Why Is Government Important for Doing Business in China?
- The importance of government affairs for running business in a country is determined by the government’s role in this country.
- China established its governance system in 231 BC featured by centralized government with province and county system. In more than 2000 years, China has been following this system.
- In 1949, China began to implement the planning economy system learned from the Soviet Union. The combination (China’s tradition and the Soviet Union’s model) made the role of the CPC and the Chinese government especially important in China’s politics, economy, military and social governance.
- China’s 40-year reform and opening-up program has made tremendous changes of its economic system. However, the political reform was slow. The economy is still driven by politics, policies and politicians.