The Decade When China Is Opposite In Every Perspective From Today

1979 is portrayed by the West as the starting point of China's rise and growth. The period from 1979 to 1991 was China's "long 1980s." In China's official narrative, this era is also depicted as the "era of spring"—after all, it ended the political chaos of the Cultural Revolution (1966-1976).

In the memoirs of some Chinese intellectuals, it was also "the most liberal decade."

Indeed, the free atmosphere of the time fostered some brilliant economic ideas—primarily on reforms of the Soviet-style planned economy in urban State Owned Enterprises—and provided some key economic officials for China's economic governance in the 1990s.

It also contributed to a number of companies that later flourished in China, mainly large enterprises that grew from township and village enterprises, such as Midea (which decades later acquired KUKA Robotics in 2010s), which went from plastic fans to air conditioners, refrigerators, and washing machines.

But the situation in China throughout the 1980s was not so simple.

In many ways, China in the 1980s and modern China are starkly different:

Today, China is a strong trade surplus nation; in the 1980s, it was in deficit. Today, China's currency is a stable hard currency supported by strong industrial productivity; in the 1980s, it experienced continuous depreciation.

China's economy gives the impression of sustained high growth, both in terms of total GDP and GDP per capita.

However, in the 1980s, due to the continuous depreciation of the Chinese yuan, GDP per capita, when converted to US dollars, actually showed negative growth. China's overall global economic ranking declined in the 1980s, down from 7th to 10th.

Of course, in the 1980s, ordinary Chinese people experienced continuous improvement in food, clothing, and household appliances. However, high inflation at the time ultimately led to social unrest.

Fortunately, China maintained stability, avoiding the fate of Eastern Europe and Russia.

So, what exactly happened? Welcome to continue reading DeCoding China: 1980s, The Most Liberal Decade of China.

#ChinaEconomy #GlobalSouth #modernchina

00:00 – China's Economic Evolution: The 1979 Turning Point
01:34 – The Era of Deng Xiaoping: Transitioning to Economic Focus
03:26 – From Political Movements to Economic Development Strategy
04:12 – The Impact of the Four Dragons and Asian Tigers on China
06:16 – Market Economy Reforms: China's Step-by-Step Approach
08:05 – Agricultural Revolution: Land Redistribution and Incentives
11:12 – How Industrialization Solved China's Food Shortage Crisis
13:04 – The Rise of Town and Village Enterprises (TVEs)
14:12 – Urban Economic Reform and State-Owned Enterprise Shifts
16:30 – Opening Up: Attracting Foreign Investment and Hard Currency
18:49 – Lessons from Yugoslavia and Hungary: The Macro Reform Search
19:55 – Hong Kong and Taiwan's Role in China's Manufacturing Birth
21:23 – The Foxconn Connection: Shenzhen's Rise as an Industr