Deng Xiaoping's Chinese Reforms. Deng Xiaoping and his economic reforms. Ups and downs

At the initiative of Deng Xiaoping, a stage of serious economic reforms began, the essence of which was to combine planned management with market methods of regulating economic processes(For more on the new reform, see Deng Xiaoping's book of selected writings "Major Issues in Contemporary China" (http://www.twirpx.com/file/666865/), in his article "The Market Economy Is Not a Synonym for Capitalism" (http: //www.futura.ru/index.php 3? idat=85), in the book by I. Malevich "Attention, China" (Minsk, Moscow. Harvest. AST. 2011), in the book by V. Chabanov "Economy of the XXI century, or the third way of development" (St. Petersburg. "BHV-Petersburg", 2007), as well as in numerous articles published in the EFG, etc. By the way, in this essay, in order to comprehensively assess the progress of reforms, I cite numerous excerpts from report of the Premier of the State Council of the People's Republic of China Li Keqiang on the work of the government of the People's Republic of China.

in the newspaper "Renmin Ribao" in October 1979, it was noted that the advantage of socialism is the abolition of private property and exploitation, the elimination of the chaos that dominated under capitalism. However, this does not mean that the whole country should become a single enterprise. "This is a utopian point of view<…>Our current system operates according to this utopian scheme. The means of production belong to the whole people. Therefore, some people think that all enterprises are state enterprises and everything should be decided by the state. With this approach, the whole economy is like a huge enterprise, owned by the cabinet of ministers and operating according to a plan developed by state bodies. But the economy, according to the newspaper, “is not a building built of bricks. This is a living organism, consisting of living cells, from many independent organizations under a common centralized leadership. It took the People's Republic of China three decades to come to the conclusion about the inexpediency of the monopoly of the state form of ownership, the need to create a diversified economy and reform the mechanism of functioning of state enterprises.

The New Economic Policy (“Building Socialism with Chinese Characteristics”) was based on the following principles:

Both in the countryside and in the city, to allow some people and regions to become prosperous before others; those. it is quite legitimate to achieve prosperity through honest work;

Allow some components of capitalism to function as a complement to the development of socialist productive forces;

At the same time, we must prevent the polarization of the population in terms of wealth and income, and resolutely oppose liberalism.

The reform of 1979 provided all possible support for the emergence of contract yards in the countryside, the creation of volost and settlement enterprises. Industrial enterprises were granted the right to self-determination. 3,600 industrial facilities were transformed, and partially or completely closed due to their unprofitability or high cost. The system of distribution relations between the state and enterprises has been changed. If earlier the state withdrew all profits from enterprises, covering losses in case of unprofitability, then as a result of the reform, a transition was made to a system of tax relations. Leading enterprises were now to be held accountable for their profits and losses. A number of enterprises were given the right to retain part of their profits for the purchase of new equipment, as well as for social security and bonuses for workers. Thus, in the coal industry, where profits are insignificant, enterprises were given the right to keep up to 20% of the profits for their own needs, while in the chemical industry, which received high profits, this share amounted to 2-3%. By 1985, taxes already accounted for about half of the net income of enterprises; the other half remained at the complete disposal of the enterprises. Some enterprises (about 1.5 thousand) received permission to sell their products not only to the state, but also directly on the market. Some enterprises were allowed to organize joint economic activities with foreign companies. The planning system has also changed. Such essential products as steel, copper, cement, were still distributed by the state, although some of these goods had already begun to go to the market. In the future, it was supposed to abandon the centralized distribution of resources altogether, with the exception of supplies to the military industry.

The state, while remaining the owner of a significant part of the means of production, out of the three constituent elements of property rights - possession, use, disposal - two of them (use and disposal) transferred into the hands of enterprises and their teams on the basis of a contract or lease. The reforms also allowed private activities, for example, in trade and public catering, medical practice, tailoring, repair of bicycles, cars and other equipment. In trade, by the way, all forms of ownership were represented: large state stores, labor collectives that own trading enterprises on a share basis, cooperatives, family firms, private stores, and individual traders. The state began to lease small shops, canteens and tea houses to collectives and private traders. So, in the province of Guangdong in 1984-1985. 126 trading units were transferred to collective use on shares, and 238 to individual use. Trade through the market increased significantly, which was generally prohibited until 1978. In 1984, there were already 6,300 markets in this province, and the volume of trade in them amounted to about 20% of the total volume of trade in the province.

Like mushrooms, the number of Special Economic Zones (SEZs) and High and New Technology Zones (HIETs) has grown. This is China's experience in building a mixed economy, which has brought it high economic growth rates.

China's GDP grew from 362.41 billion yuan in 1978 to 7 trillion 477.24 billion yuan in 1997, i.e. more than 20 times, and at constant prices - five times. The average annual growth rate for this period was 9.8%, which is 6.5 percentage points higher than the world average and 7.3 percentage points more than in the developed capitalist countries. And for the period 2002-2007. China's GDP increased by 65.5% at an average annual growth rate of 10.6%. The growth rates of the PRC's economy exceeded those of such Asian "tigers" as Singapore, the Republic of Korea, Taiwan, and Malaysia. According to Standard & Poor's forecasts, in 2015 the total volume of China's GDP will increase by 6.9%, and in 2016 - by 6.6%.

It should be noted the enormous growth in the volume of foreign economic relations of the PRC. For example, in the field of attracting foreign investment in 1998 alone, the Chinese government approved 20,000 projects with foreign capital and signed contracts worth $52.2 billion, while in 2005 all foreign investment amounted to $120 billion. The positive trade balance in 2005 amounted to $101.9 billion.

Very interesting calculations are given by A. Anisimov in his article about China (http://worldcrisis.ru/crisis/192044). He exposes the myths about this country. Myth No. 1 that Chinese prosperity is driven by capital imports. A. Anisimov, based on the purchasing power of the yuan, gives the following comparative data for 2005: investment in the Chinese economy amounted to 5 trillion. dollars, and straight foreign investment was equal to only 60 billion dollars. A. Anisimov supports the conclusion about the insignificant influence of foreign capital on the pace of China's development with such data. In 2000, China consumed 400 million tons of rolled products and 1,050 million tons of cement, while the developed countries of the world combined consumed 350 million tons of rolled products and 400 million tons of cement in 2005. Myth #2: China's economy is export-oriented. Although China's foreign trade turnover is huge and it shares the 1st-2nd place with the USA in the world (in 2005 - 762 billion dollars of exports and 660 billion dollars of imports), the PRC economy is characterized by a high level of development of all industries and the country's self-sufficiency in food and consumer goods. Myth No. 3 that China's economy depends on imported oil and petroleum products. A. Anisimov claims that the PRC produces about 500 million tons of oil while importing oil and oil products 17 million tons (in 2004). In addition, coal production is at least 1.6 billion tons.

In early 2006, China overtook Japan in terms of government savings and came out on top in the world in this indicator (foreign exchange reserves reached $853.7 billion). The PRC is currently the largest creditor to the US, holding hundreds of billions of its financial assets.

Jiang Zemin, who at the suggestion of Deng Xiaoping became the chairman of the PRC in 1993, led the struggle for world markets, managed to bring China to the seventh place in the world, repeatedly emphasized that the most important principle of the CCP's policy is to maintain and improve the economic system for the development of various sectors, including the leading place should be occupied by the sector of public property, the system of the socialist market economy, the variety of forms of distribution, among which the leading role is played by distribution according to work, as well as openness to the outside world.

I will give an assessment of the achievements of the PRC in 2014, given in the Report of the Premier of the State Council of the PRC, Li Keqiang, on the work of the government of the People's Republic of China (EFG No. 9 for 2015): “All last year, the development of the country proceeded in a difficult and harsh environment of domestic and international environment. The recovery of the global economy was not easy and uneven with divergence in the development trends of the leading economies. The pressure caused by the slowdown in the growth of the national economy continued to grow, with the mutual interweaving of various difficulties and challenges. Nevertheless, under the firm leadership of the Central Committee of the Party, headed by General Secretary Comrade Xi Jinping, the peoples of the whole country, unanimously and boldly overcoming the difficulties then faced, fulfilled all the main annual tasks of socio-economic development, marched with confidence along the path of fully building a moderately prosperous society, laid a good start to the comprehensive deepening of reforms, launched a new campaign to fully ensure the rule of law in public administration, made progress in the full implementation of strict internal party management.

Throughout the past year, our socio-economic development as a whole proceeded smoothly, moving forward while maintaining stability. The main indicator of its smooth course is that the functioning of the economy remained within reasonable limits. GDP at even growth rates reached 63.6 trillion. yuan, which is 7.4 percent more than the previous year, and entered the forefront among the world's major economies. Employment remained strong, with 13.22 million more people employed in cities and towns, up from the previous year. Prices remained stable, while consumer prices grew by 2%. The main sign of moving forward was to increase the harmony and sustainability of development. The structure of the economy continued to improve. As a result, grain production reached 605 million tons, the contribution of consumption to economic growth increased by 3 percentage points and reached 51.2 percent, and the share of service value added in GDP increased from 46.9 percent to 48.2 percent. New industries, new forms of economic activity and new business models began to appear continuously. In terms of economic growth, the central and western regions have surpassed the eastern. The quality of development has risen to a new level, while ordinary revenues of public budgets have increased by 8.6 percent, the share of R&D expenditures in GDP has exceeded 2 percent. Energy intensity decreased by 4.8 percent, which was the most significant in recent years. There have been noticeable positive changes in the lives of citizens. The average per capita disposable income of the country's population actually increased by 8 percent, which was faster than the rate of economic growth. Moreover, the actual growth of the average per capita disposable income of the rural population reached 9.2 percent, i.e. they grew faster than those of the townspeople. The poor population in the countryside decreased by 12.32 million people. More than 66 million rural people were provided with safe drinking water. Outbound tourism has exceeded 100 million person-times. A new breakthrough in the field of reforms and openness was made, in particular, the implementation of a set of priority tasks for the comprehensive deepening of reforms was launched, and the current government reduced the register of administrative sightings by a third ahead of schedule. The list of such successes was really not easy, it cost all the peoples of the country hard efforts and at the same time strengthened our confidence and determination to boldly move forward.

Thus, the PRC maintains a course towards the existence and development of a multi-structural economy. It cannot be otherwise at the initial stage of the development of socialism. An article by A. Anisimov (http://worldcrisis.ru/crisis/192044) notes that the following system of structures functions in China: 1) Hong Kong, 2) 14 "Mao Tsetong open" seaside cities and free economic zones, 3) multicultural a system of coastal provinces with a significant degree of liberalization and an increased share of foreign capital in the economy; 4) a multi-structural system of inland provinces with a lower degree of economic liberalization. Thus, China split into "capitalist", "semi-capitalist" and "semi-socialist" provinces and equivalent administrative-territorial entities.

In China, leaders are well aware that poverty resulting from the underdevelopment of the productive forces is incompatible with the principles of socialism. Here again it is appropriate to turn to the main ideologist of Chinese modernization, Deng Xiaoping, who in 1984 said: “What is socialism? We didn't have a very clear idea about this before. Marxism attaches the greatest importance to the development of the productive forces<…>The advantages of the socialist system are expressed precisely in the fact that the productive forces under it develop at a faster rate, higher than under capitalism. (Deng Xiaoping "Main Issues of Modern China." - http://www.twirpx.com/file/666865/). Along with the need for the all-round development of the productive forces as the basis for the growth of the material well-being of the people, he drew attention to the importance of educational work, overcoming the "equalization of hard cash", emphasizing the inextricable link between freedom and discipline, the importance of working to educate people in great ideals, high standards morality, developing in them the beauty of the soul, the beauty of the language, the beauty of behavior. In short, socialism is an organic combination of a high level of material, spiritual and moral culture of people.

That is why China is doing everything necessary to achieve high economic growth rates.

The generation of new "little Chinese emperors" is getting on its feet and gaining strength. In a word, it goes (and this is in the order of things) the struggle of two opposing forces and tendencies - capitalist and communist . Theoretically, it is possible that, as in the USSR, among the leaders and population of China, over time, ideas of switching to the so-called. "market" economy and there will be a turn to capitalism. However, as a preliminary analysis of the results of the last 18th Congress of the CPC shows, the general line for the victory of socialism is apparently still taking the upper hand. At the 18th Congress, its Charter for the first time included the provision that “a socialist system with Chinese characteristics has been established in China” A. Anisimov in the already mentioned article believes that the admission of capitalists to the party is explained by the decision to put them under control, but the capitalists."

In the search for development paths, there can be no easy solutions. Rather, on the contrary, it is possible to speak with certainty about complicating the organization of social life, both on the scale of individual states and of all mankind. This trend is manifested in all spheres: economic, political, ideological, moral. The process of improvement is always based on the need to resolve certain contradictions.

In the economic sphere in the 20th century, the trend towards more complex forms of organization of social life was expressed in searches for a way out of crises (the First World War and the catastrophic decline in production in the early 1930s). In one case, history gave rise to the October Revolution, in another, Keynesianism, and in a third, Italian and German fascism. In all cases we see increasing role of the state in economic processes. On the one hand, state socialism appeared, and on the other, state-monopoly capitalism. “Since the war, and especially the experiments of the fascist economy, the name of state capitalism has most often been understood as a system of state intervention and regulation. The French use in this case a much more appropriate term - "statism"<…>Etatism - it doesn't matter where: in Italy Mussolini, in Germany Hitler, in America Roosevelt or in France Leon Blum - means the intervention of the state on the basis of private property in order to save it ”(Trotsky L. Betrayed Revolution. What is the USSR and where is it going? 1936. http://www.magister.msk.ru).

The nationalization of the economy in one form or another means, in essence, that humanity, trying to resolve the key contradictions in the economy (between labor and capital, between the growth of people's needs and the production of means of satisfying them, between nature and material production), is becoming more and more convinced in the need for conscious regulation of economic processes , as well as the need to search for new forms of resolving global contradictions.

At the same time, it should be noted that the increased intervention of the state in the processes taking place in the capitalist economy, as well as the formation of public property in the form of state property, gave rise to forecasting and planning at the macro level. In the twentieth century, consumer protection organizations began to gain strength in many states. Forms of private and cooperative property were democratized. In a word, there was a process of gradual maturation and accumulation of fundamental preconditions a fundamentally new social structure, called for the first time in history to serve directly to man, i.e. contribute to the maximum satisfaction of people's needs.

In the USSR, the state form of ownership prevailed, although consumer cooperatives and collective farms survived to Gorbachev's perestroika, having survived even the anti-cooperative "reforms" of N. Khrushchev. The monopoly position of the state form of ownership in most sectors of the national economy allowed the party-state apparatus to freely exercise its dictatorship. During the period Gorbachev's perestroika the cooperative movement began to revive, but it contributed more to the restoration of capitalist forms of management than to the development of socialism.

The Communists in the PRC acted completely differently. They managed to overcome the theoretically erroneous interpretation of cooperative property as an imperfect, immature form of socialist property, and did not oppose cooperatives to the state form of property. At present, cooperative property in China is regarded as a natural component of public property and is actively used to accelerate the development of productive forces, combat unemployment and improve the well-being of the population.

The PRC has a well-developed network of credit and insurance cooperatives, and cooperative trade is gaining momentum along with supply and marketing cooperation. Transport cooperation and building cooperatives play an important role in the economy.

An important element of the economic system of the PRC is urban, settlement collective property (GPKS). It is represented by cooperative enterprises under the jurisdiction of city, district authorities, street, quarterly committees in cities and towns. Within the framework of the RSCC, there are small and medium-sized industrial enterprises, construction, transport, trade and other organizations, which are often associated with the relevant state enterprises, organizations in a single cooperative link. In the 1980s, RSCC occupied a large share in the PRC economy, covering 75% of industrial enterprises, more than 30% of all those employed in industry, 28% of gross industrial output, more than 36% of retail trade and services, 14% of total foreign exchange earnings.<…>Collective enterprises in cities and towns of the People's Republic of China are formed at the expense of the state, local authorities, public organizations, and also at the expense of share contributions of the workers and employees employed in them. A prerequisite for the existence of the RSCC should be the ownership of the means of production and the product produced by the entire team, adherence to the principles of independent economic accounting, including self-financing. Collective enterprises, as a rule, are not under the influence of directive planning, centralized procurement at stable prices and are guided by market conditions.

In rural areas, along with various forms of cooperatives specializing in the production, processing and marketing of agricultural products, rural municipality enterprises (VPP) are developing dynamically. As a rule, they are diversified and cover many types of activities: production and processing of agricultural products, forestry, fish farming, extraction of minerals, transport services for the population and enterprises, construction, trade, supply and marketing.

Today, there are about 21 million WFPs in China, employing over 147 million people. They pay the state 800-900 million yuan ($1 billion) in taxes. In 1995, the state removed many restrictions on foreign economic activity from WFP. The very next year, more than 72 billion dollars worth of goods were delivered to the world market. Only for export in the early 2000s, more than 150 thousand WFPs worked. They take the edge off the surplus labor force in the countryside to a large extent and also serve as the main source of investment for the needs of the countryside.

Summarizing, it should be noted that the outstanding political achievement of Deng Xiaoping was that at the very beginning of the implementation of economic reforms, he decisively strengthened the state and military-political regime of governing the country. All reforms have been and are still being carried out in China under the firm control of the state, the army and the CCP. It was Deng Xiaoping's order in June 1989 to exterminate mass demonstrators in Tiananmen Square that prevented the chaos and disintegration of China. As I. Malevich wrote, “Even during the lifetime of Deng Xiaoping, the West started talking about Deng Xiaoping’s “Confucian capitalism”. However, the essence of Deng Xiaoping's reforms under severe state pressure would be more correctly called "Confucian socialism" (cited ed. p. 92). I fully agree with I. Malevich that “ the main "mega-myths" of China are: sovereign socialism, military sufficiency and the growth of the welfare of the whole people "(cited ed. p. 141).

Deng Xiaoping's reforms made it possible in the PRC to create markets for food and other consumer goods, to make a transition to a market for technological goods, to form market infrastructure technologies, including a kind of financial and banking system with blocking superinflation at the expense of the basic state sectors of the national economy. The build-up of economic and military power has strengthened the centralization and power supply of the authorities carrying out economic reforms in China.

Of course, the current global socio-economic crisis has its negative impact on the implementation of reforms. The aforementioned 2014 PRC Government Report (EFG No. 9) states that “the past year has seen more difficulties and challenges than expected. Having boldly faced difficulties, we concentrated our forces mainly on the following areas of work.

First, targeted regulation ensured sustainable economic growth by setting reasonable limits. In the face of a trend of increasing pressure due to the slowdown in economic growth, we maintained our strategic resolve and the sustainability of macroeconomic policies. Instead of implementing strong short-term stimulus measures, they continued to update approaches to macro-regulation and its methods and carried out targeted regulation, and thereby activated vitality, closed gaps and increased the real sector of the economy. Weighing the reasonable limits of the functioning of the economy, through the implementation of targeted measures, we focused our attention and accurately concentrated our efforts on resolving acute contradictions and structural problems on the path of development. By deepening the reforms, we provided the driving forces for development, through the structural restructuring of the economy, we contributed to it, and increased its potential by improving the well-being of the population. In a word, we focused not only on expanding market demand, but also on increasing effective supply, and in general we tried to optimize the structure of the economy without losing the speed of its development.

An active financial and prudent monetary policy was effectively implemented. A targeted reduction in taxes and a total reduction in cash collections have been carried out, the framework for a preferential tax policy in relation to small and micro-enterprises has been expanded, as well as an experiment with the collection of VAT instead of the turnover tax. By accelerating the pace of execution of financial payments, the use of accumulated funds has intensified. The levers of monetary policy were flexibly applied. In particular, through a targeted reduction in the percentage of deductions to the reserve fund on deposits, targeted on-lending and asymmetric reduction in interest rates and other measures, support for weak areas of socio-economic development was strengthened, as a result of which the growth rate of lending to small and micro enterprises, the peasantry, rural areas, and agriculture were respectively 4.2 and 0.7 percentage points higher than the average increase in loans. At the same time, the improvement of financial control allowed us to maintain our main position - to avoid regional and systemic financial risks.

Secondly, through deepening reforms and openness, the vital energy of socio-economic development was awakened. Due to the systemic and institutional obstacles hampering development, we have gone for a comprehensive deepening of reforms in order to deploy the vital forces of the market and neutralize the pressure caused by the downward trend in economic growth. A lot of hard nuts were cracked, systemic reforms were in full swing in the economic, political, cultural and social spheres, as well as in the field of ecological civilization.

The most important reforms progressed steadily. In particular, a general project was developed and put into effect to deepen the reform of the financial and tax system, and there were significant shifts in the reform of the budget management system and the tax system. As a result, targeted transfer payments decreased by more than a third compared to the previous year, while the share of ordinary transfers increased, and the management of local government debt obligations intensified. The floating range of interest rates on deposits and the exchange rate has increased, a new step has been taken in the implementation of pilot projects for the development of non-state banks, an experiment has begun with the creation of a "mechanism for interaction between the Shanghai and Hong Kong stock exchanges", and the areas of use of foreign exchange reserves and insurance funds have expanded. The reform of pricing in the sphere of energy resources, transport, ecology, telecommunications, etc. has accelerated. A whole package of reforms has been launched in such areas as the procedure for managing scientific and technical grants; the procedure for entrance examinations and enrollment of students, the procedure for registration, the procedure for old-age insurance in institutions and organizations in the non-productive sphere, etc.

The simplification of the apparatus and the descent of powers, with a combination of liberalization and administration, continued to be seen as important moves in reform. During the year, 246 objects of administrative approval were abolished or transferred to lower authorities for execution in the departments of the State Council, 29 competitions and events related to the fulfillment of established indicators and the corresponding awards were canceled, 149 articles on the recognition and certification of professional qualifications were canceled, the list of investment objects was again revised and much narrowed. activities subject to authorization. Our focus on reforming the commercial affairs system has sparked a new business boom. The number of newly registered market entities reached 12.93 million, while the number of new enterprises increased by 45.9 percent. And although the pace of economic growth slowed down, the number of new jobs not only did not decrease, but, on the contrary, increased, and this demonstrated the enormous power of reforms and the unlimited potential of the market.

Through openness, reform and development were stimulated. In particular, we expanded the pilot free trade zone in Shanghai and created new similar zones in Guangdong Province, Tianjin City and Fujian Province. Exports stabilized while imports grew, as a result, the share of Chinese exports in the world market continued to increase. We actually used direct foreign investments in the amount of 119.6 billion US dollars, coming out on top in the world in this indicator. Our foreign direct investment reached $102.9 billion, equaling our use of foreign capital. Free trade zones have begun to operate with Iceland and Switzerland, substantial negotiations have been completed on the creation of free trade zones with South Korea and. Very important results have been obtained in cooperation with foreign countries in the field of railways, electric power, oil and natural gas, communications, etc. Chinese equipment is rapidly spreading around the world.

Third, structural regulation was strengthened to build development potential. In connection with acute structural contradictions, we acted actively and took encouraging or restrictive measures, focusing more on such areas of work that were extremely relevant at the moment, but even more useful for the future, so that we could lay a solid foundation for socio-economic development. .

Speaking about plans for the coming period, Premier of the State Council of the People's Republic of China Li Keqiang formulated the following major areas of work in the field of deepening reforms:

“Reform and opening up is a miracle cure for victory in the process of stimulating development. Therefore, it is necessary to comprehensively deepen the reforms, giving a central place to the transformation of the economic system. Through unified and comprehensive planning, in a business-like manner, we seek to achieve new breakthroughs in reforms relevant to development as a whole, and thereby give it a new impetus.

It is important to carry out reform more intensively along the line of reducing the government apparatus and lowering powers, with a reasonable balancing of management and liberalization. This year, another group of articles of administrative approval will have to be canceled or lowered, the articles of non-administrative approval will be completely canceled, and a management procedure regulating administrative approval will be developed. Deepen the reform of the commercial affairs system, while continuing to simplify the procedure for registering authorized capital, fully integrating patents for the right to operate commercial and industrial enterprises, certificates of codes of organizations and institutions, and tax registration certificates. Organize and regulate the intermediary service. It is important to draw up a "negative list" that regulates the access of commercial entities to the market, publish lists of the powers of the competent authorities of provincial governments and their responsibilities, obliging them to refrain from what the law does not give the right to, to strictly comply with what it obliges. Those competencies that local governments are supposed to transfer to the market and society should be fully transferred without delay, and the approved objects lowered by them from above should be kept in their hands and properly dealt with. It is necessary to strengthen control and management both in the course of the sighting itself and after the fact, to improve the service network for enterprises and society. Accelerating the formation of a social trust system, create a system of codes of citizens' credit histories unified throughout the country, as well as a platform for sharing and exchanging information on the credit reliability of citizens, and legally guarantee the information security of enterprises and individuals. Ultimate clarity and simplicity is the manifestation of the highest wisdom. Those in power are not allowed to show self-will. Governments at all levels, creating an effective mechanism for reducing the apparatus, partially lowering their powers and transforming the current functions, should give enterprises greater freedom of operation, provide more convenience and a healthy competitive environment for entrepreneurs. The procedure for administrative authorization should be simplified when setting deadlines for the implementation of any procedures. In a word, it is necessary to "subtract" part of the powers of government bodies in order to "multiply" the vital forces of the market.

To reform the system of investment and financing in every possible way. Here, to a large extent, it is necessary to reduce the scope of investment objects approved by the government, to lower the authority for sanctioning. To significantly reduce the preliminary approval of investment projects, in parallel to issue their approval via the Internet. Significantly facilitate access to the market for public financial resources, encourage the creation of joint-stock investment funds on non-state capital. Governments will have to direct public capital towards investments in priority projects through investment subsidies, capital injections, the creation of various funds, and so on. Based on the rational use of the Railway Development Fund, deepen the reform of their investment and financing. Actively implement the public-private partnership model in the field of infrastructure and public utilities.

Seize the moment, accelerate the reform of the pricing system. The direction of this reform is the full identification of the decisive role of the market in the allocation of resources. We must significantly reduce the types of goods and facilities that are priced by the state and, in principle, liberalize prices for all types of goods and services that can be supplied in a competitive environment. Government pricing will be abolished for the vast majority of types of medicines, and the right to set tariffs for a number of basic public services will be lowered. The pilot reform of the pricing system in the field of electricity transmission and distribution will be expanded, and the reform of prices for water consumed by agriculture will be advanced. The pricing policy aimed at energy saving and environmental protection is being optimized. The pricing mechanism for resource products will be improved, and the system of stepped tariffs for the population will be implemented comprehensively. Simultaneously strengthen price controls and streamline the market to guarantee the basic living conditions of the low-income population.

Seek new advances in advancing the reform of the financial and tax system. With the transition to a fully normative, open and transparent budget management system, all central and local departments, with the exception of those whose work is considered state secrets in accordance with the law, will have to publish their estimates and reports and put all their activities under public control. To increase the proportion of transfers of funds from the budget for managing state capital to the regular public budget. Implement medium-term financial planning as a management tool. Develop effective measures for the use of accumulated financial resources. Strive to fully complete the transition to levying VAT instead of turnover tax, adjust the scope of excise collection, improve policy on excise duty rates, expand the scope of ad valorem taxation in relation to resources. Submit the Law on Taxation and Tax Administration for consideration. While reforming the system of transfer payments, harmonize the powers and spending obligations of the Center and the regions, reasonably adjust the distribution of income between them.

In the light of serving the real sector of the economy, promote financial reform. Here it is necessary to encourage private capital that meets the established criteria to establish medium and small banks by law, as well as other financial institutions. Moreover, if all the necessary criteria are met, the creation of such enterprises will be approved without a quantitative limit. With further deepening of the reform, the status of rural credit cooperatives as county legal entities will be stabilized. Fully identify the role of development finance institutions and directed finance in providing more public goods. A system of deposit insurance will be introduced. The reform of interest rates regulated by the market will advance, and the framework for their regulation by the People's Bank of China (CB) will be improved. The exchange rate of the Chinese yuan will be maintained at a reasonably balanced level, and the elasticity of its fluctuations in both directions will increase. Capital convertibility of the Chinese national currency is being gradually realized, the use of the Chinese yuan in international settlements will be increased, the establishment of its transnational payment system will be accelerated, and its global clearing service system will be improved. Pilot projects for private investment abroad will be launched, and an experiment with the integration of the Shenzhen and Hong Kong stock exchanges will begin in a timely manner. At the same time, the creation of a system of multi-level capital markets will be activated, reforms will begin with the introduction of registration of the issue of shares, and the development of regional equity markets serving medium and small enterprises will be ensured. An experiment with equity crowdfunding will unfold. The securitization of credit assets will advance, the scale of issuance of corporate bonds will expand, and the market for derivative financial instruments will develop. Insurance against particularly serious natural disasters and commercial old-age insurance with deferred payment of personal income tax are to be introduced. Through the innovation of financial control and management, prevent and eliminate financial risks. Actively create financial mechanisms accessible to all groups of the population in order to cover the system of financial services to all market entities.

Deepen the reform of SOEs and state assets. Here, on the basis of a precise delimitation of the functions of various types of state-owned enterprises, it is necessary to promote their reform in a differentiated way. Accelerate the implementation of pilot projects to create investment and management companies that operate with state capital. Create a platform for market-type operations and thereby improve the efficiency of managing state capital. To systematically carry out reform with the development of a mixed form of ownership in state-owned enterprises, to encourage and standardize the participation of non-state capital in their investment projects. Accelerate the institutional reform of the electric power, oil and gas and other industries. To release enterprises from the burdensome functions of social services in various ways and solve problems inherited from the past, to protect the legitimate rights and interests of workers and employees. Improve the system of modern enterprises, reform and improve the mechanism of rewards and restrictions in relation to their managers. It is necessary to strengthen control over and management of state property, prevent its leakage, and significantly improve the efficiency of managing state-owned enterprises.

The non-public sector of the economy is an important component of our national economy. It is necessary to encourage, support and direct its development without the slightest hesitation, paying special attention to identifying the opportunities of entrepreneurs, comprehensively implementing policies and measures to promote the development of this sector of the economy and increase the viability of the economy of all forms of ownership, protect the property rights of various types of enterprises as legal persons.

It is necessary to continue the reform in the field of science and technology, education, culture, medical care, pharmaceuticals and health care, old-age insurance, non-production organizations, public housing construction funds, etc. Development needs those new driving forces provided by the reforms, the people are waiting for the real results of the reforms. And we need to try to pass this "exam" on reforms so that we can add strength to development and benefit the people.

Openness to the outside world is also a reform. Therefore, it is necessary to enter a new round of expanding high-level openness, accelerate the creation of a new open economy system, take the initiative in openness to take the initiative in development and international competition.

Stimulate the transformation and renewal of foreign trade. Here it is necessary to improve the mechanism for separating obligations for tax refunds on exports, according to which, starting from 2015, the increased part of it will be completely taken over by the central budget in order to give places and enterprises “soothing drops”. It is important to streamline and standardize fees in import-export procedures, enter and publish a list of their articles. Carry out installations and measures to enable our foreign trade to cultivate new competitive advantages, promote the transformation of the tolling trade model, ensure the development of one-stop foreign trade service platform and procurement market, expand comprehensive pilot projects for the development of cross-border e-commerce, increase the number of demonstration cities engaged in service outsourcing, increase share of trade in services. It is important to pursue a more active import policy, increase imports of advanced technologies, key equipment, important parts and spare parts, etc.

More active and efficient use of foreign investment. The Indicative List of Industries for Attracting Foreign Investment should be amended, focusing on expanding the openness to the outside world in the service sector and general manufacturing, as well as halving the list of activities restricted to foreign investors. Entirely and completely switch to the procedure for general registration, in which only a part of objects is authorized, while simultaneously transferring to lower authorities most of the authority to approve encouraged objects, actively developing a management model that combines the national regime at the pre-investment stage with a list of restrictions for investors. Revise the relevant laws regarding investment by foreign merchants, while improving the control and management system, and creating a stable, fair, transparent and predictable business environment.

Accelerate the implementation of the strategy for going abroad. Here it is necessary to encourage the participation of our enterprises in the construction of foreign infrastructure facilities and cooperation with foreign production facilities, to promote Chinese equipment to the world market, including railway, electric power, telecommunications and engineering construction, as well as cars, aircraft, electronics, etc. , to encourage enterprises in the metallurgical industry, building materials and other industries to invest in foreign projects. Implement forms of foreign investment management, mainly with the introduction of the registration procedure. To expand the scale of export credit insurance, to provide full credit insurance when financing the export of large complete equipment. It is necessary to expand the channels for using foreign exchange reserves, improve financial, information and legal services, as well as services in the field of consular protection. Paying special attention to risk prevention, enhance the ability to ensure the rights and interests of Chinese citizens and legal entities abroad. May our Chinese enterprises enter the international market with confidence, may they be tempered in the course of international competition, grow and strengthen!

Create a new scheme of inclusive openness to the outside world. Here it is necessary to promote cooperation in the creation of an economic belt along the land Silk Road and the Maritime Silk Road of the 21st century. Accelerate the pace of connecting infrastructure and direct communication, building highly efficient customs and international logistics highways. Lay economic corridors China-Pakistan and Bangladesh-China-India-Myanmar. To expand the openness of the internal and border regions of the country, to stimulate the innovative development of the zones of technical and economic development, to raise the level of development of the border and cross-border zones of economic cooperation. Vigorously promote the establishment of pilot free trade zones in Shanghai, Guangdong, Tianjin and Fujian, disseminate their mature experience throughout the country, and thereby create a kind of leading zone in terms of reform and opening up.

Stabilization of economic growth rates and its structural regulation are interdependent. We need to guarantee in every possible way the functioning of the economy within reasonable limits, and at the same time actively promote its renewal and modernization, ensure its sustainable and long-term development.

It is important to cultivate new points of growth in the consumption of the population. When stimulating the consumption of the general population, "all three items of service costs" should be limited. Promote consumption in the field of gerontoservice, home care and medical and health services, expand information consumption, improve the quality of tourism and recreation, stimulate green consumption, stabilize housing consumption and expand consumption in the field of education, culture, physical culture and sports. We will fully promote the implementation of the triune network of telecommunications, the Internet and broadcasting, speed up the construction of the fiber optic network, significantly increase the data transmission speed of the broadband Internet, ensure the development of logistics and express delivery services, and encourage new types of Internet and beyond. It is necessary to create and improve the system of management and control over the quality and safety of consumer goods, including the procedure for tracking them at all stages of production and sale, as well as the recall procedure, promptly identifying cases of manufacture and sale of counterfeit and low-quality products and severely punish those involved, and thereby protecting the legitimate rights and interests of consumers. Just as small streams merge into a wide river, the huge consumer potential of a billion people must turn into a tremendous driving force for economic growth.

Increase effective investment in the production of public goods. In order to implement the priority projects envisaged by the program of the 12th Five-Year Plan, it is necessary to start implementing a new group of the most important programs, including the reconstruction of dilapidated housing stock, improvement of urban underground communications in the interests of improving the living conditions of the population; laying railways and highways in the central and western regions of the country, as well as improving river fairways, building other important transport facilities; construction of hydromelioration facilities, creation of high-standard arable lands and other agricultural facilities; creation of key objects of information, electric power, oil and gas and other networks; guaranteed supply of environmentally friendly types of energy carriers, as well as oil, natural gas and other minerals; technical re-equipment of traditional industries; energy-saving, environmental and environmental construction. This year, investments from the central budget will increase to 477.6 billion yuan, but the government will not remain "the only soloist." It will be necessary, fully awakening the viability of non-state investment, to direct public capital into ever wider areas. Investments in railway infrastructure will have to be kept at over 800 billion yuan in order to put into operation more than 8,000 km of new railways. It is necessary to introduce a basically unified system of electronic payment for the entire country for unhindered travel on high-speed highways so that transport truly becomes the "vanguard" of development. Accelerate the implementation of 57 major hydrotechnical projects that have already begun and start construction of 27 new facilities this year. Allocate more than 800 billion yuan of funds for large hydrotechnical facilities under construction. At the same time, promote investment in projects for the reconstruction of dilapidated residential areas, for railway and hydrotechnical construction, while priority is given to projects in the central and western regions. All this will help develop our huge domestic demand to a greater extent.

We need to fully promote the rule of law, accelerate the construction of a legal, innovative and incorruptible service government, strengthen its executive capacity, increase public confidence in it, and generally stimulate the modernization of the public administration system and the management capabilities themselves.

Invariably observing the Constitution and other laws in the performance of administrative functions, transfer all the work of the government to the legal channel. The Constitution embodies the fundamental norms of our activities, therefore, governments at all levels and all their personnel are expected to strictly observe it. It is necessary to respect the law, to study it, to observe and apply it, to fulfill one's duties in accordance with it. All administrative actions must be legally justified. No government agency is allowed to exercise authority outside the law. It is necessary to deepen the reform of the administrative law enforcement system, adhere to strict, standardized, fair and civilized law enforcement, accelerate comprehensive law enforcement, and fully and fully implement the order of responsibility for administrative law enforcement. Any violation of laws and regulations should involve prosecution, all unfair and illiterate manifestations in law enforcement should be stopped.

Renew the forms of government, strengthen services, and focus on improving the efficiency of the government. In the provision of basic public services, it is necessary, as far as possible, to use forms of government procurement of services, to transfer to the market or society those ordinary administrative management services that can be provided by a third party. Practically develop consultations between government structures and the public, effectively increase the scientific and democratic nature of decision-making, and, moreover, attach serious importance to the role of think tanks. Move to the openness of administrative cases everywhere, spread the introduction of electronic administration and online office work. Governments at all levels are obliged to consciously place their activities under the control of the SNPs of their level and their standing committees, under the democratic control of the NPKS of the corresponding level, and carefully listen to the opinion of the deputies of the SNPs, members of the PPKS, democratic parties, associations of industrialists and merchants, non-party leaders and people's organizations. All our work must be placed under the control of the people and fully express their aspirations.

Our country is a single multinational state, the strengthening and development of socialist national relations on the basis of equality, solidarity, mutual assistance and harmony express the fundamental interests of all the nationalities of the country and are their common duty. It is necessary to preserve and improve the institution of national regional autonomy, increase the scale of support for underdeveloped national regions, support the development of small nationalities, continue the action program to stimulate the rise of outlying regions for the benefit of the local population, protect and develop the excellent traditional culture of national minorities, original national villages and towns, stimulate communication, exchanges and fusion of different nationalities among themselves. It is important to adequately hold solemn festivities in honor of the 50th anniversary of the Tibet and the 60th anniversary of the Xinjiang Uygur Autonomous Regions. Peace and harmony among the nationalities of the country, their common efforts and harmonious development will make our great family of the Chinese nation even more prosperous and powerful, happy and prosperous!

The modern era gives China a historical chance for development and prosperity. Let us unite firmly around the CPC Central Committee led by Comrade Xi Jinping, hold high the great banner of socialism with Chinese characteristics, spiritually focus and gather our strength, open the way for innovation, and do our best to achieve the set goals of social and economic development for the current year, to bring in a new and a more significant contribution to the achievement of the goals set for the “two approaching centenaries”, the goals of building a rich and powerful, democratic and civilized, harmonious and modernized socialist state and realizing our dream of the great rejuvenation of the Chinese nation!”

At a meeting at the Presidium of the Russian Philosophical Society, Chief Researcher of the Institute of the Far East of the Russian Academy of Sciences, Doctor of Historical Sciences, Professor Ya. Berger, speaking about the specifics of reforms in China in the era of globalization, said the following: “What is the model of Chinese globalization today? I would like to point out three main features.

The first is the rejection of shock therapy. Chinese globalization is being carried out gradually. Initially, 4 territorial economic zones were formed in the south of China, not far from Hong Kong. Then sectoral gradualism began, that is, some sectors were opened to foreign capital. Only 5 years after joining the WTO, China opened the entire territory and all industries to foreign capital. The latest transformations took place in the financial sector in 2007. The forms of implementation of the globalization program were also distinguished by gradualness. Initially, enterprises mixed with foreign capital were created. Then only enterprises with foreign investments were formed. Currently, mergers and acquisitions of production and financial capital are allowed. Foreign companies can even "capture" key sectors of the economy.

The second feature is that China does not open up until domestic reforms are carried out. In other words, the organic relationship between external openness and internal reforms is clearly observed.

Finally, the Chinese model of globalization attempts to optimize the positives and minimize the negatives of reform and opening up. Due to this third feature, China, joining globalization, carefully guards its sovereignty. Features of Chinese globalization are widely discussed in the West. Recently, a book by J. Rameau "The Beijing Consensus" was published in London, in contrast to the concept of the "Washington Consensus" that appeared in the early 1990s. 20th century The Washington Consensus formulated 10 neoliberal rules for transforming the economies of Latin America. These included: 1) removal of tariff barriers; 2) an unregulated economy, etc. The application of the rules of the "Washington Consensus" led to the collapse of the economy of Argentina, Indonesia, Russia and other countries. In the Beijing Consensus, the rules are opposite: 1) the desire for innovation in the economic, political, social sphere, but taking into account Chinese specifics; 2) the social sphere should develop in parallel with the economy; 3) asymmetry in development is necessary, that is, the Chinese model can unfold without being drawn into an arms race. However, China could paralyze the US. The gold reserve was originally needed to protect against economic collapse, as happened in a number of countries in 1997-1998. Then it became necessary to guarantee the supply of raw materials (primarily oil) and energy, so that industry could grow uninterruptedly. Currently, this reserve serves the purpose of protecting the sovereignty of China. The gold reserve can contribute to the financial crushing of the enemy if he tries, for example, to start a nuclear war ”(Age of Globalization. Issue No. 1/2009).

PRIME analyzed the latest IMF report on the volume of national economic production, which states that in real terms in 2014 China reached the level of 17.6 trillion dollars, the United States - 17.4 trillion dollars.

The PPP share of the PRC in the world economy was 16.5%, the USA - 16.3%. One of the reasons was the introduction by China of international standards in the calculation of GDP, which allowed it to include activities that were not previously recorded in this indicator. Thus, for the first time in many decades, the United States lost its status as the largest

Paulman V.F.

The reforms that began in China in the late 70s of the 20th century at the initiative of Deng Xiaoping cause a lot of controversy. There are ongoing discussions on the question of whether their end result will be the inclusion of the country in the capitalist world of the American-European model, or whether China, as its leaders emphasize, will be able, thanks to reforms, to prove the triumph of socialist ideas and implement those ideals of Marxism that collapsed in the USSR and countries of Eastern Europe. One obvious factor remains - the socio-economic transformation in China does not fit into the framework of either classical Marxism or bourgeois ideas about the development of society. In China, in the process of reforms, there is an intensive search for its own, national path of development.

The implementation and implementation of reforms in China by no means means that some special economic methods are being used that are unknown to the rest of the world. China is slowly and consistently, without shying from side to side, moving along the path previously traveled by the more industrially developed Asian countries (Japan, South Korea), where the traditional eastern institutions of self-organization were superimposed on the mechanisms of market distribution of resources universal for the whole world and modern technologies.
There are many similarities with the reforms carried out in the post-socialist countries: this concerns ensuring the independence of enterprises, the gradual release of prices, decentralization of the banking system, and fundamental changes in tax policy.
It is also highly characteristic that a mandatory element of the reforms from the very beginning was a thorough experimental testing of emerging ideas and plans within individual provinces, cities and counties.
The first step of the Communist Party on this path of development was the adoption of the law on propiska. All citizens of the country were officially divided into peasants and townspeople. If you were born into a peasant family, then you will never be able to change your status.
The propiska regime significantly limited the opportunities of rural residents in comparison with their fellow city dwellers. For example, in the right to receive higher education, pension and medical insurance, as well as other types of social security. The level of taxation of peasants is also much higher than that of townspeople.
Let's not forget that China is an agrarian country, since peasants make up more than 65% of the country's population.
By adopting the law on propiska, the authorities have actually turned most of the Chinese into a labor force ready to work for a penny. Realizing that due to the poverty of the population, it is impossible to increase the income of the state at the expense of domestic demand, the Communist Party was forced to slightly open the "iron curtain", starting the so-called policy of reform and openness.
Cheap labor led to a low cost of goods. The country quickly became the world's factory. Western investment poured into China, mass production of goods for export began. Money flowed into the treasury of the Communist Party in a big stream.
After several unsuccessful political campaigns such as the "Cultural Revolution", "Great Leap Forward" and others, in addition to increased poverty, the authority of the party itself was also undermined. Therefore, in order to strengthen the consciousness among the masses that the country is moving in the right direction under the "skillful leadership of the party", and also to increase its authority in the international arena, the authorities began to invest part of their profits in creating signs of a developed state.

Skyscrapers, hotels, stadiums began to grow in large cities of China, like mushrooms after rain, infrastructure changed, and the latest achievements of scientific and technological progress were introduced. The Communist Party effectively copies from developed countries everything with which a developed society is associated with a cursory glance. So in China there were trains on a magnetic cushion, "five-star" public toilets, high-speed Internet, and numerous international exhibitions. The Western media often reports on Chinese millionaires and billionaires, whose number is constantly growing even despite the impact of the global economic crisis.

Although the reform course was formally announced in 1978, it was only in 1985 that the party officially recognized the right of non-state capital to exist for the first time. Three years later, it was "blessed" in the PRC Constitution as "addition to the socialist economy of public property." These days, new opportunities have opened up for the private sector. In 2004, an amendment on the inviolability of legal private property was included in the same Constitution, thereby almost equating it with national property, which until then was considered the only inviolable property (although the latter remained in the Basic Law also “sacred”).
Private property in China arose without the privatization of state property, as happened in Russia. At their own expense, the enterprises were created by wealthy peasants, merchants, artisans, party and government officials, who left their posts and “set sail” on the sea of ​​business, without losing useful ties with colleagues who remained in power. This, in turn, gave rise to corruption, which in China is not much less than in Russia, and about a third of entrepreneurs are members of the CCP.
The overwhelming majority of private firms in the Celestial Empire of the 21st century are small or medium-sized (very few large ones). None of them can be called rich, but it is thanks to their mass character that they play such an important role in the Chinese economic miracle. From 1989 to 2003, the number of such enterprises increased from 91,000 to three million - 33 times; the number of workers employed in them increased 24 times, and the cost of production - 196 times.
Private capital dominates the labour-intensive industries, where it creates the jobs badly needed by the overpopulated Middle State. It accounts for more than 70% of Chinese food and Chinese paper, more than 80% of Chinese clothing, footwear, plastics and metal, 90% of Chinese timber and furniture, and, of course, the bulk of Chinese exports that are noticeable all over the world: toys, handicrafts, household appliances etc.
Recently, private traders are beginning to take root in heavy industry, in public services, and even in the traditionally ideological sphere - the film industry. And now the Chinese government is deliberately pursuing a policy of reducing the share of the public sector in the economy. According to the adopted plan, less than a third of large enterprises (50 out of 190) should remain state-owned, including only those that are especially important for the national security and life support of the country. The rest are corporatized, and with the active involvement of not only local but also foreign investment.
If market reforms naturally entailed a break with the centralized economy, then the course of openness undermined the traditional isolation that for centuries fenced off China from the outside world. The country was motivated to move in this direction by the successful development of neighboring East Asian countries, primarily the “four small dragons”. Two of them - Hong Kong and Taiwan - politically and historically form part of China, Singapore is very closely related to it ethnically, and South Korea is its "sister" in Confucianism.

It all started in August 1980, when four special economic zones (SEZs) were created on the south coast: two in Guangdong (Shenzhen and Zhuhai) and two in Fujian (Shantou and Xiamen). Their establishment was initiated by Guangdong officials, who simply could no longer pretend that they did not notice the striking differences in the standard of living between the lands under their jurisdiction and neighboring Hong Kong. They say that the last straw was the visit of a state delegation to the small village of Lofantsun on the banks of the river that separates the PRC from the mainland of this territory leased by the British. It turned out that the income of peasants on the Chinese side is 100 times less than that of the inhabitants of the village with the same name on the opposite side.

The newly created special zones justified themselves. They attracted the capital of the diasporas, who never broke with the fatherland in exile. Overseas Chinese huaqiao began to vigorously invest in enterprises that produced goods for export. For their part, the authorities proactively created favorable conditions for foreign investors: they allowed them to lease land for building, for example, factories - for 50 years at extremely low rates. And they were taxed with a minimum income tax: 12% against Hong Kong's 17.5%.
Five years later, in 1985, the privileges of small SEZs extended to vast lands in the deltas of the Yangtze and Zhujiang rivers, as well as in the south of Fujian province. Emigrants were granted new benefits: their concessions were completely exempt from income tax for three years, and in the next four they paid half of it. Since then, a consistent policy has been outlined to attract as many foreign investments as possible. Even though legislation is geared towards this goal, Beijing continues to provide more benefits to foreigners than to its own producers.
In April 1988, Hainan Island off the southern coast of the country became the largest free economic zone. Now five-star hotels have grown in this tropical resort of China, and tourists from the central regions of the Middle Kingdom are learning to relax in comfort and communicate with representatives of other countries.
The rapid development of tourism is the best evidence of the success of the Chinese course of "openness". The SARS that hit China slowed this process down somewhat, but when the World Health Organization removed China from the list of states that pose a health hazard, the tourist flow increased significantly, bringing the country a considerable profit, amounting to millions of dollars. By some estimates, in 2020, China will become the leader in international travel.

Today China is a country of contradictions. Tensions between its increasingly open economy and its still closed political system and institutions (founded during the Stalin era in the 1950s) make China today the world's most potentially conflict-prone country of this magnitude. Chinese state planner Chen Yuan once warned that Chinese reformers had created a "birdcage economy" in which a capitalist bird grows in a socialist cage. From which he concluded that if the leaders of the party were not careful, this capitalist bird would break out of the socialist cage, ending the Chinese Marxist-Leninist revolution. Indeed, the birdcage of the old socialist economy has already largely broken under the pressure of Chinese capitalist reforms, releasing a mutant "People's Republic" into the global consumerism stimulus market.

But, despite all the critical contradictions within the country, and the huge social imbalance, the economic breakthrough, as they say, is “on the face”. And, as can be seen from the graph of China's GDP growth, the peak of economic development occurred in the period immediately following the country's accession to the WTO.
Having received membership in the World Trade Organization on December 11, 2001, China became one of the last major trading powers to join this organization, having spent 15 years on the most difficult negotiations with the world community, and more precisely with the US and the European Union. The result was the long-awaited membership in the World Trade Organization and a number of obligations that the Celestial Empire had to take on:
Tariffs on industrial products, which are critical to US companies, should be cut from 25% to 7%.
Tariffs on agricultural products, which are critical to US farmers, should be cut from 31% to 14%.
Large-scale reopening of a range of service sectors, including sectors important to the US such as banking, insurance, telecommunications, and professional services.
Large-scale reforms in transparency, notices and clarifications of upcoming legislative measures, uniform application of laws and judicial supervision help foreign companies operating in China to overcome barriers.
China's compliance with obligations under a range of existing WTO agreements that cover all aspects of trade, such as agriculture, import licensing, trade-related aspects of intellectual property rights, technical barriers to trade, and trade-related investment measures.

Such a difficult victory - accession to the WTO - was given to China by almost complete control over the most important economic and political processes by other WTO members, and in fact by the United States and the European Union. What did the Chinese economy get in return? Analysts are arguing that the Chinese economic miracle is just a myth, a bubble inflated by outside financial infusions. Indeed, the country's economic growth is based on foreign investment, the placement of large global corporations of their production facilities in China (betting on cheap labor), etc. And the notorious GDP growth, in terms of per capita, throws the country into the second hundred of the “tournament table”.
China's official statistics show that the country's economy grew by 11.4% in 2007, beating its own record 13 years ago. The State Bureau of Statistics of China estimated the country's gross domestic product at 24.7 trillion yuan, which corresponds to 3.4 trillion. dollars at the exchange rate at the end of 2007. The flip side of China's rapid economic growth is inflation. The authorities are trying to keep economic growth under control, but it is difficult to do so. To slow growth to 11.2% in the last quarter of 2007, the country's central bank had to raise its key rate six times. While the central banks of other countries are lowering rates, in China it is likely to be raised further. The underprivileged sections of Chinese society suffer the most from inflation. Essential products such as pork have risen in price by 50%.
As I said more than once in the economic section of the forum library http://www.forum-orion.com, the Celestial Empire turned out to be unique not only in culture, traditions and history, but also in the economy. Unlike our country, China's main foreign economic direction is the export of finished goods and the import of raw materials. In terms of natural resource reserves per capita, China lags far behind the world average. The provision of arable land in China is less than 40%, forests - less than 14%, mineral resources - 58%.
The unique demographic situation and population make it possible, having practically no natural resources of its own, to take the position of one of the largest countries producing consumer goods. Especially if this list includes all those products that are sold under the brands of well-known European and American brands, and are produced, which is no secret to anyone, in China. In fact, China has become the "factory of the world" - two-fifths of the world's motorcycles, a third of household air conditioners, a quarter of all electric fans, one-fifth of refrigerators and chemical fiber - significant numbers for a country that considers itself a developing country. But now China not only imports capital and technology, but also exports them, because investments abroad provide the country's economy with the missing raw materials and energy. Thus, the China National Oil and Gas Corporation acquired the Kazakhstan Oil Company for $4.18 billion, and the Lianxiang company, which bought the assets of IBM, became the third largest manufacturer of personal computers in the world.
At the same time, the crisis of social development, combined with such indicators of economic and industrial growth, is also unique. Historically, the Middle Empire "regulated" a gigantic population by pestilence, war, famine, or flood. But with the natural development of civilization, it was no longer possible to count on a natural decline in the population. In the early 1970s, the party and the government set a course for systematic birth control. Encouraged by urbanization, rising living standards, better medicine, and the emancipation of women, this course has slowed down the rapid growth of the number of Chinese on Earth. Otherwise, now it would have reached the mark of 1.6 billion people, which demographers consider the maximum allowable for the Middle Kingdom. But there was a bias in the country towards the aging of the nation and gender imbalance. Accordingly, the ratio of people of working and non-working ages is “deteriorating”, and the state, society, and ordinary citizens are required to spend more and more on social assistance and health care. Education, science, and support for other weak social groups suffer. The burden on young people is increasing, the basis for the conflict between fathers and children is being created. An aged society perceives innovations, changes, and structural reforms needed for modernization worse than a young one.

There is no concept of "old age pension" in China. The main burden of caring for the elderly falls on the family - such a norm is directly enshrined in the Law on the Protection of the Rights of the Elderly of the People's Republic of China. The excessively increased cost of education, healthcare, and housing is becoming unbearable for the vast majority of Chinese. The old-age pension system covers only 160 million people - less than half of the total number of city dwellers, which is well below the world average. Even less coverage for sickness insurance - 133 million people, and for unemployment - 105 million people. In the countryside, social insurance is practically non-existent. But the presence of these cornerstones of a controlled civil society is a prerequisite for the evolution of a market economy.
Rural areas of the country generally remain below the poverty line. And the population is massively moving to cities in search of work. To alleviate unemployment, the government seeks to develop labor-intensive industries, but a contradiction arises: this use of labor resources is poorly aligned with China's increased efficiency and competitiveness on the world stage. Now, an increase in GDP of only 1% allows only 8 million people to be employed, while in the 80s of the last century, three times as many people would have received jobs. To increase the efficiency of state-owned enterprises, tens of millions of people are fired from them who are looking for a new job in the private sector or organize individual business. In recent years, 27 million people have been laid off from state-owned enterprises with the status of “shyagan” (these workers retain some connection with their native enterprise and are not considered unemployed), of which 18 have already found new jobs. But already in 2004, out of 75 million people working at state-owned enterprises, 40 remained. The dominance of the traditional small-scale peasant economy leads to the fact that the village lags behind the city more and more. In 1997-2003, the average income of the villagers increased by only 4% per year, while that of the townspeople increased by 8%. Nominal per capita incomes of the urban and rural population differ by more than 3 times, and taking into account hidden incomes and social benefits for the first category - by 6 times. There is no other country in the world with such a large gap. The village, where two-thirds of the country's population is concentrated, consumes only a third of retail goods. The same vices in health care and education.

But the size of the PRC's population is not an internal affair of China alone. There are too many Chinese for the world to afford to treat this country like any other. The rapid growth of the population sharply raises the question of feeding this country and providing it with industrial raw materials. And the more Chinese people live in China, the less the world may be interested in internal conflicts in this country. A collapse like that of the Soviet Union could lead to massive uncontrolled migration of hundreds of millions of Chinese, and spread instability to many neighboring states. And Russia is a very close, "spacious" and friendly partner.
And, despite all the negative-unique features of China, leading international corporations see China as the most promising global market. The world's largest firms are not only moving production to China, but also transferring their research and development units there. Not surprisingly, the salary of computer engineers, whose qualifications are not inferior to the world, is only one-third of the Japanese. China is now being talked about as a land of low wages and high technology. Back in 2001-2002, the Japanese Matsushita Electric Industrial Company opened two research laboratories - in Beijing, for the development of mobile phones, and in Suzhou (Jiangsu Province, north of Shanghai) - for the development of household appliances. Nomura and Toshiba have R&D centers in China to develop software and electronic chips. American IBM and Microsoft, French Alcatel and Finnish Nokia, Japanese Mitsubishi and Toshiba, Honda and Yamaha opened their research units in China at the end of 2000.

The rapid growth of domestic Chinese manufacturers in high-tech sectors is largely due to the support of the government, which insists that foreign companies coming to China "share" technology.
In the early 1990s, the Chinese telephone exchange market was dominated by Western companies such as Lucent, Alcatel and Siemens. Now they are sold by three Chinese companies that did not even exist in 1985 - Huawei, Datang and ZTE. Contracts for the supply of arms are built on the same principles.
According to 2007 data, China has been able to attract $720 billion in foreign investment since the late 1970s, when the country's communist government created opportunities for such financial injections into the economy. This figure illustrates the creation in China of more than 610 thousand companies with foreign capital (480 of the 500 largest companies in the world have organized their representative offices and joint ventures in China).
“For 4,000 years of prior history, Japan has been a peripheral state to China, except for just one last century,” writes Kenichi Ohmae, the Japanese management guru, as he is called, in his Japanese-published book China's Influence. “In the future, Japan will be to China what Canada is to the US, Austria to Germany and Ireland to Britain.”
The prime minister of Singapore, where three-quarters of the population is Chinese, is also worried about the onslaught of Chinese goods. He urged the domestic business to switch from electronics to new export goods - to petrochemicals, pharmaceuticals and biotechnology, since it is already hopeless to compete with the Chinese in electronics.
But these are rather "lyrical digressions", albeit true ones, from the strict rules of economic realities. At the moment, what looks like an “economic miracle” from the outside turns out to be a deep social crisis, an economy on the verge of overheating and a serious documented dependence on the European Union and the United States on the inside. But few today doubt that China will take a leading position in the global economy, especially given the crisis in the United States and Europe, which has hit the financial system of many countries painfully. Experts differ only in terms, but the figure of the 2040s is still given. The only question is how far the current world leaders will be able to overcome the liquidity crisis and, most importantly, with what results this overcoming will be completed. It is reasonable to assume that Russia's accession to the WTO will make it possible to somewhat shift the points of influence in the world and, possibly, deprive the superpowers of their leading positions. Accordingly, China will be able to get rid of the WTO agreements that burden the country and get the opportunity for a new direction of economic development. Of course, "the dots over" and "will be placed, but their sequence and priority will appear only in the future.

It is worth mentioning in particular the features of the modern Chinese mentality regarding the relationship between citizens and economic units, on the one hand, and authorities, on the other. Their character was embodied in the aphorism: "The state gives good policy, not money." The main merit of the government is to create a favorable climate for entrepreneurial activity.
State regulation is aimed at solving interrelated tasks, among which the following should be highlighted:
1) maintaining intersectoral and interregional proportions. For these purposes, along with methods of macroeconomic regulation, methods of centralized (directive) planning are also used;
2) systematic use of credit and tax policy;
3) active participation of the state in the formation of other
links of market infrastructure, markets for technologies, information, labor, securities, etc.;
4) advance creation of a sufficiently effective regulatory and legal framework;
5) creation of a control mechanism.
Planning remains one of the most effective tools in the hands of the state.
Great importance is attached to the development and implementation of five-year plans for the socio-economic development of the country, a long-term plan for 2000-2010 is being formed.
Today in China paramount importance is attached to the financial support of plans. Given the large role of foreign investment in the economy, when developing plans, consultations are held with foreign and joint companies, with which financial and other issues are agreed. The desire of the Chinese leadership to inscribe the planning mechanism into market relations is evident.
The most important feature of the Chinese reforms is that they were started "from above" and the role of the center, state administration is preserved at all stages, although the scale of state regulation of market relations is changing both in quantitative and qualitative parameters. The experiment of building socialism with Chinese characteristics was theoretically substantiated in the early 1980s and embodied in today's China and its future, in which this country is one of the leaders of the world community.

Deng Xiaoping, the architect of the Chinese economic miracle, began his reforms primarily in the economic field, which explains the success of his policies. Thus, the well-known figure Telman Gdlyan, expressing not only his own opinion about the correctness and advantages of the Chinese reforms, the path of Deng Xiaoping in comparison with the policy of M.S. Gorbachev, wrote: “Apparently, the country should have followed the Chinese version. That is, gradually change the economic situation and only then, through a stable economy, gradually move on to ideological changes. That is, the same Chinese version that was proposed and implemented by the wise statesman Deng Xiaoping.
In China, they say: "You cannot stop the flow of a river with a blow of a sword, just as it is impossible to hide the wind in a bag." So the reformation of Chinese socialism, initiated by Deng Xiaoping, will continue in our time...

Deng Xiaoping (1904-1996)

Officially, Deng Xiaoping is a Chinese revolutionary and politician; unofficially, he is the leader of the country. From the late 1970s to the early 1990s, he proclaimed a policy of economic reform and building socialism with a "Chinese face." Under him, the Celestial Empire became a strong, developed state. He put forward the idea of ​​uniting China and Taiwan on the principle of "one state - two systems." Throughout the world, he was recognized as an outstanding Chinese reformer of the 20th century.

During the years of turbulent party activity, Deng Xiaoping had to go through ups and downs. He was appointed to the highest posts and removed, he was sent to the provinces and returned to the center. But it was impossible to do without him. He was not just an experienced, wise leader who knew the answers to many questions, he knew the secret of how to make the country prosperous...

Deng Xiaoping came from a wealthy family, but wealth mixed with poverty annoyed him. A native of Guang'an County, Sichuan Province, he wanted to see the world. He was 15 years old when, among other top Chinese students, he arrived in France. Life required money, so he worked a lot in different places, but did not quit his studies. There, in France, he became acquainted with the teachings of Marx.

Upon returning home in 1921, Deng joined the Communist Youth League of China, and in 1925 went to the USSR for two years to study the experience of building socialism in the country of workers and peasants, was a student at the Communist University of the Working People of the East. Returning to his homeland, he took up party work. He was transferred to the army - to strengthen the morale of the revolutionary soldiers. Almost until 1949, he served as a political commissar, then he was elected a member of the Central Committee, and since 1956 he served as General Secretary of the Central Committee of the Communist Party of China for 10 years.

In 1966, Mao Zedong announced a "cultural revolution" and Comrade Deng was removed from all posts. He was sent as a simple worker to a tractor factory. The Red Guards were preparing to destroy him. It would seem that his career was over, but the fighting party member was remembered by cancer-stricken Zhou Enlai, the 1st Premier of the State Council of the People's Republic of China, who appointed him his successor. In 1973, Deng Xiaoping was reinstated in party work. Zhou Enlai died in 1976, and Comrade Deng, by order of Mao Zedong, was again removed and sent to the provinces.

Only after the death of the "great helmsman", after the defeat of the revisionist groups, Deng Xiaoping managed to restore himself in the party and take the leadership of the country into his own hands. Besides him, there was no one left who would have the experience, knowledge and desire, despite all the difficulties, to raise the country out of chaos. He, being only in the rank of Vice Premier of the State Council of the People's Republic of China, abandoned empty slogans, unnecessary party propaganda and proposed to start a broad economic transformation called "Beijing Spring".

In 1981, Deng Xiaoping took over as chairman of the Military Council of the CPC Central Committee and became the most powerful person in the party. He declared Mao "a great Marxist, a proletarian revolutionary" but erroneous. That's all criticism. Having done away with the past in this way, Xiaoping began to establish contacts with Western countries, recommended using the experience of Japan's economic recovery. In 1979, Xiaoping visited the United States, where he met with President Jimmy Carter at the White House, consulted with financiers on how to modernize China and turn it into a highly developed industrial power.

Thanks to his efforts, Hong Kong was returned to China in 1997. Deng agreed not to change his economic and political system for 50 years and soon announced the principle of "four modernizations": in the defense industry, agriculture, science and industrial production. Agricultural communes were dissolved, private enterprise was encouraged, the country was oriented towards a market economy - what should be produced is what is sold not only in the domestic but also in the foreign market.

Despite all the difficulties and contradictions, China moved on its intended course. Coastal regions of China, such as Shanghai, have become thriving industrial centers. This experience had a great influence on the development of the whole country.

In 1992, Xiaoping left the political arena, but until the end of his days he was interested in the success of the reforms he had begun.

After the collapse of the USSR and the world system of socialism, the construction of a new society continued in China, North Korea, Vietnam, and Cuba. "Chinese socialism" has been under construction for more than fifty years. Great changes in the country began after the death of the most authoritative leader Mao Zedong. He was buried in a crystal tomb in Tiananmen Square. But the new leaders of the PRC did not begin to expose the mistakes of the deceased leader and use them to justify their own failure. In 1978, under the influence of Deng Xiaoping, who continued the tradition of Confucius, the leadership of the Chinese Communist Party launched one of the greatest economic revolutions of modern times.

In agriculture, labor peasant communes (analogous to Soviet collective farms) were divided into individual, family peasant farms. The land remained public property. Small groups of administrators oversaw the performance of easy duties in favor of the state. Peasants got the opportunity to independently sell most of their products, acquire sophisticated agricultural equipment, united in cooperatives depending on urgent needs. In industry, the independence of enterprises was expanded. In cities, the creation of small and medium-sized private enterprises was allowed, which began not so much to compete as to complement the work of large enterprises. When carrying out the conversion of military plants, the Chinese preferred to first create a new promising enterprise capable of producing competitive products and provide jobs for the released workers, and only then they broke the military plant itself. Free economic zones were created in port cities with special conditions for entrepreneurs, primarily foreign ones. An exceptionally important factor for the success of economic reforms in the People's Republic of China was the traditional hard work, discipline, rationalism and habit of obeying the leadership, characteristic of the Chinese people and their mentality.

During the first ten years of reforms, industrial and agricultural production doubled, and in some respects tripled. The average annual growth of the gross national product was at least 9%, which was three times higher than the world average growth rates. In the following decade, the Chinese economy faced the problems of "overheating" and "overloading".

As in the days of the NEP in Soviet Russia, Chinese society faced the problems of sharp property differentiation, increased corruption of officials, discontent among employees of state enterprises, etc. However, the leadership of the Communist Party of China did not curtail reforms, as Stalin did after the death of Lenin. Nor did the Chinese leadership embark on the path of political and ideological liberalization following the example of Gorbachev. Moreover, in May 1989, opposition speeches by students and other groups demanding an easing of party dictates and political reforms were mercilessly suppressed by government troops using tanks. Sharply critical speeches in defense of Chinese dissidents by leading Western countries, some measures aimed at restricting trade with China, were ignored by the Chinese leadership with its inherent sense of dignity. China retains the death penalty. Officials who take bribes are regularly executed. Regular reorganizations were carried out at state enterprises. Serious stimulus for the Chinese economy was the service of the huge Soviet-Russian market.

To date, China ranks first in the world in coal mining, production of cereals, cement, cotton fabrics, silk, cotton, eggs; 2nd place - for the production of meat, cast iron; 3rd - for the production of rolled products, chemical fiber. In terms of GNP, China overtook Japan in 2010, and if the growth rate of GNP in this indicator is maintained or even slightly reduced, by 2020 it may overtake the United States. In any case, the famous formula of the recently deceased Deng Xiaoping is “It doesn’t matter what color the cat is, black or white. The main thing is that it catches mice "- helped China to move far ahead and for the first time in 2000 years of its existence to provide food and industrial goods of its own production for a normal living wage for 1 billion 300 million people, which is 1/5 of all the inhabitants of the planet.

It is rightly said that the path of life is laid in childhood. This happened to the young Deng Xiansheng, who was born in 1904 in the family of the landowner Deng Wenmin. His father sought to give his son a good education and enrolled him in one of the best schools in Chongqing, from where Deng went to study in France in 1919 as one of the successful students.

So, a young boy, a Chinese intellectual, comes to France and finds himself, literally, penniless. Father's money was not enough. I had to work, but a crisis reigned in France, the Chinese were taken exclusively on enslaving terms. Dan worked as a laborer, mechanic, waiter. This difficult period brought him a new name - Xiaoping, from the name of a small Chinese travel bottle for carrying vodka. Friends found in it an external and personal resemblance to Dan - small and pot-bellied in appearance, this vessel is stable. Xiaoping cannot be turned over - even if put on its side, it will certainly stand on the bottom again. As the saying goes, "as you call a boat, so it will float."
It was in France that Xiaoping, having seen enough of the "charms" of capitalism, takes his first step towards communism, joining the Chinese Communist Group in France in 1924.

Ivan Dozorov

Fleeing from the persecution of the French government, which soon laid eyes on the "dangerous communist agitator", Deng went to continue his studies in the NEP Moscow, where he soon entered the Sun Yat-sen University of Chinese Workers - the "forge of personnel" for Red China. As a conspiracy, he receives a student card in the name of Ivan Sergeevich Dozorov. The contrast with Europe is enormous - everything is free. The country's economy was on the rise - new shops, restaurants, cafes were opening. “We never had a shortage of chickens, ducks, fish and meat,” recalled one of Dan's classmates. We received good food three times a day. For breakfast, for example, we were given eggs, bread and butter, milk, sausage, tea, and sometimes even caviar.” Subsequently, it was this impression of general well-being after a starving life in France, this “Bukharin socialism” that would form the basis of Xiaoping’s “Chinese miracle”, who later recalled: “I came to Russia primarily in order to, having learned to observe iron discipline and receive communist baptism, fully communize their ideas and actions.

"Great Pilot"

Returning to China, Deng took a fresh look at the situation of the poor, disenfranchised peasants and workers, who made up the majority of the country's population. Here he continues to fight against the conservative Kuomintang government, actively maintains ties with Mao Zedong. Young Deng was deeply impressed by the communist leader. In his name, Xiaoping accepted the first "political death" - in 1933 he was removed from all walks of life for following the ideas of Mao and criticizing the leftist path.
But the paths of the two great supporters quickly diverged. The personal factor played a significant role here. Mao Zedong was a classic Eastern despot - he could afford to get up in the middle of the day, hold meetings, lying on the bed, taking a meal. Yes, and he explained his demands with riddles: “The rain will fall from heaven, widows will marry,” he believed that he would “lure the snakes out of their holes” in this way. Sometimes Dan simply did not understand what the great leader wanted from him. But the last impetus for Xiaoping was the policy of a great leap forward, which turned into a real disaster for China, the death of those "ordinary" people, for whose protection Deng embarked on the path of communism.

"Cat"

The task of restoring the economy after the big jump fell on Dan's shoulders. He was well aware that the continuation of Mao's policy would lead to a new catastrophe. Only decollectivization and economic liberation can save China. After all: "It doesn't matter if it's a black cat or a white cat, as long as it can catch mice, it's a good cat." It was this proverb, commonly spoken in Deng's homeland of Sichuan, that became the motto of his new policy. And it was this “cat” that Mao Zedong never forgave Xiaoping.
The great helmsman, who saw the new political course as a threat to his regime, accused Deng of “capputism,” that is, adherence to the capitalist path: “This man never recognized the class struggle as a decisive link. He doesn't care - Marxism or imperialism," Mao said. Already in 1966, a new call was heard from the leader - "Fire at the headquarters." The "cultural revolution" began, and Deng Xiaoping "died" a second time - he was sent to atone for his guilt by working at a tractor factory. From now on, even his name is banned. Deng Xiaoping did not exist, henceforth he could only be called "Old Deng".

Eminence grise

Deng received his final rehabilitation only after the death of Mao and the fall of his wife's organization, the Gang of Four. In 1980, the disgraced Xiaoping, who rallied supporters around him, actually becomes the ruler of China. But this time he prefers to remain "in the shadows" leaving himself the post of chairman of the Central Military Council. But from now until his death, it was Xiaoping who "ruled the show". Once again settled in the political penates of China, he puts forward the slogan: "One country - two political systems." Using the experience gained in NEP Moscow, Xiaoping proclaims the principle of a free and mixed economy and creates "socialism with a Chinese face", which will subsequently turn China into one of the leading countries in the world.

Tiananmen Square

Despite all his liberal reforms, Deng Xiaoping remained true to the path of Eastern dictatorship. Like Mao, he did not stand on ceremony with the enemies of the regime, which he publicly proved during the events on Tiananmen Square. Inspired by the political liberalization in the USSR, Chinese students and representatives of the local intelligentsia demanded a free political system and a multi-party system. The reason was the overthrow of the supporter of "rapid reforms" Hu Yaobang from the post of general secretary and his subsequent sudden death from a heart attack. Thousands of protesters gathered in Tiananmen Square, where once in 1976 a crowd of millions sang the praises of Deng Xiaoping while criticizing Mao. Alarmed by the events in the USSR, Xiaoping ordered the suppression of the uprising in blood. He is credited with the words: "Do not be afraid of the victims." The soldiers did not stand on ceremony - the corpses were raked by bulldozers.

"Gorbachev is an idiot"

Back in the days of Mao Zedong, the PRC diverged in interests with the Soviet leadership. Deng Xiaoping did not abandon the course of his predecessor, being convinced that the actions of the Soviet leadership were wrong. Of all the political courses in the USSR, he recognized only "Lenin-Bukharin". Speaking of the three world revolutions, he mentioned only the American, French and Chinese. Even in 1989, during the reconciliation with Gorbachev, when the Chinese delegation was given the most cordial reception, Xiaoping told his subordinates: "You shouldn't cuddle with the Russians."
Deng Xiaoping had a sincere dislike for Mikhail Sergeevich. Subsequently, Xiaoping's son said that his father "considered Gorbachev an idiot", blaming him that the leader of the USSR allowed the "fifth modernization" - democratic, which Deng himself "said no" during the Tiananmen uprising. But was, in general, the path of Asian China possible for the USSR? As they say that China is good, the Soviet Union is a dead end.