China’s political Situation
China is a very politically stable county with a communist regime since 1949. The communist government is a kind of political structure that mimics dictatorship in every possible way, such as abolishing opposition and brutal handling of dissent. The country’s law and decision-making body are so superior that it has never faced competitive elections. It oversees the roles of the military affairs commission, the state council, and the National people’s congress in upholding the regulations of the ruling party. The Chinese government owns and controls significant production factors, such as land and capital[1]. The government is also secretive in their sources of income and resources, making it difficult for other countries to predict their moves.
All in all, it is beyond a reasonable doubt that the Chinese political culture has played an essential part in providing fruitful grounds for Chinese companies’ prosperity. First, the Chinese government offers unwavering support to its companies. The business entities can then utilize the grants provided by the government to remain afloat if they were facing insolvency. Secondly, the Chinese government has dramatically lowered production costs of manufacturing and processing. Given that China is rich in natural resources, there are numerous manufacturing and processing industries, such as Petro-Canada. Therefore, the Chinese government reduced production costs by tumbling taxes and electricity costs, providing a suitable business environment to foreign and domestic investors in China.
[1]Greco, Marco, Giorgio Locatelli, and Stefano Lisi. “Open innovation in the power & energy sector: Bringing together government policies, companies’ interests, and academic essence.” Energy Policy 104 (2017): 316-324.