Kristy Parhiala

The China Model: the Political and Economic Characteristics

University of New Hampshire

Undergraduate- Senior

Political Science

Derry, NH

Editor: Jenna Calcavecchia

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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.

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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.

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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

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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.

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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.

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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.

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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.

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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.

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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.

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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

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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

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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

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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.

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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.

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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.

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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.

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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.

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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

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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.

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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

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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.

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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.

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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.

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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.

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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.

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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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