Chinese Economists Call for Bolder Reforms on Deng Xiaoping's 120th Birthday

On August 22, 2024, marking the 120th anniversary of Deng Xiaoping's birth, several Chinese economists voiced their support for more ambitious economic reforms. This call comes amid growing concerns about the current state of China's economy and the pace of its reform agenda.

Deng Xiaoping, born in 1904, initiated groundbreaking economic reforms in 1978 that opened China to foreign investment and allowed for increased private enterprise. These policies led to decades of rapid economic growth, lifting an estimated 800 million people out of poverty and resulting in an average annual GDP growth of 9.5% between 1978 and 2013.

However, some experts argue that recent reforms unveiled by China's leadership in July 2024 do not sufficiently address the need to boost private-sector confidence and revitalize the flagging economy. This sentiment reflects a broader disappointment among liberal economists regarding the current pace of reforms.

The sensitivity surrounding economic policy criticism was evident as censors deleted a recirculated article by Zhang Weiying, a prominent liberal economist and professor at Peking University. The article, originally published in 2018, praised Deng for his courage in embracing market forces and acting boldly on reforms while "crossing the river by feeling the stones."

Wang Zhigang, an economist with a think tank, emphasized the historical significance of the current moment, stating:

"Only by thoroughly reviewing, sorting out, and inheriting Deng's legacy and carrying forward the past and opening up the future can we best commemorate Xiaoping and this great era."

Deng's economic philosophy, encapsulated in his famous saying "It doesn't matter whether a cat is black or white, as long as it catches mice," reflected a pragmatic approach that led to the establishment of Special Economic Zones and the promotion of "socialism with Chinese characteristics."

In contrast to the critical voices, President Xi Jinping paid tribute to Deng in a speech published by state-run Xinhua news agency, hailing him as the "chief architect of China's socialist reform, opening up, and modernisation."

On social media platform Weibo, hashtags related to Deng's birthday garnered 50 million views, with the majority of posts coming from state media and government offices commemorating his life and achievements.

As China faces economic challenges, the legacy of Deng Xiaoping's reforms continues to influence discussions about the country's future economic direction. His policies, which included the "Four Modernizations" and the establishment of stock exchanges in Shanghai and Shenzhen, remain a benchmark for those advocating for further economic liberalization.