The China Model of Development as Viewed from a Business Competition Perspective

摘要

In this paper it is proposed to study the Chinese model of development from a business competition perspective. Increasing globalization has created a truly unified global market where states come into direct, constant contact and competition with one another. Therefore one needs to elevate his or her level of analysis from the conventional national level to the global level. This global competition among states rests fundamentally on economic power. Therefore, states can be viewed as acting like business firms in their pursuit of economic power. This firm-state perspective explains the unique aspect of the China model, i.e., the combination of free market with authoritarian government. It is proposed that for late-comer countries like China, strong state intervention in the economy, with direct state ownership in key sectors as its highest form, and combined with an authoritarian style of government, enables the state to act much like a business firm so as to better deal with competitive pressure from other states, and quickly establish itself as a viable contender on the global stage.