Question

China has been successful in international business in the past. Yet, the country is ruled under a communist regime. Do you think that a country should have a democratic government to successfully manage a capitalist society? Why or why not? What are the risks of doing business with companies in China?

Answer 1

Answer:

Parallel to the incredible economic developments China has experienced over the past few decades have only been limited political reforms. In this article, Sir Vince Cable explores the question of whether China is a Capitalist or Communist country.

Deng was a committed Communist ever since he joined the party (in France) as a young man. Although he steered China to be a market economy he never ceased to uphold Communist party rule – and he is credited with having backed the Tiananmen Square ‘massacre’ to ensure that the party’s authority and monopoly of power. Indeed, he survived as one of Mao’s top generals and closest party associates by either participating in or turning a blind eye to Mao’s purges and mass killings.

Deng is a difficult figure for Westerners to evaluate. He has the remarkable legacy of having, through economic policy reform, lifted more human beings out of poverty than anyone in world history. But he had little interest in ‘human rights’ or Western-style democracy and, as a Communist, regarded these things as either irrelevant or a threat to party rule.

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