China
What is exactly the China model ?
But what exactly is the China model and does it pose a threat to the Western model of liberal democracy and free markets?
The US–China trade war has brought to the boil a simmering strategic rivalry between Washington and Beijing that some have begun to describe as a new Cold War.
The Cold War analogy is something of a stretch given the interdependence of the Chinese and American economies — an interdependence sometimes referred to as ‘Chimerica’. The US–China relationship and rivalry today is very different from that of the United States and the USSR during the Cold War when the two superpowers conducted trade and investment in different spheres of influence, and presided over radically different systems for organising the means of production and markets.
Even though China and the United States are today nowhere near as ideologically divided as the United States and the USSR, a powerful narrative has emerged that the American-led model of free markets and liberal democracy is being challenged by a new Chinese model of development.
The idea of a China model has gained traction on the back of decades of strong economic growth, and in the wake of Beijing’s success in steering the country through the Great Recession of 2008–09. Interest in a China model of development has also been boosted by the crises and instability confronting Western democracies, as well as the apparent failure of liberal democracy to deliver economic benefits and stability to many newly democratic countries in Asia and other parts of the world.
China’s success and its growing clout has prompted Western strategists to worry that Beijing will use its economic strength and influence to promote the Chinese model of development as an alternative to liberal democracy. Those anxieties are amplified by Chinese President Xi Jinping’s muscular approach to foreign affairs and grand ambitions to extend trade and investment across Eurasia under the auspices of the Belt and Road Initiative.
What exactly is the China model
But what exactly is the China model and does it pose a threat to the Western model of liberal democracy and free markets?
Within China, advocates for a China model point to a strong developmental state, gradual institutional reform, selective and cautious borrowing of foreign ideas, and a trial-and-error approach to policy making and reform.
Western observers tend to highlight the heavy hand of the state in the economy (state capitalism) alongside the suppression of dissent and rejection of political liberalisation.
Although the Chinese Communist Party’s (CCP) successes are the envy of many political elites in Southeast Asia and elsewhere, there is little evidence that Beijing is actively promoting its governance model as part of its expanding influence in the region.
Certainly, Beijing is willing to engage less critically with illiberal regimes, and this runs counter to the interests of Western powers seeking to use aid and economic influence to promote liberal democratic reforms. But Beijing is not promoting one-party systems where multi-party democracies already exist. If anything, China’s appeal to regional leaders from Naypyidaw to Jakarta lies in Beijing’s ability, at least up until now, to marry political control and stability with rapid economic growth and reform.
In our lead essay this week, William Overholt argues that the China model doesn’t really exist. Even though China’s leaders and some Chinese commentators present China’s model as unique, Overholt suggests China’s approach differs little from the East Asian development model pursued by Japan, South Korea, Taiwan and Singapore in the past.
The spectacular growth of the Asian ‘tigers’ was also overseen by a single or dominant political party. And as in China, this growth was achieved ‘through gradual marketisation, gradual opening to foreign trade and investment, and vigorous import of industrial and regulatory best practice from successful Western economies’.
Overholt highlights another important point of similarity between China and the East Asian tiger economies — they all share a fear of social collapse that stems from the traumas of war and massive disruption, which has inspired leaders to ‘[suppress] normal public reaction against severely stressful social change’.
Overholt reminds us too that China since Deng had begun moving in a similar direction to the Asian tigers, stepping back from tight political control to allow for gradual marketisation and increased social and economic freedoms. Since Xi came to power, the so-called China model has begun to diverge from that of its predecessors. Even though China’s ambitious national economic…
Author: Editorial Board, ANU
Business
Gordonstoun Severs Connections with Business Led by Individual Accused of Espionage for China
Gordonstoun school severed ties with Hampton Group over espionage allegations against chairman Yang Tengbo. He denies involvement and claims to be a victim of political tensions between the UK and China.
Allegations Lead to School’s Decision
Gordonstoun School in Moray has cut ties with Hampton Group International after serious allegations surfaced regarding its chairman, Yang Tengbo, who is accused of being a spy for the Chinese government. Known by the alias "H6," Mr. Tengbo was involved in a deal that aimed to establish five new schools in China affiliated with Gordonstoun. However, the recent allegations compelled the school to terminate their agreement.
Public Denial and Legal Action
In response to the spying claims, Mr. Tengbo publicly revealed his identity, asserting that he has committed no wrongdoing. A close associate of Prince Andrew and a former Gordonstoun student himself, Mr. Tengbo has strenuously denied the accusations, stating that he is a target of the escalating tensions between the UK and China. He has claimed that his mistreatment is politically motivated.
Immigration Challenges and Legal Responses
Yang Tengbo, also known as Chris Yang, has faced additional challenges regarding his immigration status in the UK. After losing an appeal against a ban enacted last year, he reiterated his innocence, condemning media speculation while emphasizing his commitment to clear his name. Gordonstoun, on its part, stated its inability to divulge further details due to legal constraints.
Source : Gordonstoun cuts ties with business chaired by man accused of spying for China
Business
China Dismantles Prominent Uyghur Business Landmark in Xinjiang – Shia Waves
The Chinese government demolished the Rebiya Kadeer Trade Center in Xinjiang, affecting Uyghur culture and commerce, prompting criticism from activists amid concerns over cultural erasure and human rights violations.
Demolition of a Cultural Landmark
The Chinese government recently demolished the Rebiya Kadeer Trade Center in Urumqi, Xinjiang, a vital hub for Uyghur culture and commerce, as reported by VOA. This center, once inhabited by more than 800 predominantly Uyghur-owned businesses, has been deserted since 2009. Authorities forcibly ordered local business owners to vacate the premises before proceeding with the demolition, which took place without any public notice.
Condemnation from Activists
Uyghur rights activists have condemned this demolition, perceiving it as part of China’s broader strategy to undermine Uyghur identity and heritage. The event has sparked heightened international concern regarding China’s policies in Xinjiang, which have been characterized by allegations of mass detentions and cultural suppression, prompting claims of crimes against humanity.
Rebiya Kadeer’s Response
Rebiya Kadeer, the center’s namesake and a notable Uyghur rights advocate, criticized the demolition as a deliberate attempt to erase her legacy. Kadeer, who has been living in exile in the U.S. since her release from imprisonment in 2005, continues to advocate for Uyghur rights. She has expressed that her family members have suffered persecution due to her activism, while the Chinese government has yet to comment on the legal ramifications of the demolition.
Source : China Demolishes Uyghur Business Landmark in Xinjiang – Shia Waves
China
China Expands Nationwide Private Pension Scheme After Two-Year Pilot Program
China’s private pension scheme, previously piloted in 36 cities, will roll out nationwide on December 15, 2024, enabling workers to open tax-deferred accounts. The initiative aims to enhance retirement savings, address aging population challenges, and stimulate financial sector growth.
After a two-year pilot program, China has officially expanded its private pension scheme nationwide. Starting December 15, 2024, workers covered by urban employee basic pension insurance or urban-rural resident basic pension insurance across the country can participate in this supplementary pension scheme. This nationwide rollout represents a significant milestone in China’s efforts to build a comprehensive pension system, addressing the challenges of a rapidly aging population.
On December 12, 2024, the Ministry of Human Resources and Social Security, together with four other departments including the Ministry of Finance, the State Taxation Administration, the Financial Regulatory Administration, and the China Securities Regulatory Commission, announced the nationwide implementation of China’s private pension scheme effective December 15, 2024. The initiative extends eligibility to all workers enrolled in urban employee basic pension insurance or urban-rural resident basic pension insurance.
A notable development is the expansion of tax incentives for private pensions, previously limited to pilot cities, to a national scale. Participants can now enjoy these benefits across China, with government agencies collaborating to ensure seamless implementation and to encourage broad participation through these enhanced incentives.
China first introduced its private pension scheme in November 2022 as a pilot program covering 36 cities and regions, including major hubs like Beijing, Shanghai, Guangzhou, Xi’an, and Chengdu. Under the program, individuals were allowed to open tax-deferred private pension accounts, contributing up to RMB 12,000 (approximately $1,654) annually to invest in a range of retirement products such as bank deposits, mutual funds, commercial pension insurance, and wealth management products.
Read more about China’s private pension pilot program launched two years ago: China Officially Launches New Private Pension Scheme – Who Can Take Part?
The nationwide implementation underscores the Chinese government’s commitment to addressing demographic challenges and promoting economic resilience. By providing tax advantages and expanding access, the scheme aims to incentivize long-term savings and foster greater participation in personal retirement planning.
The reform is expected to catalyze growth in China’s financial and insurance sectors while offering individuals a reliable mechanism to enhance their retirement security.
| This article was first published by China Briefing , which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in China, Hong Kong, Vietnam, Singapore, and India . Readers may write to info@dezshira.com for more support. |
Read the rest of the original article.
- Gordonstoun Severs Connections with Business Led by Individual Accused of Espionage for China
- China Dismantles Prominent Uyghur Business Landmark in Xinjiang – Shia Waves
- China Expands Nationwide Private Pension Scheme After Two-Year Pilot Program
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