The introduction to the Chinese Economy. Social Sciences Essay

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Relationship between Business and Government in China
The Introduction to the Chinese Economy
The Chinese economy has gone through a process stretched over an entire century to morph from pure communism to semi-liberal economic structure. China was among the earliest adopters of communism in its real essence. A dive into the history shows that politics in China has been dominating the corporate world with control over the market and rights of discretionary interventions reserved (Heinzig 45). However, as the loopholes of communism got exposed, China began its shift away from communistic paradigms in the direction of market liberty. Over time, entrepreneurs enjoyed power with the support and non-interventionist behavior shown by the government. The economic growth of China-driven by this revolutionary change also created a strong case in its favor (Heinzig 78). However, a close examination reveals that the Chinese economy is still controlled by the government whereas legislation and the traditions steeped into the legacy of the Chinese economy are used as major tools by the government. Corruption and conflicts between the government and business are evident though both the parties manage their relations through an agreement. Still, the government enjoys a visible edge (Tian, et al. 8; Brødsgaard 624). The paper is aimed at exploring the interaction and relationship between government and business in China in a contemporary context concerning key economic concepts.
Role of Business versus Government in Running the Country
Government and business are two dominant forces in any state or community. In every country, certain historical, traditional, and other contextual factors play a vital role in determining the comparative roles of each party (Zhang and Zhu 7). For instance, in the Western World (e.g. the example of the United States), the corporate world is a dominant power. It dominates the political setup as the interest of political parties are hinged upon the support from the elite. Traditions of the West also support a capitalistic market structure where the government can have the least intervention only under forced circumstances (Zhang and Zhu 45). Conversely, there are also countries where governments rule and dictate business practices. These economies either have their roots in communism or have dominant figures in politics with strong control over legislations and other state institutions (Zhang and Zhu 10). A country may also find a balance between these two extremes.
As for China, there are mixed characteristics. The question as to which party runs the country needs an overview of a complicated background. The first thing that is beyond any doubt is that China has made excellent progress in terms of liberating its economy. The country has released itself from the trap of a pure communistic model that had largely been stifling its growth (Heinzig 78). Since the socialistic movements under the Communist Party of China, in 1978, ignited a move away from communism through its reform agenda, China went through a prolonged phase of readjustment and redistribution of power between the Government and business. The power has flown from political au...