Good morning everybody
now we are going to have the fourth lecture
which is about the fourth cyclical crisis in modern China
When we try to understand the economic crisis
we must correlate it with geopolitics
especially that in the 1960s to 1970s
That is because after the Second World War
the US and USSR, the two big powers
had never loosened their geopolitical control
especially in Asia. Asia has a long history of being nation states
You know that 
China has at least
 three thousand to four thousand years of history 
as a state or a country
To say ‘a country’ 
it may somehow be taken to refer to the rural areas
so we'll say ‘a state,’ 
which means they did have a long history of government and governance
Over their long cultural history
these countries in Asia had never been fully occupied 
or fully colonized by western colonial master countries 
during the last three hundred years
I mean the modern three hundred years
which was coincided with the time of colonization
The American continents
both the north and the south
the Australia continent and the full African continent
these four continents were totally conquered and colonized by Europe
the western countries
That had made Europe the center of the world
Still, over the longer term
if you consider the last four or five thousand years of history 
the center of the world was in Asia
Even after the colonization era
Asia, especially China, is still the largest indigenous population country 
that has never been colonized
never been totally conquered by colonization
After the Second World War
the new geopolitics event was that 
those two big leading countries wanted to divide the world between them
But they found it very difficult to handle the issue with China
Last time when we talked about the 1960s
we discussed the concept of delinking
Delinking means to be fully independent
I have very much emphasized that after the Second World War
starting from 1950
the hot war which was the regional war in the Korean peninsula
had taken place
Because of that
China broke off relations with the United States
Back in the Second World War
four countries had come out as victors of the war, including China
together with the United States, UK and the Soviet Union
The UK and the US had certainly set up an alliance 
but the Soviet Union did not set up an alliance after the Second World War
It was set up during the Korean War
It was not after the Second World War 
because at that time mainland China was still controlled by the KMT government 
and the KMT government had previously joined the alliance 
with the United States and UK
After the Second World War
these three winners had parted with the other winner, the Soviet Union
leaving it as one country by itself
but still a leading country
After the Korean War started
China had a close relationship with the Soviet Union 
but just for five years
After 1955 there were quarreling and arguments 
between the two ruling parties in these two countries
And it went on until 1960 
at which time China parted with the Soviet Union
Soviet Union withdrew all capital, technical services and technical support
That means China regained full independence
having parted from both big powers
That was the kind of adjustments 
that had happened in post-World War II geopolitics 
And it continued to the end of the 1960s
Then readjustment came
That was because in1969
serious conflicts were happening at the border
a border war between China and the Soviet Union
fighting at the border between these two countries
That border war created a historic opportunity for the US
At that time there had been on-going competition 
between the two leading countries，US and USSR
Although the US had the UK
Western Europe and Japan joining their alliance
yet because of geopolitical expansion 
the US had become heavily involved in the Vietnam War
and it resulted in a very big loss to the US
It also aroused a lot of protest campaigns inside the US
So when you consider the contest between these two leading powers
the US at that time in the 1960s 
had seemed less competitive than the Soviet Union
Because of that situation
the US had to keep apart China and the Soviet Union
With China and the Soviet Union already quarreling 
and their relations already broken
there's a chance to do so
After '69, with the border war happening on Zhenbao Island 
in northeast China and Siberia
it gave the United States a historic opportunity
And it changed many things
So we say it was a geopolitical readjustment among the ‘big triangle’
United States, Soviet Union and China
they were a kind of triangle
so it was the ‘big triangle’ geopolitical readjustment
It's a kind of historic opportunity not only for the US
but also for China
That was a very important background
We need to note that 
it gave China a chance to absorb western capital
making it possible to change the structure of heavy industries
Previously China's industries were simply 
for military production and heavy industrial production
That was not intended for people's livelihoods or for market needs
The domestic demand could not be satisfied by the heavy industries
It was China's opportunity to readjust the structure of the domestic industries
Therefore, the two different sides each had an opportunity for change
That is why we talk about this big triangle's readjustment, geopolitically
It enabled China to have a second chance 
to absorb foreign capital to readjust the industrial structure
Yet, all these readjustments came with a cost
The cost turned into an economic crisis
This is a very simplified summary of this lecture
Now let's look at this background in detail
First, regarding the 1960s 
we have in the last lecture given this analysis
overproduction is the internal contradiction of capitalism itself
That is from Marxism
Marx's thesis has indicated that 
it's a contradiction within capitalism 
that will create mass production and little consumption
and it inevitably leads to a crisis
That's the key issue
Capitalism cannot solve the problem by itself
In the 1960s 
the situation of overproduction leading to crisis happened again
and the western countries had a lot of social conflicts
even street violence
Many workers were laid off
so they went to the streets
Then there were left-wing movements
So in the 1960s, there were crises everywhere
not only in Europe but also in the United States
If you go to China, you would find China also had a crisis in the 1960s
In early 1960s
China had a crisis and it turned into a political movement
That is a kind of regularity, a kind of rule, a political economic rule
So in the entire world 
there was political instability and social instability everywhere
It's a very widespread phenomenon
The western countries that were already industrialized 
then started transferring out their manufacturing industries
 to the developing countries and regions
the ones under their geopolitical control
These historical events 
had given most of these developing countries or backward countries the chance 
to bring in industries
not by means of their own primitive accumulation 
but by foreign capital investments
That was the new model after the Second World War - FDI
foreign direct investment
to set up manufacturing factories and workshops in these countries
Here, we are trying to give a description of how it was implemented
In Asia, because Japan was facing the same trouble of overproduction
they also started to transfer out the manufacturing industries 
and labor-intensive industries to East Asian countries and regions
like South Korea, Chinese Taiwan, Hong Kong and Singapore 
Therefore from 1960s to 1970s
these countries and regions
 all received foreign investments, factories and manufacturing industries
But these countries or regions are very small
peninsulas or even islands
Taiwan is an island, South Korea is a peninsula
Hong Kong is a small island, and Singapore is just a kind of port city
these are small regions with small population
Very soon, maybe five years or ten years
the price of land and labor went up
Most of these important production factors became high-priced
And the manufacturing industries could not absorb the production price increases
Therefore they started to move again
In analyzing such a phenomenon
we need to understand that the FDIs (foreign direct investments) 
that have set up the manufacturing industries are rootless investments
They do not take roots in any country
They are only seeking low-cost production
It means that even if in the short term they bring high growth
and people can benefit from the high growth
it's just in the short term, perhaps less than ten years
If the country cannot upgrade based on that kind of high growth and the income 
that the country would indeed have
if this income is not used towards primitive accumulation
to set up the basic industries
then when the rootless foreign investments flow out at some point
flow out anywhere
there will be a large number of people out of work
and poverty will be even more severe
The rich will become richer and the poor poorer
The gap will widen and social instability will also happen
That is what has happened in these areas
They have been regarded as the model
Back in the 1970s they were called the four small dragons
By dragons it means that they all have a similar culture as mainland China
that of Confucianism
They have this name because of the culture
Western philosophy thought that 
the Asian continent has no ‘nation states’ 
so they said “you're civilization states.” 
Because these countries and regions were all covered by Confucianism
they said “you're four small dragons.” 
Then there were the four tigers, small tigers
They are also located in the area geopolitically controlled by western countries
Indonesia, Thailand, the Philippines, Malaysia
 these are the four small tigers
They are also in Asia, Southeast Asia
and have very strong relations with American military base
like in the Philippines
To support the Vietnam War
America has built a very large military base in the Philippines
In addition
there was also the need to stabilize the people 
in the Philippines guerrilla movements
thus the need to absorb those cheap laborers into manufacturing workshops 
and manufacturing industries
It was for this kind of strategic
 handling in the Philippines, Malaysia and so on
Malaysia also was facing conflicts
 with the Malaysian communist party's guerilla movements  
The Philippines, Malaysia, Indonesia and Thailand 
all had peasant guerrilla movements
They need to have some labor-intensive manufacturing industries
 set up in these countries 
to stabilize the large population of poor peasants
Because of these geopolitical strategies
the four small tigers got investments
These were the frontier countries or regions
likewise South Korea, Taiwan, Hong Kong and Singapore
Singapore also had a very large American air force base and navy base
So let's think about the 1960s
Because of the post-Second World War situation 
and the competition between the two leading powers
there were many things happening
Then in the late 1960s
as I have mentioned the readjustment started
Look at this one
The triangular relationship has
in the late 1960s, started to readjust
There was a key issue involved
In the Second World War
USA had first used nuclear weapons to bomb Japan, destroying two cities
and nuclear weaponry became a key issue after the Second World War
The two leading powers both developed nuclear weapons
and used them as umbrellas to shelter their ally countries
That was a geopolitical nuclear contest
With this contest, by the end of the 1960s 
the Soviet Union had many more nuclear weapons than the United States
It meant both countries had nuclear weapons
that could destroy the other a hundred times
and at the same time destroy the entire world, the whole earth
It meant the whole world would have the same end
the same outcome
if they pushed the button for nuclear weapon
It was called a balance of terror between these two big powers
They both controlled a large number of nuclear weapons
which meant they could never allow each other to use them
Nobody could push the button
That was the key issue 
if you do want to understand 
what happened in the late 1960s and early 1970s
The Soviet Union, when they fought with China in Zhenbao Island
had not won
They didn't lose very much
just thirty to forty soldiers and one tank
It was not a big loss
Yet at that time, to that country
especially to their leader Brezhnev
they could not stand it
So he said he wanted to use nuclear weapon to bomb China
 and resolve the problem
At that time in the 1960s
China had slogans against the imperialist country
that is to say the United States
and against the revisionist country
which was the Soviet Union
Therefore, at the time the Soviet Union leader thought that 
if they bombed China with nuclear weapons
USA would be happy to see that
and they informed the US about that
Yet the US realized that what they had was a ‘balance of terror’
and if any country used such weapon it would mean breaking the balance
Therefore USA disagreed with the Soviet Union 
because they wanted to maintain the balance
Further USA gave this information through another channel to the Chinese leader
which explained why China at that time issued the highest level orders
 for all political leaders to be spread around in different areas
and moving all the government departments and military departments
 out of Beijing
to be separately located in different areas 
Many people could not understand why they sent even Liu Shaoqi away
who by then had no power
After the cultural revolution he had lost all his power
but even so he was moved to Henan in a county
Deng Xiaoping was also moved to a county factory
Almost all the politicians, politbureau members and leaders
were sent out
And during that time
as I have mentioned, the third-front construction was going on
and there was an urgency to accelerate its investments and construction
They were trying to prevent the political leaders
the government departments and factories 
from being attacked by nuclear bombs
That was a very dangerous time
caused by those two countries' situations
The United States at that time 
had fallen into the Vietnam War and got stuck in it
And within the United States 
there were many campaigns against that war
so USA at that time did seem less powerful than the Soviet Union
The less powerful country wouldn't like to give a chance 
to the more powerful one 
to bomb China and re-capture China as a kind of subordinate
That was their strategic way of thinking
They believed the situation would become unbalanced and they disagreed
China, at that time
as the third largest country, the third largest power but not exactly
also needed to change
So the second largest power and the third largest power
 both needed a new strategy 
to do something to strengthen their positions 
in order to counter the top power
At that time, in the late 1960s and early 1970s
the Soviet Union was indeed the top power, in first place 
As I have said the Soviet Union had twice
as many nuclear weapons as the United States
and they had also done a lot to trouble the US
So at that time
the triangle relationship and strategy had the need of re-adjustment
That was why China and USA had a strategic rapprochement
by the dialogue in Warsaw, Poland, by the Ping-Pong Diplomacy 
it's a game
and by Kissinger coming to China
then by President Nixon announcing the end of the blockade against China
USA started the blockade against China back in 1950
and in 1971, 20 years later
America announced it would end the blockade policy
Then Nixon came to China to visit Mao
That was the big triangle's geopolitical readjustment
giving a historic opportunity to both sides
We have this slide which shows that from 1960s on
per capita real GDP had been declining
With mass production in Europe causing overproduction
the western countries had to transfer out their manufacturing industries
I don't need to give more explanation
Because of the western countries' overproduction crisis
leading to the transferring out of their manufacturing industries
there was the story of the four small dragons and four small tigers 
I said that was a story
because since the 1980s 
most mainstream Chinese officials and scholars have believed that 
these so-called tigers and dragons are a kind of development model
But it's not
because in the 1970s when industries were transferred to those countries
those countries at that time
 all had rulers who seized power through military coups or were dictators
It did not comply with the western ideological propaganda 
which said “you must be a democratic country, you must have freedom,” 
and whatever
Singapore at that time was criticized by the west 
as a kind of dictatorship
If you go to South Korea
in the 1960s General Park was president because of military power
With these rulers in power 
then when these countries started to receive foreign capital investments
what kind of countries was the foreign capital being invested into?
 Military dictatorships
Why? 
Because it would save on transition costs
Foreign capital didn't need to negotiate with the people
because there was a strong ruler who controlled almost everything
When foreign capital was invested into the country
they did not need to have a negotiation
The military control could more easily give preferences to foreign capital 
to build their interests
So that was South Korea
Originally in 1961, as this picture shows
along the Han River there were big slum areas
After the Second World War 
there had been the Korean War and after the Korean War
there's no capital left for construction
So at that time in the 1950s and 1960s 
South Korea was a poor country
So here were the slums
Then, just 15 years later
President Park had a special strategy
develop highways, a long highway from Incheon to Seoul
It's not very long but it made transportation easier
and they built a kind of industrial zone along the highway
That was the typical South Korean experience
A lot of people talk about that
but indeed it's all by means of the military coup
reducing the cost of industrial development
making it easier to set up primitive accumulation with the resources and people
That is also why
after the military coup rulers and systems collapsed
there were so many social movement campaigns in South Korea
and society was more easily mobilized and politicized
Nowadays, if you go to South Korea
you can see that almost everyone is really keen on political issues
That is the Korean case
Just now we talked about Singapore
At that time, Singapore had a population of only one million
It's a kind of city society
The people lived in very crowded areas
and it was relatively easy 
to mobilize them into joining the labor-intensive manufacturing workshops
They very quickly had their primitive accumulation 
and set up industrial zones internally
They didn't even need to build highways
because the port was just the city and the city was the port
It's easier to transport in and out
So, Singapore was a very small city with just one million population 
and it was easier to set up their industries
Let's go to the next one
At that time in Taiwan
it was still under curfew, under military control
For that,they had some state capitalism activities
left behind from the time of Japanese occupation
Taiwan in the 1970s had only ten million population
so the Taiwan economy could also receive foreign capital investments 
with relative ease and gain high growth
Hong Kong was similar
Hong Kong at that time in the 1970s
had a population of three million to four million
half of what it is now
It's easier to set up factories 
to absorb the cheap labor and gain high growth also
So, most of these small economies 
located at the border of mainland China 
had been developed quickly 
to impact on China
That was also part of the geopolitical competition
or geo-strategic competition
These experiences
we can say that while they are suitable for small economies 
they could not be applied to big continental countries
While we had such an economic model in the 1980s
mainstream scholars or politicians have forgotten 
that it was due to some very important geostrategic events
They did not have the macro view for discussing the worldwide situation
They would say
Look at this area
 Look at Hong Kong or Singapore
They developed very fast. So we need to learn from their model
But it's not exactly a model
Their developments had different backgrounds from China's
so we need to make more in-depth analysis
When we talk about rootless investments
it means that 
these investors seek low-cost production factors 
to gain more institutional revenue
I don't need to give more explanation about what institutional revenue is
You can research on the internet 
and you will have an answer
I'll just say that 
the rootless investments do not seek industrialization
They set up labor-intensive manufacturing industries 
for short-term returns
These returns may be
 taken partly  by the local authorities
 or by some bureaucrats or departments
but the bulk of it will be controlled by transnational companies
Nowadays a lot of developing countries think that it is a good model
They may need to take note of my arguments
That is rootless investment
Such kind of capital 
can hardly help set up the basic industries in their countries
It will not work for industrialization
just for short-term interest, short-term returns
It may do more harm to the environment and society
because it would throw a large amount of institutional costs 
to society and the environment
That is what we have to mention
Later, the rootless capital investment moved into mainland China
taking over the coastal economy
It had a very complicated impact
 on the previous industrial structure 
that was independently set up in the mainland
China had previously over several decades set up the structure of industries
Then from the 1980s to 1990s 
the structure was very much impacted by the rootless investments
Those investments didn't have the need for China 
to supply machinery and equipment
They brought everything from overseas
from the outside
China had already made heavy investments
paid much hard labor and endured a lot of difficulties 
to set up the perfect structure of industries
yet China was not required to supply the machinery 
to the coastal manufacturing industries
It meant that these manufacturing industries had cut the market relations
cut out the market
And then they said “you do not apply the market system.”
Right or not? 
We need to take this into consideration
That is why here I try to make people aware of this
In the second part of this lecture
we will talk about  
how foreign capital was absorbed by mainland China in the 1970s
China was still maintaining an independent industrial structure
It's not exactly controlled by transnational companies
It was a different model
I mentioned the four dragons and four tigers
That was one kind of model
We need to deepen our analysis about such kind of model
what its mechanism was
I have said it's seeking institutional revenues
not to bring benefit
Just now I have given the analysis
Now we shall talk about China in the 1970s
Even though China was taking that historical opportunity 
to readjust its previous industrial structure
the Soviet-style industries, the heavy industries and military industries
that were not intended for people's needs
when they made that readjustment in the 1970s 
the leadership still wanted to maintain China's independence
What they did was just to bring in the advanced machinery
facilities and technicians
not FDI
not having transnational companies come to China 
to directly set up factories and use Chinese labor and resources
China still had its own industries and factories
In part, for making repairs or for upgrading some facilities
they needed some western machinery and facilities 
to combine that with their own
They needed to have some overseas equipment but not everything
They were trying to reform and to readjust the structure of the factories
That approach meant that they're maintaining 
not only the economic infrastructure 
but also the political superstructure
They were not trying to change the institution or the system
That was the 1970s
These 1970s' changes were not the same as what had happened in the 1980s
The 1980s were quite different
On the 1970s, regarding the changes happening during this time
we need to do more studies to understand 
how that independent country had taken foreign capital 
but still able to maintain independent sovereignty
economically and politically
So here I have given the analysis of China's sovereign use of foreign capital
which was different from the East Asian processing and trade model
The model in East Asia of the small tigers and small dragons 
is the so-called ‘foreign-trade-dependent economy’
unlike China
which at the time was still a ‘local-demand-dependent economy’
Just now when we talked about the geopolitical change
we said it was caused by the geo-strategic readjustments inside the big triangle
It gave China a new historical period
which was twenty years of peace
because at that time at the end of 1960s
the United States had made a deal with the Soviet Union 
that nobody could use nuclear weapons
It means that the ‘balance of terror’ had been set up 
and China could avoid nuclear attacks
Before that
China had on five occasions experienced the threat of a nuclear attack
both from the US and from the Soviet Union
In the early 1950s it was the United States
They wanted to use nuclear weapons because of the Korean War
and later in the Vietnam War also
Then in the China and Soviet Union border war
there were at least three such occasions
So on five occasions China had faced the threat of a nuclear attack
during the '50s, '60s and '70s
Few people understand why
when China won its border war with India
China had retreated from the border
I remember it was 20km that they gave up
They had occupied it
but they withdrew from it 
It was not just the border fighting
It was that behind India 
there were attempts to deal with the conflict by means of nuclear weapons
If China kept going forward, there would be more trouble
There are many stories that need to be taken into consideration
I'm just giving you a lead 
and maybe you'll be interested to do further studies
I have also said earlier that in the 1950s and 1960s
USA had made more than eight hundred hostile incursions into China 
with its air force and warships
There was also a lot of fighting going on at the border
not gun-fighting, but using clubs to beat up one other
That is to say
many soldiers were fighting along the Soviet Union-China border
There were many conflicts during the 1960s and the 1950s
Finally, from the time Nixon came visiting China
China believed that there would be twenty years of peace
 so that was a historic chance for China 
to reduce investments into the military industries
and turn its very limited investments towards people's needs
commercial products, textiles, light industries 
and chemical industries, fertilizer industries, etc
It means that because of the twenty years' peace 
that they believed would be coming
they had changed the investment focus, the industrial structure
and started to develop for social needs and people's needs
that is, the commercial industries
It's a big change
 In the early 1970s
even though China was still in economic crisis
the economic growth had step by step gone up
We can see the picture later
So, when we talk about that second round of bringing in foreign capital
we would emphasize that 
this time China had indeed changed its industrial structure
Previously, China had worked over two decades
 to maintain its Soviet Union-style industry
the Sovietized heavy industry and military industry
It was a big cost to maintain such kind of industries which had no returns
In the 1950s and 1960s they had paid heavy costs
Yet the heavy industry and military industry 
could only be used for battles, for war
The products they produced were a lot of guns 
During the time when China was involved in the Vietnam war
these products could at least be put to use
Up until the Vietnam War ended
there were still a large number of guns, bombs
and weapons they need to maintain
The reason they had maintained all the heavy military industries 
was because of the very tense relations 
with not only the border countries
but also the imperialist countries
 revisionist countries, colonial countries, etc
At that time they had many enemies
They've joined the worldwide class struggle
Therefore they had to maintain those basic industries
 heavy industry, machine industry, military industry
At that time there's fighting everywhere
But when they believed 
there would be twenty years in which there would be no fighting
no big wars
the Chinese leadership made the decision 
to change the economic structure and the industrial structure
That is why we said it's a very important historic chance
Objectively, they did have the need for textiles
light industries, chemical industries, fertilizer industries
also agricultural machine industries and so on
That's why Mao Zedong and Zhou Enlai worked together 
to make a new project
That was the plan to spend 4.3 billion dollars
to be used by the Chinese government 
to buy equipment and techniques from western countries
to make use of that historic opportunity 
to bring in systems of machinery or equipment 
for changing the domestic industrial structure
That is what we need to know about that time
The strategy and policies in China regarding foreign capital 
was ‘bringing in, digest, and absorb’
These were three concepts
It's very important
It means that they would take over foreign capital as their own
not controlled by others
At that time the transnational companies had no power in China
So that was the very important
very critical feature to be noted on the 1970s
That was the distinctive feature of this period 
from the late 1980s or late 1990s
and even from today
We need to note that back then it was still Mao's time, Maoism
Mao very strongly emphasized independence and independent sovereignty
So regarding the 1970s we need to know that 
even though they had so many policy measures
the key policy was still to maintain economic sovereignty
Other countries could give help
but the country itself must be self-reliant
That was still the kind of thinking of a revolutionary country
After they started to absorb foreign facilities
it was just for one or two years
It's very easy
because they had already set up the industrial structure
With the addition of foreign machinery, very soon
just one or two years later
they could produce a lot of new products to satisfy the people's needs
I remember that from 1973 and 1974 on
we had the Dacron, a chemical-textile product
Women had nylon stockings
It means women could show how shapely they were
The people's needs began to be satisfied
So, this picture shows the geopolitical change
This one shows the fighting on Zhenbao Island in 1969
These are the Soviet troops
They had modern tanks and jeeps
but the Chinese soldiers could only use their feet
Yet they were very vigilant in protecting the border
That was in 1969, the border conflicts
And then here it was the Vietnam War
There were many massacres
which had aroused social campaigns against the war
That is why USA at that time appeared as the second place global power
weaker than the Soviet Union
The domestic issues had very much impacted on its foreign policy
So this is Vietnam War's number of US soldier casualty
That one was for World War Two
That was the Civil War, then World War One, World War Two
and then the Korean War
In the Vietnam War
the US casualties were much higher than that in the Korean War
That was the US soldier coming back from the Vietnam War - the remains
The parents were grieving their child's death in another country
The highest post-Second World War US casualties happened 
in the Vietnam war
That was why USA had so many antiwar campaigns 
to pressure the politicians to end that War
Why did they lose so many in the Vietnam War? 
It's because the Vietnam War was supported and facilitated 
by both the Soviet Union and China
China had sent troops to fight in North Vietnam
so that the domestic Vietnamese military forces could move south
The job to protect the North was given over to the Chinese military force
so China sent troops to the north rather than the south
In the south there was heavy fighting
mainly conducted by Vietnamese troops from the North
China had given them a lot of weapons, USSR also did that
So Vietnam was facilitated by two big countries, USSR and China
even though USSR and China had big disagreements at the time
They were quarreling
They had arguments and a lot of contradictions
But in the Vietnam War they had joined together to support Vietnam
Therefore USA failed in the Vietnam War
That was easy to understand
It was also why USA needed to sever the relationship between USSR and China
That was why I spoke of the triangle
The Vietnam War was a competition among the triangle
These pictures also show 
how US international strategy was constrained by domestic issues
Those were the so-called hippies, a social movement
These young people didn't like to go to the war
so they burnt their draft cards and joined social alternatives groups
There was a lot of social chaos at the time
That was why USA came to China
Here is Premier Zhou Enlai welcoming President Nixon at the airport
Here's Mao having a dialogue with Nixon
They said it was Ping-Pong Diplomacy
but that was just one incident and not exactly an important event
It was because of the triangle readjustment
By utilizing foreign equipment
China had launched many new projects
It was a total of 4.3 billion dollars of foreign capital 
and with that they set up a lot of factories and facilities
Here is the Wuhan iron plant
That is a picture to show that 
they had revamped the facilities by means of the new machines
They had 13 chemical fertilizer programs
four chemical textile and three petrochemical facilities
They also had three hydroelectric plants and two iron foundries
The projects for food, clothing and peoples' needs had come to eighteen
out of the total number of 26 projects
There were these eighteen projects for people's needs
food production and clothing production
The total amount of money 
spent on these as a percentage of the total foreign capital investments 
was 63.84%
