They also strengthened the ideological, political and organizational work. The CPC Central Committee observed the radical international changes sober-mindedly and dealt with the challenge calmly. 

China concentrated on handling its own affairs well. The CPC Central Committee made successive decisions on strengthening the anti-corruption drive, improving the economic environment and rectifying the economic order, deepening the reform, reinforcing the close ties between the Party and the people, and opening Shanghai's Pudong New Area. 

They also drew up the Eighth Five-Year Plan and the Ten-Year Program for the National Economic and Social Development. 

Furthermore, they tried to do well on state-owned large and medium-sized enterprises and further strengthen agriculture and work in rural areas. All the decisions were absolutely correct at the crucial times.

The socialist modernization needs not only a stable domestic situation but also a peaceful international environment. 

After judging and sizing up the situation, Deng Xiaoping put forward a series of diplomatic strategies. 

Peace and development are the two major issues in the world. China pursues the independent and peaceful foreign policy and opposes hegemonism and power politics and safeguards world peace. 

It advocates establishing a new international political order and a new international economic order on the basis of the Five Principles of Peaceful Coexistence, including mutual respect for sovereignty and territorial integrity, mutual non-aggression, non-interference in each other's internal affairs, equality and mutual benefit, and peaceful coexistence. 

Deng said that China always belongs to the Third World and never seeks hegemony itself. 

Deng masterminded to establish diplomatic relations between the People's Republic of China and the United States of America, sign a peaceful and friendly treaty with Japan, normalize the relations between the CPC and the Soviet Communist Party, and develop friendly ties with neighboring countries and countries from the Third World.

Deng visited many foreign countries and met lots of foreign leaders in China as well. The international situation changed violently and the cause of socialism experienced the twists and turns at the turn of 1980s and 1990s. 

Deng urged other Chinese leaders to attempt to hold their own ground in sober minds and deal with the situation properly. The national sovereignty and security must be safeguarded as the top priority. Deng has made tremendous contributions to China's modernization drive, the protection of world peace and the development of the human being.

In early 1992, Deng Xiaoping's talks given during his visits to southern China were published. The talks by him scientifically summarized the basic practice and experiences since the Third Plenary Session of the Eleventh Central Committee. 

Deng theoretically solved the major problems which had troubled the Chinese people and trammeled their minds for a long time, especially the relationship between the socialism and the market economy. The talks stressed that we should adhere to the basic line for a hundred years, with no vacillation.