What was the “Open door” Policy of China?
(1) The Policy was to protect the economy of China, by putting trade barriers
(2) The Policy was to generate higher productivity by investments of Capital and Technology from abroad
(3) The Policy meant accepting the ‘Shock Therapy”
(4) The Policy was to become the Super Power

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The Chinese leadership took major policy decisions in the 1970s. China ended its political and economic isolation with the establishment of relations with the United States in 1972. Premier Zhou Enlai proposed the ‘four modernisations’(agriculture, industry, science and technology and military) in 1973. By 1978, then-leader Deng Xiaoping announced the ‘open door’ policy and economic reforms in China. The policy was to generate higher productivity through investments in capital and technology from abroad. China followed its own path in introducing a market economy. The Chinese did not go for ‘shock therapy’ but opened their economy step by step. The privatisation of industry in 1998 followed the privatisation of agriculture in 1982. Trade barriers were eliminated only in Special Economic Zones (SEZs) where foreign investors could set up enterprises. In China, the state played and continues to play a central role in setting up a market economy.