The economic reforms in China were initiated in 1978 by the pragmatist wing of the Chinese Communist Party, led by Deng Xiaoping, and continue to this day. The reformers set themselves the goal of creating sufficient surplus value to finance the modernization of the Chinese economy, which was on the brink of disaster as a result of the failure of the Great Leap Forward policy and the aftermath of the voluntaristic decisions taken under Mao Zedong. The initial task of the reforms was to solve the problem of motivating workers and peasants and eliminate economic imbalances.
Economic reforms have led to massive economic growth and changed the fortunes of hundreds of millions of Chinese, as more than 850 million people have been lifted out of poverty. In the West, economic reforms in China have been perceived by many as a transition to capitalism.
