The Chinese government is one of the most important actors in international affairs today. China’s global economic and diplomatic presence is challenging the earlier dominance by the Western powers. To thoroughly understand how the People’s Republic of China (PRC) has grown in power requires a careful analysis of its political system. What contribution has the political system and government activity made in respect to China’s economic transformation? What consequences will the economic modernisation and world-economic integration have on the political system? Is the political system able to adapt to changing economic, technological, and international conditions? Which potentials and risks will shape the mid-term development of the political system?
The book offers a differentiated understanding of the conditions, potentials and risks of the political development in China. It is based on a comprehensive of analysis of Chinese resources and gives readers the most current overview of international China research.
"China's political system" published by Rowman & Littlefield Publishers is available on Amazon.
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Updates on China's Political System
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4.6 The role of government in the banking and financial systems
In order to cap the yuan’s strength, the central bank lifted the reserve requirements on currency trades.
Outbound investment into gambling and entertainment industries will be banned, property investments restricted, while investment related to the Belt and Road Initiative will be encouraged. At the same time foreign direct investment into the country will be encouraged.
4.7 Economic globalization and government policy
For the first time since 2004 the Ministry of Finance offered a US dollar denominated bond to investors. The 2 billion USD sovereign bond was heavily oversubscribed, attracting over 10 billion USD in order. According to the Ministry of Finance the offering is intended to further underline the countries ambitions to open its financial system. The sovereign bond also helps set a pricing benchmark for foreign currency bonds for other Chinese entities aiming to tap in the international financial market.
A report in China’s Legal Evening News on September 22 revealed details on the scope of citizens who are active as informants for the police. According to the report, the so called “Chaoyang Masses (Qun Zhong)” group claims to have about 190,000 participants, with over 130,000 using their real names. They provide over 20,000 tips to the police every month. They get paid from 300 to 500 CNY per month by the Chaoyang District government.
5.6 The media and public opinion
On September 26, the Guangdong Cyberspace authorities fined Tencent for failing to police its platform WeChat properly. On the same day, the Beijing Cyberspace Office hit Baidu and Weibo with fines as well for failing to remove banned content. The move may have been undertaken in anticipation of the Nineteenth Party Congress in October, but also reflect stricter enforcement of censorship rules in general.
5.7 Ethnic and religious groups
The Chinese government has passed new “Regulations on Religious Affairs,” ushering in sweeping new controls of religious activities coming into effect on February 2018. The document published by the State Council, China’s cabinet, updates rules dating back to 2005 and is designed to “block extremism” und bolster “national security.”
On September 7, the Cyberspace Administration of China has issued new regulations to make chat group administrators accountable for the content of their chat group. The regulations due to come into effect in October also link chat groups to China’s Social Credit System by obligating chat providers to introduce their own rating system. Chat participants who post sensitive materials will see their score go down, their right to manage chat groups suspended and they will get reported to the authorities.
6.9 Industrial policy and investment catalogs in the automotive sector
China has become the latest country to announce plans to ban gasoline- or diesel-powered vehicles. At an automotive policy forum in Tianjin in September 2017, China’s vice minister for industry and information technology, Xin Guobin, said his ministry has begun work on a timetable to phase out internal combustion engines. Yet he didn’t mention a target date. Earlier this year, several other countries, among them France, Great Britain and Norway, announced plans to ban internal combustion engines. A possible ban in China though, the world’s largest car market, puts pressure on domestic and international manufacturers to speed up the development of electric and alternative vehicles.
At the end of September 2017, MIIT published the final version of the so-called cap- and trade policy, which introduces a mandatory quota for New Energy Vehicles in 2019. The quota requires car manufacturers, which import or produce more than 30,000 traditional vehicles, to sell low- or zero-emission vehicles and thus obtain “credits” equivalent to 10 percent of sales and production by 2019 and 12 percent by 2020.
6.14 Foreign and security policies: Maritime rights and interests
Four Chinese and three Russian ships took part in the exercise, part of the “Joint Sea”-series, which focused on anti-submarine warfare as well as joint submarine rescue operations.