1
Chinese has a mixed economy with mixed features of market economy and highly planned economy. Planning was adopted by Chines reforms back in 1958, but major reforms started in 1978. The industries and the state council take up the role of planning in China. The government of China has a full control over its population. It controls its population to meet its plans (Blecher, 56).
Politically, the Chinese are communist. The party in power directs the NCDR in drafting the five-year plan. The secretaries in all units are involved in developing this plan. The control government takes up full control to the provincial government, city, and county and low village levels for the same purpose of planning (Blecher, 98).
The government of China has nationalized the industries and farms from privately owned to large rural owned under commune system. The government started massive investments in the 1960s that contributed to industrialization in the state. China began to import capital goods only and output from that industries were manage by state-owned enterprises, and the economy was decentralized. There is price equalization in China since there are enough hardworking and skilled personnel.
In the free market, the elimination of price controls and making the internal market be free was a major strategy of reforming the country's economy. The free market promoted the exportation and investments financed by domestic savings. As a result of favorable marketing condition, China transformed from agricultural country to a technological state.
The three elements are likely to interact in future. The government plans the economy in consideration of structures that might change in future. They plan to meet the dynamic world market, for example, the shifting of the Chinese economy from agriculture to technological industries that happened in the 1990s. Redrafting of laws that favor the transition of economic swings is highly controlled by relevant government units (Clark, 105).
Government intervention is likely to take dominance over planning and free markets because economic factors are every volatile to downfall hence it should be carefully monitored. Controlling labor forces, capital acquisition and control of where to invest will be determined by the state after critical of world market assessment (Clark, 211).
2
Detang Telecom Co. Ltd. is an example of a state-owned company that produces telecommunication equipment. Because the government secures its market, they face minimal competition from other similar companies; they enjoy monopoly market. The company enjoys government intervention by forming a partnership with world’s largest players in the market. Detang is in the china national security exchange, and it enjoys marketing by government agents. Its activities are fully financed and controlled by the government.
Huawei Technologies Co. Ltd. is an example private owned company. It is entirely owned by an individual called Ren Zhenfei, a former military officer. Decision-making and management is very easy. Unlike state-owned corporations, private companies produce quality goods to survive its competitive environments. Huawei avoids waste by producing world-class good that has high demand, exhausting the resources that the business purchase is another reason for it being privately owned (Huawei Technologies, 2015).
3
Guangzhou Automobile Industry Group is an example of leading state-owned company that manufactures automobiles. It is joint to Japanese leading automobile manufacture, Toyota. The company produces Camry car models, Highlander, Levin, Yaris and E'Z models. The company is much concerned in the manufacture of large passenger buses and commercial trucks. The company is currently known for its Honda and its foreign partners that include Mitsubishi, Toyota, Isuzu, and Fiat.
Works Cited
Blecher, Marc J. China, Politics, Economics, and Society: Iconoclasm and Innovation in a Revolutionary Socialist Country. London: F. Pinter, 2009. Print.
Clark, C. "The Politics and Economics of Communist China." Diogenes 13.49 (1965): 1-23. Web.
Competition Policy and Regulation: Recent Developments in China, the US and Europe. Cheltenham, UK: Edward Elgar, 2011. Print.
"“Huawei Technologies”." IIC IIC - International Review of Intellectual Property and Competition Law 46.8 (2015): 965-66. Web.
