Reform and opening up
Economic reforms that transformed China's economy after 1978.
Guided by Deng Xiaoping, who is often credited as the 'General Architect', the reforms were launched by the ruling Chinese Communist Party (CCP) on December 18, 1978 at the third plenary session of the 11th CCP Central Committee, during the Boluan Fanzheng period. The reforms changed the planned economic model of China to what is officially termed as a socialist market economy, leading to significant economic growth and a reduction in poverty.
- field
- Economic reforms
- nationality
- Chinese
- known_for
- Transforming China from a planned economy to a socialist market economy, leading to rapid growth and poverty reduction
Lore & Background
The reforms de-collectivized agriculture, abolished people's communes, relaxed price controls, allowed foreign direct investment, and created special economic zones such as Shenzhen and Shanghai Pudong New Area. Private enterprises were allowed to grow, and many state-owned enterprises were scaled down or privatized.
Reader's Guide
Reform and opening-up is a major decision and turning point in the history of the People's Republic of China. The reforms led to significant economic growth for China within the successive decades, turning China from one of the poorest countries in the world to an upper-middle income country, while significantly reducing poverty and increasing wealth. The reforms also significantly increased China's global political and economic power, establishing the country as the world's leading manufacturing power. The reforms were carried out in two stages: the first in the late 1970s and early 1980s involved agricultural decollectivization and opening to foreign investment; the second in the late 1980s and 1990s involved privatization of state-owned industry.
Did You Know?
- The reforms began on December 18, 1978 at the third plenary session of the 11th CCP Central Committee.
Frequently Asked Questions
What is Reform and Opening Up?
It is the sweeping set of economic policy shifts in the People's Republic of China that launched in the late 1970s, right after Mao Zedong's death. The initiative moved the country away from rigid centralized planning toward what the government officially calls a socialist market economy.
Who is considered the main architect behind Reform and Opening Up?
Deng Xiaoping is widely credited as the driving force and 'General Architect' of the entire reform era. He steered the Chinese Communist Party in setting the policy shift in motion at the 11th Central Committee's third plenary session.
When exactly did Reform and Opening Up officially begin?
The reforms were formally adopted on December 18, 1978, during the third plenary session of the 11th CCP Central Committee. This fell within the broader Boluan Fanzheng (rectification) window in Chinese political history.
What were the biggest results of Reform and Opening Up?
The policy pivot fueled extraordinary economic expansion and lifted hundreds of millions of people out of poverty over the following decades. China's economy transitioned from strict state planning to a market-oriented model that the government labels a 'socialist market economy.'
Why does Reform and Opening Up matter in Chinese history?
It marked the decisive break from the Mao-era economic model and set the trajectory for modern China's rise as a global economic power. Without this 1978 pivot, the rapid industrialization and growth that defined the late twentieth and early twenty-first centuries would not have occurred.
More in Chinese History 1-24
Elsewhere in the Chinese History universe
Spotted an error? Know more?
This is a living reference — every entry is fact-audited, and reader corrections feed straight into our audit queue. Suggest an edit · See this site's audit record