The arduous process of China economic development

发表时间：2026-05-11 07:59

A series of To Herbert Grubel The ways rescue ruined Canada

Note: On other blogs, my articles that are unfavorable to the West cannot be posted or are deleted, but this blog is the only one that hasn't deleted articles. However, unknown reason, some articles cannot be added or edited, so I am adding this article.

So that I made a series To Herbert Grubel The ways rescue ruined Canada.

The arduous process of China economic development

Frank Li May 11, 2026

Jan. 30, 2016, in article Gov-authorize non-partisan Super Leadership to assist social governance, I indicate that:

The success of China's economic reform was derived from a well understanding and properly dealing with the inborn human nature based on the culture of Ancient civilization.

For social progress, there are four main resistances.

First one is that we have to deal with people who are of an innate selfish nature and are capable of independent thinking and tend to act according to their own preferred accord, which will negatively affect social governance.

Second one is that the improvement of social governance may cause panic for potential risks from the uncertain social changes; most of people would resist the reform.

Third one is that the improvement of social governance would involve some social reform with the redistribution of social interest, and it would certainly encounter the fierce resistance of interest groups.

Fourth one is that the way of thinking and behaving of people is dominated by accustomed old tradition or outdated ideologies.

In The end of laissez-faire 1926, the British economist Keynes indicates that: “The compelling force of many of the original reasons has disappeared but, as usual, the vitality of the conclusions outlasts them.”

Such behaviors are caused by the inborn nature of human beings, regardless of race, regardless of nationality and regardless of the political model - one party dictatorship or multiparty democracy.

The process of China's economic reform was the process of making efforts to reduce and overcome such social resistance. The success of China's economic reform also benefited from the wisdom of long civilization in written records.

More fatal is that any social progress will inevitably involve in the redistribution of social benefits with the renewal of ideology, leading to resistance and social unrest, even bloodshed like the French Revolution. The difficulty lies in achieving social progress without causing unrest.

The success of China's economic reform provides a good reference.

Official designed Mandarin contributed development of China

Official designed language – Mandarin has made social communication easier and to have promoted the efficiency of social production; thereby contributed economic development of China.

China, there are 56 different races, it said that there are about 300 local languages. Even if it is the same written Mandarin in different area, the pronunciation may be different. You will easily imagine that the negative result of without an effective communication between people.

In China, besides many times to simplify the writing of Chinese characters, in 1950s, the government of China organized experts to have developed and issued pinyin system by use of Roman alphabet to regulate the pronunciation of the characters and put in use forced by law.

Today in China, those people under 80 years old can easily communicate each other. It may be only official designed language worldwide.

I talked with local Canadians; in Canada, the people from British Colombia are not easy to understand what they said from the people of Newfoundland. Even the people of Newfoundland have their own special dictionary.

Article Why does the English language have a tremendous vocabulary which is very excessive and very often more than enough indicates that:

“Mainly because over the last 1,000 years it has absorbed other languages which then become main stream.

“There were a number of concurrent languages in the Anglo Saxon period, to communicate they eventually merged their languages which is why we have two words for the unlawful act of causing death, ‘murder’ and ‘kill’. Ultimately they mean the same thing, but in English they can have different connotations, thus broadening the language to allow speakers to use the language emotionally or factually.”

“To give another example anger can be expressed in degrees; annoyed, angry, rage, fury, most people know how each emotional level feels, but each word has a different linguistic root. Words were picked up in India which became part of slang, loot, pukka, etc. I guess it's traditional in English to adopt words that help us to express ourselves.”

Article How many words are in the English language indicates that:

Many people estimate that there are more than a million words in the English language. In fact, during a project looking at words in digitised books, researchers from Harvard University and Google in 2010, they estimated a total of 1,022,000 words and that the number would grow by several thousand each year.

There 171,476 words are in current use. Adult native-speakers of English have a vocabulary of 20,000-35,000 words.

Note; the two articles showed the absurd development of human civilization; they didn’t provide the date of article, the first one was better with a date of 8y.

The arduous process China initiated economic reform and open up

As same as that of great many reform in China, the economic reform and opening up was not from a purposeful plan of the central government, but initiated by individuals with farsightedness and then supported by central government.

Former executive vice chairman of China Merchants Group, the important explorer and pioneer for China's economic reform – Mr. Yuan geng who died, at 3:58 on Jan. 31, 2016 at his 99 years old.

The process of China’s economic reform is a process of fighting against conservative ideology, especially those policy makers from socialist governing system. Besides ideology, it involved well understanding human nature.

Mr. Yuan Geng and China Merchants Group

By stirring up Opium Wars in 1840, the Western powers forced the government of China to have signed with a series of unequal treaties, by which to have grabbed huge waterways rights in coastal and inland China. China’s traditional domestic shipping was rapidly defeated.

Dec. 16, 1872, under the effort of China’s Minister Li Hongzhang, to have established China Merchants Steam Navigation Company for developing modern navigation industry to compete with overseas ships with a fleet of ships and offers ocean freight shipping services, which was the first Limited Liability Joint-Stock Company in China.

Due to Chinese Civil War, the company split into 3 branches. The one in Shanghai and in Taipei was merged or renamed; only the one in Hong Kong has been in existing and upraised as China’s state owned. Under planning economy, the company stayed in idle without any achievement.

In Oct. 1978, Mr. Yuan Geng was appointed as executive vice chairman of the company in Hong Kong, and later the company was developed as China Merchants Group.

January 31, 1979, the government of China approved the application of Mr. Yuan Geng to have established Shekou Industrial Zone in Shenzhen, China, and in March 1980, Mr. Yuan Geng was appointed as top director of the Zone.

The Shekou Industrial Zone is a prototype of special economic zones, firstly opened the door to foreign investors in China. It was foreshadowed of China's reform and open up in the background that planning economy has still occupied in a monopoly position. Since then, as a leader, Mr. Yuan Geng was to carry out comprehensive reform exploration.

Here, in particular, I must point out that, at that time China, the ideology of the whole society was dogmatically adhering to socialism, with strongly exclusion of any private economy of capitalism, and Mr. Yuan Geng’s reform exploration was just the practice of the way of Capitalism in managing the Industrial Zone by economic means, which was radically against main stream of social ideological.

In 1979, in the construction of Shekou Port firstly broke the egalitarianism payment to implement work performance linked reward system to have greatly promoted productivity, which caused trouble for himself and also trigged reform of wage system in china.

In order to overcome the decades phenomenon of high cost, poor quality and schedule delays in engineering construction, in 1980, the China-Swiss Mechanical Engineering Company firstly introduced the project bidding, since then, the infrastructure projects mostly by tender contract, thus, reached in low cost, high quality, and high construction speed. It played a role of pioneering and pathfinder in China’s infrastructure construction reform.

As an experimental field, in Shekou industrial zone, Mr. Yuan geng created a lot of management innovation, even free election. Only from 1979 to 1984, he created 24 national first innovations in social governance. As a successful model, those innovations has been playing an exemplary role, it greatly contributed and promoted the economic reform in whole China.

The deeds of Mr. Yuan geng made me sure that, an excellent, non conformist and innovative individual can affect the future of a country. The progress of a country can also serve as an example to promote the advancement of other countries. Of course, the excellent individual cannot be success without a booster effect of the favorable tide – the historical development trend.

From above facts, we can learn the difficult that China carried out economic reform successfully.

In 1981, in Shekou Industrial Zone, the land leveling, industrial related facilities and construction of the pier were substantially completed. In June 16, the news paper of the People's Daily published the report of Xinhua News Agency – The Construction Speed of Shekou Industrial Zone is fast, and firstly proposed Shekou Model with affirmed the bonus system, project bidding system, and a series practices in according to market economy law.

Since then Shekou Mode was fixed down and has been playing as a model for China's economic reform nationally. Then the central government copied the experiences to another 14 coastal cities, and then much more.

A lot of people entered Shenzhen to seek opportunities from Hong Kong after the start of economic reform. At the end of 2006, there were more than 8.46 millions people in Shenzhen city; there more than one million were from Hong Kong among them. Now, the people in main land China are easily into Hong Kong legally no one illegally any more, which was pre-indicated by Deng Xiaoping.

It is necessary to point out that any social change would inevitably touch the vital interests of some people, thus would cause a danger for the reformer.

Mr. Yuan Geng once said, he had seen that when antelopes were hunted by beast, the old antelope was firstly to jump into the mountain stream and stood there, then, frail little antelopes jumped to on and then skip over the mountain stream. The old antelope is protecting their race at the expense of their own life.

The economic reform of China without blindly following others

Talk about economic reform, we may easily think of the outstanding politicians and economists who once operated the economical and political reform of former Soviet Union.

They bravely performed great shock therapies that exactly followed the suggestion of the economists. The great politicians combined great economists to have created great job, they work together finished the reform from planning economy under one party dictatorship to market economy under multiparty democracy in a very short period, they finished reform decisively and thoroughly, at the same time, they also finished the country.

"Fortunately, Beijing did not listen to the West as that of Soviet Union”, said Mr. Laurence Brahm, an American-born global political-economist and lawyer based in Beijing, who once worked as advisor for the central government of China in helped and experienced the process of major policy making for the economic reform.

In an interview video in Mandarin on YouTube, named Fortunately, Beijing did not listen to the West as that of Soviet Union, Mr. Laurence Brahm said that he once provided many practices and policies of the West, but, the leaders of China did not dogmatically follow any one. He said that the process for the reform of stated owned enterprises were extremely difficult, because a single enterprise is a mall society with running schools, hospitals, housings, pension, and more. The reform involved complex social reform at whole systematically. It was extremely difficult. But, the most steps were correct.

In the YouTube video The expert of the US highly value China’s 40 years of reform and opening up, Mr. Laurence Brahm said that the top leaders of China have served at different levels of government, such as, they've either worked in ministries dealing with very pragmatic industrial technology or agricultural issues, they've also experienced in the village level, the city level, and province level dealing with the issues of administration of both urban centers and villages. They were well understand those suggestion of the Shock Therapy or Washington Consensus of the West was infeasible with potential of disasters。

Therefore, the leaders of China explored own way by trial and practice in step by step pragmatically, not dogmatically. Because of according to their experiences, the process of social development was complexity, the social problems were also complicated, when a problem was solved, several new problems are triggered. Just like the domino effect in endless, new methods are always needed to solve new problems. It is irrational by one prescription to treat all kind of diseases.

In 2014, according to his insights and experiences from the works in China and the works for other governments with different economic models, he published Fusion Economics: How Pragmatism is Changing the World to have indicated that a fusion of models and culture can come together to create an alternative that will help solve world problems rather than create them. By which, he outlined a new global consensus based on pragmatism, common sense, and grass-roots realities, and thereby turns away from economic systems dangerously steeped in ideology and stymied by politics.

Backed on the experience of the rational practice of China, he indicates that the World Bank, IMF, and WTO are largely outdated due to they pursue a very policy of market fundamentalism with unshirkable responsibility for the 2008 financial crisis and the deterioration of global political, economic and social stability.

37 years of experience in China, Mr. Laurence Brahm indicated the big difference between the leaders of China and the Western democratic players. The leaders of China were all well experienced, but the democratic players of the West are freshman without experience besides good at pleasing voters.

As my view, suppose that China turn to democracy, the result will be as that of India in a similar population. As my view, it is just democracy and the human rights in failing India.

Now, Mr. Laurence Brahm is focus on the Himalayan Consensus that is a holistic economic development paradigm that emphasizes the integrity of planetary eco-systems as an indispensible basis for socio-economic development.

As American was born in the United States, Mr. Laurence Brahm uses practical methods to help people escape of poverty. However, those Americans who live in the United States are using unrealistic ideologies to save the world. As a result, they are harming the world and themselves.

The failure of Soviet Union was caused by the kidnap of confused ideologies. In comparison with that of the West, China has less kidnapped by the ideologies.

The process of economic reform of China was the process of breaking the shackle of ideologies

Jan. 30, 2016, in article Gov-authorize non-partisan Super Leadership to assist social governance, I indicate that:

The success of China's economic reform was derived from a well understanding and properly dealing with the inborn human nature and the culture of Ancient civilization.

For social progress, there are four main resistances.

Second one is that the improvement of social governance may cause panic for potential risks from the uncertain social changes; most of people would resist the reform.

Fourth one is that the way of thinking and behaving of people is dominated by accustomed old tradition or outdated ideologies.

Such behaviors are caused by the inborn nature of human beings, regardless of race, regardless of nationality and regardless of the political model - one party dictatorship or multiparty democracy.

The success of China's economic reform provides a good reference.

China has good use of the advantage of capitalism and socialism

The process of the economic reform of China was also a process of seeking for the good use of the advantage of capitalism and socialism.

People are inborn selfish instinct; the selfish survival seeking activities is the basic driven force the development of human society; without selfish instinct of people without human society. The selfish instinct is double edged sword in impacting social governance.

It said that the capitalist society is the capital controls a nation, and the socialist society is the nation controls the capital. No we may say that the capitalist society is the greedy controls the nation, and the socialist society is the nation controls the greedy.

By meeting the desire of people inborn selfish instinct; the market economy promoted the economic prosperity of capitalist society; but that over relying on meets the desire of people inborn selfish instinct is also has dead side effect.

Sep. 12, 2017, Professor at the University of California, Robert Lustig published book The Hacking of the American Mind: The Science Behind the Corporate Takeover of Our Bodies and Brains to expose that industry has manipulated the most deep-seated survival instincts of people for profiting, the science that drives these states of mind, and the government actors who facilitated it.

Jan. 4, 2022, Jeremy Menchik, Professor at Boston University, published Confessions of a 'human guinea pig': Why I'm resigning from Moderna vaccine trials. When participating in the Moderna COVID-19 vaccine trials; he found that for maximizing its profits; Moderna did not let vaccine going all out to end the pandemic as quickly as possible, but is in helping prolong it by not making its mRNA technology available to the the U.S. government or other manufacturers so global production can be scaled up quickly. So that the Professor concludes that the process of science and the products it yields are noble, science for outrageous profit that costs people their lives is not noble.

The fact is clear that capitalist society allows greedy controls the nation has been in making disaster.

The socialist society is mainly based on the communist idea of Kari Marx of contributing what you can contribute and taking what you need; but that over relying on people's consciousness and self-esteem also there is dead side effect; which is to destroyed social productivity by suppressing human selfish instinct; so that, in compared with capitalist society, the socialist social system makes poor.

The fact is clear that socialist society allows nation controls greedy has be also in making disaster.

For developing a better livable society, the integrated use of the advantage of capitalism and socialism is the best way. The process of China’s economic reform was the process of integrating the advantage of capitalism and socialism by nation control major economy; while by broken the equal payroll system of socialism to enlarge that contribution linked payments; by which optimized the advantage of capitalism and socialism.

The review of the development of China’s economic reform

This section is excerpted and reedited from my 2012-07-29 article To Make Possible from Impossible by Breaking the Shackles of Dogmatic.

For facilitating the understanding to that of I am going to discuss, I think that, there is necessary to review the reflection of former Russian President Vladimir Putin on Russia's ridiculous experience in their socialist period.

In Dec. 30, 1999, Vladimir Putin made a speaking of

“For almost three-fourths of the outgoing century Russia lived under the sign of the implementation of the communist doctrine. It would be a mistake not to see and, even more so, to deny the unquestionable achievements of those times. But it would be an even bigger mistake not to realize the outrageous price our country and its people had to pay for that Bolshevist experiment. What is more, /it would be a mistake/ not to understand its historic futility. Communism and the power of Soviets did not makeRussiaa prosperous country with a dynamically developing society and free people. Communism vividly demonstrated its inaptitude for sound self-development, dooming our country to a steady lag behind economically advanced countries. It was a road to a blind alley, which is far away from the mainstream of civilisation.”

As same as other socialist countries in former socialist camp, the experience of China is similar to that of Soviet Union. For almost three-fourths of the last century,Chinalived under the sign of the implementation of the communist doctrine. The dogmatists have directed many ridiculous farces with a little knowledge about the theory of Karl Marx without grasping the living soul of Marxism, which is to make a concrete analysis for specific situations, to solve specific problem by specific solution.

There were many reports about economic achievements of China; however most of them were looking at the appearances rather than dug into the substance in the level of philosophy. Such as that, the most of daily goods worldwide are made in China, and that China has made economic miracle, but no one answered about that why did it happen?

The process of the development of China’s economic reform was the process of beating ideological dogmatists and then the proposals for the economic reform can be practiced.

The proposals were from the grassroots of the ordinary people or Governors who were working in local Governments according to their personal experiences from the social root and approved by top Governors who were foresight without dogmatic mind and dared take the political risk personally, such as, Hu Yaobang, Zhao Ziyang and Deng Xiaoping, they played decisive role at different historical period. Then implemented from point to line and from the line to area, step by step, avoided big social shake that happened in many other former socialist countries. Follow is an example.

Ezra F. Vogel, the Professor of the Social Sciences Emeritus at Harvard University, who cost about 10 years, visited many key figure and historical sites, mastered informative first-hand information, to have written < Deng Xiaoping and the Transformation of China> that published in 2011. In the book, he indicated that Deng’s formula for success was simple: “Don’t argue; try it. If it works, let it spread.” I think this is the best understanding for the success of the economic reform inChina. It certainly possesses universal significance.

“Don’t argue; try it. If it works, let it spread.” Whether the statement look or sound is all very simple, but, it is hard to do so at the time of beginning of economic reform in China.

Firstly, that “Don’t argue” was impossible, because argue is the job or hobby of some people. If some of the socialist dogmatists considered something beyond the boundaries of socialism, even if "It works", they would not "let it spread." The aftereffect for the proposal providers or practitioners would be more than just argue, but a severe punishment or even jailed.

The creed of those dogmatists is: that would rather keep the socialist weed, but never adopt the capitalist seedling. In fact, the process of China’s economic reform was the process that broke the dogmatic shackles regarding the road of Socialism and Capitalism; it was called as political struggle of the two-line, and was considered as involved in alive or death of China.

This phenomenon was not unique to China and not unique to the socialist camp. Almost any Western politician, open mouth or close mouth, will be with a sound of the values of liberal democracy and, that is their hobby. It is not because of the true human conscience, but because of the need for showing own noble to deceive voters, thereby maintain their political position for enjoying political privileges.

This was the reason I wrote section of the 1.. Human nature and social governance: Whether it is the past and the present, whether it is the West or the East, the individual or the society, everything that happened were stemmed from the quality of people - the quality of reasoning function – humanized or non-humanized.

That being the case seriously, then, how that China did broke the dogmatic shackle to make possible from impossible. Here I’d like to try to discuss it with some practical experiences of China.

At the beginning of China’s economic reform in three decades ago, most politicians and sociologists have objected strongly according to their dogmatic understanding for Socialism, Capitalism and Marxism.

Deng Xiaoping, an outstanding top leader in economic reform of China, he repulsed the useless dogmatic arguments with patient explanation that whether the share of planned economy is a little bit more or the share of market economy is a little bit more, it is not the essential difference for Socialism and Capitalism. That planned economy is not equivalent to Socialism, Capitalism also has plan, and market economy is not equivalent to Capitalism, Socialism also has market. The plan and the market are only the economic means that can help to develop economy.

He indicated that, if China does not reform to develop economy for improving the living of the people, any road would be a dead end. Poverty does not belong to Socialism. We need to build Socialist society with unique feature of China.

In China, officially called Deng Xiaoping as the chief architect of China's reform and opening up, however, Professor Ezra F. Vogel's findings were contrary. He calls Deng “the general manager” ofChina’s latest revolution. Due to that Deng was careful not to get out in front of the economic reform, but used younger officials such as Hu Yaobang and Zhao Ziyang for that. Even he did not involve in the decision-making to launch market-oriented special economic zones for capitalist-style experimentation.

In my view, in the process of China’s economic reform, the role of Deng Xiaoping is much significant than that of as a chief architect. As one of highest political leader with no dogmatic mind, Deng’s role was just as Bulldozers or Icebreaker to have successful excluded resistances for economic reform. I can say with certainty that,China, as a feudal imperial ideology deeply rooted country, if there was no strong political authority as Deng Xiaoping, the economic reform would never be able to achieve the outcomes today. Deng’s unique role, no one could replace. Back to Top

Now, looking back the course of China’s economic reform, it had no previous theories or references in model or framework, there was no any prior design at all. It was just as Deng Xiaoping said: Wading across an unfamiliar river by feeling the rocks on the bottom of the river. It meant that the process of economic development was continuously adjusting the policy or direction according to the problems that emerged in the practice.

A decisive ideological battle for economic reform of China

September 1977, Hu Fuming, an associate professor at the Philosophy Department at Nanking University of China, who wrote a paper < Practice Is the Sole Criterion for Testing Truth> to criticize the prevalent of Dogmatism. It challenged the absurd dogmatic argument of "two whatever" (which refers to the statements that "we will resolutely uphold whatever policy decisions Chairman Mao made, and unswervingly follow whatever instructions Chairman Mao gave").”

However, at the start, no one dared publish it. Until 8 months later, in May 10, 1978, it was published after personal validation of Hu Yaobang who was the executive director of Central School of the Communist Party of China (CPC). Hu was one of the few outstanding top leaders in promoting economic reform ofChina. He was always solving the problem depending on the actual circumstances without dogmatic mind.

The paper was suffered strong criticize. It was condemned as “absurd in theory, reactionary in ideology, and the intention was to cut down the red flag ofChina.” Obviously, those dogmatists have neither talent nor morality because they never study to improve themselves. They are always making irrational response for any sound. They are born of persecuting with full energy against the people of integrity. The only fear for them is the peace of the world. This was the reason that Deng Xiaoping was ousted from his political position 3 times in his lifelong. The writer Hu Fuming himself has prepared into jail. As a socially responsible scholar, he learnt that social progress need brave person to sacrifice for it, even with the life.

Fortunately, in June 2, 1978, on a meeting, Deng Xiaoping publicly supported the view of the paper of Hu Fuming and severely criticized the dogmatism. He called to liberate the thoughts by breaking the spiritual shackles of Dogmatic. In December 1978, on the third Session of the Eleventh Plenary Meeting of Communist Party of China - CPC, the event of discussion regarding the criterion of truth was being highly valued. It has further eliminated the dogmatic poison regarding the Socialism and Capitalism.

“The article gave rise to a nationwide "Debate on Standards for Judging the Truth".” In a large extent reduced the poison of Dogmatism, and “ushered China into an era of reform and opening up.”

There was a paper that praises the contribution of the article of Hu Fuming, the title was <An article influences Chinese history>.

Before economic reform, China was a socialist society of public ownership and planned economy based on the guiding ideology from the theory of Marxism-Leninism. Indeed, the dogmatic arguments related with the road of Socialist or Capitalist were never stop since the establishment of P. R. China in 1949. There were always some people to look at the tiny buds of Capitalism with a magnifying glass to disroot it.

Cat Theory destroys ideological dogmas in China

Since 2000 years ago, China has uprooted soil for budding toxic ideologies by forbade all schools of thought; so that the people of China are able to live a long peace prosperous life; in contrast; the West has been living in Law of Jungle of looting and killing in endlessly provoking wars under the conducting of thoughtful thoughts – Ism; -Ist and more.

In nowadays China, the ideologies that are in badly troubling social governance, such as, multiparty liberal democracy, one party dictatorship, universal values, human rights, freedom, communism, socialism, capitalism, Neoliberalism, and great many more of such stuffs are all the inbound one that budded in European looting and killing bloody soil.

Globally, for more than a century; such inhuman stuffs have been in playing the extreme bad role of distorting the cognitive function of people; so that they take wrong as right and promote bad for good to make society ungovernable.

There is best proof for my inference that the ideologies poison people; it is that in the West; the social welfare system is a kind of communism; the sadness is that people condemn communism, but eagerly enjoying it created welfare.

The other proof is that people mix political model and economic model as one by economic model capitalism representing market economy under multiparty dysfunctioned liberal democracy; while by economic model socialism representing state owned planned economy under being condemned one party dictatorship.

Berlin wall; generally says, it was a wall for isolating the social practice of different ideologies. In its East, the countries were practicing communism based socialism of state owned economy rigidly in elimination of capitalist germ; while in its West, the countries were practicing capitalism rigidly in elimination of communist germ.

Actually, in the practice; since the start, the capitalism has never cleaned up the state owned economy; while the socialism has never cleaned up the market economy; the difference is at the proportion.

The planned economy was found by the founder of former Soviet Union; Vladimir Lenin who indicates that the government must control the key segments of economy; then the agricultural and heavy manufacturing sectors were largely centralized. During the 1940s to the 1970s, the Soviet economy grew at a rate that outpaced that of Western European nations.

Now China is still in the governance of government controlling the key segments of economy; but also, economy grew at a rate that outpaced that of the major economies globally. So that the economy state owned or not is not the cause of the failure of former Soviet headed socialist camp.

Feb. 09, 2014, I once wrote article Management is the Art of Playing Human Nature to indicate that Human behaviors are determined by dual natures: The cultural nature of those acquired altruistic qualities, and natural (animal) nature of those inborn selfish instincts. The Management is to finish purposeful tasks with the culture nature driven by meeting the animal nature with payment under the enforcement of regulations. Therefore, Management is the Art of playing human natures.

The failure of more than 70 years of socialist practice was not mainly because of over relied on the human culture nature by madly suppressing the exertion of human animal nature under the enforcement of State Apparatus in ignored inborn selfish nature of people; with an equalitarian wage system not linked to contribution.

The driven force for German outstanding manufacturing mainly comes from their legislated management for rationalization proposals, which is to extract bonus from the profit gained in the application of the rationalization proposals to motivate all staff to pay their full talent into the business running since Mr. Krupp initiated it in 1872. That is 142 years ago.

The driven force for patent invention of 102 years old IBM has been counting on the top of those world-class corporate giants in the United States for 20 consecutive years is the patent-related bonus incentive system.

There were a lot of researches on the economic success of China, and most of them attributed the success to the magic of the Invisible Hand. But, that was not fully true with ignored the essence - it was that China has broken the egalitarian wage system, that implemented for decades in the socialist period, to have largely increased the share of work performance-related payment.

The method of increasing the share of work performance-related payments is simple; but the practice of the method was not simple; but was extremely difficult; because of the ideology argument that it is in capitalist greedy; therefore being deadly resisted by socialist doctrinaire; but later, it was solved by Cat Theory.

In 1962’s China, there were some rural areas in response to famine and natural disasters, spontaneously generated some flexible production models without touching the bottom-line of the state-owned ownership. Such as, one of them was that took each family’s members as one production unit contracted to take the responsibility for a certain area of farmland to solve the thorny problems that some people did not work well when team-working in the production unit that the members were mixed together from different families. The selfish nature of mankind is inevitable; the key is how to well control it, how to turn the shortcoming to the strongpoint. Those new emerged production models were able to play this kind of role. They should have been a good thing with the function of improving the production efficiency, but were strictly prohibited by some dogmatists.

Only Deng Xiaoping supported them with his famous Cat Theory: “It doesn't matter whether a cat is white or black, as long as it catches mice.” In other words, he did not worry too much about whether a production model was capitalism or socialism as long as it can improve the production efficiency. This was obviously a sensible comment, but, it became main reason that he was purged from his political poison first time. However, Mr. Deng laughed finally in decades later with the success of the economic reform under his way.

But the effective practice was forbidden by the socialist doctrinaire with the argument that production model is in capitalism. They said that it would rather want the grass of socialism, no seedlings of capitalism.

Only Deng Xiaoping supported the practice with his famous Cat Theory: “It doesn't matter whether a cat is white or black, as long as it catches mice.” In other words, he did not worry too much about whether a production model is capitalism or socialism as long as it can improve the production efficiency. This was obviously a sensible comment, but, it became main reason that he was purged from his political poison first time.

However, Mr. Deng laughed finally in decades later with the success of the economic reform under his way.

In the book Deng Xiaoping and the Transformation of China, Professor Ezra Vogel indicated that Deng’s formula for success was simple: “Don’t argue; try it. If it works, let it spread.” I think this is the best understanding for the success of the economic reform in China. It certainly possesses universal significance. The success of China is at stopping ideological arguments to enjoy the complementary advantages of socialism and capitalism.

“Don’t argue; try it. If it works, let it spread.” Whether the statement look or sound is all very simple, but, it is hard to do so at the time of beginning of economic reform in China.

Here was a story to show the harm of dogma of socialism

In the summer of 1991, a guest visited Deng Xiaoping and asked that, today I want to ask you about the problem of employment of private enterprises. How many workers hired belong to socialism and not belong to exploitation of capitalism?

As soon as Deng Gong heard that, he immediately raised his voice with somewhat anger: I tell you, we should not argue such issue anymore; don't endlessly argue of wasting time, we can't afford for it. The economic reform and opening up are new things; we must boldly try and go forward with trial and error.

The question made Deng Xiaoping aware the dead resistance of economic reform; in January 1992, 88 years old Deng Xiaoping specially went to Shenzhen city and explained that the economic development is the last word, if we do not reform and opening up, it is dead end, we must dare to test and try boldly.

At that time, the news media dared not report what Deng Xiaoping said and Deng Xiaoping has to order news media reported.

Before economic reform, there were a lot of people from China illegally went into Hong Kong to be captured and sent back by the police of Hong Kong, then they went back and were sent back, thus recycling. Those illegal immigrants were considered as traitors to be rudely treated.

Many illegal immigrants drown in the Gulf between Shenzhen and Hong Kong. Made me tearful is that, until now, no accurate statistics of how many people have made the sacrifice to the Gulf by their lives on the way swimming toward a dreamed place where they might get a better life.

Here, I think of the stories of East Germans fled into West Germany risked their lives over the Berlin Wall during the period of Cold War, especially a 77-year-old lady who was attempting to jump to West Germany from a building of East Germany near the Berlin Wall, however, when she saw the height where she was standing, she was immediately scared of paralyzed sitting on the floor, but when she heard the sound of policemen was breaking the door behind her, she immediately stood up and jumped down toward West Germany.

Such a flying roads were imprinted with blood, East Germany once played as so, and Shenzhen China was as so.

What was the reason to have forced those people on this dead road?

The reason was very simple: it was the poor.

Poor forced some brave people to seek a better life through illegal immigration by venturing in the life risk.

The initiation of the test zone for economic reform

November 1977, when the leaders of Guangdong province were uneasily waiting for the instructions after they had reported to Deng Xiaoping about the event of more and more people fled to Hong Kong. Deng Xiaoping has been remarkably silent a while. He continuously smoked a couple of cigarettes, then slowly turned himself and calmly said that: "This caused by our improper policy and it could not be controlled by force." Deng Xiaoping stressed the significance of developing economy: only the life of the people improved, we can solve this problem. We must change the poor situation even on a blood road. His ambitious determination had further broken the shackles of the dogmatism regarding socialism that insisted on planned economy.

In 1980, Shenzhen, a small poor city closed to Hong Kong, with 300 thousand people, was set as a test zone for economic reform by central government through approved an application of Guangdong province, without any financial support besides the permission of making local policies independently:

1. Development based on absorbing foreign funds.

2. The economic models are Sino-foreign joint ventures, cooperative ventures and solely-foreign-oriented.

3. Products export-dominated.

4. Economic activities are market-regulated under the guidance of national plan.

At the same time, for the foreign investment in the test zone, provide special offers and conveniences in taxation, immigration employment and so on. The management model could be different from that of domestic. They may have greater power of autonomy following the international practice to tie closely to the international market.

Only several years, Shenzhen was developed as a modern city. Then the central government copied the experiences to another 14 coastal cities, and then much more.

Before disintegration of Soviet Union, a Russian governor who once visited Shenzhen and was impacted by that what he saw about the extensive economic reforms, which were totally contrary to the theory of Marxism and the socialist road that was insisting strictly by the countries in the international socialist camp, which supervised by the force of former Soviet Union. He talked to the top Governor of Shenzhen with somewhat scare: “you have placed your certificate of party member and even your head on shoulder to bet on economic reforms”. From the talks we would learn the political risk that was taking by those governors who were directing economic reforms.

From the perspective of today we would feel the absurdity that experienced in socialist countries. Those dogmatists who dogmatically comprehended the socialism, with good wish, but wrong way to have caused harm to human society. Today, although the socialist camp basically collapsed, but dogmatism did not go into its grave, it still widespread and endanger human society.

Apr 25, 2011 10:10 am EDT, there was a report on the website of Reuters <Analysis: Shandong postcard: big changes sweep rural China>. It described the new scene in rural area ofChinacurrently. “Nationwide, per capita rural incomes after inflation rose 14.3 percent in the first quarter from a year earlier, double the increase in urban disposable income, thanks to higher farm prices and bigger remittances by migrant workers.”

World Bank reported that, in the past 25 years, the achievements in poverty reduction, there 67% were attributed to China.

It is a proven fact that economic reform of China was correct. China’s success in economic development in step by step has avoided mass bleeding that had happened in many other socialist countries during social political and economical transformation.

China's current economic model has mixed with the both models of Socialism and Capitalism, which good applied the both advantages from the planned economy and the market economy. The current economy is controlling by two kinds of hands, visible and invisible. The economic theory is a mixture from Marxism, Adam Smith, Keynesian and others. This is the why that China has been making economic miracle in decades, while other former socialist countries had fell into long-term languishing due to changed their political and economical system in a very short time without any preparation in advance. Only China outshines all of the others.

Now the clear fact is that, no matter socialism or capitalism, which can promote the production of social wealth, will be a good-ism. No matter socialist or capitalist, who can give people a happy life; will be a good-ist. Superstition of any side will be a harmful. Mr. Deng Xiaoping was a good player on that.

The valuable experience derived from the success of China should be that, due to the objective world is continuously changing we must solve the specific problems according to the specific circumstances and avoid to respond to all questions with a same formula or dead doctrine.

While reviewing for success of China’s economic reform, some people even said that, in this world, there is nothing impossible but only the things that are unimaginable.

Any theories have their historical limitations. Along with the social development, it will accumulate some new problems that need to be solved through updating old theories or launch new theories. Such new problems emerge and to be solved timely is the driving force to promote the progress of human civilization.

Initiation of Yiwu Global largest wholesale market

A proper social productivity is the cornerstone for the survival of any country. The collectively decline of former socialist countries are caused by lower productivity, which is caused by the kidnapping of the ideology of Socialism, with strictly suppressing the activity of private economy.

At start, I have indicate that the successive government of China is more pragmatic with less kidnapping of ideology, indeed, that is the general situation, but in certain historical period, it still was under the kidnapping of ideologies, such as, in the period of socialist planning economy, under the conduct and the enforcement of former Soviet Union, China was once strictly suppressing private economy, especially the folk trade.

Due to economic difficulties, people lack living materials, especially food. In order to survive, people began to try to make small business, but, that was strictly banned as capitalism.

Follow were from documentaryhttps://www.youtube.com/watch?v=ADuatfOa7Oo&list=PLymA3lZecWBX

Feng Aiqian, a mother of 5 kids in Yiwu county, Zhejiang province, since government restricts her from doing small business to buy food, she argued with the leader of Yiwu County, which triggered the local policy for private market in May 1982.

At the end of 2017, there were more than 65 million private industrial and commercial businesses nationwide.

Yu Yunxin who once was selling embroidered products, today, built Yiwu World Trade Center.

Liu Yuanqing, who once engages in long-distance trafficking, now produces 20% of the world's blankets.

China premier invites ordinaries to discuss policymaking

Feb. 5, 2018, in article Why didn't China collapse as eagerly hoped as Westerners, I introduced that China invites ordinary citizen to discuss national policymaking in central government.

Feb. 5, 2018, the article Deliveryman invited to present suggestions to China's top leadership reports that, in July 2017, a deliveryman Mr. Li Pengxuan who submitted his suggestion online of official website of China's State Council, in Jan. 31, 2018, he was invited by Premier Li Keqiang to Beijing for a talk.

The report inspired me to think more about the rationality of China's top leaders and the misunderstanding of the West on China's Social Governance.

Over the years, some scholars and politicians in the West have rumored and actively advocated their prediction of China's collapse. In their mouths, China should have collapsed long ago politically and economically. However, China has continued to develop and in many ways has become the world leader.

In fact, it was not these Western scholars and politicians were born shameless, specializing in rumors as career to make a living; but, rather, it was that China's development path is different from their well-known experience in mainstream way of development in the West.

The main reason is that the formulation of state policy is different.

In the democratic countries that Westerners are self-proud of, in which, to elect several groups of people from different parties to discuss the formulation of policies. In many cases, the formulation of the important policy for properly governing the state has become a bargaining chip for different parties to fight for their own interests, in which process, the parties are deadly fighting against each other by the way of dogs biting dogs and pulling the tails of each other. By such a ignorant way, the function of government in policy-making was paralyzed.

In the eyes of the West, China is a typical one party dictator. But, in the process of national policy making, indeed, it has been not a one party dictator at all, but, a consultation of multi-party democracy without hostile battles. In which way, it is easy to reach an agreement based on each other's views toward the goal of building a good nation.

More importantly, in China, the top leaders have been conducting in-depth investigations and studies into the grassroots level, even invites ordinary people from grass-roots to participate in discussing and formulating policies, and thereby, the policies that made in such a way were more realistic and effective.

We may imagine that, if 1.3 billion population’s China is misgoverned to fall into chaos as that of in Syria, what would be the result for this world?

Now, we have made clear that the success of China’s economic reform was mainly derived from flexible governing approaches, rather than fully from one party dictatorship.

In China, the policy making has been in friendly discussing and in freely adopting a variety of useful suggestions.

For example, as mentioned above Deliveryman invited to present suggestions to China's top leadership, Li Pengxuan, as a deliveryman in central China’s Shanxi province. Last July, he submitted his suggestion through “Share your thoughts with China’s Premier Li” on the official website of the State Council, saying he hopes the government will promote cooperation between the insurance sector and the express delivery industry.

Mr. Li Pengxuan never expected that his suggestion could result in him being invited by Chinese Premier Li Keqiang for a talk in Zhongnanhai, the exclusive compound for top leadership.

At the symposium on Jan. 31, Li Pengxuan presented his advice regarding the draft government work report to the Premier with other representatives from all walks of life.

Deliveryman Li Pengxuan was invited by Premier Li Keqiang to attend meeting of central government for improving delivery industry.

Follow was some reports about the process of policy making in Canada

Canada: Opposition: Trudeau 'elbowed' female lawmaker, by CNN in one year ago: Opposition leaders in Canada are accusing Prime Minister Justin Trudeau of getting physical during a parliamentary session.

The meeting was intended to put forward Euthanasia Act that proposed by the ruling Liberal Party, but, it was led into the prime minister's attack on the chest of a woman councilor.

Please image that, as same as that of British Prime Minister Theresa May, under similar political system as a kinship country of Britain, how helpless of PM Justin Trudeau is?

In adding