The History of Banking in China

A Brief History and Analysis of Banking in China By NAME CLASS PROFESSOR April 21, 2011 Background The muckles Republic of China (China) remains a communist dictatorship even as it actively practices capitalism. The decision by the Chinese Communist Party (CCP) to embrace capitalism is a realistic decision made possible by a radical shift in Confucian values in early 19th century China during the final diaphragm of the Qing dynasty. A reinvigorated form of Confucianism, Kaozheng, introduced evidenced-based thought and real homo application of values to Confucian ethics (Spence, 1991). The application of Kaozheng, in a period of difficult economic development caused by communist economic principles, compelled the CCP to adopt capitalism as the notwithstanding means to ensure the CCPs survival. Under the leadership of Deng Xiaoping, the CCP introduced commercialize reforms in 1987 that resulted in the CCP announcing a new responsibility system pass oning certain capitalist practices, and special economic zones in 1992. distant corporations were invited to invest in China and employ the millions of unemployed urban and rural workers who were viewed by the Party as a threat to political stability.

Within two years the special enthronisation zones were replaced by the ability to invest anywhere in China. The influx of investment and the demand created for Chinese businesses to serve the needs of new foreign businesses required a viable banking and financial system. The CCP cause the banking system to be the primary source of all investment and capital in the nation. The CCP controls all aspects of the banking system, and this control is designed to allow the CCP to direct all fiscal, monetary, and economy policies in ways that corroboration the CCPs ability to remain in power (Walter & Howie, 2010). either aspect of banking in China is designed to serve the CCPs strategies for domestic and foreign policies. Tight control of the banking system, combined with narrowing the... If you want to get a full essay, order it on our website: Orderessay

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