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In 1979 the Chinese government established four Special Economic Zones (SEZs) along the south China coast, marking a radical departure from previous policies. Since 1949 the Chinese leadership, acutely aware of a hostile global political economy and internal pressures of poverty, overpopulation, and technological backwardness, had adopted relatively autarkic development policies within a framework of proclaimed socialist principles. Whatever the internal realities that influenced passage of the Maoist era, changes in the international political economy were particularly evident: the settlement of the Vietnam War removed a major obstacle to improved U.S.-China relations; an emerging Japanese threat to American economic supremacy made power relations in Asia more fluid; and a growing integration of the world economy along with greater competitiveness spurred by the activities of multinational companies created new pressures and opportunities for poor and developing nations.
Phyllis Andors (Thu,) studied this question.