The Third Plenary Session of the 11th Central Committee of the Chinese Communist Party convened in Beijing in December, representing a crucial turning point for China. Under the leadership of Deng Xiaoping, the session attracted considerable attention as it marked a decisive departure from the economic policies that had dominated under Mao Zedong. Instead of prioritizing class struggle, Deng emphasized the importance of economic development, focusing on 'it doesn't matter if a cat is black or white, as long as it catches mice.' This pragmatic approach highlighted the need for a more flexible economic policy that would allow for both state planning and market-oriented strategies.

During the plenary, reforms were proposed, including the introduction of incentives for productivity and the establishment of small-scale enterprises. A noteworthy decision was to set up special economic zones, where foreign investment could be encouraged without the stringent regulations of the state-controlled economy. This approach was aimed at revitalizing the economy, which had faced stagnation and inefficiencies following decades of rigid policies.

The 1978 session effectively redefined the direction of the Chinese economy and should be viewed as the launching pad for what would become China's 'Reform and Opening Up' policy. It initiated a series of economic reforms that not only altered China’s economic landscape but also changed its social structure, enabling millions to improve their living standards over the following decades. The decision to pivot away from strict adherence to communism provided a blueprint for modernization and integration into the global economy.