Answers from Four Respondents from Different Sectors of the Chinese Economy - Case Study Example

Findings and Analysis As indicated in the methodology section of the paper, secondary data collection for this research was limited by the challenges of conducting interviews. As such, the researcher used answers from four respondents from different sectors of the Chinese economy. Among the respondents were an investment bank director, a Chinese economic professor, an ordinary government employee who does not hold any management title, and a director in a government-owned company. This sample of respondents was used by this writer based on its potential to give factual and analytical answers regarding the current state of China’s development. To answer the first research question, i.e. has China found the ‘correct’ path to development, all respondents seems to contend that the Asian country has indeed found a development path that works for it. The Chinese Economic professor for example (See appendix 2), argued that that Chinese economic growth, economic development, its expanding middle class and its ability to withstand the economic shocks brought about the 2008/09 global financial crisis is evidence that the country has indeed found the ‘right’ development path. The investment bank director on the other hand stated that the economic growth and China’s progress in uplifting the lives of its citizens are evidence that the country has found the right path to development (see appendix 1). The findings of the research seems to be well supported in literature, because Gao, Wang and Wang (2008, p. 21) for example observe that “China has successfully sound a correct path to development” (p. 21). Justifying the bold statement, Gao et al (2008) cite a World Bank report which stated that the dramatic changes that occurred in China in the reform era “can only be accomplished by several generations in other countries, but [were] only accomplished by one generation in China” (p. 21). Whether the apparently successful development path that China had adopted was indeed the ‘right one’ was not verified. This is because the writer realised that just because the system seems to work does not mean that it is indeed right. Judging the rightness or wrongness of a development model such as China’s would require one to use an ethical or legal system, which coincidentally, would be a hard thing to do. Seeing that globalisation is a unique concept that is properly well understood by just a few people, the second research question – how has globalisation altered the Chinese socialism as initially conceptualised by Deng Xiaoping as ‘socialism with Chinese characteristics’ was only answered convincingly by the Chinese economic professor, who in answers 4 and 5 (see appendix 2), states that the country will in future need to accommodate and be accommodated by others. However, the findings indicate that China is wary of Western dominance and will probably accept globalisation just as far as its sovereignty and economic growth and development are not jeopardised. The Chinese economic professor’s views are supported in literature by the likes of Chen (2010, n.pag), who states that economic interaction and interdependence is inevitable in the globalised world. However, Chen (2010, n.pag) observes that China and other developing countries need not copy everything that the West does; rather, the developing countries should selectively adopt practices that fit their local contexts, while leaving out practices that are not applicable to them. Chen (2010, n.pag) further observes that China has a unique open-up policy that is self-conscious, systematic and gradual. Chen’s observations support the responses made by the director of a government company, who observed that even foreign companies working in China “are required to conform to the Chinese way of doing things” (See Appendix 4). The greatest consensus among respondents was seen in the third research question – “Is the new form of socialism in China uniquely Chinese to the extent of being labelled ‘socialism of Chinese characteristics’, and if so, is that unique socialism exportable to other countries?” All respondents agreed that socialism with Chinese characteristics was indeed unique to the Asian country, and that other developing countries can use a variant of the same (i.e. to match their unique country traits) to forge their own development. The Chinese economic professor for example stated that the developing countries can emulate China’s development path, to the extent applicable in their own local contexts (See Appendix 2). The investment banker on the other hand stated that developing countries can borrow Deng’s principle of “crossing the river by feeling the stones” and would hence provide a good lesson for the countries to find their footing, capitalise the use of resource, and adopt governance models that would uniquely benefit the respective countries. The Investment banker further argues that China’s opposition to external influence from other countries is also a good example that other developing countries would follow. The government employee (Appendix 3) observed that as China interacts with other countries, its development path is likely to be emulated by others, while the director in a government company (Appendix 4) stated that the fact that Chinese companies are likely to spread China’s development model to foreign markets where they work. The findings that China’s development model is likely to be emulated in other developing countries is supported in literature by Glaser and Murphy (2009, pp. 10-26), who observe that China, although lacking in a substantive soft power strategy, has funded the development of its soft power both at home and abroad. One of the main ways through which China is extending its development model and influence, is by funding development projects in Africa, where Glaser and Murphy (2009, p. 10) observe the possibility of Beijing promoting it socialist values and convincing target countries that they are better than the Western values. According to Glaser and Murphy (2009, pp. 10-26), China’s activities abroad (especially in developing countries) have brought about a new concept known as “soft power with Chinese characteristics” (p. 11). Notably however, Glaser and Murphy (2009) observe that the soft power debate currently exists in the theoretical circles with Chinese scholars leading it, while the political class remains tight-lipped about the same, seemingly in an effort to avoid conflict between China and the Western powers (p. 11). Apart from the core research questions, other questions were posed to the four respondents – all intended to gauge China’s development model, its uniqueness, its sustainability, and its levels of acceptance among the respondents. The government employee for example revealed that although Human Resource Management (HRM) practices in state-owned firms are less compared to private-owned firms; jobs in the former are generally more secure. This finding is supported in literature by Friedman (2009, p. 25) who observes that China’s public sector in its own unique ways has attempted to reduce rigidities in employment; has addressed aging in its employees; and has even adopted a pension scheme. It is however important to reiterate that whether or not China’s public sector jobs are more secure than private sector jobs cannot be gauged from the responses offered by two respondents only. To this end, this research must indicate that the findings herein are inadequate to make a substantial analysis or conclusion regarding the job security in the state and non-state sectors. Notably, Xinhua (2011, para. 3) observes that 7.87 million workers were laid off “from state-owned or collective enterprises” between 2006 and 2010. This then means that absolute job security in the state sector is not guaranteed either. In regard to the sustainability of China’s development path, two of the featured respondents stated that there are no absolute answers for the sustainability issues, but reiterated the need for improvements in areas such as environment conservation (See appendices 1 and 2). These findings are similar to the observations made by Song and Woo (2008, p. 1), whereby the writers observe that in addition to increasing destabilising tensions in the social arena and the slow-down of the world economy, China’s major internal challenge relates to the dilemma about whether its development is sustainable. Seemingly, there are no straight answers even amongst the economic and social analysts and scholars about the sustainability of China’s economic growth. Part of the reason why absolute answers to the sustainability issue are hard to come by are related to the fact that China’s growth has been spurred by a combination of factors, some of which may be hard to gauge as either sustainable or unsustainable. For example, the availability of cheap labour has been seen to play a part in attracting foreign investors into China. To gauge the sustainability of China’s growth based on its FDI attractiveness therefore, one would need to consider not only the continued availability of cheap labour in China, but also in other countries that may compete with it. Additionally, one may need to consider the entire investment climates in China and other FDI-thirsty countries in the developed world. Sustainability of China’s growth may also be gauged from an environmental perspective especially in relation to industries that require specific non-renewable natural resources. Overall, the findings herein seem to indicate that ‘socialism with Chinese characteristics’ is a concept that has led to China determining its own development path uniquely. Additionally, responses from the four respondents imply that ‘socialism of Chinese characteristics’ could become a reality in future especially as China interacts with other countries globally. Other developing countries especially seem as potential candidates for adopting the Chinese development model, especially because China (at least in Chinese scholars’ view) is using soft power to champion its development values, which are dissimilar to the Western development model (Glaser & Murphy, 2009, p. 11). Owing to the small sample included in this research however, it must be reiterated that the validity of the findings are arguably compromised. However, the writer has tried to enhance the research’s validity by analysing the findings against existing literature and notably, most of the findings are supported by existing information in the reviewed literature. It is worth noting that findings for such research can be enhanced in future, by involving a larger respondent sample, and asking standardised questions to all respondents involved. In future, sampling can be done to include views from the academia, politics, private businessmen and managers in state-owned enterprises. As the debate regarding China’s economic growth continues, it is evident that interest into what has contributed to the same will increase significantly. It is for such reasons that this research and other similar ones in future will be needed in order to contribute to knowledge about China’s development model, its uniqueness, its advantages and disadvantages among other related information. Such information is necessary because other developing countries can greatly benefit from lessons that China has learnt during its historical growth journey. References Chen, J. (2003). China and globalization. Embassy of the People's Republic of China in the United Kingdom of Great Britain and Northern Ireland, retrieved September 15, 2012, from http://www.chinese-embassy.org.uk/eng/dsjh/t27161.htm Friedman, B.L. (2009). China’s social security policy in the context of its evolving employment policy. Paper presented at the APPAM conference on Asian Social Protection in Singapore, January 7- 9, pp. 1-28. Gao. S., Wang, Y., & Wang, Y. (1999). Two decades of reform in China. London; New Jersey: World Scientific. Glaser, B. M., & Murphy, M. (2009). Soft power with Chinese characteristics- the ongoing debate. In C McGiffert (ed.), Chinese soft power and its implications for the United States: Competition and cooperation in the developing world: a report of the CSIS smart power initiative.  Washington, D.C.: CSIS.   Song, L. & Woo, W. T. (2008). China’s dilemma: economic growth, the environment and climate change. Canberra: ANU E Press. Xinhua. (2011). China’s private sector employs 160m people. Retrieved September 15, 2012, from http://english.peopledaily.com.cn/90001/90776/90882/7280334.html Appendices Arrangement Appendix 1: Answers from an Investment Bank Director Appendix 2: Answers from a Chinese Economic Professor Appendix 3: Interview with government employee Appendix 4: Interview with government company director Read More