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After the Tiananmen crisis in June, 1989, many observers thought that the rule of the Chinese Communist Party (CCP) would collapse. Instead, the regime brought inflation under control, restarted economic growth, expanded foreign trade, and increased its absorption of foreign direct investment. It restored normal relations with the G-7 countries that had imposed sanctions, resumed the exchange of summits with the United States, presided over the retrocession of Hong Kong to Chinese sovereignty, and won the right to hold the 2008 Olympics in Beijing. It arrested or exiled political dissidents, crushed the fledgling China Democratic Party, and seems to have largely suppressed the Falun Gong spiritual movement.
Andrew J. Nathan (Wed,) studied this question.