, he suggested the unbalance development strategy, and also he creatively proposed the “Earlier rich theory”, when he proposed the strategic assumption of “Three steps”, the first two steps were “Earlier rich theory” for the theme, and achieve the well-off level; when the time came into 21st century, the theme was became to “Common prosperity”, and for achieve the objective of modernization. The means of Deng Xiaoping has completely different to Mao Zedong again, first was imported the market and competitive mechanisms, implemented the socialist market economy system and inspire people's energy and creativity; the second was implemented the “None-collectivization” and “Denationalization”, and encouraged people to develop individual and private economic, and actively attracting foreign direct investment; the third one was the conceive of “two overall situations”, it launched over the coastal region first, and built special economic zones, economic development zone and technological development zone, carried out special preferential policies, encouraged participating in international economy. That were made Chinese people have quickly get rid off the poverty, and the per capita income also substantial increased, however, it brought new social problems in as well.

The primary performance was the urban and rural resident’s income Gini coefficient was constantly increased: the urban resident’s income Gini coefficient has increased to 0.24 by 1991 from 0.16 in 1978, the increasing was 0.08; and the rural resident’s income Gini coefficient has increased to 0.3072 by 1991 from 0.2120 in 1978; it was 0.0952 for increasing rate; and the urban and rural resident’s income Gini coefficient has increased to 0.355 by 1991 from 0.333 in 1978, it was 0.022 (See table 10-5).

Table 10-5 the variation of China's Gini coefficient of urban and rural residents (1978-1991)

Year Urban and rural residents Urban residents Rural residents

1978 0.3330 0.1600 0.2120

1979 0.3350 0.1600 0.2370

1980 0.3310 0.1600 0.2380

1981 0.3340 0.1500 0.2406

1982 0.3400 0.1500 0.2317

1983 0.3400 0.1500 0.2461

1984 0.3420 0.1600 0.2439

1985 0.3480 0.1900 0.2267

1986 0.3550 0.1900 0.3042

1987 0.3530 0.2000 0.3045

1988 0.3550 02300 0.3026

1989 0.3620 0.2300 0.3099

1990 0.3590 0.2300 0.3099

1991 0.3550 0.2400 0.3072

Data source: Zhangping: <China's economic growth II--theory and policy research of structural balanced growth transformation>, page 622, Beijing, China Social Sciences Publishing House, 2011.

Secondly it shown as the relatively gap between urban and rural resident’s income and per capita consumption expenditure were narrowed first and then enlarged. The ratios between urban per capita disposable income and rural per capita net income have shrunk to 1.82 times by 1983 from 2.57 times in 1978, and then began to rise and enlarged to 2.4 times until 1991; the ratio between urban residents per capita consumption and rural residents per capita consumption have shrunk to 2.2 times by 1983 from 2.57 times in 1978, and then started to rise and enlarged to 3.1 times in 1991 (See table 10-6). But this was not really important because both of the urban and rural resident’s income and consumption were increased, but the range of the growth was different.

Table 10-6 the relatively gap between urban and rural resident’s income and per capita consumption expenditure (1978-1991)

Year The ratio between urban per capita disposable income and rural per capita net income The ratio between urban resident’s per capita consumption and rural resident’s per capita consumption

1978 2.57 2.9

1979 2.42 2.7

1980 2.50 2.7

1981 2.21 2.6

1982 1.95 2.4

1983 1.82 2.2

1984 1.83 2.2

1985 1.86 2.2

1986 1.95 2.3

1987 1.98 2.4

1988 2.05 2.6

1989 2.10 2.7

1990 2.20 2.9

1991 2.40 3.1

Data source: Zhangping: <China's economic growth II--theory and policy research of structural balanced growth transformation>, page 622, Beijing, China Social Sciences Publishing House, 2011.

Something we need to special point is, the per capita GDP over this period was shrunk. According to the per capita GDP relative difference coefficient by the constant prices in different, it reduced to 0.59 by 1990 from 0.96 in 1978, and then started to rise after 1991.

Furthermore, the ethnic minority area in the borderland is still behind to other inland areas in the aspect of economic civilization, and a part of the minority people were still not enough in food and cloth.

We can say that, the incoming gaps and misdistribution were being the important social problems over that period. In 1991, I found the urban resident Gini coefficient has already increased to 0.176 by 1986 from 0.129 in 1982. I think the people's income structure will produce a series of positive effects to economic development, but the big incoming gaps will aggravate the contradiction between interest groups, and will become to a very outstanding social problems, it will still cause the psychological imbalances and discontent in the public although per capita income levels continue to improve. Compare to other countries, the Chinese Gini coefficient is smaller, apart from the reason of low level of per capita income, another reason was the implementation of socialism system, it roughly resolved the problem of food and clothing for every Chinese, and fairly resolved allocation of social wealth, but with the continuous improvement of per capita income, the expanding of income distribution inequality is cannot avoid. These is need the government response to that, and make the corresponding income distribution policy as soon as possible, ease and adjust the contradictions of different interest groups, and should promote the economic growth and improve the economic benefit, and also need to make sure all the people common prosperity.

At that time, Deng Xiaoping has already realized that, China will have revolution if the polarization between the rich and the poor happened. His conclusion was China must do socialism. He said that when he talked to Jiang Zemin and Lipeng, the common prosperity will definitely be the core subject one day. The biggest superiority of socialism is common prosperity; it is the essence of socialism. He also worried about China’s four National contradictions (National contradiction, regional National contradiction, class contradiction and central and local contradiction).

In early of 1992, Deng Xiaoping has again talked about common prosperity problem when he visited south of China, he said:” the imagination of common prosperity is: one part of China have good condition and they will quicker developed, another part of China will slower developed, the quicker one should leading the slower one to reach the objective of common prosperity. If the rich area getting richer and richer, and the poor area getting poorer and poorer, then the polarization will comes out, therefore the socialism system should and be able to avoid the polarization.” “Make an imagination, until the end of this century and when somewhere already reached well-off level, it’s the time to do that”. This was the first time of Deng Xiaoping proposed the schedule.

Three, National capacity drops rapidly

What we said national capability, it means the national (Central government) get the wills and objective transform to reality. The national capability has got four: the capacity of derive the fiscal, the capacity of macro-control, the capacity of decriminalization and the coercive capacity. There into, the capacity of derive the fiscal is the most important one, is also the foundation of realize the ability of other countries. So, the improvement of capacity of derive the fiscal of developing countries is very important. It is one of the most major conditions for get rid of poverty and backwardness.

Me and Wang Shaoguang have sharply pointed out those on <Chinese national capacity report> in May of 1993, since 1980, the implementation of “The system of dividing revenue and expenditure between the central and local governments” was caused important changes, because the capacity of derive the fiscal was rapid reduced, government financial extremely atomized and the central macroeconomic control ability also cut down, it outstandingly embodied as: fiscal revenue growth elasticity decrease and it’s in low elastic range; the proportion of fiscal revenue account for GNP has constantly declined, the national fiscal capacity was extremely low, it even worse than the regular standard of industrial market economies; The central government's fiscal capacity also reduced to the lowest point in history, it’s already sink into the position of “Weak central”; the growth of extra budgetary funds was growing too fast, it almost equals to the “First budget”. Our report also discussed the grave consequences of the state capacity reducing. The report solemnly pointed out that: the reduction of fiscal capacity is meaning of the central government macroeconomic control ability is also declining, it will produce the serious short and long term consequences in the process of China's market economy transition: economic fluctuation; investment in swelling; consumption demand expansion and fiscal deficit for years running.

Actually Deng Xiaoping and Chen Yun have already felt the phenomenon and its serious consequences of central macroeconomic regulation and control ability decline. In 12th-Sep-1988, Deng Xiaoping said to Zhao Ziyang and other people, the Central Leadership must have authority, otherwise we will go to mess. For several years now I have been objecting to the attitude "You may have your policy, but I have my counter policy.” There shouldn't be any counter policies. If the Central committee and the State Council do not have authority, then the situation will hard to control. The Central! Mean the Central Committee and the State Council. Macro management should reflect on the Central is the powerful. In 8th of October, Chen Yun has pointed out that when he talked to Zhao Ziyang, the Central's political authority should base on the Central economic authority. The Central's political authority will not strong if without the Central economic authority. In the economic activities, the Central should concentrate the power which has to be concentrated. It’s correct to reinvigorating the economy, but if the power is too fragmented, then will get trouble. From a global perspective, in several of balances, the most foundation one will be fiscal balance. We should firstly make the fiscal balance especially for the Central fiscal if we want to turn the current economic dimension. Zhao Ziyang was agreed the opinions of Chen Yun, and passed ChenYun’s words to everybody of politburo standing committee. At that time, Chen Yun has described the political situation of China was like: too much various governors, always discuss something without reaching a decision, and making decisions without implementing them, and each does things in his own way. Deng Xiaoping has accepted this point view of Chen Yun. In September of 1989, he emphasized again to Jiang Zemin and Li Peng about must enhance the authority of the CPC central committee. Especially when having a difficult time, if without the authority of the Central committee and the State council, then the problem cannot be solved. But, this problem has not been solved, until the November of 1993, after the third plenary session of the communist party of 14th, the macroeconomic regulation and control system has been established, and implemented the tax sharing system between central and local governments, since that the situation was gradually getting better.

Four, unsustainable development

The most prominent contradiction is the gap between human and nature widening. In 1989, the author analyzed Chinese natural resources and environment by a large amount of data. The author thought that, the resources and environment in our country was congenitally deficient, in addition with the large population and too intensity developed in resources, so it became to the long-term constraints of China's modern economic development. Since the state founded, although we paid efforts for improving, but still produced heavy environmental pollution due to excessive population growth, man-made sabotage and a large amount of resources consumed. Overall, the situations of Chinese natural resources are: all kinds of per capita resources are lower than world average level, the contradictions of population increasing; cultivated land decreasing and water supply shortage are the basic pattern of the Chinese population. With the population growing, the national economic development has accessed into rapid growth stage, the resources demand has enlarged as well, and the disparities between supply and demand of economic and resources will further step enlarge and tend to aggravation, so, to maintain the current agricultural resources of land, water, forest and grass is not an easy thing, so we have to import the international resources. Overall situation of China's ecological environment is partly improved but the whole is getting worse, the damages is faster than manages, and the quality of environment is getting worse and worse, we are having dual development crisis of ecological damage in developing countries and environmental pollution in developed countries, it aggravated the contradictions of industrialization and pollution, shortage of capital and environment management, we cannot find out a better to sort it out in short time, so, in future, we will survival in a very serious environment pollution. Things we are worry about are, we (Leaders) are underestimated for the above multiple crises, but we overestimated for our abilities. The above analysis and judgment were fully reflected the gap between this period and nature is enlarging; the resource environment and developing contradiction are very prominent, and the ecological asset formed to a huge deficit, it will impact to development whatever in short or long term.

In the early of 80s, Hu Yaobang has suggested open up to mineral resources development policy, and proposed the theory of “Fast water flow”. In 19th-August-1981, Hu Yaobang visited Sha He county of He bei province, the principal over there reported the ground water resource is plenty, the principal suggested should mine it by planning, but Hu Yaobang rejected, Hu suggested do not have to by planning, and we should quickly mine it! Until the early of 1990, Jiang Zemin indicated that, this theory cannot be guiding ideology anymore, we should clear this issue.

At that time, only Li Xiannian and Chen Yun realized the significance of ecological destruction and environmental pollution. Li Xiannian indicated that in 23rd-June-1978, the China’s forest resource is very poor compare to the demands of national economy and people's livelihood. Even so, a lot of region's forests and plants are still damaging, we have to hurry up and solve this problem now, otherwise the results will not just the forest area shrink, and also it will result to dust float in the sky and water and soil loss, even it will caused floods and droughts, overall, it may appears very serious situation. Unfortunately, the facts proved Li Xiannian was right.

In 25th-August-1988, Chen Yun has proposed “Against pollution, protect environment and bring benefits to our posterity”. In 27th of August, Chen Yun directly wrote a letter to Zhao Ziyang ,Li Peng and Yao Yilin after he read the Benxi environmental pollution condition investigation report--“Can't see the city in satellites”, and the report of <Sichuan's total emissions pollution is about 10% of the country>, the letter proposed “To against pollution and protect environment are a big state policy in China, we should very serious to that. For this issue, firstly we should often advocate and get people aware to it; then we should spend money and increase the invest proportion; third we should supervise the inspected again and again”.

Until June of 1992, Brazil’s United Nations Conference on Environment and Development asked to “Create sustainable development program in worldwide”. Therefore China has created <The white book of 21st-century’s population, environment and development of China>, and passed on executive meeting of the State Council which hold by Prime Minister Li Peng in 25th-March-1994. In September of 1995, Jiang Zemin has officially proposed “Must take sustainable development as an important strategy in the modernization construction” on party's 14 session of Fifth Plenary Session. After that, China started to do the ecological construction and from the ecological deficit gradually turn to ecological surplus.

Five, the increasing seriousness corruption

Communist is face to a very salient internal challenge from beginning to end, that is, many of Party’s members, Party’s leaders even some of senior leaders are divorced from the people of the masses, they are corrupted in the process of economic reform. Therefore, the third plenary session of the 11th central committee of the Chinese communist party was not just decided to launch the reform and opening-up, and also it decided set up the Central Commission for Discipline Inspection, and implement the systems of party conduct, party discipline and anti-corruption in December of 1978. Meanwhile, in 1986, the national ministry of supervision was set up as the state administrative supervision department which controlled by the State Council, and this department is for implementing supervisions to government’s leaders and civil servant.

But those important systems are not enough to take off corruption; on the contrary it may show a trend of deterioration: first one was the system deficiency that in the economic transformation period, especially the double-track price system caused extensive rent-seeking activities, But those important systems are not enough to take off corruption; on the contrary it may show a trend of deterioration: first one was the system deficiency that in the economic transformation period, especially the double-track price system caused extensive rent-seeking activities,

Such as the double-track price systems of agricultural products, social production of goods and materials, foreign exchange rate, banker loan rate and double-track price system of import and export trade; secondly is the business of Party and government offices, they launched a lot of companies, and arranged many of “Benefits”, therefore a lot of in-service or retired senior cadres are part time working on each kind of companies, they get variety of income; thirdly was the army, they are similar to the Party and government offices. That was not just damaged the credits for the Party and government, and also they caused the relationships between the Party and people tight.

The transition from planned economy to market economy is the process of new and old systems coexisting, transition and replacement. The fast expanding of market spontaneous factor is always with the “market corrosion” of government staff. Get an example of Party and government cadres went into business: on one hand they were become to the new sources of Chinese entrepreneurs, and become to the most active group of economic activity, they are innovative technology and create wealth; on another hand they are having innumerable links with government offices, therefore the corruption spread rapidly. In December of 1984, the Central Committee and the State Council issued <The decisions of strictly prohibit cadres of party and government go into business and launch enterprise>, since that, most of the enterprises of Party and government offices were stopped, or, most of the Party and government’s officers were quit job or back to the organs. But this “Business trend” was not 100% removed, and it became even more violent. Deng Xiaoping has aware to this “Business trend” problem in March of 1985, he indicated that, some of Party and government offices launched many of companies, they take money from the government and to do their own business.” “Currently some of crooked ways appeared”. They are just like “You may have your policy, but I have my counter policy”. And they have many “Measures” to response the national policies. In 4th-Feb-1986, the Central Committee and the State Council again issued <The regulations about further stop the party and government organs and cadres of the party and government run business or launch enterprise>, it said some of party and government organs and cadres of party and government are still take various methods to continue doing business or run enterprise. And some of cadres of party and government are continue to concurrently hold the position of enterprise pollution treatment. In 17th-August-1989, the Central Committee and the State Council made the <Decision of further step rectification of the company>; it admitted that the Central committee was frailness about Party and government departments are not allowed to do business, and blindness advocate the government departments and institutions to “Create income”, and established a large number of companies that was unreasonable. This has formed to political cycle of corruption--anti-corruption—re-corruption—re-anti-corruption. Objectively, so far we did not find out a good method for anti-corruption.

Deng Xiaoping was more realized the seriousness and harmfulness of corruption in his late years, and particularly made a “political orders” to Jiang Zemin. He indicated that after the June Fourth Incident in 1989, the priority jobs of the third generation of collective leadership are “Mainly in two aspects, one is more boldly to reform and opening up, another one is to punish corruption”. “If keep the corruption goes, we will face to dangerous. The new leadership should put this issue on the top, this is also a very important thing in consolidate the Party organization”. Finally he said, pleasantly but sternly:” the staff of standing committee should concentrate manage the construction of the Party, it is the time to do that now”.

Li Xiannian has many times said that:” while water can carry a boat, it can also overturn it; the Communist Party is the boat. The communist party can't out of the masses of the people, and all of our works cannot out of the masses of the people”. I can say that, if out of the masses of the people, the communist party will face to the greatest dangerous, only if close to masses of people, it is the ruling foundation of the communist party. There are more and more party’s members and cadres out of masses of people during the process from planned economy to market economy, and that is not individual example already.

Just as chairman of the central military commission, Jiang Zemin has already realized the problems and perniciousness of the army business. He said:” it won’t work for the army does self-development and self-improvement, I always dissentient for that. Of course, to do a little bit of production according to the characteristics of the army is OK, but the army cannot 100% self-sufficiency. It’s very dangerous if army put 100% attention to make money.” He clearly proposed:” from overall, the troops should “receive salaries from the national”. But since that the scale of army business was getting larger and larger, we called that “Self-destruct the Great Wall”, it is irreformable.

“Development is the absolute principle”, and also “Anti-corruption is the absolute principle” when the corruption increasing seriousness. We have to hold high two flags of reform and anti-corruption, and eradicating corruption by system innovation, and make sure the opening-up and reform smooth. The key thing is eradicating corruption by system innovation.

The facts shown that, the corruption in 1980s was more evolved more strongly, and it appeared climax and deteriorating trend in 90s, and it was being the biggest financial loss and the biggest social pollution, and also it was being the biggest political challenge.

Six,Deng Xiaoping's theory and political orders

In October of 1992, the communist party of China on 14th plenary session made a far-reaching decision; it officially established the whole party guiding position of Deng Xiaoping’s theory of building socialism with Chinese characteristics. Jiang Zemin’s <Report of 14th plenary session> has summarized the Deng Xiaoping theory in 9 aspects. That was included: 1, to building socialism with Chinese characteristics and walk on our own socialism way. 2, in the issue of development of the socialist stage, made the scientific judgment of China still in the primary stage of socialism. 3, in the socialist basic task, it indicated that the essence of socialism is emancipating the productive forces, develop the productive forces, eliminate exploitation, eliminate the polarization and finally reach the common prosperity. 4 in the problem of power of socialism, it emphasized the reform is a kind of revolution, it’s also for emancipating the productive forces and it is the only way for China's modernization. 5, in the external conditions of the socialist construction, it indicated the peace and development are two major topics in the modern world, and must adhere the independent peace foreign communicate policy, and grab the good international environment for the modernization construction in our country. 6, upholding the four fundamental principles with the condition of political security. 7, proposed separated into three steps for achieve modernization. 8, emphasized the Chinese Communist Party is the leadership core of socialist cause. 9, in the problem of national reunification, it proposed the creative idea of “One country, two systems”

In 2nd-Novamber-1993, the <Selected works of Deng Xiaoping> (Book three) has officially published, this book was edited and arranged by literature research office of the central committee of the communist party of China, 89-year-old Deng Xiaoping has examined and approved each word of this book, he was called this book as the “Political orders” to the third generation of collective leadership and the party, it was not just the political orders for himself, and also it was the political orders for the second generation of collective leadership. Both of two and three of <Selected works of Deng Xiaoping> have become to the most precious wealth for later generations, they are just like the “China’s road” and “China’s theory” of him.

On the next day, the Central Committee holds the seminar of learning from <Selected works of Deng Xiaoping> (Book three), the General Secretary of the Communist Party of China Jiang Zemin has officially wrote Deng Xiaoping’s socialism with Chinese characteristics theory onto the flag of Chinese Communist.

I called the Deng Xiaoping Theory as the second generation development strategy after Mao Zedong. This because: China's development model is actually a catch-up model, it means we are backward of industrialization and modernization, our basic target and basic task is catch-up the developed countries. China has selected different catch-up strategies in different period; it included the difference of development goals and development, and the difference of development and natural environment. From the points of the development history since the state founded, each great transformation always happened in about 25-30 years. We are divided the China's development strategy into three generation: the first generation was traditional economic development strategy that in the planned economy period (1950-1978); the second generation was the economic development strategy that in the economic transition period (1978-2002); and the third generation was new development strategy which based on scientific development (after 2002). The above three development strategies are all having same points and different points; they are not the completely different development strategies. The same point is shown as the inheritance of development strategy, and the different point is shown as the innovation of development strategy, and each generation development strategy were all connecting link between the preceding and the following, joined together and continuous innovation, it reflected the different period’s Chinese leader’s attitudes to the modernization and globalization challenges.

What was the political order of Deng Xiaoping in his late years? It was the implement the target of common prosperity. In 16th-Sep-1993, Deng Xiaoping has proposed “Development paradox” while he talked to his younger brother Deng Ken. He said, we always talk about developing before, but I think today’s problems is not less than before. He has already predicted the problems of polarization will increasingly prominent.He said, we always say to prevent the polarization, but actually the polarization will shows sometimes anyway. If just a few people get most of wealth, and most of people still poor, the troubles will coming soon.

So, when we should solve this problem? How to solve this problem? Indeed, Deng Xiaoping had no time to discuss, and had not time to solve. Even on the report of 14th plenary session in 1992, people were still emphasized “Give priority to distribution according to work for the distribution system, other distribution ways as the supplement, and give attention to both efficiency and fairness. Use the adjustment means, ………………………………………. ”.

Unfortunately, this instruction of Deng Xiaoping did not officially deliver in internal, and did not publicly released as well, it didn’t officially publish until the literature research office of the central committee of the communist party of China edited the <chronicle of Deng Xiaoping's life (1975-1997)> in 2004.

Both of Deng Xiaoping and Li Xiannian already delightedly see the China is getting richer and richer, meanwhile they wish China could be common prosperity, this is the ultimate aim of their life.

Li Xiannian has many times proposed help the poverty-stricken area especially the people in old revolutionary base areas to develop production, and shake off poverty to get rich as soon as possible when he still alive. In May of 1992, as the honorary President of China foundation for poverty alleviation, Li Xiannian has warmly said to the leader of the foundation:” supporting the poor, benefits both the present and future generations, and benefits for future.” He indicated in his final letter in 27th of the same month:” common prosperity is the objective of the struggle of our socialism.” He said:” people in old revolutionary sacrifices too much for China, I will feel sorry to them if we cannot make them getting rich.” This was become to the last political wish of Li Xiannian.

Although China has not been happened polarization between the rich and the poor like what we said, it means poor people getting poorer and rich people getting richer, but the increasing of poor people is obvious lower than rich people, therefore the unequal distribution of income and income gap widening were become to the biggest economic and social problem during the period of reform and open up. So, the socialist goal of common prosperity was being the most challenging task of history for Jiang Zemin and Hu Jitao. Because the socialism doesn’t means poor or just few people rich, the socialism means everybody rich.

Attached list one, Congress and the central plenary session (1977-1992)

Times Conferences Contents

July 1977 The third plenary session of the 10th Hold by Hua Guofeng, the meeting approval Hua Guofeng for the president of CPC central committee and chairman of the central military commission; restored Deng Xiaoping for vice president of CPC central committee and Chairman and vice chairman of the central military commission;

August 1977 the Party's Eleventh Congress Hua Guofeng holds it and made a political report, announced “the Great Cultural Revolution” finished, and further stepped talked about the error theory and error policy of “the Great Cultural Revolution”. The conference modified and passed <The articles of association of the communist party of China>, and elected a new session of central committee members.

August 1977 The first plenary session of the 11th Elected the party's central organization. Hua Guofeng taken up the post of Chairman of China, Ye Jianying, Deng Xiaoping, Li Xiannina and Wang Dongxing taken up the post of vice chairman of China, the above 5 people are the Politburo Standing Committees.

Feb 1978 The second plenary session of the 11th Prepared for fifth National People's Congress and sixth Chinese People's Political Consultative Conference, and decided members for the Standing Committee of the National People' s Congress, the State Council and the Chinese People's Political Consultative Conference (C.P.P.C.C.）.

Dec 1978 The third plenary session of the 11th Criticized “Two whatever”, affirmed the discussion of criteria of truth, and established the party's ideological line; stopped the slogan of “class struggle as the key link” and the route of “Continuing the revolution under dictatorship of the proletariat”, established the new political line that build our country to be a socialist modernization power country in the end of this century; enhanced the Party's democratic centralism and enhanced the collective leadership of the Party, delegated Chen Yun as the vice chairman of the CPC central committee and Politburo Standing Committees; established Central Commission for Discipline Inspection and elected Chen Yun as the general secretary; reviewed and solved some of big mistakes in the Party’s history. The conference decided gets the emphasis of the Party's work transfer to socialist modernization construction, and established the important policy of open-door to the outside world.

Sep 1979 The forth plenary session of the 11th Passed the <Speech of 30th anniversary of the founding of the People's Republic of China celebration> and <The decisions about some problems of speed up the agricultural development>; Zhao Ziyang and Peng Zhen have been elected for politburo members; implemented the policies of national economy regulation, reform, adjustment and improvement.

Feb 1980 The fifth plenary session of the 11th Decided to hold the Party’s 12th plenary session in advance; elected Hu Yaobang and Zhao Ziyang for the members of the Standing Committee of the Political Bureau, Hu Yaobang for the general secretary, and Wan Li and other 10 people for the secretariats of the CPC Central Committee; approved the resignations for Wang Dongxing, Ji Dengkui, Wu De and Chen Xilian; passed <Several criteria about the party's political life>; rehab honorary for Liu Shaoqi; and suggested the National People's Congress cancel the No. 45 term from the constitution.

June 1981 The 6th plenary session of the 11th Passed <The resolution of certain historical questions since the Party founded>; consent Hua Guofeng quit the positions of president and central military commission chairman; Hu Yaobang has been elected as the Party’s president, the vice presidents were Zhao Ziyang and Hua Guofeng, Deng Xiaoping was the chairman of the central military commission; the members of the Standing Committee of the Political Bureau were: Hu Yaobang, Ye Jianying, Deng Xiaoping, Zhao Ziyang , Li Xiannian, Chen Yun and Hua Guofeng; appointed Xi Zhongxun for the secretariat of the Central Committee.

August 1982 The 7th plenary session of the 11th Hu Yaobang, Ye Jianying, Deng Xiaoping, Zhao Ziyang ,Li Xiannian, Chen Yun and Hua Gfuofeng hold the meeting, considerate and passed the report of Party’s 12th plenary session and <The articles of association of the communist party of China (draft amendment )>, and get these two documents submitted to the Party’s 12th plenary session.

Sep 1982 the Party's 12th Congress Hu Yaobang has made the political report of <Create a new situation of the construction of socialist modernization in an all-round way>; and passed the <The articles of association of the communist party of China> and the central disciplinary committee work report; elected a new generation of Central Committee, Central Advisory Committee and Central Commission for Discipline Inspection. And decided to all around adjust and rectify the Party style by 3 years.

Sep 1982 The 1st plenary session of the 12th Generated 25 of politburo members and 3 replenishment committee members; the members of the Standing Committee of the Political Bureau of the Central Committee were 7 people, they were: Hu Yaobang, Ye Jianying, Deng Xiaoping, Zhao Ziyang, Li Xiannian, Chen Yun, and Hu Yaobang was the general secretary, 9 people for the Secretariat of the Central Committee members, replenishment members were 2 people; Decided Deng Xiaoping taken the post of Military Commission Chairman.

Oct 1983 The 2nd plenary session of the 12th The discussion passed <The decision of re-adjust the Party>, and produced 16-people-group of Party re-adjustment steering committee, Deng Xiaoping made a speech that named of <Important missions of organizational line and thinking>

Oct 1984 The 3rd plenary session of the 12th Decided to accelerate the whole economic system reform and emphasis on urban;

Sep 1985 The 4th plenary session of the 12th Passed the <seventh five year plan suggestion (Draft)>; determined the principle of replace old cadres with younger ones in the central governing body members, consented Ye Jianying quit the position of Politburo Standing Committee, abolished the lifelong tenure of Party’s leaders; and consented a few of old leaders quit the position of central committee members.

Sep 1985 The sessions of the national representative Passed <The suggestion of seventh five-year plan of the national economic and social development>; adjusted the central governing body members, 64 people do not take the positions of central committee member and alternate member anymore, 36 people do not take the post of member of the Advisory Commission of the Central Committee of the CPC anymore, 31 people do not take the post of the member the Commission for Discipline Inspection of the Central Committee of the CPC anymore; elected additional central committee member 56 people, 34 people for alternate members, 56 for the Advisory Commission of the Central Committee and 33 people for the member the Commission for Discipline Inspection of the Central Committee of the CPC.

Sep 1985 The 5th plenary session of the 12th Partly adjusted the Political Bureau of the Central Committee and Central committee members. Additionally elected Tian Jiyun and other 5 people for politburo members; additionally elected Qiao Shi, Li Peng and other 5 people for the secretariat of the Central Committee; consented Xi Zhongxun, Gumu and Yao Yilin quit the position of the secretariat of the Central Committee.

Sep 1986 The 6th plenary session of the 12th Passed <The resolution of socialist spiritual civilization construction guidelines> and <The resolution about the convening of the 13th national congress>.

Oct 1987 The 7th plenary session of the 12th Passed the report of the 13th plenary session and part of Party constitution terms, and decided get these two documents submitted to the Party’s 13th plenary session; approved in principle the <Whole plans of political system reform>; determined Hu Yaobang quit the position of General Secretary of the Communist Party of China and elected Zhao Ziyang as the acting General Secretary of the Communist Party of China; Zhao Ziyang made a speech about <Separate the functions of the party from those of the government>, and instructed for <General idea of political system reform> and <The report of the 13th plenary session>.

Oct 1987 the Party's Thirteenth National Congress Zhao Ziyang made the report of <Go forward alone with the road of socialism with Chinese characteristics>; passed <The working report of Central commission for discipline inspection >; passed <The working report of CPC Central Advisory Committee>; the conference elected the new generation of members of Central Committee, Central Commission for Discipline Inspection and CPC Central Advisory Committee.

Nov 1987 The 1st plenary session of the 13th Elected 17 people for the Political Bureau of the Central Committee members, and 1 alternate member; elected 5 people for the politburo standing committee members, they were: Zhao Ziyang, Li Peng, Qiaoshi, Hu Qili and Yao Yilin; Zhao Ziyang taken the post of general secretary, and elected 4 people for Secretariat of the CPC Central Committee, 1 person for alternate secretary; Chen Yun taken the post of the director of the Advisory Commission of the Central Committee of the CPC; Qiaoshi was the Commission for Discipline Inspection of the Central Committee of the CPC secretary; Deng Xiaoping was the chairman of China's Central Military Commission; Zhao Ziyang was the first vice chairman and Yang Shangkun taken the post of vice executive chairman.

March 1988 The 2nd plenary session of the 13th Zhao Ziyang made a working report that on behalf of the Political Bureau of the Central Committee; passed the regulations of the Political Bureau of the Central Committee, the Standing Committee of the Political Bureau and secretariat of the central committee;

Sep 1988 The 3rd plenary session of the 13th Deliberated and approved Zhao Ziyang’s report that on behalf of the Political Bureau of the Central Committee; passed the <Preliminary scheme about reform of the wage system>; and approved in principle the <Notice of strengthen and improve enterprise ideological and political work>.

June 1989 The 4th plenary session of the 13th Deliberated and approved the <Zhao Ziyang’s report of the faults that happened in unrest against socialism> which proposed by Li Peng; revoked the general secretary position of Zhao Ziyang and continue examine his problems; revoked the position of member of the Standing Committee of the Political Bureau for Hu Qili; revoked the positions of Secretariat of the Central Committees for Rui Xingwen and Yan Fuming; elected Jiang Zemin for the general secretary, and elected Jiang Zemin, Songping, Li Ruihuan for member of the Standing Committee of the Political Bureau.Nov 1989 The 5th plenary session of the 13th Deliberated and approved the <Decision of further step improve and deepen the reform from the Central Committee of the Communist Party of China>; discussed and passed the <Decision about Deng Xiaoping quit the position of chairman of the Central Military Commission>; decided Jiang Zemin take over the position, Yang Shangkun was the first vice chairman, Liu Huaqing was the vice chairman; additionally elected Yang Baibing fang for the Secretariat of the Central Committee.

March 1990 The 6th plenary session of the 13th Deliberated and approved the <Decision about enhance the contacts between the Party and the masses>.

Dec 1990 The 7th plenary session of the 13th Deliberated and approved the <Suggestion of the “Eighth 5 years” planning and the 10 years planning>, Li Peng explained for the <Suggestion> draft.

Nov 1991 The 8th plenary session of the 13th Deliberated and approved the <Decision of further step improve agricultural and rural works>l also deliberated and approved the <Decision of convene the 14th national congress of the communist party of China>.

Oct 1992 The 9th plenary session of the 13th Deliberated and approved the report from Central Committee to the 14th national congress and <The articles of association of the communist party of China (Amendment)>, and determined get these two documents submitted to 14thCongress of CPC.

According to the data of: <All previous congress of party representatives, the central plenary session report, bulletin, resolution and decision since third plenary session of the 11th central committee of the Chinese communist party (1921-2006)>, Beijing, Founder of China publishing house, 2008; edited by Jiang Huaxuan: <The recorded events of important meeting of the communist party of China> (Revised and enlarged book), the central literature press, 2006.世联翻译公司完成“基本总结”英文翻译

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