Ｃｈｉｎｅｓｅ Ｒｅｆｏｒｍ：Ｔｈｉ ｒｔｙ Ｙｅａｒｓ ｏｆ Ｐｒｏｇｒｅｓｓ

Ｂｙ　ｓｔａｆｆ　ｒｅｐｏｒｔｅｒ　ＺＨＡＮＧ　ＸＵＥＹＩＮＧ　＆　ＸＩＮ　ＸＩＮ

A Western journalist covering the Beijing Olympic Games said that what touched him most were the smiling

Chinese faces he saw, and that remark highlighted the fundamental changes that the past three decades of reform and opening-up have brought to the country. Indeed, compared with the smiles, which beam an increasing confidence, the sprawling cityscape of high-rise buildings has become an old story.

In the early 1980s, Deng Xiaoping, who masterminded the countrys reforms, described Chinas advance as “feeling the stones to cross the river,” and to be sure, Chinas economic miracle over the past three decades has not been without some stumbling cost. But over time, the Chinese people have grown into a mature nation, capable of dealing with the world on an equal basis. They now care more about the quality of development rather than the speed of growth, and they have become increasingly concerned with

justice and fairness. This series of articles tries to reflect these ideological and

spiritual changes.

1978

Xiaogangs “Grand Parceling” Scheme

“We shall parcel out the villages farmland to each household. If the scheme fails, we cadres will accept the consequences, even if we are put to death, on condition that you villagers shall raise our children until they reach the age of 18.”

On a frigid night in December 1978, the 18 families of Xiaogang Village signed a secret “life-or-death compact,” and wasting no time, they divided the villages land, animals and farming tools on a per capita basis to each family, a milestone that came to be known as the “Grand Land Parceling” scheme. By doing so, the village, which previously had been a production brigade of a peoples commune, changed not only its own fate, but also that of the entire country.

Following the establishment of the New China, the country copied the Soviet economic system and nationalized all private businesses. Before 1978, people had no concept of private property, and division and distribution of collective property among individuals was regarded as a crime. In rural areas, all production materials and land belonged to collectives in the form of production brigades, and villagers farmed collective land in exchange for compensation, in cash and in kind.

The system known as the “Big Rice Bowl” retarded individual initiative. Before 1978, almost all of the 100 households of Xiaogang regularly left home for begging trips following each autumn harvest. But in 1979, the village produced enough grain for its own consumption, and for the first time sold a surplus to the state. The villagers per capita income that year reached RMB 400, compared to RMB 22 in 1978.

However, the rapid booming of the village did not create an immediate domino effect, and in 1982 the central government issued its first document of the year to confirm the “Grand Parceling” program, committing itself to the long-term stability of the policy. It did so in the following four years, issuing four more “File Number One” documents. As a result, the decade since 1979 saw a rural boom that laid a solid material foundation for the countrys more audacious economic reform and opening-up endeavors, spreading rapidly to its urban areas.

“Birds Nest Curls” and

Bell-Bottomed Jeans

After decades of isolation, China began allowing Western films and cultural and entertainment products from Hong Kong and Taiwan to enter the mainland in 1978. The “Birds Nest Curls” hairstyle and bell-bottomed jeans — symbols of spiritual independence, rebellion and freedom — found immediate favor with young people in defiance of orthodoxy despite criticism fromconservatives.

The “Birds Nest Curls” was a derogatory term for curled hair, since the most popular style at the time reminded older people of a birds nest. To them the hairstyle was at best indecent, but the bell-bottomed jeans were considered absolutely obscene, since they exposed the female form in all its glory. Those who wore them were considered “hooligans,” or at the very least “indecent.” There were extreme cases when indignant conservatives would take scissors with them and cut jeans they saw on the street.

1979

The Arrival of Coca-Cola

Three hours after China and the United States declared the establishment of diplomatic relations in 1979, Coca-Cola announced its entry into China. Three weeks later, the first batch of Coca-Cola was shipped in from Hong Kong and put on the shelves of big markets and hotels in Beijing, Shanghai and Guangzhou.

Soon after, the company donated a production line to China. As a symbol of the American lifestyle, the arrival of Coca-Cola caused a big stir in China. The production line was given to Shanghai, but it met with strong resistance. Local newspapers published articles and letters that decried the introduction of the production line as a betrayal of the country, claiming the move relegated China to the status of a slave of a foreign master, promoted a capitalist lifestyle and dealt a blow to national industries.

As a matter of fact, Coca-Cola first arrived in Shanghai in the early 1920s. In 1948 the Shanghai factory became Coca-Colas first overseas bottling facility to reach an annual output of one million cases. The American company withdrew from Shanghai before the Peoples Republic of China was founded in 1949. New China symbolized the end of the national humiliation that marked the century-long period of semi-colonialism when China lived under the coercion and hegemony of imperialist powers, including the United States. The Western policy of enmity toward the New China further exacerbated Chinese hostility, which continued through to the “cultural revolution” (1966-1976) and further to the early stages of the countrys reforms.

Pierre Cardin Fashion Show

Pierre Cardin is known as a “Fashion Missionary” to the Chinese, since he was the first person to introduce Western fashion to China. In 1979, he led his team of French models to Beijing and staged a fashion show at the Cultural Palace of Nationalities. The tall and sensuous foreign beauties parading on the catwalk astounded the Beijing audience, which was clad in the typical blue or gray of the day, and the show was the talk of the town. At the time, China knew nothing of fashion and fashion designing.

1980

Special Economic Zones

Following the introduction of reforms in 1978, Deng Xiaoping, who is generally credited with the innovation, continued sending a clear message to the Chinese people. “We should acknowledge imbalance,” he said. “The practice of equilibrium brings no hope. Our economic policy should allow a few areas, a few enterprises and a few workers and farmers who work diligently and effectively to obtain more income and live a better life than others. Only when some areas have prospered first can the state have the ability to help backward areas.”

After careful discussion in 1980, the central government accepted the request of Guangdong and Fujian provinces to “take a move ahead of others” and approved the establishment of special economic zones (SEZ) in Guangdongs Shenzhen, Zhuhai and Shantou, and Fujians Xiamen.

SEZs welcome foreign capital, practice a market economy and offer preferential terms to foreign investors with regard to land use, taxes and foreign exchange management in order to encourage exports and raise revenues. This was the first time that China opened special zones to foreigners since 1949.

The four experimental zones brought two decades of high-speed economic growth for Guangdong and Fujian, propelling Chinas economic takeoff. In 1984, the central government opened up 14 coastal cities and established three economic open zones along its coast, including the Yangtze River Delta and the Pearl River Delta. In 1988, Hainan Island was made an SEZ. The result has been an economic miracle.

The Self-Employed

Initially, the self-employed were composed of two types of people, unemployed young urbanites (mostly middle school graduates who waited for the government to assign them a job), and business-savvy farmers. They saw opportunities that arose from the disparity between the increasing consumption needs of the public and the shortage of supply under the planned economy.

They earned handsome profits either through trading between different areas or through deep processing of agricultural products. Many nouveau riche with an annual income of RMB 10,000 or more appeared among them, when the average annual salary of government employees was just a few hundred RMB.

However, their social status remained low, and they had to face constant social biases. A few law violators among them smeared their reputation even further, and people often considered them immoral opportunists and tax evaders. The social environment began to improve in the mid-1980s, and for a time the “self-employed” as an occupation ranked highest on the rating of occupation preferences. The “self-employed” sector and the private corporate economy that was born later have remained the most dynamic elements in the 30 years of Chinas rapid economic growth.

Nationwide Discussion about

Outlook on Life

The 1980 May issue of Chinese Youth published a long letter from Pan Xiao, which triggered a national debate and a re-examination of the conventional social ethic and outlook on life.

In the letter, Pan confessed her perplexity that arose from the great disparity between what she was taught in school and what she saw and experienced in life – how textbooks led her to establish an ideal that was only to be shattered by the reality of life, and how her honesty became a hindrance in her work and search for friendship and love.

She lost hope when she tried to seek the meaning of life. Finally, she concluded, that an individual cannot change his/her social environment, and that one should live subjectively for oneself and objectively for others.

Guan Zhihao, editor-in-chief of Chinese Youth in 1980, said: “The ‘cultural revolution left a deep scar on the souls of young people, as their value system based on honesty and sense of collectivism was avalanched with the end of the ‘cultural revolution. They felt they had been fooled and cheated, and they became cynical.”

Within a month of the letters publication, the editorial office received more than 20,000 letters. “At first, postmen brought letters in a bag, and not long after, they came with big sacks on their backs,” recalled Guan.

The debate marked the resurrection of individualism and the beginning of a period when young people strived to realize their personal values.

1981

“Five Stresses and Four Points of Beauty”

The term is shorthand for a “stress on decorum, manners, hygiene, discipline and morals” and “beauty of the mind, language, behavior and the environment,” an appeal the government made to its people, Chinese young people in particular, to refine their minds and deeds. The move was intended to revive the Chinese ethics and morals that were nearly destroyed by the infamous “cultural revolution (1966-1976).” By addressing symptoms rather than the cause – an absence of values – the movement soon fizzled out.

Qiong Yao Fever

During the “cultural revolution,” the natural affection between a man and a woman was decried as the bane of bourgeois ideology, and camaraderie was touted as the only noble interpersonal feeling. Lovers who dared appear in public arm-in-arm had to be prepared for scornful glares. With the introduction of Chinas reforms, ordinary peoples long pent-up desire for romance soon found vent in the love stories of Taiwanese writer Qiong Yao. Her works flooded bookstores and libraries almost overnight, and they were eagerly snatched up by tens of thousands of mainlanders.

All her stories featured the same story line: a pretty, talented and proud girl of humble background falls in love with an attractive and rich young man after a series of misunderstandings and antagonisms. The boys family opposes the relationship, but eventually relents, giving the story a Cinderella ending. Fan Hansheng, former president of Huacheng Publishing House, was quoted as saying: “When we look back, we find Qiong Yaos stories somewhat narcissistic and affected. They did not invoke true humanity, nor shed light on virtues such as tolerance and sincerity. But they did open a window for Chinese youth to know romance at the time. That is why they sold so well.” It was a dramatic change from the time of the “cultural revolution,” when the theme of love was completely uprooted from Chinese literature.

1982

Family Planning as a Fundamental State Policy

From 1949 to 1970 the Chinese population grew from 500 million to 800 million. At its peak, it swelled by 22.57 million annually (or 60,000 per day and 43 per minute). The population explosion triggered a series of problems for Chinese society and the economy, including a sluggish rise in income, and mounting pressures on the labor market and the environment.

In an effort to rein in population growth, China introduced a policy in 1970 that restricted couples to two children, born at least three years apart. The one family one child policy was introduced in 1982. But enforcement in the countryside proved difficult. The policy was therefore modified to relax requirements for rural families wishing to have a second child.

In addition, each province, autonomous region and municipality formulated its own statutes on family planning based on the local situation. It is estimated that the birth control policy has reduced the Chinese population by at least 300 million.

With a low birth rate, low mortality and a low increase rate of the population, China now faces an aging issue and a sex ratio imbalance. The states family planning policy, which is open to adjustments, will be geared to deal with those two problems in the coming years.

A Constitutional Recognition of

Private Property

After more than 20 years of neglect, the 1982 Constitution once again pledged to protect private property, specified as legal income, savings and housing. As the ownership of the means of production was not mentioned, the protection was therefore believed to be limited. “Still, the concept of private property returned to the law books after a denial of more than two decades,” according to renowned economist Yu Guangyuan.

What prompted the change was the introduction of farmland contracting in 1978, which enabled rural families to operate their production individually instead of collectively. Meanwhile private business was bourgeoning in cities and towns.

Although the call to broaden constitutional protections for private property was loud in subsequent years, little progress was made until 2004, when the fourth revision of the 1982 Constitution included the following article: “The state protects by law the right of citizens to own private property and the right to inherit private property.” In 2007, the Property Law was adopted, the first such law in China.

1983

Rationing Coupons Annulled

Beginning in December 1983, rationing coupons were no longer required for the purchase of cotton and cloth. The Peoples Republic was founded on an economy devastated by extended wars and foreign exploitation before 1949. Despite signs of a recovery in production, the scarcity of commodities could not be eased quickly. A rationing system was therefore installed in 1953, calling for coupons for products whose demand exceeded supply. They ranged from bicycles, watches, radios, kettles and sweaters, to soap, sugar, liquors and matches.

With the growth of industrial and agricultural production, rationing began to be abolished for most goods after 1982, and was completely discontinued in 1995 with the end of grain and cooking oil coupons. A fad for coupon collection emerged five years later, creating a number of millionaires.

Chen Chunxian

Chen Chunxian is remembered as the herald of Chinese scientists who started private businesses, founding the Zhongguancun Electronics Street, now the hub of Chinas IT industry in downtown Beijing.

In 1980 Chen, a 50-something member of the Chinese Academy of Sciences with a dream of creating a Chinese Silicon Valley, started a private sci-tech company with 15 colleagues, the first of its kind in China. Their office sat in a warehouse in Zhongguancun.

There was no government aid for private sci-tech enterprises at the time, and the public attitude was largely negative. Chen was lashed with accusations ranging from sabotaging scientific research orders to bribing officials. His company was audited and eventually closed. Although state leaders soon voiced approval and support for him, and Chen re-opened his company, he did not get very far. After a contract dispute in 1983 and a defeat in a product development dispute, he gave up in 1996. But he planted the seeds for Chinas own Silicon Valley, which saw the rise of national brands such as Lenovo and Founder.

1984

“Wading into the Sea”

The term refers to people leaving their jobs with state-owned institutions and enterprises to start private businesses. By doing so, they take the risk of losing stable incomes and social security, and face uncertainties like a sailor on the high seas. The trend reached its peaks in 1984, 1987 and 1993, when a number of Chinese businesspeople set out on their journey to entrepreneurial prominence.

In 1984, Zhang Ruimin became director of theQingdao Refrigerator Factory, which under his leadership evolved into Haier, now a leading manufacturer of white home appliances. In the same year, Li Jingwei in Guangdong Province launched the drink brand Jianlibao, and gave it a high-profile debut at the 1984 Los Angeles Olympic Games, in which marksman Xu Haifeng claimed the first Olympic gold for China.

Also that year, Ma Shengli in Hebei Province contracted out the Shijiazhuang Paper Mill. He later expanded it into the China Ma Shengli Paper Making Group by annexing more than 100 enterprises across China, eventually reporting an annual production value of RMB 400 million. With their bewildering success and wealth, businesspeople in the non-public sector began to be admired and revered by their fellow citizens.

1985

Disarmament by One Million

With low military spending and an army two times that of the United States, China had too many soldiers to support, and therefore too little to upgrade its armament and combat effectiveness. As early as 1975, Deng Xiaoping established reducing redundancy as a primary task for the Peoples Liberation Army. But the three force cuts in the following decade were all reversed owing to some top officials lingering fears of possible wars. In 1985, Deng Xiaoping reiterated that the force of peace would surpass the force of war around the world, and that in this context Chinas armed forces should serve the national priority of economic development.

The call was followed by a bold move to shed 1.039 million from the ranks. Meanwhile, 101 military airports and 29 military harbors were opened to the public, and some military facilities were transformed to civilian use. This massive cut-down was a prelude to Chinas armed forces transition to greater efficiency and improved scientific/technical strength. In addition, it unleashed a large pool of young and skilled workers into society, and offered experience for similar government reforms in later years.

Sexual Liberty

In 1985, two popular science books, Sexology and Knowledge of Sex, along with a novel, Woman Is a Half of Man, stirred a tempest in Chinese society. Sex, a taboo in Chinese culture, all of a sudden leaped from obscurity into the open.

The period of reform has exposed China to Western culture in a broad way. Economic progress and the political thaw have allowed people more personal freedom, and that has galvanized peoples demands for greater personal fulfillment. In particular, sexual liberty has been growing fast, for both good and ill. It has been praised for greater self-awareness and the empowerment of women, but has also been disparaged for the surge in extramarital affairs, premarital sex and venereal diseases.

1986

Four Must-have Betrothal Gifts

With the emergence of the wealth gap in Chinese society, financial factors have held an ever-greater sway on marriage. In the 1980s, a decent wedding for rural families was defined by the four gifts a groom was expected to provide – a bicycle, a watch, an electric fan and a sewing machine. In towns and cities, the list included a TV set, a washing machine, a stereo recorder and a refrigerator. A failure to deliver these luxury items and other necessaries at a wedding, estimated RMB 3,500 in total, could bring great shame to the grooms family, and even cause a rift between the new couple.

Cui Jian and Rock N Roll

In 1996, Cui Jian, a man not handsome by any Chinese standard and distinguished by his hallmark army uniform, rocked the Chinese music world with his coarse voice. When he sang, “Why do you sneer that I have nothing,” the catch-line of his best-known song, I Have Nothing, Chinese audiences were both appalled and thrilled.

“I Have Nothing gave voice to a whole generation. It was an era when the nation was changing, and so were its people, to the extent that we didnt know ourselves any longer. Cui Jian stood out as an individual, an icon of rebellion and a member of the vanguard. The love in his songs gave us warmth, and his wrath resonated in our hearts,” explained music critic Xiao Fuxing.

Cui Jian has often been compared to John Lennon, who was also a resonant voice in a time of social transition. And while Cuis songs are relatively few in number, they radiate a defiance of popular values and express a passion for independent thinking.

1987

Mobile Phones

In May 1987 Motorola opened an office in Beijing and introduced analogue mobile phones to China. Despite the price of RMB 20,000 to 30,000, and a monthly bill up to thousands of yuan, the brick-sized handsets were immediately taken up by the nations newly-rich as the latest wealth and status symbol. Beepers had been embraced with the same ardor when they appeared four years before, and had swiftly spread from Chinas elite to the wider public, a pattern repeated with the mobile phone. By 2002 China had the largest number of mobile phone users in the world, and by 2007 beepers were extinct.

New means of communication resulted in new ways of living. For many people today a text message is preferred to a personal visit to friends at Chinese New Year.

AIDS Phobia

On November 7, 1987, Chinese scientists for the first time successfully isolated the AIDS virus in the blood of a foreign visitor to China. Back in 1984 Zeng Yi, an academician of the Chinese Academy of Sciences, proved via epidemiological tests that the virus first crept into China in 1982. The first case of infection on the mainland was reported in 1983, followed by the first death in 1985. In 1986 four hemophilia patients tested HIV positive after accepting transfusions of blood imported from the U.S. One of them died the next year at age 13. The incident was the first case of Chinese infection officially reported in the nation.

The mysterious incurable disease immediately caused a panic among Chinese. A Kyodo News article in 1987 said that dread of AIDS was spreading among hotel workers, tour guides and other Chinese whose jobs put them in close contact with foreigners. Hotel maids abhorred room service for foreign customers, asking: “What if I am infected with AIDS?” Some tour guides shunned shaking hands with foreign tourists.

1988

Tiananmen Rostrum Open to the Public

Starting on January 1, 1988, the Tiananmen Rostrum, a spot previously reserved for state leaders, was opened to sightseers, with an admission fee of RMB 10 for Chinese and RMB 30 for foreigners. “This testified that the mystery cloaking the system of power had been lifting since the commencement of economic reforms in 1978,” said Li Xianting, the godfather of contemporary Chinese art. As a result, the public awe of authority changed, giving way to the voice of those who had been silenced.

Hoodlum Literature

In 1988 Wang Shuos four novels were made into films. The Beijing-based young writer had a controversial reputation for his stories of the capitals underclass, written in cynical satirical language. His trademark lines include “Who do you think a rogue like me is afraid of?” “Never treat me like a human,” and “I do what I want, and die the next moment.” This was a huge shock to Chinas literature, which had for so long been exclusively about heroism and social responsibility. Wang was scorned and scolded by many senior writers, but appealed to a wide range of people across the nation. One of them was Wang Meng, former minister of culture.

“We probably never thought that there could be writers and writings of other sorts. This literature doesnt necessarily raise a question and then answer it. The lead characters can be somebody other than the working class, the cadres, the intellectuals, revolutionaries or counter-revolutionaries. They dont even have to be seen as historical or social beings…I used to refer to such writings as weightless literature…Though putting on an air of devil-may-care, the playboys in Wang Shuos novels always run into something heavy in their life that they can in no way make light of…Wangs novels are in fact howls of youth against misunderstanding, harassment and belittling.”

1989

Contemporary Art Exhibition

An exhibition of Chinas contemporary art opened in the National Art Museum of China in Beijing in February 1989. The works, by 186 artists from all over the nation and of varied categories, included installation art and performance art, and jolted the conventional conception of art among Chinese people. Wu Shanzhuan sold lobsters in the museum, mocking its image as an official institution. Li Shan washed feet in a basin painted with a portrait of American President Ronald Reagan. Wang Deren sprinkled condoms in front of every exhibit on every floor. Zhang Nian sat on the ground, encircled by 18 eggs and cloaked in white paper reading, “Hatching in progress, no theories please for the sake of the next generation.”

The biggest news at the show was the two gun shots Xiao Lu fired at her installation Dialogue. The incident drew a crowd of policemen and ended in a four-day closure of the museum. But as art critic Li Xianting stated: “The two gun shots pushed forward the limits for Chinas modern art that had bourgeoned since 1985, and limits on the scope of new ideas and new styles avant-garde artists were trying to force on the public. The exhibition itself embodies a modernist spark, and is a unique phenomenon of Chinas contemporary art.”

1990

Stock Speculation Fever

When Yang Huaiding became a millionaire, the highest face value of a Renminbi banknote was 10 yuan, and the total weight of banknotes valued at RMB 1 million was 60 kilos. He was too tired to count the banknotes, so he bought a bill counter. Yang Huaiding is famed as the Chinese stock markets “godfather,” and people often neglect his given name and refer to him instead as “Millionaire Yang.” He became a millionaire in a single year by dealing in bonds. Prior to that he was a wage earner, with a monthly salary of just RMB 53. Yang recalls how nervous he was at the time, worrying that he might be labeled a “speculator” or a “profiteer.” In the eyes of the Chinese, earning money through dealing in stocks and securities was tantamount to “reaping the fruits of other peoples toil,” or “speculating.” However, following the establishment of Chinas first stock exchange in 1990, and the establishment of the Huaxia, Guotai and Nanfang securities companies in 1992, the Chinese people found a new way to get rich – stocks. The miracle of getting rich overnight, the way Yang Huaiding did, has engendered speculation fever nationwide.

In August 2008, the stock accounts of the Shanghai and Shenzhen Stock Exchange totaled 119.5454 million, of which 100.1267 million were active accounts, breaking the barrier of 100 million for the first time in history. Yang Huaiding, in his late 50s, has experienced four bull and bear markets. He spends eight hours a day on stocks, and feels happy in a way he never felt when he first became a millionaire, since to him stocks are no longer a way of making money, but simply a hobby. He has developed stock analyzing software named after himself, and goes on lecture tours. As to the stock speculation fever, he believes it is a law of the stock market that the majority will lose money.

Mao Zedong Fever

While people are enthusiastic about stock speculation, in the ideological field there is a corresponding Mao Zedong fever. Many drivers like to hang an image of Mao Zedong in their vehicles, the way Buddhists hang image of the Buddha to “exorcise evil spirits.” Gao Hua, a historian, holds that Mao Zedong fever occurs under conditions of accelerated social differentiation and polarization between rich and poor. Some people regard Mao Zedong as the embodiment of social justice.

1991

Be More Daring

In early 1991, Deng Xiaoping, who was on an inspection tour of Shanghai, said: “I hope the people of Shanghai will further emancipate their minds, be more daring and move ahead faster.” That quote, like many of the plain and lively words of his, reassured the Chinese people. At the time, China had solved the problem of food and clothing, and in a few localities living standards had attained the level of moderately developed countries. Following the disintegration of the former Soviet Union and the drastic changes in Eastern Europe, a debate occurred in ideological circles as to whether Chinas development road was socialist or capitalist. Some scholars held that practicing a market economy meant taking a capitalist road. Deng Xiaoping famously responded: “It doesnt matter if the cat is black or white, as long as it catches mice.” A market economy is simply a means, and China should adopt a bold approach by utilizing foreign capital to upgrade its large state-owned enterprises.

Karaoke

Daisuke Inoue, who invented karaoke in the 1970s, was named by Time magazine among Asias most influential people, alongside Mohandas Gandhi and Mao Zedong. Karaoke entered China in 1991. Together with song-and-dance halls and nightclubs that appeared in the late 1980s, they allowed the Chinese to experience a “night life” in a real sense. In 1991, there were about 200 karaoke halls in Beijing, and the figure jumped to nearly 1,000 in 1994. Karaoke halls mushroomed in a number of big cities, and then spread to medium-sized and small cities and towns. This form of entertainment broke the monopoly of singing by professional singers, foreshadowing the “imitation shows” and grassroots singers who appeared in later years.

Jin Yong Fever

The martial arts novels of Jin Yong, a Hong Kong writer whose works had been popular among Chinese throughout the world for over two decades, finally appeared on the Chinese mainland. By the end of 1994, more than 40 million copies of his novels were printed and distributed on the mainland, with a readership estimated at 200 million. Jin Yongs martial arts novels are renowned for their ancient elegance, drawing inspiration from a variety of art forms, in much the same way as Hong Kong films have drawn on Hollywood. Jin Yong has integrated the styles of Buddhism and the ideology of Laozi and Zhuangzi, offering readers a chance to relax from the pressures of modern life.

1992

Luxury

In 1992 China abolished the regulation prohibiting foreign direct investment in the retail market, and the subsequent opening of Scitech Plaza was a sensation. But who were the expensive luxury goods aimed at? Even so, in the same year the French brand Louis Vuitton entered China, and many other luxury brands followed suit. In 2004, China abolished the regulation restricting foreign brands from establishing franchise chain shops in China. Many luxury brands entered China. Now high-end consumer venues in Beijing have proliferated. In 2006, Beijing held an exhibition of international luxury brands. By some estimates, luxury consumers now make up 13 percent of the total population, amounting to 160 million. China has become the luxury consumer market with the greatest potential.

“Seeking an Explanation”

While those who got rich earlier than others were debating high-end consumer venues, “seeking an explanation,” a line spoken by the heroine in The Story of Qiuju, a film directed by Zhang Yimou, became a pet phrase of the Chinese people. The film, which won the Gold Lion Award at the Venice International Film Festival, tells the story of a woman in a small mountain village. Qiuju, to safeguard her personal dignity, filed a series of lawsuits despite many difficulties. In traditional society, Chinese people are reluctant to sue. As an old saying goes: “Never make a lawsuit, even if you are wronged.” With the onset of economic prosperity, however, the Chinese people have begun to realize their rights and interests. In the 1990s, a number of people became famous for safeguarding their rights and interests in court, heralding the first signs of a civil society.

Three Gorges Project

The Changjiang (Yangtze) River is a cradle of Chinese civilization in much the same way as the Ganges River is to ancient Hindu civilization or the Nile River is to ancient Egyptian civilization. Sun Yat-sen, a pioneer of Chinese democracy, presented his idea of the Three Gorges Project of the Yangtze River in 1919 in his book Methods and Strategies of Establishing the Country. In 1950, China established the Changjiang Water Resources Commission. Chinese scientists and technicians debated the schemes merits for decades, and in 1992 China passed a resolution on the construction of the Three Gorges project. Two years later, construction began.

1993

Fever of Studying Abroad

In 1993, Yu Minhong, a university English teacher in his early 30s, established the New Oriental Foreign Languages Training School. He did so because many of his friends and former schoolmates had gone abroad to study, but his own visa applications were rejected several times. In 2006, the New Oriental Education & Technology Group went public on the New York Stock Exchange, and Yu was the largest shareholder. On the first day of the public offering, the opening price was US $22, which was US $7 higher than the issuing price, up 46.66 percent. Yu Minhong became the richest teacher in China, with assets valued at US $242 million. The guidance books he edited for TOFEL and GRE tests were considered “Bibles” by students who wanted to study abroad. By the end of 2005, New Oriental had trained more than 3 million students. Between 2005 and the present, New Oriental has trained 800,000 students annually. From 1978 to the present, Chinese students studying abroad amounted to 1.21 million. According to UNESCO statistic, in 2006 China had the largest number of students studying in foreign universities, making up 14 percent of the worlds total.

While Chinese students go abroad to study, countless Chinese also go abroad to work. A television play, Beijingers in New York, which stars Jiang Wen, described the Chinese immigrants making a living in the United States. A classic line from the television drama is: “If you love him, send him to New York, because it is paradise; If you hate him, send him to New York, because it is hell.” To seek their fortune some people have even resorted to borrowing money to go abroad illegally through human traffickers, resulting in many tragedies.

Government Restructuring

In 1993, China conducted the third government restructuring since the countrys reform and opening-up. The two previous restructuring measures abolished the life tenure of government officials, and introduced the concept of appointing young and capable cadres. The restructuring in 1993 began to establish a government better suited to a market economy. In the restructuring of 1998, the number of ministries and commissions under the central government was reduced from 40 to 29, and the number of public servants in the State Council was reduced from 34,000 to 17,000. In the government restructuring of 2003, to meet the conditions of joining the World Trade Organization, the target was to build a just, transparent, clean and efficient government.

1994

Reform of Social Welfare

Since the initial objectives of reform were marketization and commercialization, the socialization of social welfare became one of the most crucial issues among the populace, and also one of the most denounced social problems. Take medical reform as an example. In the 2000 rating of fairness in health fundraising and distribution among the World Health Organizations 191 members, China ranked 188th, fourth from last. Certain impoverished strata could not even get basic medical services, and the difficulties in seeking medical treatment and overexpensive medical services were a constant problem. The 2005 opinion polls showed that 90 percent of respondents were not satisfied with the changes in the medical system over a decade. The new medical reform plan released in 2008 has reiterated that the target of the medical system must be to uphold the public good. In housing reform, to change the situation of high housing prices beyond the reach of common people, the government made clear in 2007 that low-rent housing is to be the center of the housing guarantee system.

1995

Commercialization of the Internet

In 1995, Ding Lei, aged 24, quit his job at a telecommunications firm. Two years later he established Netease.com, a company whose main businesses are online advertising, wireless connection and online entertainment. In 2002, with the rapid development of Chinas telecommunications sector, the stock price of Netease rose sharply, and Ding Leis assets rose to RMB 5 billion. At age 32, he became the richest person in China.

In the same year, Ma Yun, a 31-year-old university English teacher, resigned his job and established the website China Yellow Pages, which specializes in the release of commercial information on the Internet. Based on this, three years later he established alibaba.com, now the largest B2B commercial platform in the world and the largest personal auction website in Asia.

The Internet appeared in China in 1987, but its commercialization did not start until 1995. In the 13 years that followed, the Internet has developed rapidly, and by the end of 2007 Chinas netizens exceeded 220 million, ranking first in the world.

To the Chinese, the Internet has drastically changed society. Gong Xiantian, a professor at Peking University, commented that the Internet possesses the nature of a Utopia. Anyone can express his/her opinions on the Internet. Even though it has created numerous “net mobs” that lack a sense of responsibility, it indeed plays an active part in promoting social justice and fairness.

1996

Historical TV Drama Fever and

Korean TV Drama Fever

In 1996 two interesting phenomena occurred in the Chinese entertainment world: the popularity of historical TV dramas and Korean TV dramas. Hunchbacked Prime Minister Liu, a 40-episode TV drama, described how a well-known upright official of the Qing Dynasty struggled with corrupt officials and pleaded on the peoples behalf. The TV series was very popular in China, and was also embraced by overseas Chinese. For a time, historical dramas dominated TV programs. On the one hand, the popularity of historical TV dramas carried a flavor of “using the past to criticize the present,” and on the other hand, it was a return to tradition. With rapid economic development, the Chinese peoples national pride increased day by day, and they showed a strong desire to reassert their traditional culture. For the generations that grew up after 1949 who did not receive much traditional culture, TV dramas based on historical themes became the simplest primers.

The popularity of historical TV dramas accelerated the process of the popularization of history. The media gradually aired lectures by well-known scholars on history, and on the Internet there appeared numerous writers on history. The click rates of the blogs of certain writers on history now reaches over a million. Through these TV programs and history blogs the knowledge of history has been popularized, and this has also introduced non-official versions of history. People have begun to see history and traditional culture from multiple angles.

The popularity of Korean TV dramas is also closely linked to the Chinese peoples admiration toward traditional culture, especially Confucian culture. It is said that the Republic of Korea has a better preserved Confucian culture than China. Its social structure and daily life both have many Confucian elements, and the human relations and etiquette that are reflected in Korean TV dramas have won the hearts of Chinese viewers.

1997

Deng Xiaoping Passes Away

On April 26, Deng Xiaoping, chief architect of Chinas reform and opening-up, passed away. According to Dwight Perkins, a well-known American economist, the most important contribution Deng made to Chinas development is that he created a good atmosphere in which policymakers and private enterprises could explore various roads to economic development. Deng held that, as a Communist, the most important thing is to seek truth from facts. He could always guide Chinas reform using the plainest language. In the 1980s, in solving Chinas unification, Deng Xiaoping presented the idea of “one country, two systems.” British Prime Minister Margaret Thatcher commented that the concept of “one country, two systems” to settle the Hong Kong issue was one of genius. It is a pity that Deng passed away three months before Hong Kongs return.

Hong Kongs Return to China

On July 1, Hong Kong returned to the motherland. After the first Opium War in 1840, the Qing government ceded Hong Kong to Britain according to the Nanking Treaty (1841). In 1982, the Chinese and British governments began to negotiate on Chinas resuming exercise of sovereignty over Hong Kong. In 1984, the two governments signed a joint declaration, saying that the Chinese government would resume its exercise of sovereignty over Hong Kong on July 1, 1997.

Christopher Patten, the last governor of Hong Kong, said that it was the end of a historical period, and the end of British colonialism. At that time, the international community was pessimistic about Hong Kongs future, thinking that after Hong Kongs return, it would lose its economic vitality. However, the central government of China firmly adhered to the principles of “one country, two systems” and “Hong Kong governed by Hong Kong people,” and succeeded in keeping Hong Kong prosperous. After suffering through the Asian financial crisis and the SARS epidemic, Hong Kong was cited in 2007 for the 13th year as the most free economy on the globe by the US Heritage Foundation in its report entitled “Index of Economic Freedom.” According to the report, Hong Kong ranked first worldwide in four areas: trade freedom, investment freedom, financial freedom and property guarantees.

Two years after Hong Kongs return, China resumed its exercise of sovereignty over Macao. The concept of “one country, two systems” is also guiding the solution of the Taiwan issue.

1998

Asian Financial Crisis

In the summer of 1998 China was hit by the biggest flood in a century. According to incomplete statistics, about 20 million hectares of farmland were affected, and the flood victims numbered 220 million, causing direct economic loss of RMB 200 billion. In the economic field, financial crisis spread in Asia, and China changed its tight financial policy to a positive financial policy. The policy effectively resisted the worst of the Asian financial crisis, and pulled GDP growth by 1.5-2 percentage points, promoting the continuous, stable and rapid development of the Chinese economy. Regarding Chinas role in resisting the Asian financial crisis, a Thai economist said that one important role China played was the maintenance of the RMBs value, stabilizing the world economy. It is a common understanding that if the RMB had changed its exchange rate, the world economy, especially the Asian economy, would have experienced a far more severe blow. Chinas control of RMB stability prevented the situation from degenerating further.

Re-employment

Following the restructuring of state-owned enterprises and the establishment of a modern corporate system in the 1990s, large numbers of workers were laid off, amounting to 12 million in 1998, when the registered unemployment rate in cities and towns was 3.1 percent. The central government exerted great efforts to establish a social security system and a re-employment mechanism for laid-off workers. According to statistics of the Ministry of Labor and Social Security, since 1998 a total of 24 million laid-off workers from state-owned enterprises have enjoyed a subsistence allowance, and nearly 20 million of them have been re-employed. China has basically completed the transition from providing a subsistence allowance to providing unemployment insurance to laid-off workers.

1999

Minimum Subsistence Allowance

Following the deepening of Chinas reform and opening-up, the goal of ensuring basic living standards for low-income people and enabling them to share the achievements of social and economic development has risen to the top of the agenda. In 1993, Shanghai and some other cities began to institute the system of providing a minimum subsistence allowance to its urban residents. In 1999, the central government promulgated the regulations on establishing the system of a minimum subsistence allowance. The average monthly allowance was raised from RMB 149.30 in 1998 to RMB 243.14 in 2006. Meanwhile, a minimum subsistence allowance was introduced in the countryside. By the end of 2006, 23 provinces, autonomous regions and municipalities established the system in the countryside, covering 2,133 counties (county-level cities). More than 15.931 million rural people in 7.772 million households now enjoy a minimum subsistence allowance.

The establishment of the minimum subsistence allowance system demonstrates the countrys transition from the concept of letting part of people get rich adead of others to the concept of letting the entire population enjoy the achievements of reform and opening-up. The reforms of public causes, such as medical care and education, have also undergone a transition from emphasis on marketization and commercialization to that on the promotion of public welfare. Social fairness and justice have become targets sought after by the Chinese people in the new century.

2000

Western Development

China began to implement its gigantic western development strategy, the first significant step to remedy the development gap between Chinas east and west. Chinas west comprises six provinces, five autonomous regions and one municipality, makes up 71 percent of the countrys territory and has a population of 367 million. Due to a hash environment, however, its per capita GDP is only two-thirds that of the national average, and less than 40 percent of the per capita GDP in Chinas east, where the economy is fairly developed.

Construction of a large number of infrastructure projects began, such as airports, railways and highways. In 2000 alone, ten of them, including the world-famous Qinghai-Tibet Railway, started to chug along at full steam. In order to protect the fragile environment, reforestation was enforced in large areas.

High-ranking Corrupt Officials Brought to Justice

Thunderous applause burst out when Premier Zhu Rongji announced in his governmental report in 2000 that “We wont tolerate any violation of the law by any officials, and wont hesitate in handling any case with a significant social impact. We are determined to get to the bottom of each corruption case, to bring justice to anyone involved.” Before the meeting, the news that Cheng Kejie, vice chairman of the standing committee of NPC, was being investigated as a corruption suspect had made a huge splash. Later Cheng, along with Hu Changqing, former vice governor of Jiangxi Province, was sentenced to death for taking a huge amount of bribes. In 2006 alone, 825 officials at the county level, 92 at the prefectural level and nine ministerial level officials were brought to justice on corruption charges by the Chief Justice of the Supreme Peoples Court. These figures, said an NPC delegate, showed the governments determination to not tolerate corruption.

2001

Beijings Olympic Bid Success

One of the slogans for Beijings 1993 bid for hosting the Olympic Games was: “Give Beijing a chance and the world will receive a happy surprise,” a phrase exhibiting Chinas anxiety about success. To Chinese people, hosting the Olympic Games was particularly significant. For many years, the Chinese nation was described in humiliating terms as the “sick man of East Asia.” The first time Chinese sportsmen were seen at the Olympic Games was in 1932 and the first gold China won was in 1984. In 1990, the 86-year-old Deng Xiaoping said, “After the Asian Games, we may go for the Olympics, which will revitalize our nation and boost our economy.” On July 13, 2001, at the moment when Juan Antonio Samaranch announced Beijings success, all Chinese delegates present applauded in excitement, and Beijing residents held a carnival on the streets.

Entry into the WTO

Entry into the World Trade Organization (WTO) marked Chinas official membership of the “economic united nations.” To attain entry, China made incessant efforts for 15 years, a very rare case in trade talks of any kind worldwide. When China was finally accepted as a member, both its GDP and foreign traderanked seventh in the world, and for eight years in a row it topped all developing countries in attracting foreign investment. China and the WTO need each other, said high-ranking WTO officials more than once. The WTO needs new balance and vitality from China.

Tang-style Suits

After state leaders wore Tang-style suits at the invitation of their Chinese hosts at the 2001 APEC meeting in Shanghai, the style became a fashion, and Chinese people took great pride in seeing Chinese elements in international fashion.

2002

Blogs

Fang Xingdong and Wang Junxiu finalized the Chinese translation for “blog” in 2002. With a big splash, they launched their website on the Internet, an act described by a well-known media outlet as, “A challenge by individuals to the conventional press.” However, the number of blog readers was limited that year, reaching no more than 10,000. The figure jumped after a female college teacher published her sex life in her blog in 2003. Since then, the number of blogs of all sorts has exploded, and they have been established by scholars, movie stars, pop singers and ordinary citizens. To increase their popularity, some celebrities hire excellent writers to pen their blogs, while less known people hope to gain fame through an Internet presence. By the end of 2007, the number of Chinese blogs had reached 72.82 million, with 47 million writers – one in every four Internet users in China. For most users, blogs are a vehicle to express themselves and pour out their heart. In some ways, blogs have pulled “writing” out of the ivory tower and put it in everyones hands.

Intellectuals Sense of Justice

After years of studies, college teacher Liu Shuwei was alarmed to discover a prestigious listed company was actually nothing but a set of bank loans. She exposed it in an article and made a nationwide splash. Although she was sued and her safety was threatened, she refused to be silenced. Every cent of common peoples savings, she asserted, was earned through blood and sweat, and it should not end up this way. What she exposed, she said, was as broad as daylight to anyone familiar with economics, but for a long period of time, out of financial concerns, nobody was willing to uncover it. Corruption was rampant among Chinese scholars, she lamented, and some had been willingly reduced to being dependent on interest groups, depriving as a result ordinary people of the information they are entitled to. For her courageous act, Liu was voted by the public as a figure who “moved China” that year.

2003

SARS

The Asian Development Bank estimated China suffered RMB 17.9 billion in losses due to SARS, shaving 1.3 percent off GDP that year. SARS happened within a month of Hu Jintao and Wen Jiabao taking office, and their response would surely influence Chinas future. Two high-ranking officials, Zhang Wenkang, vice minister of the Public Health, and Meng Xuenong, vice mayor of the Beijing municipal government, were removed from office for covering up the disease. Since then, high-ranking officials being held responsible for neglecting their duties has become part of Chinese political life. “An information revolution,” some media claim, has taken place, in which the central government is determined to publish any information concerning public safety and health in a timely and accurate manner. Following SARS, China quickly began preparation for formulating laws in relation to this. In 2003, China drafted the Emergency Law to establish a legal framework for emergency situations.

Shenzhou-V Launch

The success of the Shenzhou-V mission in 2003 marked the realization of Chinas age-old dream of space flight. After the U.S. and Russia, China was the third nation to send a man into space. Yang Liwei, the Chinese astronaut on Shenzhou-V, became a national hero.

The Sun Zhigang Incident

The death of “small potato” Sun Zhigang in Guangzhou ended the detention policy China had practiced for 50 years in its cities. Under rules passed in 1982 concerning migrants in the cities, vagrants and beggars would be sent back to where they came from, and migrant workers had to possess a temporary residential card issued by the local public security office, or they would likely be dealt with as vagrants or beggars. This meant being rounded up and placed in a detention house, a place that supposedly helped them get back home. However, the reality was another story. Rough-handed government workers in these houses often blackmailed the detained. Sun Zhigang, a new college graduate, was a new comer to Guangzhou and had not been able to take out a temporary residential card. Also because he failed to produce his ID, he was taken away and put into a detention house, where he was tortured to death. Following this event, three doctors in law studies sent a petition to the State Council, asking to abolish the current detention rule, which, they said, was against the constitution. Before the year ended, the central government put an end to the rule. Sun Zhigang, with his death, drew public attention to the legal rights of disadvantaged social groups in the cities.

2004

Coalmine Disasters

Chen Jigen, a miner who has worked for 20 some years and survived more than one mine disaster, said: “Quit mining?I cant.” He needed the wage of several thousand RMB a month, for he had a big family to support, and one of his children was still at college. Miners in China live at the bottom of society. Every disaster, as a scholar put it, is a test of the conscience of the Chinese people. Driven by huge profits, illegal mining is rampant in many provinces and miners are often seen working without even a minimum of protection. Mine disasters resulting from illegal mining are frequent. Just in 2004, over 6,000 lives were lost in China, accounting for 80 percent of mining-related deaths worldwide. In an attempt to stop this situation, the Chinese government applied an iron hand, under the slogan “No more bloody GDP.”

Overseas M & A

The 20-year-old Lenovo Group Limited, after completing its merger with IBMs global personal computer business in 2004 at a price of US $1.25 billion, became the third largest PC manufacturer in the world. “This marks the beginning of a new era for the PC industry,” remarked Lenovo chairman Yang Yuanqing. “And our objective is not just to be the third.” In 2008, Lenovo appeared in Fortune magazines list of the worlds top 500 businesses for the first time. The company ranked 499th, with a gross revenue of US $16.788 billion. While China draws the largest amount of foreign investment in the world, after entry into the WTO the countrys overseas investment increased and more mergers and acquisitions were seen, growing from US $1.8 billion in 2000 to US $4.8 billion in 2004.

2005

Unorthodox Idols

The names of two particular girls were most often on the lips of ordinary people in 2005: Li Yuchun, “the idol of common people,” and “Sister Lotus,” an “anti-idol idol.”

Looking somewhat neutral in gender, with far from impressive singing skills, the 21-year-old Li Yuchun, who “cared about nothing but music,” won 3.52 million votes in the final of “Super Female Voices,” the hottest entertainment TV program of 2005. However, Li Yuchuns success was not undeserved, for her unorthodox appearance was quite refreshing to the public and her singing style, though not mature, was able to pluck peoples heartstring with a hometown feeling. No wonder she was called “a star of the masses.”

In comparison, “Sister Lotus” was violently more unorthodox, for she was a young female frequently seen on the campuses of two Beijing universities. Her “narcissistic,” as some people described, articles and photos on the universities BBS showed off her well-rounded figure and, as she called it, her “ravishing beauty,” inspiring a flood of ridicule from Internet users. However, her name became widely known as she became an “idol of another sort.” Later, several other young women followed suit and gained some fame, but none of them matched her in popularity. Both Li Yuchun and “Sister Lotus” are now working hard in the entertainment business.

The Qinghai-Tibet Railway

With the completion of the Qinghai-Tibet Railway in 2005, the highest train line in the world and the longest ever built on frozen earth finally connected Tibet to the rest of China, marking the nations success in tackling three tough challenges in railway construction: inadequate oxygen at high altitude, the laying of tracks on frozen earth, and protecting a fragile ecosystem while building a railway.

2006

New Countryside

Chinese farmers have made a huge contribution, estimated at RMB 30 trillion, to Chinas urbanization and industrialization, yet they are not rewarded as much as they should be by the fruits of reform and opening-up. To remedy this situation, beginning in 2002, the central government put the “three rural issues” – namely agriculture, farmers and rural areas – on top of its task list. In 2006, the central government set the construction of a new countryside as a major government policy. In the same year, farmers were exempt from agricultural tax, and all the cost for developing social welfare in rural areas went to the government.

2007

Saving Energy and Lowering Emissions

Following the contamination of Wuxis drinking water in Taihu Lake by blue green alga in May, more water crises occurred in Chinas south. In some ways, China was paying too dear a price for its fast economic progress, with a deteriorating environment and over consumption of resources. By some analyses, this state of affairs wont be able to sustain Chinas high-speed development for another 10 years. Before long, some foreign media claimed, China will replace the U.S. as the worlds largest emitter of greenhouse gases. In 2007, the Chinese government published “The State Plan for Coping with Climate Change,” in which it promised to reduce the total amount of energy consumption per unit of GDP by 20 percent from that of 2005 by 2010, and increase the use of renewable energy by 10 percent by 2010 and 16 percent by 2020.

The Household That Refused to Be Moved

Unsatisfied with the compensation offered by a real estate developer, a property owner in Chongqing refused to be moved. He held on for three years in a confrontation with the developer before a court of law stepped in and ruled in favor of the latter. To Zheng Yefu, an established sociologist, this event was the most significant in 2007, as it showed how ordinary people were beginning to safeguard their legal rights. The next ten years, he predicted, would see more dramatic events like this in China.

2008

Freedom of the Press

After the disastrous earthquake that hit Wenchuan on May 12 and left a death toll of over 80,000, many journalists rushed to the scene without applying for the permits required by the Chinese government. However, having no permit proved no problem at all, recalled He Runfeng, a reporter from the Phoenix TV, Hong Kong, for all local government departments, PLA and armed police units threw their door wide open to reporters, who were allowed to go anywhere and interview anyone they wanted for firsthand news.

During the Beijing Olympic Games, up to 30,000 foreign journalists came to China. The Chinese government honored its promise for “zero refusal” to interview requests. Foreign journalists were free to go any place they wanted, an act applauded by Reuters as “an honored promise for the freedom of press in China.” “The Chinese government was making an obvious effort to improve freedom of the press and human rights,” said Steve, a foreign journalist. “Opening to foreign media without restrictions exhibited an ideal interaction between China and international community.”

The Chinese government would help foreign reporters in their work during the Beijing Olympic Games, said a Chinese government spokesman. Foreign journalists did not need to have a Chinese host to accompany them, nor apply for permits in advance if they went to a place open to foreign journalists. China, as a Chinese government official put it, was throwing its arms wide open to welcome foreign journalists.