In 1978, the Communist Party of China (CPC) made a decision to launch a nation-wide reform and opening up campaign at the 3rd Plenary Session of the 11th CPC Central Committee. It was a critical choice, which eventually leads China into a brand-new development epoch.

With consistent efforts in the past three decades, China has realized the transition from a highly centralized planned economic system to an innovative socialist market economic system, from a closed or semi-closed state to a state fully opened up to the outside world, and blazed a way with typical Chinese characteristics towards a moderately prosperous and fast-modernizing society for its 1.3 billion people.

Since the policy of reform and opening up, a socialist market economy system has been established and continuously perfected. China witnessed formation of an ownership structure that has public ownership at its dominant position and allows for diverse forms of ownership. A modern market system, unified, open, and rationally competitive, eventually takes shape; a macroeconomic regulation system has been built. As of today, more than 50% major state-owned enterprises and over 90% small- and medium-sized state-owned enterprises have been transformed into joint-stock companies, non-public-owned sectors generating 1/3 of the national GDP.

As China’s opening-up deepens, an all-directional and multi-tiered open economic pattern has basically formed up. In 2001 China joined World Trade Organization and has been playing an active role in economic globalization ever since. Effective utilization of resources in both domestic and foreign markets demonstrates its higher level of competence in the international community. From 1978 to 2007, China attracted a total foreign investment of more than 760 billion US dollars, ranking the first among developing countries and second in the world. Its foreign trade volume rose from 20.64 billion US dollars to 2,170 billion US dollars in this period, coming third in the world from the previous 22^nd place.

Implementation of reform and opening up policy has released restraints on social productive force and in turn led to a fast and stable economic development. From 1978 to 2007, China maintained a 9.88% annual growth, well above the world average 3% over the same period. In the course of reform and opening up, China’s state revenue rose from 113.2 billion yuan (about 16.5 billion US dollars) to 5,130 billion yuan (about 750 billion US dollar), and its aggregate economic volume came up to the 4th place in the world from the previous 10^th place.

Income of urban and rural residents has grown by a wide margin as influence of reform and opening up policy spreads. The life of the Chinese people has taken great changes too- from lack of adequate food and clothing to moderate prosperity. In the last three decades, per capita disposal income of urban residents and per capita net income of rural residents have increased by over 6 times respectively in real terms, driving domestic consumption from food-and-clothing-oriented to a housing-and-transport-oriented one. Retirement and medical insurance has covered more than 200 million people, and population living under absolute poverty line in rural areas declined from 250 million to about 14.8 million.

Significant progresses have taken place in all spheres of China from 1978 to 2007. Tremendous development has been made in promoting political and ideological civilization in this period. Scientific and technological research has yielded remarkable achievements; some were listed among the most advanced in the world. Competitiveness in world sports circle has been greatly strengthened; excellent performance of Chinese athletes in the 2008 Beijing Olympic Games has enhanced the glory of existing achievements. A free compulsory education system has been established to cover both urban and rural areas. Medical service network has been continuously perfected. Both the cultural undertakings and culture industry have developed. Political reform is making steady progresses; democracy at village-level gains more vitality. A legal system has been basically set up to regulate activities under socialist market economy.

Changes over the past three decades have incontrovertibly proved that the decision to begin reform and opening up is vital to the course of development of contemporary China, and that reform and opening up are the only way to develop socialism with Chinese characteristics and to rejuvenate our nation. Achievements in the past 30 years would not have been possible without reform and opening up; similarly, to create a brighter future, China must remain committed to this policy too.

1.         Communist Party of China’s (CPC) leaders Deng Xiaoping and Chen Yun at the 3rd Plenary Session of the 11th CPC Central Committee in Beijing held from December 18 to 22, 1978, during which the important decision of reform and opening up policy was made.

2.         Shenzhen has developed into a modernized metropolis from a small town on the coast of South China Sea after about three decades. Shenzhen, Zhuhai, Shantou, in Guangdong Province, and Xiamen in Fujian Province, have been designated as special economic zones since July 1979, setting important examples in the reform and opening to the outside world as well as in increasing economic exchanges with foreign countries.

3.         Farmers are reaping in their contracted fields, using reaping machines. Since 1982, the household contract responsibility system has been promoted in China’s rural areas. As the first step of China’s rural economic reform, the system has enhanced farmers’ enthusiasm in production and liberated rural production forces. The total grain output has increased from 304.8 million tons in 1978 to 501.5 million tons in 2007.

4.         China First Auto Group Corp. in Changchun, Jilin Province. A new product pattern, dominated by car manufacturing, has formed in this corporation after system reforming and combined restructuring as well as the expansion of international cooperation. The annual output of automobiles has increased from 30,000 to one million. In 1986, the reform of enterprises owned by the whole people started on a nationwide basis. For now more than half of the key state-owned enterprises and more than 90 percent of the medium and small ones have carried out joint stock system reforms.

5.         China lunar exploration program was exhibited at the High-Tech Achievements Fair in Chongqing Municipality, April, 2008. In 1988, Deng Xiaoping brought forward the statement of “Science and technology is the primary productivity,” and the reform of the science and technology system then began in China, promoting the commercialization of scientific research achievements and the exploitation of technical market.

6.         The financial zone in Pudong New Area, Shanghai. In 1990, the Chinese government declared to develop and open Pudong, Shanghai. Over the past 10 years, its economy has developed fast and great changes have taken place in Shanghai. Pudong New Area has become the base of the rising high-tech industry and modern industry in Shanghai.

7.         The Financial Street in Beijing, along which more than 500 major financial institutions and enterprises both at home and abroad are located. The daily circulating funds of the street is over 10 billion yuan (US$1,500 million). In 1993, China brought forward the goal of the financial system reform, and started to build the new financial market system.

8.         A private enterprise in southeast China’s Zhejiang Province. The total output value of private enterprises accounts for 70 percent in the province after more than 20 years’ development. Since 1999, the non-public economy has been attached unprecedented importance and affirmation by the central government.

9.         A group of wind tribune generators, the largest wind tribune power plant in China, in Dabancheng, Xinjiang Autonomous Region, is rotating in the wind. In 1999, the Western Development Strategy was put forward to take advantage of western resources, which has effectively promoted the economic coordinated development in less developed areas.

10.     Shi Guangsheng, Minister of Foreign Trade and Economic Cooperation of China, toasts representatives from other countries after signing on the China’s Protocol on the Accession to the WTO. The Protocol was passed at the Fourth Ministerial Conference in Doha, Qatar, November 10, 2001. After that China formally joined the WTO.

11.     Anshan Steel Corporation in northeast China’s Liaoning Province, has built the world-class cold rolling mill combination unit line through the large-scale technical reform. Since 2003, China has launched the strategy of revitalizing the old industrial base in northeast China, to promote economic structural adjustment and accelerate technical transformation of large industrial enterprises.

12.     A farmer in Donghai County, southeast China’s Jiangsu Province, selects a transplanter with the government public finance subsidies. The agriculture tax has been exempted step by step since January 2006 to reduce farmers’ burden, and farmers who grow grain and purchase agricultural machinery can get subsidies from the government.

13.     The navigation of the permanent lock of the Three Gorges Project. A series of major projects have been built or have made great progress in China to strengthen infrastructure construction under the existing developing stage. The Three Gorges Project, built since 1992, is now the largest hydraulic project in the world, and by the end of 2007, 19 units have been in operation, generating 13.4 MW of electricity annually.

14.     The first train from Lhasa, Tibet, is running across the Lhasa River Bridge. The Qinghai-Tibet Railway with the world’s highest altitude was opened to traffic on July 1, 2006, which created many records in the history of railway construction both at home and abroad.

15.     Some urban residents select new flats. Since the 1990s, China has launched the reform of urban housing system by promoting housing marketing and gradually achieving the housing privatization. The living conditions of urban residents have improved greatly, and the real estate industry has become the pillar industry of the national economy. Now the area of housing construction per capita in urban areas has reached 28 square meters, comparing with less than 8 square meters in the 1980s.

16.     A flourishing automobile market. The consumption level and the quality of life in China’s urban areas have improved greatly. Computers, vehicles and housing have become the major consumption goods, comparing with bicycles, watches, and sewing machines being the main choices before 1978. For now there are more than 30 million private vehicles throughout the whole country, increasing some 20 percent on average annually. The number of private cars is more than 20 times than that before 1978.

17.     Pupils in a Hope primary school in Hanshan County, central China’s Anhui Province, have an audio-visual class. China’s rural education has made great progress since 1978. By 2000, a nine-year compulsory education has been made universal by and large, and illiteracy among young and middle-aged people has been basically eliminated. The average length of education reached eight years, which is above the world’s average.

18.     The Kun Opera, which has a history of over 600 years, is still on the stage in China now. In May 2001, it was proclaimed as the Masterpiece of Oral and Intangible Heritage of Humanity by UNESCO. China makes an effort in revitalizing traditional cultures while placing top priority over economic development.

19.     Farmers and herdsmen in Qushui Town, Qushui County, Tibet, vote in their new village head. China promotes socialist democracy and legal system construction while carrying out the reform and opening up policy.

20.     Some urban low-income families receive government benefits. China makes great efforts to construct socialist harmonious society as well as carry out the reform and opening up policy. Chinese government keeps improving the urban and rural low-income families’ living conditions. The expenses of the lowest life guarantee in urban areas are listed in the financial budget of the local governments, and are brought into the special funds for social relief.

21.     Then President Jiang Zemin addresses the handover ceremony of Hong Kong. Adhering to the polity of “One Country, Two Systems,” China resumed the sovereignty of Hong Kong and Macao respectively on July 1, 1997 and December 20, 1999.

22.     The opening ceremony of the 29th Olympic Games was held at the National Stadium (known as Bird’s Nest) in Beijing at 20:00, August 8, 2008. The sports delegations from the world’s 204 countries and regions gathered together under the Olympic flag and realized the unprecedented reunion in the Olympic history.