Table of Contents1. Introduction2. China's economy in terms of the nature of its economicmodel and policy & strategic orientation3. China's corporate environment and state-business relations4. The nature of China's corporate sector5. Challenges in the domestic environments6. Challenges in the global environments7. ConclusionList of References1. IntroductionThis paper is written to critically examine the optimistic perspective towards China's economic progress by focusing on China's economy in terms of the nature of its economic model and policy &strategic orientation, and China's corporate environment and its current focus on creating world class corporations.
The scope of this paper will focus on critically assessing China's economy during the transitional period. The writer's insufficient experience appears to be the main limitation of this paper.
This paper will firstly critically examine China's economy in terms of the nature of its economic model and policy & strategic orientation. This is followed by China's corporate environment and state-business relations.
Then the nature of China's corporate sector, challenges in the domestic environments, and challenges in the global environments will be examined respectively. Finally, it reaches the overall conclusion of this paper.
2. China's economy in terms of the nature of its economic model and policy & strategic orientationThe economic model is a simplified framework designed to illustrate complex processes, often but not always using mathematical techniques (Walsh 1987). China's success since it began its transition to a market economy in 1978 has been based on its economic model, strategies and policies: as each set of problems are solved, new problems arise, for which new policies and strategies must be designed. This process includes social innovation.
During the transition, the most important change in the micro-management institution was the replacement of collective farming with a household-based system known as the household responsibility system (Fan 1991). The reform of the micro-management system...