Positive impacts

• 1. Developing a diversified economic structure

  • The Reform and Opening-up Policies changed China’s model of economy, which was based on public ownership.
  • The government gradually introduced market elements, diversifying the economic structure.
  • Different forms of ownerships were allowed, such as collective ownership, individual ownership, private ownership and Sino-foreign joint equity enterprises.
• 1. Developing a diversified economic structure

  • The number of individual enterprises rose from 140,000 in 1978 to 31.6 million in 1999.
  • The number of private enterprises rose from 110,000 in 1979 to 820,000 in 1996.
  • Many Sino-foreign joint ventures were established.
  • Founded in 1998, the Guangqi Honda Automobile, for instance, is jointly owned by Honda Motor in Japan and Guangzhou Automobile Group Company.
• 2. Improvement in productivity

  • The Reform and Opening-up policies improved agricultural and industrial productivity.
  • The household responsibility system raised the incentives of peasants.
  • The total grain output increased by 40% between 1978 and 1984.
  • In 1996, the grain output even reached a record high of 500 million tons.
• 2. Improvement in productivity

  • After the introduction of Reform and Opening-up, foreign businessmen brought with them capital, new technologies and modernized methods of operation, which helped speed up China's industrialization.
  • The increasing agricultural production created by the household responsibility system provided raw materials for industrial development.
• 2. Improvement in productivity

  • By the late 20th century, China had become the 'world's factory'.
  • Between 1978 and 1998, the average annual growth rate of industrial production amount to 12%.
  • In 1990, industrial products made up 74.4% of China's total export.
  • China's economy grew at an average annual rate of 9.8% during the period 1979-1997.
  • By the late 20th century, China became one of the largest economies in the world, aside from the US and Japan.
• 3. Improvement in living standards

  • The Reform and Opening up Policies have accelerated productivity, and immensely improved people's living standard.
  • In 2000, the GDP per capita reached US$856, surpassing the standard of US$800 set up Deng Xiaoping.
  • In 1979, the population living under absolute poverty amounted to 250 million.
  • In 1999, it dropped to 29 million.
• 3. Improvement in living standards

  • As people's basic needs were met, the living standards were raised.
  • In 1980, only 17.2% of the families in the cities have color televisions.
  • In 1990, 86.2% of the families in the cities had color televisions.
• 4. Relaxed control over speech

  • The Reform and Opening-up Policies brought about a relatively higher degree of freedom of speech.
  • Since the introduction of Reform and Opening-up, the political atmosphere became more open.
  • Some CPC leaders even openly discussed thoughts.
• 4. Relaxed control over speech

  • As a result of these acts of openness, calls for reforms began to emerge.
  • Intellectuals soon published articles to criticize politics.
  • Although the CPC tightened up the freedom of speech once again after the June Fourth Incident in 1989, the Reform and Opening-up Policies had already brought Western thoughts and information to China.
• 5. Active participation in international affairs

  • During the period of Reform and Opening-up, China played an active role in international affairs.
  • It joined international organizations and signed various international treaties.
  • In 1979, China regained its legitimate seat in the International Olympic Committee, which was responsible for organizing the Olympic Games.
  • In 1980, China regained its legitimate seat in the World Bank and IMF, which provided financial assistance to countries.
• 5. Active participation in international affairs

  • In 1984, China became a member of the International Atomic Energy Agency, which advocated the peaceful use of nuclear energy.
  • In 1992, China signed the Treaty on the Non-Proliferation of Nuclear Weapons, which prohibited assistance to non-nuclear states with nuclear weapons.
  • In 1998, China signed the Kyoto Protocol, which aimed to reduce the emission of greenhouse gases.
  • All these show that China was willing to participate in international cooperation.
• 6. Speeding up urbanization

  • Industrial development led to urbanization in China.
  • Entering the 1980s, more and more peasants had non-agricultural jobs.
  • Many of them moved to towns and cities.
  • A tide of migrant workers occurred.
  • Between 1978 and 1999, the proportion of urban population to the total population increased from 18% to 31%.
• 7. Developments in aerospace and national defence

  • China's technology had developed rapidly.
  • It could even compete with the US and Europe for the satellite launching business.
  • In 1990, China's Long March 3, for instance, launched an American-made communications satellite for foreign users.
• 7. Developments in aerospace and national defence

  • China's military power grew to rank third, after the US and Russia in the world.
  • China could develop its own weaponry, such as Tank 99.