China’s Reform and Opening-up

“以前你们经常都吃变质粮食做的面条，而且只有在过年才能吃上肉？”

“You mean you ate noodles made from spoiled grains every day and only had meat during Chinese New Year?” I looked at my dad in disbelief.

“是的，在那个年代每个人都很穷，小孩子很多都是边上学边帮家里干农活，很多学生都因为家里太穷辍学了。”

“Yes,” he replied. “In that era, everyone was poor. Young kids had to help their families with farm work while attending school, and many students had to give up their education to support themselves.”

(The conversation between me and my father(face to face))

Translating my father’s words from Mandarin to English, I realized how certain expressions carry impressive cultural meanings that are challenging to convey. The term he used for “spoiled grains” (霉变的粮食) is not only just mean food that has gone bad, but also symbolized the extreme scarcity and hardship of those times.

Students in 1970s

My father’s childhood in the 1970s’ China, which painted a picture of a nation on the edge of monumental change. Students like him faced many hardships. Education was a privilege compared with the immediate need to contribute to the family’s income through labor. The scarcity of resources meant that basic necessities, like nutritious food and new clothing, were luxuries for many families.

According to the historical record, during the Cultural Revolution (1966-1976), many schools were closed, and educational activities were disrupted. Students were often sent to the countryside to work on farms as part of the “Down to the Countryside Movement”

Historical Background

China’s Reform and Opening-Up

China’s Reform and Opening-Up, which was initiated in 1978 under the leadership of Deng Xiaoping, which is a transformative era in modern Chinese history. Responding to economic stagnation and inefficiencies of the centrally planned system, the policy aimed to modernize China’s economy through pragmatic reforms. It began with rural changes, such as the household responsibility system, and expanded to include the establishment of Special Economic Zones (SEZs) like Shenzhen City. These zones attracted foreign investment and fostered trade.

The reforms introduced the market principles into China’s “socialist market economy,” allowing private enterprise to flourish alongside state-owned businesses. This policy not only created rapid economic growth, turning China into the world’s second-largest economy, but also lifted millions out of poverty and integrated the nation into the global economy. It significantly reshaped China’s societal and economic landscape.

Why choose Shen Zhen as the first Special Economic Zones?

Shenzhen was chosen as the first SEZ due to its strategic geographic location, which is near to Hong Kong, and the potential for leveraging Hong Kong’s financial and trade expertise. At that time, Shenzhen was a small, impoverished fishing village with minimal economic development, making it a low-risk site for experimenting with economic reforms. Its population aspired for better economic opportunities, providing a supportive environment for change.

Due to its simple social and economic structure, Shenzhen could rapidly implement the market-oriented policies. The Chinese government saw Shenzhen as an ideal testing ground to pilot reforms that could be expanded nationwide, showcasing China’s openness to the global economy. Additionally, the relatively low land and labor costs offered attractive conditions for foreign investors, helping to drive rapid development.

Shenzhen transformed into an industrial and financial center certificated the shift from a planned economy to a market economy and provided a successful example for nationwide economic reforms. Following Shenzhen’s success, other cities adopted similar policies, leading to widespread economic growth and significant improvements in the standard of living for people across China.

People’s quality of life has been improved

“Kids these days are such picky eaters,” my grandmother complained to my cousin. “When I was your age, my clothes were mended and worn for years, and people always sought food in the mountains.”(She was looking after my little cousin)

“你们现在的小孩都太挑食了，在我那个年代，我衣服缝缝补补都可以穿好几年，以前实在没东西吃就去山上找。”

(The interview for my grandmother by Facetime)

Since the implementation of the reform and opening-up policies, the quality of people’s lives has gone through remarkable improvement. The economy’s growth led to increased income levels, better access to education, and more various employment opportunities. Infrastructure development rapidly expanded, providing improved housing, transportation, and healthcare services.

Consumer goods that were once considered luxuries, such as household appliances and electronics, became accessible to the general public, greatly enhancing daily convenience. Urbanization also brought modern amenities and a more vibrant cultural life. Overall, the reform period marked a shift from basic subsistence to a focus on comfort, security, and well-being, significantly raising living standards for millions of people across the country.

Environmental Challenges Brought by Development

“现在的空气都比以前差好多，我隔壁村还开了一个化学工厂，他们把污水排进河里，好多村民都搬走了。”

“The sky is smokier than when I was young. Do you know there was a chemistry factory in the next village? They poured the polluted water into the river, leading to many residents having to move? ” This conversation was about his hometown between my high school classmate, Wang, and me.(Chatting on WeChat)

Air pollution

The severe smog in Beijing and other major cities was largely driven by rapid urban development revolution. As industrialization accelerated the demand for energy, much of it met by coal consumption, significantly contributing to air pollution. Increased construction activities resulted in dust and particulate emissions, while the rise in vehicle ownership, combined with inadequate emissions standards, exacerbated air quality issues.

This unchecked growth led to pollutants gather in the atmosphere, causing the notorious smog that once plagued Beijing. The environmental costs of development became a pressing concern, highlighting the need for sustainable practices.

The damage of smog

Air pollutants pose severe health risks and can sometimes be fatal, even in small amounts. Nearly 200 hazardous air pollutants are regulated by law, including mercury, lead, dioxins, and benzene. These substances are often emitted during gas or coal combustion and industrial processes.

• Benzene, classified as a carcinogen by the EPA, can cause eye, skin, and lung irritation in the short term and blood disorders in the long term.
• Dioxins, more typically found in food but also present in small amounts in the air, can affect the liver and harm the immune, nervous, and endocrine systems, as well as reproductive functions.
• Mercury attacks the central nervous system.
• Lead can damage children’s brains and kidneys, and even minimal exposure can affect their IQ and ability to learn.

Other pollution

China’s river pollution is a significant environmental issue, which is characterized by the discharge of industrial waste, agricultural emissions, and untreated sewage into waterways. Rapid industrialization, urbanization, and the widespread use of chemical fertilizers have led to the pollution of major rivers, and affect water quality and ecosystems.

Polluted rivers not only threaten aquatic life but also pose many serious health risks to communities relying on these water as drinking sources, agriculture, and daily use. The deterioration of river quality has become a pressing challenge, requiring concerted efforts to enforce stricter regulations, improve waste treatment, and promote sustainable practices to protect these vital water resources.

The Wealth Gap Between Rich and Poor

China’s wealth gap remains a significant social and economic challenge in spite of decades of rapid economic growth. The discrepancy is particularly noticable between urban and rural areas, where cities have benefited from industrialization and investment while rural regions lag behind due to limited access to resources, interior infrastructure and inconvenient transportation.

Coastal provinces like Guangdong, Zhejiang and Jiangsu have prospered significantly compared to interior and western provinces, like Qinhai and Tibet because of uneven regional development. Moreover, the gap between the rich and poor has more tensived due to unequal opportunities, especially in the quality of education and healthcare. The rich have benefited more from economic reforms and policy incentives, while a considerable portion of the population struggles with low wages and limited social mobility.

Even though the government has implemented various of measures to improve inequality, such as poverty alleviation programs and rural development initiatives, balancing the wealth gap is still a complex task. It requires comprehensive reforms targeting income distribution, social welfare, and equal access to opportunities across different regions and demographics.

Income inequality, China, 1820-2023

From this chart, we can clearly understand how a big cap between China’s rich and poor. In the beginning of the reform and opening-up, the national income between top 10% and bottom 50% existed a tiny gap. However, until 2024, the top 10% national income was almost triple to bottom 50%.

This widening income inequality highlight the need for policy measures aimed at reducing the wealth gap and ensuring more equitable economic growth in China.

Other challenges

The trade war

The U.S.-China trade war has significantly challenged China’s reform and opening-up process, especially due to sanctions targeting key sectors like the semiconductor industries. Beginning in 2018, the trade tensions exposed the shortage of China relying on foreign markets and technology, disrupting established supply chains and trade relationships.

U.S. restriction on exporting advanced chip technology to Chinese firms highlightes China’s dependency on foreign semiconductor technology, crucial for communications, consumer electronics, and defense. These sanctions have slowed technological progress, exposed gaps in the domestic supply chain, and hindered China’s ambitions in AI and 5G.

In response, China has accelerated the investments in its semiconductor sector, but achieving technological independence faces a long-term challenge. The trade war has also prompted China to adopt the “dual circulation” strategy, focusing on domestic economic strength while maintaining international trade ties. Balancing openness with self-reliance continues to be a significant challenge.