reestablish firm control. In 1992, however, Deng Xiaoping publicly criticized what he called the country’s continuing “leftism” and sought to renew the efforts at economic reform. Economic growth had been especially remarkable in southern China, which had developed the highest concentration of private-sector enterprise. Since the mid-1990s the CCP has worked to drastically accelerate market reforms in banking, taxes, trade, and investments. These reforms have continued apace, and the party has attempted to increase public support by conducting energetic anticorruption campaigns that rely in part on high-profile prosecutions and occasional executions of high-level officials accused of corruption.

Jiang proved to be a capable successor to Deng. He replaced Zhao Ziyang as general secretary in 1989 after the Tiananmen incident and also was named chair of the Central Military Commission (1989) and president of the National People’s Congress (1993). He combined a pragmatic, reform-minded economic policy with an insistence that the party maintain strong control over the government. Jiang consolidated his power after Deng’s death in 1997 to become China’s paramount ruler but gradually relinquished his posts to Hu Jintao in 2002–04.

Educational and

Cultural Policy Changes

In education, the reformers gave top priority to training technical, scientific, and

scholarly talent to world-class standards. This involved re-creating a highly selective and elitist system of higher education, with admission based on competitive academic examination. Graduate study programs were introduced, and thousands of Chinese were sent abroad for advanced study. Large numbers of foreign scholars were also used to help upgrade the educational system. Somewhat ironically, the value the reformers attached to making money had the unintended consequence of encouraging many brilliant people to forgo intellectual careers in favour of morelucrative undertakings. The range of cultural fare available was broadened greatly, and new limits were constantly tested. Few groups had suffered so bitterly as China’s writers and artists, and policies since the 1980s have reflected the ongoing battle between cultural liberals and more-orthodox officials.

International Relations

True reintegration of the People’s Republic of China into the international community can be said to date to 1971, when it replaced Taiwan (Republic of China; ROC) as China’s representative to the United Nations. With that event, many countries that formerly had recognized the ROC established relations with the People’s Republic. The normalization of diplomatic ties with the United States, which began in 1973, culminated in 1979.

China’s foreign policy since the mid1970s generally has reflected the country’s

preoccupation with domestic economic development and its desire to promote a peaceful and stable environment in which to achieve these domestic goals. Except for its disagreement with Vietnam over that country’s invasion of Cambodia in 1978, China has by and large avoided disputes and encouraged the peaceful evolution of events in Asia. China adopted a policy of “one country, two systems” in order to provide a framework for the successful negotiation with Great Britain for the return of Hong Kong and adjacent territories in 1997 and with Portugal for the return of Macau in 1999; both were given special administrative status. Furthermore, China became an advocate of arms control and assumed a more-constructive, less-combative stance in many international organizations.

The bloody suppression of the demonstrations in 1989 set back China’s foreign relations. The United States, the European Community (European Union since 1993), and Japan imposed sanctions, though by 1992 China had largely regained its international standing with all but the United States. But by the mid1990s both sides had taken steps toward improved relations, and China retained its most-favoured-nation status in U.S. trade—subject to annual review by the U.S. Congress until 2000, when Congress made the status permanent.

The collapse of communism in eastern Europe beginning in mid-1989 and the subsequent disintegration of the Soviet Union deeply disturbed China’s leaders. While hard-liners used these

developments to warn about the dangers of reform, Deng Xiaoping and Jiang Zemin were able to minimize such backsliding and move China closer to becoming a major world power. The country’s admission into the World Trade Organization in 2001 was considered a significant step in its further integration into the global economy. Added to that was the international prestige that accompanied Beijing’s selection to host the 2008 Summer Olympic Games.

Relations with Taiwan

A major unresolved issue in the region has been the status of Taiwan. Since 1949 the regimes on both the mainland and Taiwan have agreed that Taiwan is a province of China—the principal difference being that each has asserted it is the legitimate government of the country. Tensions were especially high between the two entities in the first decades after the split, marked by periodic artillery duels between batteries on the Taiwan-controlled islands of Matsu and Qemoy, just off the coast of Fujian province, and those opposite them on the mainland. The ROC’s claim of legitimacy was dealt a serious blow after 1970 with its loss of UN representation and diplomatic recognition by most of the world’s countries. Still, Taiwan has remained viable and has emerged as a global economic powerhouse, its security guaranteed by a commitment from the United States and backed by U.S. military presence in the region. The continued American involvement in Taiwan affairs