1. Political system China still has a one-party system

2. Historical overview

3. From the revolution generation to the Third generation

5. Brief Guide to Historical Developments Historical events are important to the understanding of China's economy since 1949. With each new development, some elements of the past were retained and the identification of those elements requires knowledge of what existed in the past. Without this knowledge, the new developments may appear to be contradictory and confusing.

6. The History of a Republic (1) Oct. 1, 1949 The People's Republic of China is established. Chiang Kai- shek flees to Taiwan. 1950-53 China’s involvement in the Korean War 1951-52 Land reform accompanied with ‘three anti’ and five ‘anti’ movement 1954-55 China shells Taiwan, and the U.S. announces it will defend Taiwan 1956 Political liberalisation ‘let a hundred flowers bloom, let the hundred schools of thought contend’ 1957 Anti-Rightist Campaign

7. The History of a Republic (2) 1958-60 The Great Leap Forward organizes peasants into communes to achieve modernization. Inflated productivity figures and irrational farming decisions cause famine and some 30 million deaths. 1959 China entered Tibet and the Dalai Lama flees to India 1961-65 Readjustment and recovery 1966-76 A power struggle between Mao and other party members leads to the Cultural Revolution. Under Mao's orders, Red Guard youth brigades flood the cities to weed out so-called revisionists

8. The History of a Republic (3) 1967 China detonates its first H-bomb 1972 Nixon visits Beijing 1976 Mao dies 1978 Deng begins economic reforms, starting with agriculture 1979 U.S. grants full diplomatic recognition to Beijing, not Taiwan 1989 Students protests in Tiananmen Square 1999 Angry anti-U.S. demonstrations break out after NATO bombs the Chinese Embassy in Belgrade, Yugoslavia