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Two Years after the death of Mao Zedong in 1976 it became apparent to many of Chinas leaders that Economic reform was necessary By 1978 Chinese leaders were searching for a solution to serious economic problems produced by Hua Guofeng the man who had succeeded Mao Zedong as CCP leader after Maos death Shirk 35 As Susan L Shirk describes the situation in The Political Logic of Economic Reform in China restoring the CCPs prestige required improving economic performance and raising living standards After the communist take over the country Mao contained his emphasis on moral force by demanding that Chinese citizens demonstrate what he referred as correct consciousness It is noteworthy that shirk feels that the Chinese communist party leaders saw economic reform as a way to regain their and their party moral virtue even after Maos death thus paradoxically by demonstrating their expertise in a moral political area of competence the leaders of CCP felt they could demonstrate how they were serving the people To a great extent the issue of economic reform became politicized as the issue was used as a means by Deng Xiaoping to attain the leadership of the Chinese Communist Party Reform policies became Dengs platform against Hua for post-Mao leadership Shirk 36 Given this history of economic reform it is evident that under the present system economic questions are necessarily political questions Dorn 43 China was still a state in which the central government retained the dominant power in economic resource allocation and responsible local officials worked for the interest of the units under their control Solinger 103 Chinas economy retains these characteristics of potential for growth--and inflation--to this day Another important aspect of Chinese economic reform was the decision of China to join the world economy Deng Xiaoping and his allies hoped to effect this 1979 resolution in two ways by expanding foreign trade and by encouraging foreign companies to invest in Chinese
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