2PolicymakingPolicymaking in China combines centralized political authority with marketization and privatization of the economy.Many political scientists are expecting China to democratize
3Policymaking ProcessThe blend of capitalism and socialism creates tensionFang-shou is a cycle that has three types of actions/policies: economic reform democratic movements (letting go) tightening-up by the CCP.
4Fang-Shou in Modern China Economic ProgramDemocracy MovementsCCP ResponseFour Modernizations( )Democracy Wall Movement( )De-legalization of Protest( )Second Revolution ( )Student Democracy Protest( )Anti-Bourgeois Liberalization ( )Tiananmen Democracy Demonstrations (1989)Tiananmen "Massacre" arrest, attacks on political dissidents (1989-present)Falon Gong Demonstrations( )Outlaw of Falun Gong: arrest/execution of leaders
5Policy Issues Democracy and Human Rights Economic Foreign Policy and International Trade
6Issue #1: Democracy and Human Rights Some democratic reforms can be seen:Some input from the National People's Congress is accepted by the PolitburoMore emphasis is placed on laws and legal proceduresVillage elections are now semi-competitive, with choices of candidates and some freedom from the party's control
7Tiananmen Crisis (1989)Began as a grief demonstration for the death of Hu YaobangProtest grew, and turned into democratic protests criticizing corruption.Deng sent the People's Liberation Army to stop the protests, killed hundreds of protesters
10Rule of LawMao Zedong destroyed legal codes of dynastic China during the Cultural RevolutionSince 1978, codes have begun to revive.Procuratorates, officials who investigate and prosecute official crimes, were recreated.
11Civil Rights and Liberties Many people thought Hu Jintao would promote more individual freedomshas not showed many signs of changing the government's basic political policies toward individual rights.created new laws regulating discussions on university Internet sites.
12Issue #2: Economic Policy : China followed a communist political economic model, a command economy Mao Zedong called this model the "iron rice bowl." It ensured health care, work and retirement security.Deng Xiaoping formed a socialist market economy, which infused capitalism while still retaining state control.
13Agricultural PolicyThe people's communes: peasants were organized into collective farms of hundreds to thousands of families. Groups were considered weak and poorly managed. Household responsibility system- Individual families take full charge of the production and marketing of crops
14New Category of Private Business created by National People's Congress in 1988included urban co-ops, service organizations and rural industries that operate as capitalist groups.Private industry remains heavily regulated by the government, but the importance of China's state sector has diminished.Township and village enterprises = fastest growing sector
15Economic ProblemsUnemployment and inequality: marketization has brought high unemployment rates, economic growth has created a large inequality gap, and a floating population of rural migrants seeking job opportunities in cities.Inefficiency of the state sector- Almost three-fourths of industrial production is privately owned.Pollution- Air and water pollution have become increasingly serious problemsProduct safety- Tension between the central government and capitalism has given local officials a great deal of decision-making power, leading to exported poisonous products
16Issue #3: Foreign Policy and International Trade China resists pressures from other countries to improve human rightscontinues to threaten to invade Taiwanreplacing Japan as the most powerful economy in AsiaAsia's central economy that affects all othersChinese-Japanese relations are problematic
17Foreign Policy Under Mao Based foreign policy on supporting developing countries' revolutionary movements, ex. Korea and VietnamDuring the 1920s and 1950s, the USSR gave China money and economic and political advice.USSR and China broke into a rivalry during the late 1950s.
18U.S./Chinese RelationsNo contacts until the early 1970s, since China was anti-capitalist and ruled by Mao before then.Zhou Enlai opened the door to western contact.Nixon's 1972 visit to China signaled a new era.There are concerns about the imbalance in imports and exports between the U.S. and China.
19International Trade and Business Today The Chinese economy more open to the international market over past quarter century Special Economic Zones: in these regions foreign investors were given preferential tax rates and other incentives. Since 1978: rapidly growing GDP, entrepreneurship and trade with many nations.Deng Xiaoping believed that the CCP should be firmly in command of the country, but did emphasis economic reform.
20Hong KongIn 1997, the British gave China control over Hong Kong, as long as the capitalist system, legal system and way of life remained.Today, Hong Kong still has a high degree of autonomy.In 2003, Tung Chee-hwa decided to sell government-owned public housing and business properties without consulting the legislature. A million protesters marched the streets.
21Taiwan Since post WWII, Taiwan has claimed to be separate from China. During the Cold WarEra, the United States tried to protect Taiwan's autonomy.In 1971, Taiwan lost its membership in the United Nations
22Taiwan Cont.Chinese leaders believe that Taiwan is historically and legitimately a part of China.Some political parties in Taiwan believe that they should stand up to China, while others would like to reconcile their differences with China since it is their biggest trade partner.