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The Cultural Revolution had loudly asserted Mao's radical vision of communism. It also strongly rejected capitalist values. But in the decades after Mao's death, China moved in the opposite direction. Under the leadership of Deng Xiaoping during the 1980s, China underwent massive economic reforms. The Chinese economy became less centrally planned. It evolved into what Deng Xiaoping described in a 1984 speech as "socialism with Chinese characteristics."
Like Mao, Deng Xiaoping wanted to increase production and modernize the country. But he did not reject the West. Deng Xiaoping's approach to developing production was a lot more open to foreign influences. This meant that capitalist approaches also increasingly influenced the Chinese economy. Many Mao-era reforms were dismantled. Agriculture and industry were privatized in many sectors. Special Economic Zones, mostly on the coasts, attracted foreign investment by offering tax breaks. These included inexpensive labor and other incentives. Tourism also increased. Some restrictions on religious activity were relaxed, and places of worship reopened.
Deng Xiaoping's stated goal was to drastically improve the standard of living by the end of the century. Though he retired in 1989, his goal was ultimately accomplished. After the Maoist era, China was politically stable, and the economy took off. Poverty declined, and the average Chinese person was healthier, with better overall nutrition, a higher life expectancy, and a lower incidence of disease. Urban centers were energized, with exports booming. While these policies looked more capitalist, Deng Xiaoping explained that it didn't matter if things appeared more communist or capitalist. What mattered was what was good for China.
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