Kristy Parhiala final paper-1
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Transcript of Kristy Parhiala final paper-1
Kristy Parhiala
The China Model: the Political and Economic Characteristics
University of New Hampshire
Undergraduate- Senior
Political Science
Derry, NH
Editor: Jenna Calcavecchia
0
I. Problem
At the turn of the 21st century, China has had the ability to globalize without having
to sacrifice their sovereignty. Not giving up their autonomy has lead developing and post-
socialist countries to admire their success. The “China Model” of development explains
China’s remarkable economic growth, export-led industrialization, innovation and
technological upgrading, poverty reduction, and independent and autonomous
development.1 Mass media and policy studies have widely circulated the term “China
Model” but researchers are not clear to exactly what the “China Model” is. China’s role
in the global society is shifting constantly.
In the global society there has been an increasing interest in the rapid increase of
alternative ‘models’ of political and economic development.2 The relative balance
between democracy and authoritarianism is shifting. The rise of authoritarian great
powers has lead to increasing interest and concerns. The “China Model” is gaining
traction internationally on its mixed authoritarianism and a market economy. The rise of
China’s economy, military strength, and geopolitical standing is most likely to be a rival
to a liberal-democratic model. 3
In Andrew J. Nathan and Andrew Scobell’s Globalization as a Security Strategy:
Power and Vulnerability in the 'China Model', they describe for any country’s security
policy there is a key element and that is the foreign economic policy. For China, the
leader Mao Zedong took steps to resist pressure from both American and Soviet
1 Vivier, B. T. 1. "Handbook of Contemporary China." Choice: Current Reviews for Academic Libraries 49, no. 11 (07 2012): 2033-2033. 2033.
2 Ambrosio, Thomas. "The Rise of the ‘China Model’ and ‘Beijing Consensus’: Evidence of Authoritarian Diffusion?" Contemporary Politics 18, no. 4 (12 2012): 381-399. Database on-line. Available from EBSCO, 83257044. 382.
3 Ambrosio, Thomas. 381.
1
superpowers by placing his county on a path of self-reliant development. He restricted
agriculture to gain surpluses that abled him to develop a basic industrial economy.4 This
took a tremendous hit to his people by having depressed living standards and rigid
political repression.5 Mao was able to sustain a large military and to deter a Soviet or
American attack China developed a nuclear capability sufficient.6
After Mao Zedong’s death, Deng Xiaoping came to power and abandoned self-
sufficiency. Deng Xiaoping created “reform and opening” policy that made a rapid
economic growth possible.7 Deng in comparison to Mao had “sought a different balance
of security gains and losses in a different orientation to the world economy.”8 The ability
to implement the post-Mao Zedong economic reforms while maintaining political control
sharply contrasted Mikhail Gorbachev’s perestroika and glasnost policies.9 Gorbachev’s
policies had spiraled out of his control and the “China Model” served as a contrast to the
policies adopted after the fall of communism in Eastern Europe.10
The “China Model” is made up of a fast paced growth that allows for globalization.
With a deep engagement in the global economy, the outside world puts pressure and
influences on China growth.11 The “China Model” is based on a centralized, bureaucratic
and authoritarian government. Therefore the “accountability goes upward primarily to the
Communist Party instead of the Emperor. There is accountability in that system.”12 The
4 NATHAN, ANDREW J., and ANDREW SCOBELL. "Globalization as a Security Strategy: Power and Vulnerability in the 'China Model'." Political Science Quarterly (Wiley-Blackwell) 128, no. 3 (Fall2013 2013): 427-453. Database on-line. Available from EBSCO, 90064970. 427.5 NATHAN, ANDREW J., and ANDREW SCOBELL. 428.6 NATHAN, ANDREW J., and ANDREW SCOBELL. 427.7 NATHAN, ANDREW J., and ANDREW SCOBELL. 428.8 NATHAN, ANDREW J., and ANDREW SCOBELL. 428.9 Ambrosio, Thomas. 284.10 Ambrosio, Thomas. 284.11 NATHAN, ANDREW J., and ANDREW SCOBELL. 428.12 FUKUYAMA, FRANCIS, and ZHANG WEIWEI. "The China Model." NPQ: New Perspectives Quarterly 31, no. 1 (01 2014): 60-83. 62.
2
other element of the “China Model” is economic. The Chinese government is more
focused on infrastructure facilities, financing, and a currency regime to make its exports
more competitive rather than picking any particular winners in the economy.
Nevertheless China has not been prone to rely on the market economy in its
development.13
The embrace of globalization was halting, costly, and ambivalent on China. As
Deng Xiaoping put it, “crossed the river by feeling the stones.”14 Each step of reform had
produced positive results in China. Chinese leaders were unwilling to give in to pressure
to do more from advisers and foreign partners.15 The “China Model” is viewed as a
working model in the positive results shown when China’s ability in 1997-1998 to
survive the Asian financial crisis and following 2008 the Great Recession to maintain
social and political stability.16
China has become the world’s second largest economy and to all the worlds’ major
powers, China is an important economic partner.17 Attention is growing to the hidden cost
of China’s incredible economic performance and its upcoming risks. Developing
countries pre-mature assumption of the “China Model” will realize what the hide,
minimize negative traits are. China is currently “pushing” the China political and
economic model even with their increasing domestic inequalities and environmental
degradation on the sustainability of China’s economic growth.18
China’s incredible economic performance took many steps to engage in the world
economy to get it to the world’s second largest economy. After Mao’s death, Deng made 13 FUKUYAMA, FRANCIS, and ZHANG WEIWEI. 63.14 NATHAN, ANDREW J., and ANDREW SCOBELL. 428.15 NATHAN, ANDREW J., and ANDREW SCOBELL. 428.16 Ambrosio, Thomas. 28417 NATHAN, ANDREW J., and ANDREW SCOBELL. 436.18 Horesh, Niv. “In Search of the ‘China Model’: Historic Continuity Vs. Imagined History in Yan Xuetong’s Thought.” China Report 49, no. 3 (08 2013): 337-355. Database on-line. Available from EBSCO, 92562887. 346
3
incredible gains for China by spreading the right to import and export foreign
commodities. “Foreign trade almost quadrupled from 10 percent of GDP in 1978 to 38
percent of GCP in 2001.”19 Only about a dozen specialized central governments-owned
corporations had gained the right to import and export foreign commodities and over time
that eventually changed to thousands of trading companies belonging to central
government ministries, provincial governments, and government- owned enterprises.20
In 1979, China adopted the Joint Venture Law that had limited foreign ownership to
less than half the value of any enterprise. At first the government tried to limit foreign
investment to four mall special economic zones. In 1984, 14 coastal cities and the island
of Hainan got extended incentives. Then in 1988 the entire coastal region from Liaoning
to Guangdong was opened to foreign investment. By the 1990s, all remaining regional
and sectoral restrictions were removed.21
In 1978, China had broken its tradition of being solely an aid donor and begun to
accept foreign aid. The United Nations Development Program (UNDP) gave China
assistance and in 1980 rejoined and accepted aid from the International Monetary Fund
(IMF) and the World Bank. By 1986, China joined the Asian Development Bank. By
2001, a host of multilateral organizations such as the World Bank, the UNHDP, UN
agencies, and multiple countries had given China a grand total of almost $40 billion in
Overseas Development Assistance (ODA).22
China’s timing of engaging with the world economy came at a good time. In the
mid- 1980s globalization had taken a leap forward. The global GDP between 1980 and
2007 had increased by 3.1 percent a year. In Andrew J. Nathan and Andrew Scobell’s 19 NATHAN, ANDREW J., and ANDREW SCOBELL. 429.20 NATHAN, ANDREW J., and ANDREW SCOBELL. 429.21 NATHAN, ANDREW J., and ANDREW SCOBELL. 429.22 NATHAN, ANDREW J., and ANDREW SCOBELL. 429.
4
article they described, “Having entered the waters, China was carried along on the
current: Chinese trade grew thirty-fold from $25.8 billion in 1984 to $762 billion in 2005.
By 2004, 30.8 percent of China’s industrial output was produced by factories with
foreign investment.”23 Through foreign trade and investment, China’s foreign
partnerships had given China access to new technology, new management practices, and
access to the world markets.24
After two decades of the open-door policy, China joined the World Trade
Organization (WTO). Joining the WTO had bind China to its international partners more
tightly. China’s economy had become one of the most open in the world. China wasn’t
forced to make a transition to a fully Western-style economy, instead Chinese
policymakers created the “China Model”. The post-WTO “China Model” was a
distinctive state-directed, marketed model. This model had key elements of self-control
that drew strength from global trade and investment and used market mechanisms to
promote efficiency that wouldn’t undermine the dominance of the state’s ability to rule
the economy’s commanding heights.25 “China found a way to throw itself into the surging
currents of globalization without handing control over its destiny to outside actors.”26
China strengthened its hold on power by cultivating its people’s national pride on its
growing international respectability.27
II. Alternate Hypotheses
A. Individual Decision-maker
23 NATHAN, ANDREW J., and ANDREW SCOBELL. 429.24 NATHAN, ANDREW J., and ANDREW SCOBELL. 430.25 NATHAN, ANDREW J., and ANDREW SCOBELL. 433.26 NATHAN, ANDREW J., and ANDREW SCOBELL. 435.27 NATHAN, ANDREW J., and ANDREW SCOBELL. 436.
5
If Xi Jinping uses Marxism, Confucianism, and Daoism to promote the “China Model”
and the reflection of Deng Xiaoping’s idea that within the one-party there will be
effective economic reform, then the political and economic characteristics of the “China
Model” will be seen as a working model.
In a state-owned economy, China’s central government removed and replaced
virtually all-remaining regional and sectorial governments. In this government there is
accountability in the system. President Xi Jinping has emerged as the most powerful
leader in the post-Mao era. His personal philosophy on ruling is reflected in the quote he
explain of a Chinese proverb, “ Governing a big country is as delicate as cooking a small
dish”. He explains that top leaders of a big country should posses’ qualities of mental
alertness and attention to detail. Xi Jinping stresses to nation’s leaders that devoting
themselves to their work completely is necessary and handle their responsibilities “as if
they are walking on thin ice or standing on the edge of an abyss”.28 He also promotes
“traditional cultures” and philosophies of Marxism, Confucianism, and Daoism along
with reform explaining that this can be a cure to the disease of corruption.29
Xi Jinping reflection of Deng Xiaoping’s idea that within the one-party there will be
effective economic reform, would contribute to the same control Deng Xiaoping had.30
Deng Xiaoping was a policy innovator.31 Deng’s policies had sharply contrasted Mikhail
Gorbachev’s perestroika and glasnost policies. Gorbachev’s policies had spiraled out of
28 Huang, Cary. “Xi Jinping Shares His Views o Being a Leader.” South China Morning Post. N.p., 22 Mar. 2013. Web. 26 Apr. 2015. 1.
29 Kang Lim, Benjamin, and Ben Blanchard. "Xi Jinping Hopes Traditional Faiths Can Fill Moral Void in China: Sources." Reuters. Thomson Reuters, 29 Sept. 2013. Web. 26 Apr. 2015. <http://www.reuters.com/article/2013/09/29/us-china-politics-vacuum-idUSBRE98S0GS20130929>.
30 Ambrosio, Thomas. 284.31 Horesh, Niv. 344.
6
his control and the “China Model” serves as a contrast to the policies adopted after the
fall of communism in Eastern Europe.32
This level of analysis is not as important as my primary hypothesis because Xi
Jinping’s leadership has lead to the restructure of the social, economic and government
system through comprehensive reforms. In this communist ruled nation, the current
overhaul in the country’s judicial system was to promote “rule by law and constitutional
rule”. Xi Jinping was to stabilize one-party rule with the overhaul of the judicial and law
system and would promote justice for ordinary people. The “China Model” reflects the
era of fast growth and then slower growth that has created a high level of employment
and have kept the labor markets stable. On an international level the “China Model” can
be better viewed on it’s political and economic characteristics.
B. Domestic Determinants
If at the state level the party and the state successfully continue to guide the state’s
political and economic development, then the political and economic characteristics of
the “China Model” will be seen as a working model.
Since the late 1970s, China has developed its own model of development through
reform. With the economic development, the China’s model is dependent and coexistent
with the country’s political development. Changes in the Chinese politics have promoted
economic growth. China’s reform process involves economic, social, and then political
reform. China has developed a basic state system before achieving democratization.
Effectively operating democratic institutions requires a certain level of social and
32 Ambrosio, Thomas. 284.
7
economic development, and more importantly, requires various basic state institutions as
infrastructure. 33
The domestic level of analysis is not as important as the primary hypothesis because
even though the “China Model” is pushed a basic state economic system. It has
demonstrated advantages and weaknesses through the process of development. On the
international level, China’s political reform has been effective in building sound social
systems in the global society.
III. Testable Hypothesis
C. International Environment
If at the International level there were a rise in authoritarianism that offset the democratic
government, then the political and economic characteristics of the “China Model” will be
seen as a working model.
China has gained many benefits in leading its country the way it has. With the
offset of democratic/market-oriented economies, the problem that China is facing is how
much autonomy they need to have. Becoming involved in foreign trade and investment
requires changes due to the foreign economic interactions. China has to adopt hundreds
of laws and regulations to govern their foreign economic relations.34 The problem with
China’s economic health is it has become more dependent on the health of others.35 China
opening up has led to deep effects on the society and culture.36
33 Zheng, Yongnian. "China, an Emerging Power, is Exploring its Own Development Model." China Economist, no. 24 (January 2010): 71-79. Database on-line. Available from EBSCO, 1118473 Alternate Accession Number: EP61065690. 79.34 Vivier, B. T. 2033.35 NATHAN, ANDREW J., and ANDREW SCOBELL. 430.36 NATHAN, ANDREW J., and ANDREW SCOBELL. 431.
8
This is a primary theory, China is becoming a part of the international world and
becoming foreign partners with countries has caused conflict. Trading partners accused
China of not honoring foreign standards of hygiene, packaging, labeling, and the
environmental friendliness of goods destined for export. With local protectionism,
corruption, and an inadequate legal system in China, new waves of conflict are generated
from countries at China’s failure to fulfill its commitments.37
Post World War II era, there were two models that dominated the world system,
which were the Soviet model and the Western model.38 Once the Soviet Union collapsed,
the Western democratic model was strongly pushed. The world’s main superpower after
the Cold War was seen as the United States. When the Western model failed to achieve
socioeconomic development and a stable democracy and this allowed the “China Model”
to become a great value to developing countries. The “China Model” was pushed to
offset the democratic economies. 39
The “China Model” has had successful experiences of reform and opening up. There
is great interest in China’s experiences that have provided developing countries
something to learn from.40 The Chinese society has valued their openness and their
pursuit of prosperity.41 China’s political and economic system is not perfect and is
evolving by the world and China’s own experiences. I will measure my dependent
variable by focusing on the political and economic characteristics of the “China Model”
as it will be seen as a working model. I will measure my independent variable on an
37 NATHAN, ANDREW J., and ANDREW SCOBELL. 431.38 Zheng, Yongnian. 71.39 Zheng, Yongnian. 72.40 Zheng, Yongnian. 71.41 NATHAN, ANDREW J., and ANDREW SCOBELL. 435.
9
International level, how there were a rise in authoritarianism that could offset the
democratic government.
IV. Case Study
On the international level the “China Model” could be seen as a true treat to
democratic governments by having developing countries adopt the “China Model” as an
attractive blueprint to retain power. Beijing has been willing to offer financial assistance
and beneficial trade agreements to countries that adopt the “China Model” without the
good governance and political conditionality of democratic governments. The
continuation of China strengthening other countries in adopting the “China Model” can
lead to the liberal international order to be undermined and the normative power of
democracy and human rights to be weakened.42
Internationally viewed, China’s policies are based upon the priorities of
innovation, long-term growth, and combating income inequality that ensures geopolitical
independence and autonomy. The domestic political foundations and the consequences of
China’s policies with human rights and democracy are that they are placed far below
economic development and income equality importance. To a democratic world there is a
concern with stability and prosperity in an authoritarian system.43
In the late 1980s and 1990s the diffusion of the liberal-democratic model was
pushed because of the communist states structural economic problems. Ultimately after
the collapse of the Soviet Union the Soviet-style socialism was eliminated as a realistic
alternative. The “China Model” is judged in a similar light of its potential strength of
42 Ambrosio, Thomas. 38543 Ambrosio, Thomas. 385
10
being legitimate and successful in comparison to the liberal-democratic model. In review
of global and regional media over time, the evidence of the idea of the “China Model” as
an alternative economic-political structure would lay in how it is perceived, the
seriousness in which it is considered, and how widely it has increased rapidly in
numbers.44
Thomas Ambrosio collected data through a qualitative analysis of over one
thousand US and non-US newspapers articles to examine shifts from democracy to either
autocracy or mixed systems.45 In 2004, J. Ramo has first coined the concept “China
Model” in The Beijing Consensus.46 The newspaper articles have been compiled from
2004 through 2011. This analysis focused on the “China Model” outside of China so
Chinese newspapers had been excluded. The 1,066 articles that were included in the
qualitative analysis had to include China’s economic policies and political content.47
Between US and non-US sources there wasn’t a huge difference in opinion on
how the “China Model” is perceived. Non-US articles had more negative and mixed
perception, whereas the US articles were more neutral. In wake of the 2008 financial
crisis and a general reconsideration of the value of the Western model, US articles had a
more pronounced negative coverage. By 2011, US articles that were negative were at
42% and 27% were positive. Non-Us sources had sustained positive coverage for a longer
period of time. In the international level, developing or underdeveloped countries hoped
to replicate China’s economic transformation, but being unclear on referencing to its
political system. 48
44 Ambrosio, Thomas. 38645 Ambrosio, Thomas. 38546 Ambrosio, Thomas. 39947 Ambrosio, Thomas. 38648Ambrosio, Thomas. 386
11
49
As an alternative economic-political model, the “China Model” must be seen as a
serious consideration to other countries. The crucial determinant of discussion is if the
“China Model” is something other countries should adopt. According to the data, the
“China Model” had a positive perception of effectiveness in non-US sources.50 Negative
references were declining, while there was a sharp increase in perception of negative
references in the effectiveness among US sources.51 There could be a rapid change in
49 Ambrosio, Thomas. 38850 Ambrosio, Thomas. 39251 Ambrosio, Thomas. 391
12
international perceptions of the “China Model” if the so-called ‘China Bubble’ is proved
correct.52
The ‘China Bubble’ is term that is referring to a situation where asset prices
appear to be based on inconsistent views about the future. A drop is known as a bubble
burst. China’s trade is in high volumes at prices that are considerably at variance with the
value of market. China boasted on being the world’s fastest-growing economy and as
China’s growth has drifted steadily lower then China may be entering bubble territory.53
Viewed internationally, there is a general agreement that since the past two
decades China’s economic development has proved to be remarkable. There has been
significant attention in US and non-US sources on the “China Model”. The “China
Model” has increased rapidly in coverage on if it is an alternative economic-political
structure from other nations. The data presents that the “China Model” is seen as
working, but there is a lack of favor of a normative shift. Coverage, whether negative or
positive, reveals serious doubt on the ability for it to carry on beyond China’s boarders. 54
China in present day lags behind America in terms of military might,
technological innovation and soft power. Economically, China will overtake America’s
economic might and become the top global leader.55 For China political power is more
important than military might in the long run.56 China’s global rise has been a ‘Peaceful
Rise’.57 China exerts every possible effort to not act like a new self-interested hegemon. 58
52 Ambrosio, Thomas. 39153 O'Brien, Matt. "China’s Stock Market Sure Looks like a Bubble." The Washington Post. N.p., 31 Mar. 2015. Web. Apr. 2015.54 Ambrosio, Thomas. 39155 Horesh, Niv. 342. 56 Horesh, Niv. 343.57 Horesh, Niv. 342.58 Horesh, Niv. 344.
13
On an international level, democratic nations believe that China would not have the
capability of shifting the international system.59
Deng Xiaoping had China maintained a low profile on the world stage and
China’s government leading the country the way it has could seek more of a global pre-
eminence. Democratic nations view China posing challenges not primary in a military
nature. 60 If China governs itself humanely, equitably and in an environmentally-friendly
manner, then China could be an example to others and be much more attractive to other
countries. China demonstrated that its one-party system could effectively rein in
technologically revolutionary companies, for example Google, on its own.61
In the era of globalization the “China Model” can be perceived from many
different perspectives. China has had a great ability in coordinating economic and
political reforms. Among academic and policy circles this has been a popular perspective.
Most developing countries are faced with the dilemma to know how to democratize and
build a basic state system. Developing countries have yet to put in place an effective and
competent modern state system. For the past 30 years developing a state system has been
at the core of China’s political reform. For developing countries that have an interest in
following a China’s working model there wouldn’t be pressure on economic, social, and
political transformation. The pressure would be dealt with and resolved in two ways,
gradualist reform and reform into various stages with different priorities.62 Gradualist
reform rather then radical revolution would allow developing countries to have enough
time and space to continually adjust its political system in the ever-changing economic
and social environment. Developing countries would divide its reform into various stages
59 Horesh, Niv. 345.60 Horesh, Niv. 346.61 Horesh, Niv. 346.62 Zheng, Yongnian. 73.
14
with different priories by focusing on social security, health care, education, and the
environment.63
The “China Model” can be perceived as a provision of basic social justice for
sustainable development. The major component to the “China Model” is economic. It
cannot be independent from social life and therefore social relations are made up of
significant economic activities. The premise of sustainable development is basic social
justice. According to the “China Model”, for developing countries to have economic
development they will need to have a well-functioning society with social and political
order. China’s economic development has brought about tremendous benefits and various
problems in social injustice.64 “The Chinese government has begun to implement
‘scientific approach on development’ and ‘harmonious society’ policies that aim to
achieve basic social justice.”65 There is no social justice if developing countries are
without economic development. Developing countries don’t automatically get social
justice if they have economic development; there are effective measures that can be taken
to correct problems of injustice.66
China’s economic system through crisis has tested China’s economic resilience to
maintaining sound performance. China is a model of mixed ownership. “After reform and
opening up, China began to introduce and encourage other forms of ownership, such as
private, joint-venture and foreign capital.”67 China had encouraged other forms of
ownership while adapting to the new environment of reforming public ownership to be
more flexible. The mixed ownership would allow developing countries to have strength
63 Zheng, Yongnian. 73.64 Zheng, Yongnian. 74.65 Zheng, Yongnian. 74.66 Zheng, Yongnian. 75.67 Zheng, Yongnian. 75.
15
in a storm of financial crisis. Democracies have only financial instruments but not
economic leverage, whereas the Chinese government has both.68
“In 2009, Premier Wen Jiabao stressed during a speech at Cambridge University
that since reform and opening-up, China has been a ‘learning state’.”69 When he
described learning, there were two meaning. One meaning is that China is learning from
all countries around the world. From larger countries to small countries, China is learning
from their international experiences. The other meaning of learning is that China is
drawing upon it’s own experiences. There are both positive and negative experiences
China has gone through. The “China Model” will continue to be in the process of
development and learning from lesson that will help improve the model.70
In China social reform is increasing topping China’s agenda. There are negative
consequences of economic reform and China is aiming to address the development of
social reform. China in a short period of time has been able to lift hundreds of millions of
people out of poverty, but a single-minded pursuit to the economy has led to a widening
wealth gap. The “China Model” will be better seen as a working model if China focuses
on social reform because. This then will prepare China for a greater political reform. 71
The analysis of over one thousand US and non-US newspapers done by Thomas
Ambrosio had significant evidence that China’s authoritarian model being exaggerated in
terms of being a concern to the democratic model.72 As of present time, the “China
Model” does not appear to offset the democratic model by having countries shift away
from democracy. Countries that do shift to autocracy have the same rate of countries
68 Zheng, Yongnian. 76.69 Zheng, Yongnian. 78.70 Zheng, Yongnian. 78.71 Zheng, Yongnian. 78.72 Ambrosio, Thomas. 395.
16
shifting toward democracy.73 Instead the “China Model” will be seen as a working model
for countries that wish to improve their economies and are disinclined toward
democratization. Countries would engage in economic development while still
maintaining their political control.74
The “China Model” impact on countries that are unwilling to make the transition
to full democracy are to be able to open up into the global economy to have influence on
the market. In the twenty-first century there may be no economic or political model that
is dominant. With no clear dominant economic and political model this will the world
without a clear path to political and economic development. China may emerge as a
threat to the democratic world and it may make it more difficult for democracy to
advance the cause of political liberalization and human rights.75
V. Summary and Conclusions
During my case study I focused on the political and economic characteristics of
the “China Model”. My testable hypothesis was on an international level, how the rise of
China is shifting the global society. Alternative models of political and economic
development have increased in interest and concern such as the authoritarian model.
China’s mixed authoritarianism and a market economy has led to being an attractive
working model for other countries.
During my case study I took time to focus on the rise of China’s economy,
military strength, and geopolitical standing which could be a rival to a liberal-democratic
model. Evidence had to support how the “China Model” was perceived, the seriousness
73 Ambrosio, Thomas. 395.74 Ambrosio, Thomas. 396.75 Ambrosio, Thomas. 397.
17
in which it is considered and how widely it has increased in numbers. There was a more
negative and mixed perception among non-US articles, whereas the US articles were
more neutral. Non-US sources had positive references of the effectiveness of the “China
model. Whereas there was negative references of the effectives of the “China Model”
among US sources. The “China Model” reveals that there is growing number in
circulation of the realities of the “China Model” being seen as a working model. There is
serious doubt about the turn out if other countries were to try to use their model.
In the case study there were weaknesses in the fact that China has caused much
conflict becoming a part of the international world. There are trading partners accusing
China of not honoring foreign standards of trade. Also there is corruption and an
inadequate legal system in China. This has caused China to have failure to fulfill its
commitments to the international community. China has had mass corruption within its
government that has led to frequent protest against the government. Also with their one
minded pursuit to have a successful economy there has been a great consequence in
environmental degradation, resources waste, a widening wealth gap and polarization.
China has shown its strengthens in how successful it has become in the global
community. China’s experience of reform and opening up has greatly benefited their
country. The “China Model” is a model developing countries could learn something
from. For future economic growth China has increased social reform. By launching China
into social reforms and constructing social institutions, China will experience another
source of long-term growth in the transformation into a consumer society.
During my presentation I was able to answer a few questions on the future worries
and what international perceptions are for the future. The rise of China is shifting the
18
global society. For the future we will see what countries will try to adopt from this
working model. The true threat to the international world is if leaders view the “China
Model” as an attractive blueprint to retain power. Also if the so-called ‘China bubble’ is
proved correct then there could be a rapid change in international perception of China. If
there is financial crisis this gives China an opportunity for social reform and the
establishment of social systems. China is searching for new growth patterns and as
effective political reform is pushed forward there will be potential for China to have
sound social systems.
Bibliography
Ambrosio, Thomas. "The Rise of the ‘China Model’ and ‘Beijing Consensus’: Evidence of Authoritarian Diffusion?" Contemporary Politics 18, no. 4 (12 2012): 381-399. Database on-line. Available from EBSCO, 83257044.
FUKUYAMA, FRANCIS, and ZHANG WEIWEI. "The China Model." NPQ: New Perspectives Quarterly 31, no. 1 (01 2014): 60-83. Database on-line. Available from EBSCO, 93794103.
Horesh, Niv. "In Search of the ‘China Model’: Historic Continuity Vs. Imagined History in Yan Xuetong’s Thought." China Report 49, no. 3 (08 2013): 337-355. Database on-line. Available from EBSCO, 92562887.
Huang, Cary. “Xi Jingping Shares His Views on Being a Leader.” South China Morning Post. N.p., 22 Mar. 2013. Web. 26 Apr. 2015. <http://www.scmp.com/news/china/article/1196668/xi-jingping-shares-his0views-being0leader>
Kang Lim, Benjamin, and Ben Blanchard. "Xi Jinping Hopes Traditional Faiths Can Fill Moral Void in China: Sources." Reuters. Thomson Reuters, 29 Sept. 2013. Web. 26 Apr. 2015. <http://www.reuters.com/article/2013/09/29/us-china-politics-vacuum-idUSBRE98S0GS20130929>.
O'Brien, Matt. "China’s Stock Market Sure Looks like a Bubble." The Washington Post. N.p., 31 Mar. 2015. Web. Apr. 2015.
19
NATHAN, ANDREW J., and ANDREW SCOBELL. "Globalization as a Security Strategy: Power and Vulnerability in the 'China Model'." Political Science Quarterly (Wiley-Blackwell) 128, no. 3 (Fall2013 2013): 427-453. Database on-line. Available from EBSCO, 90064970.
Vivier, B. T. 1. "Handbook of Contemporary China." Choice: Current Reviews for Academic Libraries 49, no. 11 (07 2012): 2033-2033. Database on-line. Available from EBSCO, 77407579.
Zheng, Yongnian. "China, an Emerging Power, is Exploring its Own Development Model." China Economist, no. 24 (January 2010): 71-79. Database on-line. Available from EBSCO, 1118473 Alternate Accession Number: EP61065690.
Kristy Parhiala
The China Model: the Political and Economic Characteristics
University of New Hampshire
Undergraduate- Senior
Political Science
Derry, NH
Editor: Jenna Calcavecchia
20
I. Problem
At the turn of the 21st century, China has had the ability to globalize without having
to sacrifice their sovereignty. Not giving up their autonomy has lead developing and post-
socialist countries to admire their success. The “China Model” of development explains
China’s remarkable economic growth, export-led industrialization, innovation and
technological upgrading, poverty reduction, and independent and autonomous
development.76 Mass media and policy studies have widely circulated the term “China
Model” but researchers are not clear to exactly what the “China Model” is. China’s role
in the global society is shifting constantly.
76 Vivier, B. T. 1. "Handbook of Contemporary China." Choice: Current Reviews for Academic Libraries 49, no. 11 (07 2012): 2033-2033. 2033.
21
In the global society there has been an increasing interest in the rapid increase of
alternative ‘models’ of political and economic development.77 The relative balance
between democracy and authoritarianism is shifting. The rise of authoritarian great
powers has lead to increasing interest and concerns. The “China Model” is gaining
traction internationally on its mixed authoritarianism and a market economy. The rise of
China’s economy, military strength, and geopolitical standing is most likely to be a rival
to a liberal-democratic model. 78
In Andrew J. Nathan and Andrew Scobell’s Globalization as a Security Strategy:
Power and Vulnerability in the 'China Model', they describe for any country’s security
policy there is a key element and that is the foreign economic policy. For China, the
leader Mao Zedong took steps to resist pressure from both American and Soviet
superpowers by placing his county on a path of self-reliant development. He restricted
agriculture to gain surpluses that abled him to develop a basic industrial economy.79 This
took a tremendous hit to his people by having depressed living standards and rigid
political repression.80 Mao was able to sustain a large military and to deter a Soviet or
American attack China developed a nuclear capability sufficient.81
After Mao Zedong’s death, Deng Xiaoping came to power and abandoned self-
sufficiency. Deng Xiaoping created “reform and opening” policy that made a rapid
77 Ambrosio, Thomas. "The Rise of the ‘China Model’ and ‘Beijing Consensus’: Evidence of Authoritarian Diffusion?" Contemporary Politics 18, no. 4 (12 2012): 381-399. Database on-line. Available from EBSCO, 83257044. 382.
78 Ambrosio, Thomas. 381.79 NATHAN, ANDREW J., and ANDREW SCOBELL. "Globalization as a Security Strategy: Power and Vulnerability in the 'China Model'." Political Science Quarterly (Wiley-Blackwell) 128, no. 3 (Fall2013 2013): 427-453. Database on-line. Available from EBSCO, 90064970. 427.80 NATHAN, ANDREW J., and ANDREW SCOBELL. 428.81 NATHAN, ANDREW J., and ANDREW SCOBELL. 427.
22
economic growth possible.82 Deng in comparison to Mao had “sought a different balance
of security gains and losses in a different orientation to the world economy.”83 The ability
to implement the post-Mao Zedong economic reforms while maintaining political control
sharply contrasted Mikhail Gorbachev’s perestroika and glasnost policies.84 Gorbachev’s
policies had spiraled out of his control and the “China Model” served as a contrast to the
policies adopted after the fall of communism in Eastern Europe.85
The “China Model” is made up of a fast paced growth that allows for globalization.
With a deep engagement in the global economy, the outside world puts pressure and
influences on China growth.86 The “China Model” is based on a centralized, bureaucratic
and authoritarian government. Therefore the “accountability goes upward primarily to the
Communist Party instead of the Emperor. There is accountability in that system.”87 The
other element of the “China Model” is economic. The Chinese government is more
focused on infrastructure facilities, financing, and a currency regime to make its exports
more competitive rather than picking any particular winners in the economy.
Nevertheless China has not been prone to rely on the market economy in its
development.88
The embrace of globalization was halting, costly, and ambivalent on China. As
Deng Xiaoping put it, “crossed the river by feeling the stones.”89 Each step of reform had
produced positive results in China. Chinese leaders were unwilling to give in to pressure
82 NATHAN, ANDREW J., and ANDREW SCOBELL. 428.83 NATHAN, ANDREW J., and ANDREW SCOBELL. 428.84 Ambrosio, Thomas. 284.85 Ambrosio, Thomas. 284.86 NATHAN, ANDREW J., and ANDREW SCOBELL. 428.87 FUKUYAMA, FRANCIS, and ZHANG WEIWEI. "The China Model." NPQ: New Perspectives Quarterly 31, no. 1 (01 2014): 60-83. 62.88 FUKUYAMA, FRANCIS, and ZHANG WEIWEI. 63.89 NATHAN, ANDREW J., and ANDREW SCOBELL. 428.
23
to do more from advisers and foreign partners.90 The “China Model” is viewed as a
working model in the positive results shown when China’s ability in 1997-1998 to
survive the Asian financial crisis and following 2008 the Great Recession to maintain
social and political stability.91
China has become the world’s second largest economy and to all the worlds’ major
powers, China is an important economic partner.92 Attention is growing to the hidden cost
of China’s incredible economic performance and its upcoming risks. Developing
countries pre-mature assumption of the “China Model” will realize what the hide,
minimize negative traits are. China is currently “pushing” the China political and
economic model even with their increasing domestic inequalities and environmental
degradation on the sustainability of China’s economic growth.93
China’s incredible economic performance took many steps to engage in the world
economy to get it to the world’s second largest economy. After Mao’s death, Deng made
incredible gains for China by spreading the right to import and export foreign
commodities. “Foreign trade almost quadrupled from 10 percent of GDP in 1978 to 38
percent of GCP in 2001.”94 Only about a dozen specialized central governments-owned
corporations had gained the right to import and export foreign commodities and over time
that eventually changed to thousands of trading companies belonging to central
government ministries, provincial governments, and government- owned enterprises.95
In 1979, China adopted the Joint Venture Law that had limited foreign ownership to
less than half the value of any enterprise. At first the government tried to limit foreign 90 NATHAN, ANDREW J., and ANDREW SCOBELL. 428.91 Ambrosio, Thomas. 28492 NATHAN, ANDREW J., and ANDREW SCOBELL. 436.93 Horesh, Niv. “In Search of the ‘China Model’: Historic Continuity Vs. Imagined History in Yan Xuetong’s Thought.” China Report 49, no. 3 (08 2013): 337-355. Database on-line. Available from EBSCO, 92562887. 34694 NATHAN, ANDREW J., and ANDREW SCOBELL. 429.95 NATHAN, ANDREW J., and ANDREW SCOBELL. 429.
24
investment to four mall special economic zones. In 1984, 14 coastal cities and the island
of Hainan got extended incentives. Then in 1988 the entire coastal region from Liaoning
to Guangdong was opened to foreign investment. By the 1990s, all remaining regional
and sectoral restrictions were removed.96
In 1978, China had broken its tradition of being solely an aid donor and begun to
accept foreign aid. The United Nations Development Program (UNDP) gave China
assistance and in 1980 rejoined and accepted aid from the International Monetary Fund
(IMF) and the World Bank. By 1986, China joined the Asian Development Bank. By
2001, a host of multilateral organizations such as the World Bank, the UNHDP, UN
agencies, and multiple countries had given China a grand total of almost $40 billion in
Overseas Development Assistance (ODA).97
China’s timing of engaging with the world economy came at a good time. In the
mid- 1980s globalization had taken a leap forward. The global GDP between 1980 and
2007 had increased by 3.1 percent a year. In Andrew J. Nathan and Andrew Scobell’s
article they described, “Having entered the waters, China was carried along on the
current: Chinese trade grew thirty-fold from $25.8 billion in 1984 to $762 billion in 2005.
By 2004, 30.8 percent of China’s industrial output was produced by factories with
foreign investment.”98 Through foreign trade and investment, China’s foreign
partnerships had given China access to new technology, new management practices, and
access to the world markets.99
After two decades of the open-door policy, China joined the World Trade
Organization (WTO). Joining the WTO had bind China to its international partners more 96 NATHAN, ANDREW J., and ANDREW SCOBELL. 429.97 NATHAN, ANDREW J., and ANDREW SCOBELL. 429.98 NATHAN, ANDREW J., and ANDREW SCOBELL. 429.99 NATHAN, ANDREW J., and ANDREW SCOBELL. 430.
25
tightly. China’s economy had become one of the most open in the world. China wasn’t
forced to make a transition to a fully Western-style economy, instead Chinese
policymakers created the “China Model”. The post-WTO “China Model” was a
distinctive state-directed, marketed model. This model had key elements of self-control
that drew strength from global trade and investment and used market mechanisms to
promote efficiency that wouldn’t undermine the dominance of the state’s ability to rule
the economy’s commanding heights.100 “China found a way to throw itself into the
surging currents of globalization without handing control over its destiny to outside
actors.”101 China strengthened its hold on power by cultivating its people’s national pride
on its growing international respectability.102
II. Alternate Hypotheses
A. Individual Decision-maker
If Xi Jinping uses Marxism, Confucianism, and Daoism to promote the “China Model”
and the reflection of Deng Xiaoping’s idea that within the one-party there will be
effective economic reform, then the political and economic characteristics of the “China
Model” will be seen as a working model.
In a state-owned economy, China’s central government removed and replaced
virtually all-remaining regional and sectorial governments. In this government there is
accountability in the system. President Xi Jinping has emerged as the most powerful
leader in the post-Mao era. His personal philosophy on ruling is reflected in the quote he
explain of a Chinese proverb, “ Governing a big country is as delicate as cooking a small
100 NATHAN, ANDREW J., and ANDREW SCOBELL. 433.101 NATHAN, ANDREW J., and ANDREW SCOBELL. 435.102 NATHAN, ANDREW J., and ANDREW SCOBELL. 436.
26
dish”. He explains that top leaders of a big country should posses’ qualities of mental
alertness and attention to detail. Xi Jinping stresses to nation’s leaders that devoting
themselves to their work completely is necessary and handle their responsibilities “as if
they are walking on thin ice or standing on the edge of an abyss”.103 He also promotes
“traditional cultures” and philosophies of Marxism, Confucianism, and Daoism along
with reform explaining that this can be a cure to the disease of corruption.104
Xi Jinping reflection of Deng Xiaoping’s idea that within the one-party there will be
effective economic reform, would contribute to the same control Deng Xiaoping had.105
Deng Xiaoping was a policy innovator.106 Deng’s policies had sharply contrasted Mikhail
Gorbachev’s perestroika and glasnost policies. Gorbachev’s policies had spiraled out of
his control and the “China Model” serves as a contrast to the policies adopted after the
fall of communism in Eastern Europe.107
This level of analysis is not as important as my primary hypothesis because Xi
Jinping’s leadership has lead to the restructure of the social, economic and government
system through comprehensive reforms. In this communist ruled nation, the current
overhaul in the country’s judicial system was to promote “rule by law and constitutional
rule”. Xi Jinping was to stabilize one-party rule with the overhaul of the judicial and law
system and would promote justice for ordinary people. The “China Model” reflects the
era of fast growth and then slower growth that has created a high level of employment
103 Huang, Cary. “Xi Jinping Shares His Views o Being a Leader.” South China Morning Post. N.p., 22 Mar. 2013. Web. 26 Apr. 2015. 1.
104 Kang Lim, Benjamin, and Ben Blanchard. "Xi Jinping Hopes Traditional Faiths Can Fill Moral Void in China: Sources." Reuters. Thomson Reuters, 29 Sept. 2013. Web. 26 Apr. 2015. <http://www.reuters.com/article/2013/09/29/us-china-politics-vacuum-idUSBRE98S0GS20130929>.
105 Ambrosio, Thomas. 284.106 Horesh, Niv. 344.107 Ambrosio, Thomas. 284.
27
and have kept the labor markets stable. On an international level the “China Model” can
be better viewed on it’s political and economic characteristics.
B. Domestic Determinants
If at the state level the party and the state successfully continue to guide the state’s
political and economic development, then the political and economic characteristics of
the “China Model” will be seen as a working model.
Since the late 1970s, China has developed its own model of development through
reform. With the economic development, the China’s model is dependent and coexistent
with the country’s political development. Changes in the Chinese politics have promoted
economic growth. China’s reform process involves economic, social, and then political
reform. China has developed a basic state system before achieving democratization.
Effectively operating democratic institutions requires a certain level of social and
economic development, and more importantly, requires various basic state institutions as
infrastructure. 108
The domestic level of analysis is not as important as the primary hypothesis because
even though the “China Model” is pushed a basic state economic system. It has
demonstrated advantages and weaknesses through the process of development. On the
international level, China’s political reform has been effective in building sound social
systems in the global society.
III. Testable Hypothesis
C. International Environment
108 Zheng, Yongnian. "China, an Emerging Power, is Exploring its Own Development Model." China Economist, no. 24 (January 2010): 71-79. Database on-line. Available from EBSCO, 1118473 Alternate Accession Number: EP61065690. 79.
28
If at the International level there were a rise in authoritarianism that offset the democratic
government, then the political and economic characteristics of the “China Model” will be
seen as a working model.
China has gained many benefits in leading its country the way it has. With the
offset of democratic/market-oriented economies, the problem that China is facing is how
much autonomy they need to have. Becoming involved in foreign trade and investment
requires changes due to the foreign economic interactions. China has to adopt hundreds
of laws and regulations to govern their foreign economic relations.109 The problem with
China’s economic health is it has become more dependent on the health of others.110
China opening up has led to deep effects on the society and culture.111
This is a primary theory, China is becoming a part of the international world and
becoming foreign partners with countries has caused conflict. Trading partners accused
China of not honoring foreign standards of hygiene, packaging, labeling, and the
environmental friendliness of goods destined for export. With local protectionism,
corruption, and an inadequate legal system in China, new waves of conflict are generated
from countries at China’s failure to fulfill its commitments.112
Post World War II era, there were two models that dominated the world system,
which were the Soviet model and the Western model.113 Once the Soviet Union collapsed,
the Western democratic model was strongly pushed. The world’s main superpower after
the Cold War was seen as the United States. When the Western model failed to achieve
socioeconomic development and a stable democracy and this allowed the “China Model”
109 Vivier, B. T. 2033.110 NATHAN, ANDREW J., and ANDREW SCOBELL. 430.111 NATHAN, ANDREW J., and ANDREW SCOBELL. 431.112 NATHAN, ANDREW J., and ANDREW SCOBELL. 431.113 Zheng, Yongnian. 71.
29
to become a great value to developing countries. The “China Model” was pushed to
offset the democratic economies. 114
The “China Model” has had successful experiences of reform and opening up. There
is great interest in China’s experiences that have provided developing countries
something to learn from.115 The Chinese society has valued their openness and their
pursuit of prosperity.116 China’s political and economic system is not perfect and is
evolving by the world and China’s own experiences. I will measure my dependent
variable by focusing on the political and economic characteristics of the “China Model”
as it will be seen as a working model. I will measure my independent variable on an
International level, how there were a rise in authoritarianism that could offset the
democratic government.
IV. Case Study
On the international level the “China Model” could be seen as a true treat to
democratic governments by having developing countries adopt the “China Model” as an
attractive blueprint to retain power. Beijing has been willing to offer financial assistance
and beneficial trade agreements to countries that adopt the “China Model” without the
good governance and political conditionality of democratic governments. The
continuation of China strengthening other countries in adopting the “China Model” can
lead to the liberal international order to be undermined and the normative power of
democracy and human rights to be weakened.117
114 Zheng, Yongnian. 72.115 Zheng, Yongnian. 71.116 NATHAN, ANDREW J., and ANDREW SCOBELL. 435.117 Ambrosio, Thomas. 385
30
Internationally viewed, China’s policies are based upon the priorities of
innovation, long-term growth, and combating income inequality that ensures geopolitical
independence and autonomy. The domestic political foundations and the consequences of
China’s policies with human rights and democracy are that they are placed far below
economic development and income equality importance. To a democratic world there is a
concern with stability and prosperity in an authoritarian system.118
In the late 1980s and 1990s the diffusion of the liberal-democratic model was
pushed because of the communist states structural economic problems. Ultimately after
the collapse of the Soviet Union the Soviet-style socialism was eliminated as a realistic
alternative. The “China Model” is judged in a similar light of its potential strength of
being legitimate and successful in comparison to the liberal-democratic model. In review
of global and regional media over time, the evidence of the idea of the “China Model” as
an alternative economic-political structure would lay in how it is perceived, the
seriousness in which it is considered, and how widely it has increased rapidly in
numbers.119
Thomas Ambrosio collected data through a qualitative analysis of over one
thousand US and non-US newspapers articles to examine shifts from democracy to either
autocracy or mixed systems.120 In 2004, J. Ramo has first coined the concept “China
Model” in The Beijing Consensus.121 The newspaper articles have been compiled from
2004 through 2011. This analysis focused on the “China Model” outside of China so
118 Ambrosio, Thomas. 385119 Ambrosio, Thomas. 386120 Ambrosio, Thomas. 385121 Ambrosio, Thomas. 399
31
Chinese newspapers had been excluded. The 1,066 articles that were included in the
qualitative analysis had to include China’s economic policies and political content.122
Between US and non-US sources there wasn’t a huge difference in opinion on
how the “China Model” is perceived. Non-US articles had more negative and mixed
perception, whereas the US articles were more neutral. In wake of the 2008 financial
crisis and a general reconsideration of the value of the Western model, US articles had a
more pronounced negative coverage. By 2011, US articles that were negative were at
42% and 27% were positive. Non-Us sources had sustained positive coverage for a longer
period of time. In the international level, developing or underdeveloped countries hoped
to replicate China’s economic transformation, but being unclear on referencing to its
political system. 123
122 Ambrosio, Thomas. 386123Ambrosio, Thomas. 386
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124
As an alternative economic-political model, the “China Model” must be seen as a
serious consideration to other countries. The crucial determinant of discussion is if the
“China Model” is something other countries should adopt. According to the data, the
“China Model” had a positive perception of effectiveness in non-US sources.125 Negative
references were declining, while there was a sharp increase in perception of negative
references in the effectiveness among US sources.126 There could be a rapid change in
international perceptions of the “China Model” if the so-called ‘China bubble’ is proved
correct.
Viewed internationally, there is a general agreement that since the past two
decades China’s economic development has proved to be remarkable. There has been
significant attention in US and non-US sources on the “China Model”. The “China
Model” has increased rapidly in coverage on if it is an alternative economic-political
structure from other nations. The data presents that the “China Model” is seen as
working, but there is a lack of favor of a normative shift. Coverage, whether negative or
124 Ambrosio, Thomas. 388125 Ambrosio, Thomas. 392126 Ambrosio, Thomas. 391
33
positive, reveals serious doubt on the ability for it to carry on beyond China’s boarders.
127
China in present day lags behind America in terms of military might,
technological innovation and soft power. Economically, China will overtake America’s
economic might and become the top global leader.128 For China political power is more
important than military might in the long run.129 China’s global rise has been a ‘Peaceful
Rise’.130 China exerts every possible effort to not act like a new self-interested hegemon.
131 On an international level, democratic nations believe that China would not have the
capability of shifting the international system.132
Deng Xiaoping had China maintained a low profile on the world stage and
China’s government leading the country the way it has could seek more of a global pre-
eminence. Democratic nations view China posing challenges not primary in a military
nature. 133 If China governs itself humanely, equitably and in an environmentally-friendly
manner, then China could be an example to others and be much more attractive to other
countries. China demonstrated that its one-party system could effectively rein in
technologically revolutionary companies, for example Google, on its own.134
In the era of globalization the “China Model” can be perceived from many
different perspectives. China has had a great ability in coordinating economic and
political reforms. Among academic and policy circles this has been a popular perspective.
Most developing countries are faced with the dilemma to know how to democratize and
127 Ambrosio, Thomas. 391128 Horesh, Niv. 342. 129 Horesh, Niv. 343.130 Horesh, Niv. 342.131 Horesh, Niv. 344.132 Horesh, Niv. 345.133 Horesh, Niv. 346.134 Horesh, Niv. 346.
34
build a basic state system. Developing countries have yet to put in place an effective and
competent modern state system. For the past 30 years developing a state system has been
at the core of China’s political reform. For developing countries that have an interest in
following a China’s working model there wouldn’t be pressure on economic, social, and
political transformation. The pressure would be dealt with and resolved in two ways,
gradualist reform and reform into various stages with different priorities.135 Gradualist
reform rather then radical revolution would allow developing countries to have enough
time and space to continually adjust its political system in the ever-changing economic
and social environment. Developing countries would divide its reform into various stages
with different priories by focusing on social security, health care, education, and the
environment.136
The “China Model” can be perceived as a provision of basic social justice for
sustainable development. The major component to the “China Model” is economic. It
cannot be independent from social life and therefore social relations are made up of
significant economic activities. The premise of sustainable development is basic social
justice. According to the “China Model”, for developing countries to have economic
development they will need to have a well-functioning society with social and political
order. China’s economic development has brought about tremendous benefits and various
problems in social injustice.137 “The Chinese government has begun to implement
‘scientific approach on development’ and ‘harmonious society’ policies that aim to
achieve basic social justice.”138 There is no social justice if developing countries are
without economic development. Developing countries don’t automatically get social
135 Zheng, Yongnian. 73.136 Zheng, Yongnian. 73.137 Zheng, Yongnian. 74.138 Zheng, Yongnian. 74.
35
justice if they have economic development; there are effective measures that can be taken
to correct problems of injustice.139
China’s economic system through crisis has tested China’s economic resilience to
maintaining sound performance. China is a model of mixed ownership. “After reform and
opening up, China began to introduce and encourage other forms of ownership, such as
private, joint-venture and foreign capital.”140 China had encouraged other forms of
ownership while adapting to the new environment of reforming public ownership to be
more flexible. The mixed ownership would allow developing countries to have strength
in a storm of financial crisis. Democracies have only financial instruments but not
economic leverage, whereas the Chinese government has both.141
“In 2009, Premier Wen Jiabao stressed during a speech at Cambridge University
that since reform and opening-up, China has been a ‘learning state’.”142 When he
described learning, there were two meaning. One meaning is that China is learning from
all countries around the world. From larger countries to small countries, China is learning
from their international experiences. The other meaning of learning is that China is
drawing upon it’s own experiences. There are both positive and negative experiences
China has gone through. The “China Model” will continue to be in the process of
development and learning from lesson that will help improve the model.143
In China social reform is increasing topping China’s agenda. There are negative
consequences of economic reform and China is aiming to address the development of
social reform. China in a short period of time has been able to lift hundreds of millions of
139 Zheng, Yongnian. 75.140 Zheng, Yongnian. 75.141 Zheng, Yongnian. 76.142 Zheng, Yongnian. 78.143 Zheng, Yongnian. 78.
36
people out of poverty, but a single-minded pursuit to the economy has led to a widening
wealth gap. China focusing on social reform will prepare China for a greater political
reform. 144
The analysis of over one thousand US and non-US newspapers done by Thomas
Ambrosio had significant evidence that China’s authoritarian model being exaggerated in
terms of being a concern to the democratic model.145 As of present time, the “China
Model” does not appear to offset the democratic model by having countries shift away
from democracy. Countries that do shift to autocracy have the same rate of countries
shifting toward democracy.146 Instead the “China Model” will be seen as a working model
for countries that wish to improve their economies and are disinclined toward
democratization. Countries would engage in economic development while still
maintaining their political control.147
The “China Model” impact on countries that are unwilling to make the transition
to full democracy are to be able to open up into the global economy to have influence on
the market. In the twenty-first century there may be no economic or political model that
is dominant. With no clear dominant economic and political model this will the world
without a clear path to political and economic development. China may emerge as a
threat to the democratic world and it may make it more difficult for democracy to
advance the cause of political liberalization and human rights.148
V. Summary and Conclusions
144 Zheng, Yongnian. 78.145 Ambrosio, Thomas. 395.146 Ambrosio, Thomas. 395.147 Ambrosio, Thomas. 396.148 Ambrosio, Thomas. 397.
37
During my case study I focused on the political and economic characteristics of
the “China Model”. My testable hypothesis was on an international level, how the rise of
China is shifting the global society. Alternative models of political and economic
development have increased in interest and concern such as the authoritarian model.
China’s mixed authoritarianism and a market economy has led to being an attractive
working model for other countries.
During my case study I took time to focus on the rise of China’s economy,
military strength, and geopolitical standing which could be a rival to a liberal-democratic
model. Evidence had to support how the “China Model” was perceived, the seriousness
in which it is considered and how widely it has increased in numbers. There was a more
negative and mixed perception among non-US articles, whereas the US articles were
more neutral. Non-US sources had positive references of the effectiveness of the “China
model. Whereas there was negative references of the effectives of the “China Model”
among US sources. The “China Model” reveals that there is growing number in
circulation of the realities of the “China Model” being seen as a working model. There is
serious doubt about the turn out if other countries were to try to use their model.
In the case study there were weaknesses in the fact that China has caused much
conflict becoming a part of the international world. There are trading partners accusing
China of not honoring foreign standards of trade. Also there is corruption and an
inadequate legal system in China. This has caused China to have failure to fulfill its
commitments to the international community. China has had mass corruption within its
government that has led to frequent protest against the government. Also with their one
38
minded pursuit to have a successful economy there has been a great consequence in
environmental degradation, resources waste, a widening wealth gap and polarization.
China has shown its strengthens in how successful it has become in the global
community. China’s experience of reform and opening up has greatly benefited their
country. The “China Model” is a model developing countries could learn something
from. For future economic growth China has increased social reform. By launching China
into social reforms and constructing social institutions, China will experience another
source of long-term growth in the transformation into a consumer society.
During my presentation I was able to answer a few questions on the future worries
and what international perceptions are for the future. The rise of China is shifting the
global society. For the future we will see what countries will try to adopt from this
working model. The true threat to the international world is if leaders view the “China
Model” as an attractive blueprint to retain power. Also if the so-called ‘China bubble’ is
proved correct then there could be a rapid change in international perception of China.
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