On November 24, 1978, 18 villagers in Xiaogang (Anhui) signed a household-based farming contract to avoid starvation. The approach linked a family’s pay to its output, and it became a widely recognized early trigger for rural reform away from collective farming.
From December 18–22, 1978, the Communist Party’s 11th Central Committee held its Third Plenum in Beijing. The meeting shifted national priorities toward economic development and modernization, setting the political starting point for broad economic reforms and greater engagement with the outside world.
On July 1, 1979, China adopted the Law on Chinese-Foreign Equity Joint Ventures, creating a national legal framework for foreign firms to invest with Chinese partners. This helped turn “opening up” into practical, regulated business activity rather than case-by-case exceptions.
On July 15, 1979, the Party Center and State Council approved using special policies in selected areas of Guangdong and Fujian to expand foreign economic activity. These decisions set up the experiment that would soon be formalized as Special Economic Zones (SEZs).
On May 16, 1980, the pilot areas were formally named “Special Economic Zones,” signaling a more explicit commitment to experimentation with market-oriented rules. SEZs became testing grounds for policies such as attracting foreign investment and loosening some controls on trade and business.
On August 26, 1980, the Shenzhen Special Economic Zone was established, becoming one of the most influential early reform experiments. Shenzhen’s policies and growth made it a high-visibility example used to defend and expand reform measures in later years.
On December 4, 1982, China adopted its current constitution, replacing earlier versions from the Mao era. A more stable constitutional framework supported the wider use of laws and regulations needed for reform policies, contracts, and new economic activity.
In May 1984, China named 14 coastal cities as “Open Coastal Cities,” extending preferential policies beyond the original SEZs. This widened the geographic reach of foreign investment and trade-oriented development, spreading reform incentives along the coast.
On October 20, 1984, the Party’s 12th Central Committee endorsed the “Decision on Reform of the Economic Structure,” shifting reform emphasis toward cities and industry. This marked a move from mainly rural experiments to broader changes in enterprise management, markets, and planning methods in the urban economy.
On April 12, 1986, China promulgated the Wholly Foreign-Owned Enterprise Law, allowing foreign investors to set up enterprises without a Chinese equity partner. This expanded the “opening” toolkit beyond joint ventures and made foreign investment options more flexible.
On April 12, 1988, China amended its constitution to allow the transfer of land-use rights and to recognize a larger role for non-public economic activity. These changes supported a more market-like system in practice, including transactions tied to land development and business growth.
On June 25, 1988, the State Council issued Provisional Regulations on Private Enterprises (effective July 1, 1988). The rules defined “private enterprise” (including firms with more than eight employees) and set out supervision and protection measures, signaling growing official acceptance of private business within a socialist framework.
Beginning January 19, 1992, Deng Xiaoping toured southern reform centers including Shenzhen, using speeches and visits to defend SEZ experimentation and encourage further opening. The tour helped overcome reform hesitation and became a major political turning point that pushed China toward a clearer “socialist market” direction after years of debate.
China's Reform and Opening: Transition from Central Planning to Market Socialism (1978–1992)