What key reform did Deng Xiaoping implement that marked a break from Maoist policies?

Deng Xiaoping's decision to encourage private enterprise was a significant reform that marked a departure from Maoist policies, which emphasized collective ownership and state control over all aspects of the economy. Under Mao, the government promoted a strictly planned economy with little room for private initiative, focusing instead on egalitarianism and collective farming.

Deng recognized that to rejuvenate China's economy, it was essential to introduce elements of capitalism, which included allowing private businesses to thrive and encouraging foreign investments. This shift helped to stimulate economic growth and improve living standards for many Chinese citizens. It also laid the groundwork for China's transformation into a more market-oriented economy.

The other options reflect principles that are inconsistent with Deng’s reform agenda. Increasing state control would align more with Maoist ideals rather than represent a new direction. Eliminating all foreign investments would hinder economic advancement instead of promoting growth, and reverting to radical egalitarianism would reject the economic liberalization that Deng sought to achieve. Thus, encouraging private enterprise epitomizes the fundamental shift in policy under Deng Xiaoping.