In December 1978 the CCP, inspired by Deng Xiaoping, launched a wide-ranging programme of economic and social reform. This sought to modernise the economy, develop China's external relations (the 'open door policy') - especially with the West, and implement a gradual and limited liberalisation of Chinese society.

This period of 'reform and opening up' since 1978 is expected to be widely commemorated in China this autumn as the basis of its current economic success and these commemorations may also be used as the platform for further policy reforms. There are no details at this point, but there is much speculation that rural land ownership reform may be prominent.

Political opposition to the more liberal reforms forced periods of retrenchment. In June 1989, following the brutal suppression of pro-democracy demonstrators in Beijing, political control swung firmly into the hands of conservative elements within the CCP. The Chinese government labelled the demonstrations a 'counter-revolutionary rebellion' and clamped down on dissent. Prominent dissidents fled the country or went into hiding. Many activists were arrested. Party General Secretary Zhao Ziyang was replaced by Jiang Zemin, former Mayor and Party Secretary of Shanghai. Jiang was appointed to the additional post of State President in March 1993. Jiang continued the policies of Deng Xiaoping, prioritising economic growth, particularly in China's coastal provinces.

Jiang retired as President in March 2003. Hu Jintao was named President and Wen Jiabao became Premier. Wu Bangguo replaced Li Peng as NPC Chairman. The leadership transition was completed in September 2004 with Jiang retiring from the Chairmanship of the Central Military Commission (CMC). Hu assumed the post of CMC Chairman to add to his roles as State President and Party General Secretary.