Witness to History: Prominent pro-market researcher explains why China chose reform and opening-up in late 1970s
Cao Siqi, Global Times, July 14, 2024 —
From the early 1980s to the present, Chi Fulin, head of the Hainan-based China Institute for Reform and Development, has devoted almost all his time and energy to researching China’s pathway toward reform and development. Almost the same age as New China (referring to the People’s Republic of China which was founded in 1949), he has witnessed the whole process of the country’s reform and opening-up, during which time he realized that it is the only way for China to develop, and it is a key move that determines the future of the country.
Recently, Global Times reporter Cao Siqi spoke with Chi, who shared his stories from throughout key moments in the reform and opening-up. During the interview, he conveyed a clear message: China’s reform and opening-up is not yet completed, and it needs the young generation to carry it forward in the next step.
This story is also part of the Global Times’ “Witness to History” series, which features first-hand accounts from witnesses who were at the forefront of these historic moments. From scholars, politicians and diplomats to ordinary citizens, their authentic reflections on the impact of historical moments help reveal a sound future for humanity through the solid forward steps taken in the past and the present.
Chi Fulin, head of the China Institute for Reform and Development Photo: Courtesy of Chi Fulin
What did reform and opening-up get right?
Born in 1951 to an ordinary family in Zhaodong county, Heilongjiang Province, before he was 16 years old, Chi Fulin received an education in “being the successor of the revolution” in primary and middle schools. In January 1968, he joined the army, beginning a 20-year military career. In 1984, while studying at the Party School of the CPC Central Committee, he chose to devote himself to the study of reform and opening-up.
In 1986, he was transferred to a central government agency to conduct deeper research into the subject. At the end of 1987, he took off the military uniform he had worn for 20 years and moved to Hainan Province, presiding over the work of the provincial institutional reform and policy research institute. He participated in the initial market-oriented reform of Hainan Province and pursued the dream of establishing a free trade port. In 1991, he co-founded the China Institute for Reform and Development, a think tank dedicated to China’s reform agenda. Chi’s life choice is a microcosm of his generation’s commitment to reform and opening-up, a generation who deeply understand that “reform and opening-up would determine the future of China.
“In Chi’s eyes, there are many reasons why China chose reform and opening-up in the late 1970s, but the bottom line is that reform and opening-up were a “forced” decision. At the end of the “Cultural Revolution” (1966-1976), China’s national economy was on the verge of collapse. The income of the ordinary people decreased, and it was difficult to make a living. Economic development became a common and urgent aspiration of the people. Where to go? How to steer the country away from poverty and backwardness? This required the Communist Party of China (CPC) leadership and the government to make a historic choice.
It was against this specific background that the great decision of reform and opening-up was made at the third plenary session of the 11th CPC Central Committee in 1978, which realized a great turning point of far-reaching significance in the history of the Party since the founding of New China in 1949. Ever since, the 40-plus years of reform and opening-up have proved that under the leadership of the CPC, China has built a vibrant socialist market economy, made a historic leap toward economic modernization, and created a miracle of sustained and rapid economic growth rarely seen in the history of the civilized world.
Today, there are different perceptions around China’s reform and opening-up. For example, while most believe that the historic task of reform and opening-up has been accomplished, some people question reform and opening-up by blaming it for certain problems currently existing in society. “From my 40 years of experience in studying the reform, I deeply feel that without reform and opening-up, how could today’s historic changes in the country and people’s lives have been possible? Without reform and opening-up, how could people live a happy life today? Without reform and opening-up, how could there be growing international influence?” Chi told the Global Times.
Chi stated that reform and opening-up has become a pillar of Chinese national policy, a driving force for economic and social development, and the theoretical foundation for forming and developing socialism with Chinese characteristics. In the same way, without reform and opening-up, China cannot achieve its second centennial goal. To comprehensively deepen reform and opening-up, the country needs the efforts of young generations.”Many young people do not understand the reform and opening-up very well. Generation Z were born and grew up in an environment characterized by China’s rapid economic growth, the continuous enrichment of consumer goods, and a constant increase in spending power. The reason why the country had to reform and open up is not so strong in their perception,” Chi said.
However, data tell the real story. In terms of the level of economic development over the past 40 years, China’s GDP was less than 400 billion yuan in 1978, exceeded 10 trillion yuan in 2000, grew above 50 trillion yuan in 2012, and broke through 100 trillion yuan for the first time in 2020. In 1978, the US GDP was 15 times that of China, and its per capita GDP was 30 times that of China. By 2020, the US GDP was 1.5 times that of China and its per capita GDP was six times that of China, according to official data released by national statistics bureau. China’s reform and opening-up has also had a profound impact on the world. Since 2006, China has contributed an average of more than 30 percent to global economic growth over consecutive years. The country has become a major engine of international economic growth.”
In recent years, I have visited Europe more than 10 times as part of my research. They [European people] attach great importance to China’s large market and opening-up. Practice has fully proved that China’s reform and opening-up has created a miracle in the history of global development. This conclusion is consistent with reality and history. Without the vitality unleashed by reform and opening-up, how could young people enjoy today’s life of great material prosperity?” Chi asked. “When I look at these figures, I always wonder, if it were not for reform and opening-up, would there be a consumer society for us today? Would we be able to enjoy the abundance of products and services we currently have? These are the fruits of the tireless efforts of several generations of Chinese people who have promoted and practiced reform and opening-up for more than 40 years,” Chi noted.
Xiong’an New Area in North China’s Hebei Province is undergoing rapid construction on June 20, 2024. Photo: VCG
Why some young people misread history?
“I began to realize that Chinese students not only need to learn about the history of reform and opening-up, but also need to develop a basic understanding of the formation and development of the theory of socialism with Chinese characteristics,” Chi said. “We cannot equate the private economy with capitalism, nor can we simply equate public ownership with socialism. At present, China’s economic development and common prosperity cannot be separated from the private economy. If small and medium-sized private enterprises are problems, how can there be innovation and entrepreneurship? Where will stable employment come from?”
Chi shared another story with the Global Times. In the 1970s, when he was in the army, some officers managed to get a bag of moldy peanuts. He scalded the peanuts with hot water and asked a medic for some medical alcohol to fry them in a mug before drinking some alcohol.
At that time, it was not easy for a family to enjoy a plate of peanuts for dinner. A family might be able to obtain half a kilogram peanuts a year.
In 1971, he went to the Greater Khingan Mountains to buy wood for an army construction project. The director of a local forestry bureau asked him for peanuts. He quickly dispatched 2.5 kilograms of peanuts from the army, which resulted in getting an extra 10 cubic meters of wood. The currency of peanuts at that time was significant.
Why couldn’t people have peanuts to eat at that time?
In 2018, he delivered a class to 52 PhD students and, as an experiment, he conducted a survey among the students, asking the same question.
However, none of the students got it right. They mainly gave three answers: one is peanuts were used to extract oil; the second one is due to natural disasters; the third reason is because of exports. They didn’t realize the fact that under China’s highly planned economy at that time, the planting of peanuts was strictly limited.
“These stories made me feel the importance and urgency of strengthening education on the history of reform and opening-up to young people. Today’s Chinese youth have a strong sense of pride. Compared with previous generations, they enjoy the better quality life, a wider range of experiences, and a better access to international information. The future of China’s reform and opening-up, and the future of China’s competitive position in the world, depends on the young people,” Chi said.
Only when young people learn about the history of China’s reform and opening-up can they inject vitality into comprehensively deepening reform and opening-up. If we forget how history came about, do not understand reform and opening-up, or even deny reform and opening-up, it will be a tragedy of history, he noted.
The future of reform and opening-up
The young people today have full access to the internet, and have their own understanding of and requirements for a better life. If young people do not appreciate the history of reform and opening-up, they tend to equate certain problems in reality with reform and opening-up, which leads to some doubts about reform and opening-up. Therefore, it is important to help them understand the history of reform and opening-up.
The practice over the past 40 years and more has proved that reform and opening-up are the source of China’s sustained economic and social development and the formation and development of the path of socialism with Chinese characteristics. Only by deepening reform and opening-up at a higher level can we create an inexhaustible driving force for economic and social development and successfully achieve the country’s second centennial goal.
“I believe that the new generation of young people will surely shoulder this important historical responsibility,” Chi said.
