Reform and opening up

Reform and opening-up (), also known as the Chinese economic reform or Chinese economic miracle, refers to a variety of economic reforms in the People's Republic of China (PRC) that began in the late 20th century, after Mao Zedong's death in 1976.

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. In 1979, Deng launched the Four Modernizations, aiming to modernize China's economy. A parallel set of political reforms were launched by Deng and his allies in the 1980s, but ended with the 1989 Tiananmen Square protests and massacre, halting further political liberalization. The economic reforms were revived after Deng Xiaoping's southern tour in 1992. Reform and opening up gradually became the main component of socialism with Chinese characteristics, constituting Deng Xiaoping Theory, and was incorporated into the CCP Constitution in 1997 and written into the Constitution of China in 1999.

Reform and opening up is a major decision and turning point in the history of the People's Republic of China. It began after the Cultural Revolution, and changed the planned economic model of China to what is officially termed as a socialist market economy. The reforms de-collectivized agriculture, abolished the people's communes, relaxed price controls, allowed foreign direct investment into China, and led to the creation of special economic zones, most prominently the Shenzhen Special Economic Zone and the Shanghai Pudong New Area. Private enterprises were allowed to grow, while many state-owned enterprises were scaled down or privatized. Shanghai Stock Exchange and the Shenzhen Stock Exchange were established in 1990, allowing a capital market system, while China joined the Asia-Pacific Economic Cooperation in 1991 and the World Trade Organization in 2001.

The reforms led to significant economic growth for China within the successive decades; this phenomenon has since been seen as an "economic miracle". The reforms turned China from one of the poorest countries in the world to an upper-middle income country, while significantly reducing poverty and increasing wealth; between 1978 and 2018, China reduced extreme poverty by 800 million. The economic growth resulting from the reforms also significantly increased China's global political and economic power, while establishing the country as the world's leading manufacturing power. China's economy has grown from $150 billion in 1978 to $18.74 trillion by 2024. In 2010, China overtook Japan as the world's second-largest economy by nominal GDP, before overtaking the United States in 2016 as the world's largest economy by GDP (PPP). Provided by Wikipedia