Being the world’s largest populated country, China has been undergoing an economic transformation, merging socialist ideology with market-driven reforms, which served as an excellent sample to investigate the relationship between governmental systems, economic systems, and socio-cultural outcomes. China’s economic emergence as a powerful follower of the transformation from a centrally planned economy to a socialist market economy with the Chinese mentality can be considered the “fruit of labor”(Grosse et al.,2021). This change has not only realigned the country’s economic structure but also improved the happiness of citizens, reinvigorated the relationships with the rest of the world, and credited the challenges mainly to the economic structure being the culprit. In this analysis, we will discuss the effects of China’s economic system on citizens themselves and their interactions with other nations, as well as point fingers at China when it comes to problems inside and outside the borders.
Level of Happiness Among Citizens and Its Relation to Economic System
The Chinese economy has achieved an impressive transition from central planning to a socialist market economy with special Chinese regional features over the last few years. This shift has brought about an advance in economics, able to aid billions of people to rise above poverty and improve their livelihoods (Arestis et al.,2022). This development, on the one hand, has provided numerous economic and social benefits for the population, but on the other hand, the people faced various socioeconomic issues that hindered their’ happiness. On the other side, the reforms have opened up horizons for start-ups, employment, and aspects such as those through which people feel more optimistic and aspiring, giving a glimmer of hope (Grosse et al.,2021). The growth of the middle class, engaging in more spending power, and the ability of the people to buy consumer goods represent an efficient economic system.
While fast industrialization and urbanization have resulted in environmental decline, inequality of income, and social division, the negative factors cannot be forgotten. By establishing the hukou system, migrant workers have the opportunity to migrate to the urban areas illegally or with barriers. This prevents the implementation of social welfare policies for migrant workers (Hillman et al.,2021). Further, the problem of corruption, political repression, and censorship greatly restricts personal rights and has disparate effects on particular members of society, thus leading to discontentment. As a result, although the economic model of China leads to the creation of new jobs and lifting various people off the poverty line, at the same time, it gives birth to the problems of the society that make it harder for the people living there to feel happy.
Impact of Economic System on Global Relations:
China’s increasingly pivotal role in the global economy has challenged its position with respect to other powers, which culminates in new relations among countries worldwide. As a developed country with the world’s second-largest economy, China offers substantial economic opportunities for others who, in turn, may have both cooperative and competitive relationships with China (Grosse et al.,2021). Positively, the economic system of China has energetically embraced cooperation with countries across the continent in building a connection as well as investment, enhancing economic interdependence and internationalization. On the other side, BRI (The Belt and Road Initiative) is a typical example of the Chinese efforts targeted at strengthening infrastructure and connectivity, as well as upgrading the economic goodwill and diplomatic ties between the participating countries (Hillman et al.,2021).
In fact, China’s assertive foreign policy is a glaring problem in the South China Sea’s territorial dispute as well as in its human rights manipulation of ethnic minority people in Xinjiang. This, in turn, has caused much anger and disagreements with the neighboring countries and Western powers. An economic model of a state that has become prevalent nowadays and exhibits the signs of subsidies, as well as the SOEs and the industrial policies, is challenged with arguments of the unregulated trade practice and intellectual property rights misappropriation, which deteriorate the relations with the partners in trade such as the United States and the European Union (Arestis et al.,2022). Further, fears of China’s advancement of military might, and its goal of expanding its footprint has given rise to a confrontation between the latter and neighboring countries in the Indo-Pacific region, making the U.S. build alliances and alignments for security. Although based on the main point, the Chinese economic system that has helped the country become a global economic superpower has also caused geopolitical tensions. Its relations with other countries have been affected.
Attribution of Problems to Economic System:
The economy is the major source of both domestic and international obstacles that reflect Chinese culture. The state-run model, hallmarked by direct government management of the economy, domination of state parties, and planning strategy, has led to a number of advantages, such as rapid economic development. However, some challenges include inefficiencies, distortions, and vulnerabilities. Within its borders, state-owned enterprises (SOEs) have perpetuated dominant influence in the strategic industries at the expense of market competition, innovation, and efficiency (Hillman et al.,2021). Further, the deficit in regulatory and supervisory agencies, property rights protection, and independent judiciary has fueled corruption, rent-seeking, and even economic divergences. With the rule of law and institutional independence, the economy is going forward.
The international community needs to be more knowledgeable about Chinese economic policies, including economy subsidies, export-oriented growth, and technology transfer, designating them as sources of unequal competition, market distortions, and technology theft. These apply both the imbalances of trade, the trade warfare as well as the technological decoupling between China and other advanced economies, which backfires into the escalation of geopolitical tensions and economic tensions (Arestis et al.,2022). Moreover, the socialist economic idea of the Communist Party, which also plays the role of authoritarian government, has led to the violation of human rights, civil liberties, and political freedoms that, in turn, often resulted in social unrest, tensions, and criticisms internationally.
To sum up, the Chinese economic system, being led by socialist ideas and moving toward market-oriented reforms, provokes happiness in its citizens at home, as well as changes world balance and defines who is to blame for various complicating questions. While economic development and globalization bring benefits and challenges, they also create a great deal of socioeconomic issues, geopolitical issues, and governance problems that shape the ways China deals with other countries. The study of these interconnections is indispensable for acquiring an informed perspective on China’s transforming place in the world and its implications in international affairs.
References
Arestis, P., Karagiannis, N., & Lee, S. (2022). The Economic Growth of China: 1 Enabling Politico-institutional and Socio-cultural Factors. In The Economic Rise of China (pp. 76-95). Routledge.https://doi.org/10.1007/s43253-021-00046-3
Grosse, R., Gamso, J., & Nelson, R. C. (2021). China’s Rise, World Order, and the Implications for International Business. Management international review: MIR: journal of international business, 61(1), 1–26. https://doi.org/10.1007/s11575-020-00433-8
Hillman, J., Sacks, D., Lew, J. J., & Roughead, G. (2021). China’s Belt and Road: Implications for the United States. New York: Council on Foreign Relations.
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