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The first reforms to affect China's economy were instituted between 1979 and 1984. The programs were systemic economic reforms aimed at revising China's foreign economic relations and refocusing the country's agricultural system. The desire to purchase foreign equipment and technology needed for China's modernization led to a policy of opening up to the outside world that would earn foreign exchange through tourism, exports. The opening up policy included sending large numbers of students abroad to acquire special training and needed skills. The effect was to make China more dependent on major sectors of the world economy.

In China's rural areas, the economic reform program decollectivized agriculture through a contract responsibility system based on individual households. The people's communes were largely replaced with a system of family-based farming. The rural reforms successfully increased productivity, the amount of available arable land, and peasant per capita income. All of these were major reform achievements. Their success stimulated substantial support in the countryside for the expansion and deepening of the reform agenda.