Deng Xiaoping's Reforms - Industry

1. Industry under Deng Xiaoping
1970~1980
By: Alicia, Jisoo, Roan, Eytan

2. Before Deng - Old fashioned + inefficient
factories
- Losses > Gains
- Micromanaged by Beijing
- Ruined economy

3. After Deng
- Economic Reforms
- Ten Year Plan
- Special Enterprise Zones (SEZ)
- Town and Village Enterprise
(TVE)
- 53% -> 12% poverty rate
- Steel, iron, coal, oil production
(5.5 billion yen investment)

4. Communism -> Capitalism

5. State-owned enterprises (SOEs)
- Owned and operated by the government and the PRC
- Able to make profit in free market
- More freedom for employers and employees

6. Town and Village Enterprises (TVEs)
- Small businesses
- Take loans from banks
- Sell outside their hometown
- 1978: 100,00 -> 1985: 17,000,000 -> 1992: 20,000,000

7. Social Enterprise Zones (SEZs)
- Usually on coastal sites
- Cheap land and local labour
- Encourage foreign investment/ businesses
- Modernisation of the areas

8. Problems
- Unemployment at 12%
- Western style problems eg. rising
crime, football hooliganism
- Conflict from inequality

9. QUIZ

10. Why were workers more motivated?

11. Answer:
Because with more output the
workers were able to earn more.

12. Poverty went down from 53% to what?
a)20%
b)17%
c) 11%
d)12%

13. Answer
d)12%

14. What were the Special enterprise
zones(SEZ)?

15. Answer:
Special enterprise zones were set up to persuade
western firms to establish themselves in China
and more specifically in areas such as Shanghai
and guangdong

16. How did the SEZ persuade the foreign
firms to set up in china?

17. Answer:
They promised them free
land and local labour

18. What was wrong with the products being
produced before Deng gave the factory
managers freedom?

19. Answer:
They were too old-fashioned and nobody wanted
them. Eg. 2 million shoes piled up in a factory
unsold

20. Thank you for listening