Based on the GDP chart in the packet what effect did Deng Xiaoping's policies have on the economy

On Dec. 13, 1978, at the close of a Communist Party gathering that lasted over a month, Chinese leader Deng Xiaoping delivered a speech that laid out a pragmatic vision for China’s future. It was a country that was then not long out of the grip of the chaos and terror of the Cultural Revolution.

He proposed that China learn from the example of other, richer countries, allow workers and peasants to “vie” to get ahead so those with a better standard of life would inspire others to work harder, and proposed that provinces and enterprises be given the power to make decisions or try new things.

“We need large numbers of pathbreakers who dare to think, explore new ways and generate new ideas,” Deng said. “Otherwise, we won’t be able to rid our country of poverty and backwardness or to catch up with—still less surpass—the advanced countries.”

Five days later, at Beijing’s Hotel Jingxi (paywall), a conclave of nearly 300 party elite agreed to adopt Deng’s vision, and China kicked off its journey from economic isolation to becoming the world’s factory. That landmark meeting kicked off on Dec. 18, 1978—exactly 40 years ago today.

In 1974, when George H.W. Bush was in Beijing as the unofficial American ambassador—full diplomatic ties were still four years away—the future president noted in his diary that “on our trade with China we have a very favorable balance, over 10 to 1.” By 1985, the US imported $6 million more in goods from China than it exported to it. In 2017, the US trade deficit with China reached $375 billion.

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