International relations

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Capitalism in China

After the death of Mao Zedong in 1976 , Deng Xiaoping assumed the post of chairman of the Chinese Communist Party . His assumption to power signaled a change in China 's economic policies (Hsu , 24 . The collectivization policies of the old Communist Party was revamped and replaced with capitalist based policies . Deng once said , To be rich is glorious ' Deng 's statement reflected the dissatisfaction of Mao 's earlier policies of collectivization . Deng invited foreign investors to put their money on

China 's economy . Imports were encouraged to increase domestic consumption . In 1981 , the country adopted a capitalist-export oriented economy . The Chinese currency was stabilized to increase the value of the country 's imports . From 1981 to 2008 , Chinese exports rose by about 200 (Hsu , 28 . From the same period , Chinese subsidies to export-oriented industries increased by about the same level

The adoption of a capitalist export led model of development may be partly due to the desire of the old party members to make China an economic power . Although this claim may be a little illusory , for some of the old party members were resistant to radical change . For Deng however , making China the leading exporters of goods and services would immediately result to an increase of foreign direct investments to the country . This would foster an increase in the level of consumption and government expenditure , increasing the income of the country in the long-run . By exporting more ' according to Deng , the...