How did Deng Xiaoping reform the Chinese economy after the death of Mao Zedong?
He instituted market reforms, allowing for the accumulation of individual wealth, the firing of workers, the investment of capital, and increased international trade. His government set up “special economic zones” where the reforms could take place more fully and rapidly, and places like Shenzen, formerly a poor fishing village, boomed overnight. Under Mao, wealth was a sign of disloyalty to Maoism and to China. Under Deng, the saying “to get rich is glorious” became common. Chinese workers under Mao could hardly ever be fired. Everyone worked for the government. It was very inefficient at producing goods, but efficient at producing stability. Deng’s reforms included limited privatization and the introduction of market forces, which led to factory closures, and increased unemployment. The social contract of full and permanent employment was replaced by more American-style opportunity, where everyone had the right to succeed or fail, allegedly on his or her own merits and effort, though
