China and Taiwan in 1988

Abstract

1988 proved a trying and problem-laden year in China. Ten years after the leadership initiated far-reaching economic reforms and greatly expanded ties with the outside world, major complications were slowing the pace to reform, especially in the domestic economy. Efforts during the summer to initiate wage and price reforms led to rapid inflation in China's cities, prompting reimposition of stricter central economic controls. Repeated challenges to the authority of the Communist Party of China (CPC)--from dissident intellectuals, from university students, and in Tibet--called into question the Party's ability to guide the country's political and economical life. 1988 proved a year of extraordinary political change on Taiwan. The death of long-time leader Chiang Ching-kuo in January aroused concerns about a potential succession struggle in the upper reaches of the Kuomintang (Nationalist Party). The smooth transition to top leadership by Li Teng-hui, an American-trained Ph.D. and a Taiwanese native, laid these concerns largely to rest. Li's immediate elevation to the Presidency and his subsequent election to leadership of the party during the Kuomintang's 13th Party Congress reflected Li's substantial political abilities and a much surer grasp of political power than many observers had predicted.

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Document Details

Document Type
Technical Report
Publication Date
Jan 01, 1989
Accession Number
ADA228412

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  • Jonathan D. Pollack

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  • RAND Corporation

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