China – The New Normal Harvard Case Solution & Analysis


Chinawas raised as the communist state under the leadership of the Mao Zedong in 1949. He declared the state as the People’s Republic of China, however, China’s central ideology was based on Marxism-Leninism along with the Chinese Revolution practices. Meanwhile, Moa put China in the structure of the collectiveorganizations, and he also ruled the production quotas and prices in the country.Furthermore, Mao’s approaches to the economy and social structural reforms marked by the differentcampaigns and unsuccessful revolutions that led death of millions of peoples. Following the house arrest of Mao, and his death in 1976 brought anew leader in power in 1978, Deng Xiaoping.

On the other hand, Chinese people’sdistrust of the government in their policies and structural was on social, economic, and political. Meanwhile, the government was considering more consultative oriented governing process through the “seeking truth from fact.”Apart from this, China adopted the export-led development strategy, due to which the economy of China improved.Moreover, the Chinese government also considered the agriculture industry seriously to feed its growing populationsas well as it increased the resources into the township and village enterprises (TVE’s). Meanwhile, the governmentforced on bringing the foreign investment in the country to grow in the market.

However, due to its interventions in the market, laws and enforcement became hurdles for the foreign companies to operate in the free market environment that Chinese market lacked in that position. Given the numerous reforms in the country, foreign investment increased to $250 billion since the death of Mao, theex-leader of China.On contrary, China itself was one ofthe attractive places for the multinational companies to shift their production facilities in order to benefit from cheap labor force and newly provided infrastructure and tax relief to the foreign companies. This foreign investment in the country was highly supported by the government of China, and China’s main aim of expanding its footprints around the world through export worldwide, and attracting foreign investment in the country.

China – The New Normal Harvard Case Solution & Analysis

Lastly,the country’s effort to enter the world trade center was the second step to generate benefit from globalcommerce communications of the different countries. However, China was forced to follow WTO’s strict guidelines that were stricter than the entry rules over another country, due to its economic policies, and political, and governmental supply-side intervention in the market, and also being a communist country. Meanwhile, the country becameone of the leading export countries in the world. Its growth was the fruit of its efforts towards the foreign investment, and exports as well.

Apart from that, the government of China has been the most significant problem regarding addressing the issues identified that have long term consequences on the Chinese economy as awhole. However, its presence in the global market does not guarantee its growth to sustain or increase because of the lack of structural issues in the governing bodies in China. Meanwhile, the structural reforms involved reducing the industrial capacity, developing domestic consumption and services, and fixing the state-owned enterprises, also managing the debt and opening capital markets..................

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