Deng Xiaoping:

After Mao did there was a power vacuum, this was because there was no clear way to choose the next leader. When Mao died the different people began to compete for power. One of the groups was called the Gang of Four, they were Maoists (one of the, Jiang Qing, was Mao's wife). There was also a moderate named Deng Xiaoping. A few short months after Mao died the Gang of Four were arrested and tried for their crimes.

The Four Modernizations was a program of economic reform. The program included agriculture, industry, science and technology, and national defense. Under Deng the economy made significant gains, mainly because of agriculture. He got rid of communes and introduced some elements of capitalism. His industry changes focused on three themes: weakening central planning, the introduction of material incentives, and the use of market-related pricing policies.

In 1989 thousands of Chinese went into Tiananmen Square in support of Democracy. When the demonstrators refused to disperse the government declared Martial Law and threatened to use the military (for several weeks nothing happened). However, on June 3rd army units stormed the Square, it quickly turned into a massacre. Under Deng China became much less isolated, and began to allow foreign investors and relations with other countries.

(Deng and Brezhnev) During the 1970's Sino-Soviet relations were hostile. China was not happy when the Soviet Union signed a mutual defense treaty with Vietnam (directed towards China). Relations reached the lowest point when the Soviets invaded Afghanistan. Soviet desire to have more influence in Asia. In 1982 Soviet Union began to want better relations with China.