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9 - Policy and Strategic Options for Governments and Firms in the Democracies

from Part III - China, Inc.’s Achilles’ Heel and the World’s Response

Published online by Cambridge University Press:  06 January 2022

Shaomin Li
Affiliation:
Old Dominion University, Virginia
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Summary

Compared to Nazi Germany and the Soviet Union, China presents an entirely new challenge to the democracies because it is closely intertwined with the latter economically and socially. The CCP’s increasingly dictatorial turn cannot be explained by Xi Jinping’s personality, but the CCP’s logical development. The only way for the democracies to effectively protect themselves from, and counter, the CCP’s expansion is to form an alliance and take collective actions to demand that the CCP make meaningful changes toward respecting human rights, the rule of law, and fair and open markets. To be effective, the democracies should adopt a “tit for tat, delink-ready” strategy in pushing the CCP to make desired changes. Collectively, the major democracies have more bargaining power than the CCP, and thus should stand firm on their demands from the CCP. For MNCs, the book offers several tips to help them in formulating China-related strategies based on the perspectives of China, Inc. and China’s reliance on the relation-based system. For management scholars, the book opens new research areas in the theory of the firm, institutional theory, and other theoretical issues.

Type
Chapter
Information
The Rise of China, Inc.
How the Chinese Communist Party Transformed China into a Giant Corporation
, pp. 254 - 277
Publisher: Cambridge University Press
Print publication year: 2022

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