The goals of Deng Xiaoping's economic reform were the "four modernizations". This Four Modernizations refers to the reform of agriculture, industry, national defense and scientific technology. These reforms were intended to solve the problem of motivating workers and farmers to produce a greater surplus and eliminate economic imbalances common in planned economies. Deng Xiaoping believed that the fastest way to build a better China was to immediately improve living conditions, give people the level of morale they need for further development. At that time, he realized that China needed economic reform; he found very effective ways to reform China's economy. Its goals were to open the Chinese market to the outside world, dismantle collective farms, eliminate state-owned enterprises, and create more jobs for workers in the industry. According to him, the most important thing was the modernization of agriculture because 80% of the population derived their livelihood mainly from agricultural production. The new system of contractual responsibility allowed farmers to lease land to individual farming families. Farmers had to sell a certain percentage of their crops to the state at the state price, and could sell the rest for their own profits. This system had helped double rural income (Benson, 47). It marked a successful modernization of agriculture. In addition to the modernization of agriculture, in the Deng era, there was a shift from central planning and reliance on heavy industry to consumer-oriented industries and reliance on trade and foreign investment. Some of the new factories were purchased by other countries; some of them were built with local resources. Capitalist enterprise was an ac... At the center of the paper, Chinese students were able to experience a higher standard of living and encountered a number of ideas that could have become deeply subversive influences. In the late 1970s, the United States established full diplomatic relations with China and ended the mutual defense treaty that the United States and the Republic of China had signed in 1954. Additionally, the United States opened its markets and continued to limit the export of technologies with possible military uses to China. But in 1982, the Chinese began to distance themselves from the United States to improve their relations with the Soviet Union. But just a year later, after a substantial easing of US restrictions on exports to China, relations between China and the United States began to improve again. Works Cited Moise, Edwin E. Modern China. Great Britain: Pearson Education, 2008.Benson, Linda. China since 1949. Great Britain: Pearson Education, 20082.