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...Deng's efforts are now focused on extending the reforms from the countryside, where they have worked extremely well, to the cities. Shortly after he emerged as China's supreme leader in 1979, he established an incentive system for peasants that allowed them, once they had turned over a share of their crops to the government, to sell the rest on the open market. Despite sniping from diehard Maoists, the innovations were a smashing success: the grain harvest, for example, rose from 320 million tons in 1980 to a record 400 million last year, and average peasant income more than...

Author: /time Magazine | Title: China It Cannot Harm Us | 1/14/1985 | See Source »

...boom, however, did not extend to the cities, where most of the large but inefficient state-owned industries are located. At a party meeting last October, the delegates approved a Deng-inspired resolution detailing an ambitious package of reforms aimed at reinvigorating the urban economy and giving industrial workers some incentives. The program called for virtual autonomy for state-owned enterprises, the levying of corporate-type taxes and a radical cutback in central planning. Most important, the plan looked toward price reforms on goods subsidized by the state. Deng envisioned removing the subsidies, which account for nearly half...

Author: /time Magazine | Title: China It Cannot Harm Us | 1/14/1985 | See Source »

...prices do rise and China has to cope with major inflation, the complaints could be powerful fodder for Deng's opponents. Though no party official has publicly criticized his programs, some in the 24member Politburo are believed to have strong reservations about the policies. Chen Yun, chairman of the party's disciplinary commission, for example, is thought to favor Soviet- style economic planning and to oppose Deng's open-door policy to the West. Other party officials also distrust Deng's reforms because of their capitalistic flavor, but much of their opposition is rooted in self-interest. For Deng...

Author: /time Magazine | Title: China It Cannot Harm Us | 1/14/1985 | See Source »

China's future leaders are now emerging. At a party meeting in late December, Deng lavishly praised several younger members, including Hu Qili, who is in charge of the Secretariat's day-to-day operations and who, at 56, is considered a rising star. Deng also announced a party delegate conference for next September to elect as many as 50 new members to the 346-seat Central Committee. The anticipated housecleaning is intended to make room for younger, more open-minded and better-educated officials who are likely to promote rather than resist reform. Efforts are also under...

Author: /time Magazine | Title: China It Cannot Harm Us | 1/14/1985 | See Source »

...Deng is obviously trying to ensure that his reforms will survive after he is gone. In recent months he has stressed to foreign visitors that his overtures to the West are a permanent feature of Chinese foreign policy, not a passing fad. But as the blitz of New Year's pronouncements indicated, Deng also feels that the attempt to bring reform to the cities needs a fresh personal push. That effort has brought him back into the limelight after two years of governing largely behind the scenes. The strategy may help attract public support and build a national consensus...

Author: /time Magazine | Title: China It Cannot Harm Us | 1/14/1985 | See Source »

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