D. China's Second Revolution - 1976-1989

When Mao died in 1976, it was with a mixed feeling of sadness of the death of a great leader and a feeling of relief that perhaps the destructive purges and mass campaigns were a thing of the past. Shortly after, the "Gang of Four" were arrested and put into prison. Deng Xiaoping then took over control and change was in the air.

There was a need to put the country back into a stable economic condition. Mao, through his mass campaigns had badly disrupted the economic situation in China. At the Eleventh National Congress of the Communist Party of China in 1977, Hua Gaofeng, Chairman of the CPC said, "We must promote democracy and strengthen democratic centralism." Again at the Twelfth National Congress of the CPC in 1982, Hu Yaobang, the new Chairman of the Party said: "To attain a high level of socialist democracy is therefore one of our fundamental goals and tasks." But he also added a sobering note,

"On no account will hostile, anti-socialist elements be given any freedom to carry out sabotage."

The Chinese government under Deng began economic reforms. This "new economic revolution" had six critical objectives:

1. Decentralizing decision-making and administrative authority.
2. Giving the market role in planning and substituting general guidelines for mandatory plans in most areas of economic activity.
3. Reforming prices to reflect true costs and values.
4. Revamping the economic structure.
5. Opening to the outside world to stimulate foreign investment and technology exchange and to improve foreign trade.
6. Ending egalitarianism and substituting an improved system of individual motivation and reward.