Changes in Chinese Trade Theory since 1979

Abstract

Mao’s death and the subsequent purge of the ‘Gang of Four’ in late 1976 caused an immediate change in Chinese society. As Hua Guofeng’s government declared the conclusion of the Cultural Revolution and increasing numbers of demoted cadres were rehabilitated, the decade-long conflict gave way to emphasis on a renewed modernisation programme. The over-ambitious Ten Year Plan (1976–85) was announced by Hua in February 1978 (see Hua, 1978). In order to realise this task, new leaders began to adopt an open orientation towards the world economy after a long period of inward-looking development.