CHINESE CAPITALISM.   Term Paper ID:25982 Click to get this paper

Essay Subject: Analyzes emergent capitalism created by Den Xiaoping & policies after his death. Culture compared to U.S., globalism, Chinese views on power & class, politics, regional relations, values, future.... More...

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Paper Abstract: Analyzes emergent capitalism created by Den Xiaoping & policies after his death. Culture compared to U.S., globalism, Chinese views on power & class, politics, regional relations, values, future. Paper Introduction: THE OPEN DOOR POLICIES OF DENG XIAOPING Introduction When Deng Xiaoping came to power in the early 1980s, China was attempting to deal with the expanded capitalism that had been suggested as a result of the state visit of Richard Nixon and Henry Kissinger. By adopting a modified version of capitalism, known generally as "socialistic capitalism" Deng Xiaoping instituted wide-sweeping social and economic reforms in the attempt to turn a Communist society into one where personal income was not only accepted but seen as a logical goal (Nathan & Shi, 1996, 534). China, whose very name means "The Middle Kingdom" (as in the center of the world), having some 7,000 years worth of "adapting" quickly assumed some of the aspects of Text of the Paper: The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper. Despite the fact Chinese generally make far less money than Americanson the whole, their savings ratios are higher. Joint-venture companiesrun by managers from South Korea, Taiwan, and other countries, as well asthe increased presence of foreign companies in China, have also beeninfluential factors. Nathan, A.J. Ambitious, materialisticand willing to take risks, a growing number of well educated Chinese haveembraced Deng's attitude and are challenging some long-held cultural valuesconcerning work, comfort and prestige. Overall, goods manufactured outside the SAR made up 28 percent ofexports by Hong Kong companies in 1997 (Miller, 1998, 21). In the United States, however, the president and the ordinarycitizen meet on a plane of equality. This will be possible because the People's Congress,which meets every five years is undergoing agenerational shift which has all but replaced the social revolutionarieswho established the PRC. McCarthy, T., FlorCruz, J.A., Shapiro, D., Sindayen, N. China is shifting to asystem of accounting based not on allocated inputs but on profits andlosses. When the Chinese versionof capitalism was instituted, it ignored the American pattern ofdecentralization and adopted the Chinese system of respect for authoritywill obviously affect both people's thinking in many areas of their lives,including their approach to business. (1998, November 13). Among the Chinese, the hierarchical nature of their socialorder -- based on its respect for rank -- combined with the generallyrestrained approach to ambition and achievement have prevented competitionfrom becoming a motivating force. (1998, November 14). On the other hand, the Chinese are often more diligent and have asingle-minded dedication to make money because they have been forced to outof necessity. Through competition, the best rise to the top in America, andachievement where competition is lacking is looked down upon by mostAmericans. The traditionalorganization of Chinese society has been built on lines of command. The Chinese version ofthe American "Horatio Alger" story is the noodle stand vendor, whoemigrates from China and becomes successful overseas. But practically speaking, in what form will investors find the booksof Chinese enterprises in which they hope to invest? Chinese Attitudes Toward Class In Chinese society, there is less tension between the classes becausethere is less desire to change one's assigned position that depends more onthe kinship group as a whole rather than on the individual. Jiang also classified China's present level of development as only inthe "initial stage of socialism," reiterating a judgment first made in 1981and used continuously since the 13th Party Congress in 1987 to justify theabandonment of Stalinist economic institutions and practices in favor of amarket-based economy. And Hong Kongcontinues to serve as an entrepot for mainland China. As far as failure is concerned, Americans areoften very diplomatic: they often say "If I hadn't tried it, I never wouldhave known the difference." Also, Americans are raised believing that every one fails at leastonce in life "to err is human" and are therefore able to handle mostfailures. Work and living arethe same to the Chinese. Montinola, G., Qian, Y., Weingast, B.R. The Chinese government and governments in Taiwan, Hong Kong, andSingapore, have throughout their histories received far more respect andunquestioning obedience from their subjects than has their Americancounterpart. Thus, even as Hong Kong's export growth has fallen overthe last decade, the territory's trade capacity has expanded. Americans even speak of a person's social life as if itwere a separate life from the life lived on the job. This of course is changing as theeconomies of Taiwan and Hong Kong continue to expand, and the economy ofthe mainland continues to open its doors. The Chinese believe that everything is going to change by itself-- government, companies, day to day problems are going to come and go. Unlike most Americans who have been given fair and equitableopportunities to become educated, make money and move up the socio-economicladder, many Chinese had very little, and had to rely strictly uponthemselves to achieve their objectives, which were to make money, getmarried, raise children, become financially independent and eventually gainrespect and status. The Road to Tomorrow In laying both short-term and long-term foundations for major changein China, it is apparent that the politicians Deng Xiaoping placed in powerbefore his death are maintaining many of his policies. Rather they tend to create a philosophicalstructure for specific policies. In post-Deng Chinese society, classdistinctions are very clearly separated, with scholars, professors, doctorsand government officials holding the top. Since life to the American is compartmentalized, there is a time for hard,hopefully satisfying, but not necessarily enjoyable work, followed by timefor relaxation. Mankind will still suffer, grow old anddie. Carving milestones for the next century,World Paper 22. TheChinese population has now had more exposure to the outside world--including MTV, CNN, and foreign movies and music. America is owned by the Americanpeople. One of the strongest actions is to begin dismantling State-ownedenterprises (SOEs). Yang Z. Paralleling the Chinesepattern of controlled, restrained emotional expression is a correspondingconcern with the appropriateness of a wide range of conduct -- from bodymovements to clothing styles. Until the turn of the twentieth century, the Chinese could climb highsocially and economically only if they were officials in the government.For Americans, it has always been possible to gain fame and fortune in avariety of fields. Throughout Chinese history, the Chinese have shown respect for age,seniority, rank, maleness, and family background. Unfortunately, America only likes winners, and to fail is theresponsibility of the individual (curiously the exception is "bankruptcy,"a perfectly legal and common occurrence which does not seem to carry withit the onus of failure). In America, in contrast to Asiaand Europe, the external attitudes of different classes toward each othertend to be toned down rather than played up because of the overall emphasison equality. For the foreign business community, theseleadership changes suggest subsequent reforms that should open up Chinaeven further (Yang, 1998, 22). to work, raise families, send theirchildren to school and university, and save enough money to happily retire. Jiang Zeming, Deng's successor, spelled out thecentral tenets of Deng Xiaoping Theory and urged the Congress to be readyto "not only to inherit the achievements of predecessors but to also tobreak with outmoded conventions" and to adapt the Party' s enduringprinciples to changing Chinese realities. Such a point of view is contrary to American mentality, for Americanstend not to look at things in this long-range manner. Higher savings rations reflect the fact there is nosocial security system in China, Hong Kong or Taiwan and people thereforehave to rely on themselves. In America, people have more housing options have much more space inwhich to live (e.g. The Chinese Respect for Power Many of Deng Xiaoping's edicts, like the ones that reorganized anancient financial system, were so quickly enabled for a simple fact: he wasin power. As mentioned earlier, the Americans and Chinese are very hard workers:both peoples believe there is a direct relationship between hard work andsuccess. There is a difference however in attitude toward work. Such trade, which is notincluded in official government statistics, has grown in proportion tototal Hong Kong exports over the years, from 5 percent in 1988 to 85percent in 1997. References China and the Internet: Zhang on-line. It is because of this attitude that the Chinese quickly adopt a "consumer"culture, choosing many items that suggest a Western influence. In mainland China, the degree of risk taking, particularly amonggovernment officials and businessmen who work for state-owned enterprises,is generally low, due to the political way in which decisions are made.There, decisions are made by consensus, causing the individual not to takerisks for fear of reprisal by superiors in the event he fails to perform. American classdifferences are less evident in speech and behavior, but class barrierscreate strong feelings because each level is directly threatened by thelevel above and below it. As far as materialism is concerned, both Americans and Chinese arevery materialistic; but due to social changes in the 196 s and early 197 s,Americans began to re-evaluate their drive towards materialism, and havemaintained a more practical, pragmatic approach. (1996, July). However, until Deng Xiaoping's open door policies, Chinesesocieties, apart from taxation, military service, and sometimes publicworks projects, there has never been close contact of any kind between thecommon people and their government. He works hard, saveshis money, returns to China to get married, and returns with his family tofurther expand his business, getting rich in the process, and eventuallydiversifying into other businesses. Once the money has been earned, and he could afford the trappings ofsuccess (the homes, the cars, the golf course memberships, etc.) theChinese then moves on to the next stage of gaining respect and status, byparticipating in charities and becoming a recognized member of the society. China, whose very name means "The Middle Kingdom" (as in thecenter of the world), having some 7, years worth of "adapting" quicklyassumed some of the aspects of capitalism while rejecting others. To the Chinese, authority and power have been considered naturalto the human condition. Based on theirexperience, Americans believe that by bringing about change, they can helpimprove the human condition, at least in a material sense, and that theycan do it now. Most have remained in the U.S. The SAR handled 4 percent of the total value of mainland exports in 1997. China's economy--theshrinking State sector and expanding non- State sector--and the impact onforeign firms is now center stage in China's unfolding economic transition,and a successful performance is hardly assured (Solnick, 1996, 222). It is a strong part of the Chinese belief systemthat authority and power derive from the moral and ethical excellence ofthose who hold it. The presence of power indicates that its holder, inthis case, Deng Xiaoping, had accumulated merit in a previous life and isnow enjoying the fruits of past superior behavior. Based on recent statistics,Chinese in Hong Kong, Taiwan, Singapore and mainland China, save on average12% of their income. (1996, January). The Chinese emperor and the officials who served under him were thusmuch more than administrators in the Western sense of the term. The congress hasgiven Deng Xiaoping's legacy a substantial liberal bent and is using it toauthorize continuing reform. Second, those more fortunately situatedare very likely to oppose the self-elevating efforts of those below. Chinese may counter that no matter how many new laws you create, nomatter how much change you try to legislate, no matter how many diseasesare wiped out, no matter how pure the water and how clean the air,fundamental facts will remain. The Congress has gone on record as supporting Deng Xiaoping'sphilosophy of "emancipating the mind" and "seeking truth from facts"(Miller, 1998, 22). Therefore, the Chinese work to get rich: whether they succeed or not,is another question; but that is their motivation. China is strongly motivated to continue on itscurrent path of engagement with the rest of the world and to continue toevolve toward a more open society. China is a vital partof the world economy, and the world economy is a vital part of China. Mainland-sourcedgoods, in turn, made up 63 percent of Hong Kong exports (Miller, 1998, 22). The Future of Chinese Capitalism Capitalism with Chinese characteristics--the PRC's unique mix ofcentrally planned economics and free market activity--is facingdestatization (China and the Internet..., 1998, 14). Part of this paper will examine some of those changes that wereaccepted, and try to determine if they will survive the recent death ofChina's leader, Deng Xiaoping, who almost single-handedly brought Chinainto the 2 th century world of global marketing. Despite the emphasis on equality, upward social mobility inpost-Deng China is a much more strenuous proposition than in pre-DengChinese society for two reasons. single unit houses, duplexes, apartments,condominiums), and coupled with the American concept of privacy, it isoften the case that people living next door to each other may not even knowone another. It is a well-known fact that the biggest risk takers in Asiaare the Hong Kong Chinese, followed by the Taiwanese. As a result, Chinese have held greater respect forgovernment and its officials, than the Americans, who often refer togovernment officials as lazy "bureaucrats." One aspect that Deng managed to change conceptually in China, was topass legislation that eased entry to the ranks of government, a processwhich was historically restricted and occurred through passage of extremelydifficult and competitive examinations. China cannot jump over this stage of market-driven industrialization, Jiang declared, predicting that it would take "at leasta century" to complete. This suggests that for the next several years, the world marketplacecan look to China for continuation of its fast-growth economic policiesthat established marketization of the economy as the Party's goal (Miller,1998, 22). China's Core Political Units In China today, as it has been for thousands of years, the corepolitical unit (whether of official power or not) is the "physicalneighborhood" within a particular town. No other culture in the world shares theChinese' concerns with the way things "look" instead of the way things are. These Party congresses do not establishspecific policies however. TheChinese emperor, and later the Communist party, was the owner of China andits people. & Shi, T. However, ambition implies individualism, and inherent in Americanconcepts of individualism and ambition is a constant struggling or strivingto improve one's position, or to carve out one's niche or station in life.Since achievement is viewed as largely a matter of individual effort andsince status is determined chiefly by how successful one is as anindividual, the motivating factor of competition is a strong stimulant topush the American ever upward. In Chinese society, the question is whether something is fitting,suitable, or proper. (1995, October). He felt that Americans have generally viewed ambition in apositive light; it is something a person should have in order to besuccessful in life. From the Chinese perspective, the American position looksrash and futile. Have I got a deal for you Taipei and Beijing are vying toreap diplomatic gains from the economic ills of their neighbors., TIMEInternational, 2 . This"product hungry" culture provides a vast and ready market for Westernimporters anxious to get into China while Deng Xiaoping's doors are stillopen. Underlying this concept of ambition is the assumptionthat personal achievement is largely a matter of individual determination. THE OPEN DOOR POLICIES OF DENG XIAOPING Introduction When Deng Xiaoping came to power in the early 198 s, China wasattempting to deal with the expanded capitalism that had been suggested asa result of the state visit of Richard Nixon and Henry Kissinger. TheEconomist, 349, 12. What willbe the consequences of this watershed development in Chinese affairs andwhat kind of political and economic leadership will emerge in post-DengChina? Most Americans are satisfied with their lot in life (being members ofAmerica's large middle class) and normally remain at this socio-economiclevel. From the American perspective, the Chinese view seems defeatist or atbest fatalistic. The corresponding American concern is whether it ishonest, correct and accurate (Nathan & Shi, 1996). Byadopting a modified version of capitalism, known generally as "socialisticcapitalism" Deng Xiaoping instituted wide-sweeping social and economicreforms in the attempt to turn a Communist society into one where personalincome was not only accepted but seen as a logical goal (Nathan & Shi,1996, 534). Also,China's position in the world has changed dramatically since the CulturalRevolution and even since the 1989 demonstrations. A new leadership team was installed years before Deng's death. The neighborhood phenomena hasbeen studied by many scholars, and its power is usually attributed to thefact that a great majority of Chinese live in crowded conditions andinteract frequently with neighbors (Montinola, Qjan, & Weingast, 1995, 62). Preparing for change with promises ofcontinuity, The China Business Review, 14-34. The breakdown of hierarchies in theSoviet Union and China: A neoconstitutional perspective,World Politics, 48 2 9-238. Among the Asians in general and the Chinese in particular, there ismore of a tendency, both on the part of the society and the individual, toattribute failure or an unhappy state to outside forces, such as fate,demerits from a past life, or simple lack of inherited capacity, for whichone is no way at fault. Instead of worrying about events like the economy, the government,foreign trade and so on, the majority of Chinese believe it's better tosimply keep one's emotions under control, restrain one's concern overlife's problems, and try to develop the wisdom to see how impermanent allthings really are. Even with the open door policy in effect, it is apparent that thebiggest door of all will still be Hong Kong, which is now called the HongKong Special Administrative Region (HKSAR) which as a regional trade hubhas served as a buffer against the effects of the Asian financial crisis.According to the Hong Kong Trade Development Council (HKTDC), in 1997offshore trade--goods and services of overseas Hong Kong companies exporteddirectly to their destination markets--totaled $134.6 billion, or roughly8 percent of Hong Kong's Gross Domestic Product. Some critics think that Deng tried to instill in his Chinese citizensa new and inspired feeling of "ambition" a trait he greatly admired inAmericans. The decision made at the recent 15th Party Congress to redefine public(State) ownership to include stock ownership officially sanctioned thismove toward reducing State control over assets, creating new possibilitiesfor providing Western capitalists with new strategic opportunities thatwill keep the doors open for a while (McCarthy, FlorCruz, Shapiro, &Sindayen, 1998, 2 ). Miller, H.L., (1998, January 1). Again,this relates to the privilege most Americans have enjoyed when it comes towork. Jiang's direction, it is said, is to maintain theDeng Xiaoping philosophy of one center and two basic points, whichconcentrates on economic development, and economic reform both guided anddirected by the Communist Party and the People's Congress (Miller, 1998,22). This attitude is generally applied to environmental issuesand human rights on a worldwide basis. Singaporeans,however, are known to be risk-averse, primarily because of the comfortableworking environment in which they live and the fact that in a small nationstate, the cost of failure is high, because everyone will know about it. Federalism,Chinese style: The political basis for economic success in China. His death leaves Westerneconomic and political observers with a myriad of questions concerning thefate of those open door economic policies that he established. The new Congress members are younger, better-educated, and morecosmopolitan technocrats. Respective salaries and benefitswere very high vis a vis commoners. The first reason has many aspects, all of which are related to theconcept that those citizens who are born to rich well-to-do parents aredestined to be rich and well-to-do, while those who are born to poorparents are destined to be poor. Left and right with Chinesecharacteristics, World Politics, 48, 522-55 Solnick, S.L. (1998,February 2). WorldPolitics, 48, 5 -81. With the Chinese, political risk taking is also inherent; but thedegree of risk taken is a direct function of the country in which Chineseare living. Like Americans, most Chinese believe in change, but they have neverfelt the same desire as Americans to bring it about through a politicalprocess. If this paper is not what you are looking for, you can search again: Search for: or Click here to request an essay written just for you.