China 's Politics And Economy

758 Words Dec 6th, 2015 4 Pages
In addition, China 's politics and economy have great differences with western countries because of the special national conditions, that the political power (or government) may have a prominent or even overwhelming strength relative to the economy (or business), which may have a decisive influence on economic development. First, the government-lead economy has caused excessive pursuit of economic development but neglect the quality of development (Zhou, Zhang & Shen, 2015). Second is the government 's control and allocation of resources and the dominant mode of development of the state-owned economy have caused a series of problems like the loss of economic benefits to a certain extent (Dollar, 1990). So the excessive concentration of political and administrative power caused by the low degree legalization and democratization in Chinese economy may have resulted in some obstacles in the economic development to enterprises, and this kind of rent-seeking which has political power to control economic resources and the right of examination and approval maybe one of the reasons caused China’s corruption and damaged the normal order of the market economy. In western countries, companies could hire a lobby group to lobby government in order to gain some benefits and a lot of countries such as the United States have the Federal Regulation of lobbying act that make constraint on lobbying (Hansen & Mitchell, 2000). But for enterprises in China, to develop good relations (“Guanxi”)…
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