Political Economy of China

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1 Political Economy of China Global Business Management 2015 Jacob Andrén, Erik Karelfelt, Margaux Kazandjian, Cécilia Dol, Dustin Tsai, Anne Chi, Lynn Jhang, Linus Kao

2 Political Economy of China Agenda 1 Political System 2 Economic System 3 Legal System

3 1 Political System 1.1 Theory 1.1 Political Evolution 1.2 Current State 1.3 Future Possibilities

4 1.1 Political Evolution Ancient China Shang Dynasty ( BC) Aristocracy Zhou Dynasty ( BC) Taoism and Confucianism Qin Dynasty ( BC) Adoption of Legalism Tang Dynasty ( AC) Limited Social Mobility Low Power of Emperors Yuan Dynasty ( ) Opening to economic Trade

5 1.1 Political Evolution Ancient China Qing Dynasty : Opium war: Treaty of nanjing: Sino-Japanese War The Boxer Rebellion: : the semi nationalistic revolt

6 1.1 Political Evolution Turning Point in 1911 Sun Yat-Sen First President of Modern China : Republic of China Develop the Three Principles Of People Creats his party : Kuomintang (or Nationalist Party) Kuomintang (KMT) with General Chiang Kai-Shek Anti -Monarchist

7 1.1 Political Evolution Kuomintang vs Communism 1916: Kumintang has trouble to control warlords à loses power and growing of Communism (Mao Zendung) Second Sino-Japanese War ( ) Civil War Between the nationalist and communist

8 1.2 Current State How The Power Ruled in China since 1949?

9 1.2 Current State The political regime of PRC as: -Totalitarian One person or political party exercises absolute control over all spheres of human life, Deny basic civic liberties, medias are heavily censored -Socialist The State controls the means of production for the common good of society -Communist Socialism can be achieved by violent revolution and totalitarian dictatorship

10 1.2 Current State Matrix of The Policy System Collectivism Totalitarianism Democracy Individualism

11 1.2 Current State Nowadays China Nowadays China is ruled by Xi Jinping The Communist Party is still running China: -Inspired by inherited methods of Lenin, Stalin and Mao and adapted by Deng Xiaoping in the late 1970s -The power allows more initiatives to social actors in order to form the New Man " -It allows freedom to intellectuals, writers and artists. Nevertheless: -The power keeps on controlling individuals propaganda, censorship, residence certificate, personal folder.

12 1.2 Current State Measures of Xi Jinping The abolition of reeducation through labor camps Measures for the Hukou Anti-Corruption Campaign Recovery of the ideology of the party members, academics, researchers and journalists

13 1.2 Current State Concrete examples of censorship The use of Baidu «百度» instead of Google: Google stop censoring search and leaves China the 10th of April 2010 The «Poutine-Peng Coatgate» : Censorship on videos showing this image

14 1.2 Current State Foreign Policy Foreign Policy: -Third World country that pursues "an independent foreign policy of peace - Five Principles of Peaceful Coexistence: mutual respect for sovereignty and territorial integrity, mutual nonaggression, non-interference in each other's internal affairs, equality and mutual benefit, and peaceful coexistence. The political issue with Taiwan: -No forced independence nor forced reunification -Controversial issue: Sunflowers movement against the commercial agreement between China and Taiwan

15 1.3 Future Possibilities

16 Relationship 1 st Generation Chairman Mao 2nd Generation President Deng 3rd Generation President Chang 4th Generation President Hu 5th Generation President Xi *Found P.R.C *Great Leap Forward *Cultural Revolution * Incident *Socialism with *Adjust economy Chinese characteristics reform *Economic reform *Join WTO *H.K treatment *Tiananmen Incident In office time *H.K return *Improve the relationship to T.W *China become the 2 nd biggest economy Important achievements *Suppress Falun Gong *87 Tibetan unrest *Force-threaten T.W *Deprive more *Betray Northern freedom of speech Territory to Russia Controversy political inclination *Anti-corruption *Chinese Dream *AIIB *2014 H.K protests *2014 Anti-PX protest *Suppress more dissidents

17 1.3 Future Possibilities China's Domestic Political Problems Official corruption ever serious. The social justice has been severely trampled. Serious problems of power acquisition and disposal Lack of protection to human rights and freedom -Public opinion is the truth-

18 1.3 Future Possibilities Trend will be influenced by Privileged groups 1% Chinese, 80% wealth. Economy is prior to politics. Liberal intellectuals Younger people. Advocated changing China by gradual reform. From the Street-level elections, free press, and then to the Universal suffrage. Left-wing fenqings( 左派憤青 ) Elder people suffered from 文革. Mind control by the Mao-government.

19 Grades of Liberty 1.3 Future Possibilities Grades of Liberty in East-Asia Japan Mongolia Taiwan S.Korea Indonesia Thailand Cambodia Singapore China FUTURE N.Korea

20 2 Economical System 1.1 Theory 2.1 Theory 2.2 Economic Evolution 2.3 Transition Comparison

21 2.1 Theory Three Types of Economical System Market Economy Privately controlled Command Economy State controlled Mixed Economy Combination of Market and Command Economy

22 2.1 Theory Connection between Political and Economic System Individualism Market Economy Collectivism Mixed or Command Economy

23 2.2 Economic Evolution Historical Events and GDP

24 2.2 Economic Evolution Worlds Biggest Economy

25 2.3 Transition Comparison

26 3 China Legal System 3.1 Ancient China legal System 3.2 Current Constitution 3.3 Corruption 3.4 Intellectual Property Rights

27 3.1 Ancient China Legal System

28 3.1 Ancient China Legal System Criminal Law

29 3.1 Ancient China Legal System Emperor System Core of despotism and hierarchy Supreme legislative power

30 3.1 Ancient China Legal System Emperor System Ethics on Confucianism as conviction standard Important Chinese heritage

31 3.2 Current Constitution

32 3.2 Current Constitution First Constitution Common Chinese People s Political Agenda

33 Current version: 3.2 Current Constitution Constitution of China Adopted by the 5th National People s Congress on 1982/12/ State Constitution: Specific responsibilities and functions of organs in the state structure Emphasize places top priority on development Stipulate 1. NPC as the highest organ of state authority power 2. Supreme People s Court & Supreme People s Procuratorate be elected and responsible for the NPC

34 CCP Structure The National People's Congress NPC Standing Committee of the National People's Congress President Premier the Supreme People's Court the Supreme People's Procuratorate Supreme Military Command Be elected Be elected

35 3.2 Current Constitution Achievement Lay a lasting institutional foundation for domestic stability and modernization Provides a legal basis for the broad changes in China s social & economic institutions Significantly revises government structure

36 3.3 Corruption Surge in 1980s Three Types: 1. Graft:most common ex. bribery 2. Rent-seeking: by people with monopolistic power ex. granting a license 3. Prebendalism:incumbents get privileges through office ex. backdoor deals

37 3.3 Corruption The Reason of Corruption Economical Level : Time:initial economic reforms limited resources officials s low income take brides from company s money Political Level: 1. Filled with bureaucracy 2. One party dictatorship officials gradually formed a lack of checks and balances of power

38 Legal Level 3.3 Corruption The Reason of Corruption Time:since the reform and opening up legal system in the old and new has crash and conflict opportunity to bring corruption Regulations on classification and punish corruption provisions still lags behind difficult to punish timely

39 3.3 Corruption The princelings party When? post-mao China emergence of the private sector inside the state economy How? propel the sons to the most profitable positions Prominent political leaders:generate large personal wealth in business Ex. relatives of former Premier Wen Jiabao current CCP general secretary Xi Jinping former Chongqing party secretary Bo Xilai Attacking corruption:tiananmen protests of 1989

40 Princelings party in Wall Street JiangZemin Wen Jiabao Wu Bangguo Zhu Rongji Former President Former Prime Minister Former chairman of NPC Former Prime Minister Jiang Zhich weng Wen Yun Song Feng Shao dong Chu Yun Lai

41 3.3 Corruption Index Transparency International: non-governmental organization monitors and publicizes corporate and political corruption China ranked 100th out of 175 countries, 2014 Xi Jinping in 2014 to promote efforts to fight corruption policy not effort 100 points out of totally clean only got 36 points 2013 China ranked No. 80

42 3.4 Intellectual Property Rights

43 3.4 IPRs Knockoffs( 山寨品 ) in China

44 3.4 IPRs Knockoffs( 山寨品 ) in China Market structure Mature of key components and satellite factory Legal system 15-20%GDP

45

46 3.4 IPRs Milestone of IPRs in China Became World Trade Organisation (WTO) member since Set up its first specialized court in November, 2014 in Beijing

47 Reference 中国特色社会主义 習近平 + 政治傾向 + 左 + 右 &source=bl&ots=jcdpnedo-6&sig=zyrhqgy- snyy5t4ytakruxgiux8&hl=zh-tw&sa=x&ei=dl0wvcx3i-wmmaxi- YG4Cg&ved=0CD4Q6AEwBA#v=onepage&q= 習近平 %20 政治傾向 %20 左 %20 右 &f=false

48

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