Tax Strategies

China’s implicit strategies to surpass the U.S. economic dominance

Michael A. MacDowell

China’s remarkable economic growth is owed to several factors, not the least of which is an innovative and aggressive business climate fostered by a population that exudes hard work and can be easily directed by central authority.  These cultural characteristics afford Chinese leaders indirect and increasingly direct control of most productive resources.  The result is a relatively efficient system when compared to the mostly autonomous market oriented Western economies.

In many ways China is not just an economy, or for that matter a country.  It is a culture whose members act in unison when it comes to executing strategies that advance the country’s economic prowess.   Some of these strategies are obvious. Last September the Chinese Communist Party issued new guidelines for private companies. The guidelines reminded firms of their role to serve the state and vowed to use education and other tools to “continuously enhance the political consensus of private businesspeople under the leadership of the Party.” Jack Ma, founder of Alibaba, the world’s largest online commerce company, and Ant, a rapidly growing financial service company, seems to have run afoul of this policy and been silenced by the Party.

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