In December, 1978, the Communist Party of China (CPC) made a decision to launch a nationwide reform and opening up campaign at the Third Plenary Session of the 11th CPC Central Committee. It was a critical choice, which eventually lead China into a brand-new development epoch.

With consistent efforts in the past three decades, China has realised the transition from a highly centralised planned economic system to an innovative socialist market economic system, from a closed or semi-closed state to a state fully open to the outside world, and blazed a way with typical Chinese characteristics towards a moderately prosperous and fast-modernising society for its 1.3 billion people.

Since the policy of reform and opening up, a socialist market economic system has been established and continuously perfected. China witnessed formation of an ownership structure that has public ownership at its dominant position and allows for diverse forms of ownership. A modern market system, unified, open, and rationally competitive, eventually takes shape; a macroeconomic regulation system has been built.

As of today, more than 50 per cent of major state-owned enterprises and over 90 per cent small- and medium-sized state owned enterprises have been transformed into joint-stock companies, non-public-owned sectors generating one-third of the national GDP.

Open economic pattern

As China's opening-up deepens, an all-directional and multi-tiered open economic pattern has basically formed up. In 2001, China joined the World Trade Organisation (WTO) and has been playing an active role in economic globalisation ever since. Effective utilisation of resources in both domestic and foreign markets demonstrates its higher level of competence in the international community. From 1978 to 2007, China attracted a total foreign investment of more than US$760 billion, ranking first among developing countries and second in the world. Its foreign trade volume rose from US$20.64 billion to US$2,170 billion in this period, coming third in the world.

Implementation of reform and opening up policy has released restraints on social productive force and, in turn, led to a fast and stable economic development. From 1978 to 2007, China maintained a 9.88 per cent annual growth, well above the world average of three per cent over the same period.

Jump in state revenue

In the course of reform and opening up, China's state revenue rose from 113.2 billion RMB (approximately US$16.5 billion) to 5,130 billion RMB (approximately US$750 billion), and its aggregate economic volume came up to fourth place in the world.

Income of urban and rural residents has grown by a wide margin as influence of reform and opening up policy spreads. The life of the Chinese people has also taken great changes, from lack of adequate food and clothing to moderate prosperity.

In the last three decades, per capita disposal income of urban residents and per capita net income of rural residents have made more than a six-time jump, in real terms, driving domestic consumption from food-and-clothing-oriented to a housing-and-transport-oriented one.

Retirement and medical insurance has cover more than 200 million people, a population living under absolute poverty line in rural areas decline from 250 million to about 14.8 million.

Progress

Significant progresses have taken place in all spheres of China from 1978 to 2007. Tremendous development has been made in promoting political and ideological civilisation in this period. Scientific and technological research has yielded remarkable achievements; some were listed among the most advanced in the world.

Competitiveness in the world sports circle has been greatly strengthened; excellent performance of Chinese athletes in the 2008 Beijing Olympic Games has enhanced the glory of existing achievements. A free compulsory education system has been established to cover both urban and rural areas. Medical service network has been continuously perfected.

Both the cultural undertakings and cultural industry have developed. Political reform is making steady progress; democracy at village-level gains more vitality. A legal system has been basically set up to regulate activities under socialist market economy.

Changes over the last three decades have incontrovertibly proved that the decision to begin reform and opening up is vital to the course of development of contemporary China, and that reform and opening up are the only way to develop socialism with Chinese characteristics and to rejuvenate our nation. Achievements made during the last 30 years would not have been possible without reform and opening up. China must remain committed to the policy to create a brighter future.

BEIJING (AP):

Chinese Communist Party leader Hu Jintao, speaking in the same hall where his predecessors launched a free-market revolution 30 years ago, urged more economic reform last Thursday but said it would not lead to Western-style democracy.

Economic reforms have brought China unprecedented prosperity, making it the fourth-largest economy in the world, but they have not led to an opening up of its authoritarian political system, as many Western observers and some Chinese had hoped.

In fact, the Communist Party now views economic growth as a key component to maintaining public support for its one-party rule.

In a 90-minute, nationally televised address during a ceremony marking the anniversary of the reforms, Hu credited "socialism with Chinese characteristics" for the country's success - a catchphrase for jettisoning the centrally planned economy while maintaining strict authoritarian rule.

Great Hall of the People

Hu entered the Great Hall of the People - the seat of the country's legislature in the heart of the Chinese capital - at the head of a line of China's top communist leaders. The Great Hall was the site of a Communist Party gathering on December 18, 1978, that endorsed small-scale private farming, the first step toward dumping the late leader Mao Zedong's vision of communal agriculture and industry.

China's economy now trails only the United States, Japan and Germany. Along with private enterprise and capital markets have come greater prosperity than ever before.

Per capita income soared

Annual per capita income has soared to about 19,000 yuan ($2,760) last year, up from just 380 yuan ($55) in 1978. Virtually all Chinese families now have at least one television and, in the cities, a washing machine - rare items three decades ago. Some 15 million families own private cars, and many Chinese also own their own homes.

The reforms have turned China into the world's factory floor, producing everything from simple toys and Nike sneakers to advanced computers and cars. But the modern industries have brought many modern ills: pollution, industrial accidents and product safety scandals.

China's heavy reliance on exports and foreign investment also ensures that the uncertainties now afflicting the global economy are haunting the Chinese as well. But Hu said China needed to firmly focus on economic development to weather the current crisis.

"Standing still and regressing will lead only to a dead end," he said.

Despite the dramatic economic changes, China's political system remains firmly in the control of the party, although calls for greater freedoms persist. Earlier this month, more than 300 lawyers, writers, scholars and artists circulated a public appeal, dubbed 'Charter 08,' urging the party to loosen its 60-year monopoly on power and allow democratic reforms.