The end of the Cultural Revolution

Chaos of Red Guard rivalries controlled by 1970

Lin Biao dies in mysterious plane crash in 1971
Lin Biao had been Maos anointed successor and enthusiasm for the cultural
revolution ends w/ Lin Biaos death
1976 Tiananmen incident mourning Zhou Enlai declared counterrevolutionary instigation
August 1976: Mao Dies
October 1976: Gang of Four arrested
By 1978 Deng Xiaoping is leader of the CCP
Deng declares the Cultural Revolution a mistake and promises to no longer
use class labels to persecute/favor people
Gang of Four blamed for CR excesses but Mao not directly blamed
Official verdict on Tiananmen Incident is reversed
Scar literature and other stories of CR suffering encouraged
Official apologies issued to many individuals
Deng Xiaopings reforms: Socialism w/Chinese characteristics
Favorite Deng quotes: Some will have to get rich first
Household responsibility in agriculture: leads to huge jump in agricultural
output by mid 1980s
One-Child policy (works in city, not so well in countryside)
4 Modernizations (military, industry, ag, science)
Wei Jingshen: the 5th modernization

Special Econ. Zones (SEZs);

Township Village Enterprises (TVEs)
Economic Reform: The Dual-Track system

The state buys relatively small quotas at low state prices

All excess production can be sold on market at higher prices
Space opened for non-state competitors to enter markets

Township Village Enterprises

1978 TVEs employ 28 million, provide 6% GDP

1996 TVEs employ 135 million, provide 26% GDP

Cheap labor was key

Special Economic Zones SEZs opening in 1980s

Areas that encourage foreign investment and have lighter taxes and
regulations