Chinese Civilization. Site Professor Valeriy Bebyk / Китайська Цивілізація. Сайт професора Валерія Бебика

Bebyk, Valeriy (2019). Confucianism in the system of modern civilization of the PRC. Riddles of Chinese success / Scientific editor prof. dr hab. Wojciech Pomykalo. Warsaw: Warsaw Management University, pp. 121-136.




Valeriy Bebyk,

Dr hab. (Political Sciences), Professor,

President of Ukrainian

Political Sciences Association,

upsavb@ukr.net

 

CONFUCIANISM IN THE SYSTEM OF MODERN CIVILIZATION OF THE PRC

 

“This one who turning to the past is capable

of seeing future deserves to be a teacher”.

(Confucius, V century BC)

 

The great Scythian philosopher Aristocles, better known as Plato[1], believed that the world should be governed by philosophers. The same idea was followed by the prominent Chinese philosopher Confucius[2], whose ideas has determined already 2500 years the development of Chinese civilization...

 

Both Confucius and Plato had an aristocratic origin and developed a model of an ideal state on a patriarchal basis. Confucius is an ideologue of a strong Chinese state, Plato – who is reasonably believed to be a creator of the communist idea, was an ideologue of the Scythian-Aryan state of Sparta.

 

Given the successes and specifics of the modern China’s development, we have many reasons to believe that the ideological and philosophical system of Confucius occupies leading positions in the system of modern Chinese civilization till the present day...

 

  • Divinezed philosopher


Confucius (551-479 BC) came from a noble family Kǒng. His ancestor was rewarded by the small principality of Sun and the respective aristocratic title for the faithful service the Chinese emperor. However, over time, the family was impoverished and forced to move to the principality of Lu. There, in the middle of the 6th c. BC Confucius, who is called Kung Fu-Tzu[3] by the Chinese, was born.

 

His father was a 63-year-old official of the principality of Lu – Shu Liang and his mother was a 17-year-old concubine, Yan Zhengzai. The relationship between Confucius mother and two older spouses was very complicated. Therefore, after Confucius father death, his mother with young son had to return to his motherland, in the city Qufu, where there is in our days Confucius house, his temple and the family cemetery. And more than one third of 300,000 people of today’s Qufu are direct descendants of the prominent Chinese philosopher and teacher[4].

 

From early childhood, Confucius was forced to work a lot, because he lived a poor life vith his mother. But his mother devoting prayers to the cult of Confucius’ ancestors told him about the good deeds of his father and ancestors.

 

Gradually, he understood that he must study hard to achieve success worthy of his glorious ancestors. Hard work and self-education had yielded results: at first Confucius was appointed as an official, who kept counting the grain, and then - responsible for animal husbandry in the principality of Lu...

 

Confucius lived in the days of destruction of the patriarchal society and the decline of the Zhou Empire, within which the family of Confucius emerged first, and then became impoverished.

The power of the emperor became nominal and the rulers of small principalities came to the place of the nobility, who surrounded themselves by not noble, poorly educated and corrupt officials who did not have the appropriate level of culture and knowledge[5].

 

It is clear that Confucius was worried about destruction of the traditional basis of the patriarchal society, struggle for power and corruption of officials, and people sufferings. Being honest person, having made sure that he can not affect the situation in his country, he retires public service and travels with his students across China. During his ‘going to the people’ Confucius is engaged in teaching and tries to convince regional rulers of a divided China to serve honestly the community and govern the state[6].

At the age of 60, Confucius returned to Qufu, engaged in philosophy and pedagogy, systematized and edited the literary heritage of the past: the Song book (Shi Ting) and the Book of Changes (I Ching)[7.

 

Confucius did not become a classic immediately. At the beginning, his name was mentioned together with the names of Lao Tzu and Mo Tzu. During the reign of the Han Imperial Dynasty, it began to be called ‘uncrowned van’ (i.e. a monarch). In 241 he is placed in the aristocratic pantheon, in 739 (the Tang Dynasty) Confucius was officially called as van. At the time of the Ming Dynasty (1530) he began to be called “the supreme sage among the teachers of the past”[8].

 

The main idea of the Confucius philosophical concept is the patriarchal understanding of the state, where the power of the emperor (‘the Son of Heaven’) is similar to the authority of father. Confucianism denied the participation of people in the government of state, but promoted civil peace and harmony. 300 years after the Master's death, Confucianism became an official ideology in the Middle Kingdom[9].

 

Confucius disciples (we know the names of 26 of them), based on the thinker’s lectures and rethorics, compiled the book “Lun Yu” (“Conversations and Judgments”), which is highly appreciated by the followers of Confucianism. Among classical, individual works of Confucius experts call a book on the history of the principality of Lu, which is called “Chun Tai” (“Spring and Autumn”).

 

Social status of Confucius is difficult to understand from outside the territory of the Middle Kingdom. While filming a documentary about Confucius (project “CIVILIZATION INCOGNITA”), we asked the abbot of the Buddhist Shaolin Monastery, Shi Yongxin, what social status the philosophers Kung Fu-Tzu, Lao Tzu and Mo Tzu had, and he gave an unequivocal answer: “They are holy people”[10].

 

Holiness in Chinese does not have religious and mystical significance. Unlike prophets and saints in other countries, holiness in China has a moral and ethical and, at the same time, a secular character[11].

Chinese philosophers, in particular, Confucius, were real and people of great worth who are honored for their righteous life and wise thoughts. Although it is difficult for us to understand why are there Confusius temples in Qufu, Beijing and Shanghai if he is not a god or a prophet...

 

As descendant in the 75th generation of the Confucian family - Kun Xianglin, who was a director at one time and after retirement he continues to work as a researcher at the Chinese Institute of Confucius, explained to us that the Confucian temples are of a secular nature and rituals are carried out not by priests but by ordinary people[12].

 

In some ways it is similar to Protestantism, which does not have professional priests. The difference lies in the fact that Confucianism is not a religion in the European sense of the word, although the Confucian temples are very similar in architecture and form of construction, for example, with the temples of Taoism - the national religion of the Han ethnic group.

 

While our stay in Qufu (the motherland of philosopher Kung Fu Tzu), we asked the former director of the Institute of Confucius, Kun Xianglin: “However, is Confucianism an ideology or religion? Why was build temples for Confucius as for a religious person?”

 

The answer was unequivocal: Confucianism is an ideology[13]. There is no mysticism, the institute of the church and there is no place for theology. And Confucian ethics is not religious in its essence[14].

An ideal of Confucianism is the construction of a harmonious society in which the elders are respected according totheir age and rank. And the golden rule of the Ethics of Confucius (which will sound in Christianity in 500 years) is the thesis: “Do not do to others what you would not want done to you”[15].

 

After approval of Confucianism in the 2nd c. BC as the main ideology of the development of Chinese society, the main principle of the ‘Chinese dream’ has been the thesis: “Obtein education and become an official”. The latter, according to Confucius, was the opportunity to take examinations of a civil servant and according to the obtained results to apply for post of official.

 

This ‘great Chinese dream’ became the basis of social lifts, through which the most capable young people could advance in their state career regardless of their social origin.

There is no doubt that state-oriented Confucianism, modernized in social terms by Chinese socialism, is one of the main factors of the modern ‘Chinese economic miracle’. And we, with our ‘oligarchic democracy’, should learn from our Chinese partners how to build a social state.

 

 

  • “Chinese Dream” and Chinese national character

 

Europeans know so little about China. First and foremost, they think of Chinese tea, cheap Chinese goods and the Chinese economic miracle of the early 21st century. However, it is naive to think that the high competitiveness of the Chinese economy is based only on cheap labor. This period of socio-economic development of the People's Republic of China is in the past.

 

Currently, China is a powerful industrial and agricultural state, which successfully competes in the global market of modern technology and machinery, conducts an effective investment and financial policy in all regions of the planet. PRC has the second largest economy in the world: the gross domestic product of this country is 7.4 USD Trillion, and gold reserves - 3.3 USD Trillion[16].

 

However, given the more than two thousand years history of Confucianism in this country, taking into account the symbiosis of Confucianism (ideological philosophical system), Buddhism (global, international religion) and Taoism (the national religion of the leading Chinese ethnic group)[17], we can say that the Chinese national idea, the Chinese dream and the Chinese national character play an important role in Chinese success.

 

Our stereotypes show that in China, it seems, all are Chinese. However, official statistics argue that the current PRC is represented by 1.344 billion people of 56 nationalities living in 22 provinces, 5 autonomous regions and 4 cities of central subordination. This country has the largest area in Asia - 9.6 million square kilometers, its territory is the third in the world – after Russia and Canada[18]. China is now one of the leaders in the global world and the United States and the unified Europe, and of course Asia countries have to reckon with it.

 

It compares quite often the rapid development of China in the 21st century with the rate of Japan growth. Japan managed to modernize its economy and industry on the western (liberal) model of socio-economic development at the end of the 20th century without breaking its national culture and mentality.

 

As a result, in the 80’s of the last century, the Japanese economy outstripped such global economic giants as Germany, France and the United Kingdom, yielding only to the unquestioning global leader at that time – the United States. However, nowadays the second economy of the world is not Japanese, but the Chinese economy...

 

In 1959-1961 years, there was a sharp hunger in China that took away the lives of many millions of people. However, nowadays China, with the majority of its territory consisting of mountains, deserts and forests, not having Ukrainian chernozemic soil, annually grows 500 million tons of grain, which not only ensures the food independence of the Chinese state, but also allows China to be an exporter of food[19].

Analyzing Chinese success, researchers often draw attention to the vast human resources of China and pay little attention to the natural potential of the Chinese economy, not to mention the cultural and civilization potential of Chinese society.

 

Analyzing the reasons for the stable high growth rate of the Chinese economy, it should be noted that China's hydropower reserves are ranked first in the world. On mineral resources, China provides itself with 92% of the original sources of energy, 80% of industrial raw materials and 70% of agricultural production. China’ s ranking for mineral deposits is as follows: first place in the world for tungsten, tin, antimony, tartan, titanium and rare earth metals; second for vanadium, molybdenum, niobium, beryllium, lithium; fourth place for zinc; fifth for iron, lead, gold and silver[20]. Consequently, China has quite enough resources for its economic development and uses them quite efficiently.

 

What is the role of the national idea in all these processes?... The Ukrainian researcher Sergiy Shergin, who worked for a long time in the diplomatic service in Southeast Asia, emphasizes specific combination of patriarchal traditions of Confucianism and modern technologies in management and industry in modern China.

 

The president of the Ukrainian Association of Sinologists Victor Kiktenko pointed out at the peculiar combination of Chinese Marxism and Western capitalism[21].

Chinese scientists and PRC’s modern ideologists call this social system as socialism with Chinese specificity. In our opinion, we can call this social system as a state social capitalism, built first of all on Confucian (collectivist) psychology.

 

Moral and ethical and socio-psychological factors significantly influence the socio-economic development of any society. For example, Protestant ethics at one time contributed to the development of capitalist Europe and the United States, creating a new moral and psychological atmosphere of labor motivation. The same thing, in our opinion, we observe in modern China...

 

What is happening in modern China, which has been influenced by Confucianism for more than 2500 years, and the last 40 years, after the civil war, the Cultural Revolution and the policy of ‘Great Leap Forward’, came out not only for stable social development, but also for leading positions in the global world? What traits of the Chinese national character are the key to their current success? – Despite the different ages, nationalities, professions and regions of residence – the Chinese are united by patriotism and Confucian eminence of national interests over the interests of an individual.

 

And if such a social system and such a national idea, multiplied by persistent work and the use of modern technology, ensure the growth of the social welfare of the average Chinese citizen, we need carefully study this public experience and draw the appropriate conclusions.

 

Consequently, the rapid growth of the Chinese economy gave grounds to talk about the Chinese national idea and the ‘Chinese dream’[22]. Unlike the ‘American dream’, which is built on individualism, ‘Chinese dream’ is based on collectivist principles that put the interests of the nation and the state above the interests of the concrete person who lives in this state.

 

The Chinese are convinced that people can live well only when the country and nation are stably developing, which ultimately benefits the individual citizens of the state, contributes to social and natural harmony. And the Confucian patriarchal and collectivist approaches that respect a state and power, according to age and position, combined with the modern concept of a social state that China is trying to build, is the main characteristic of the modern Chinese idea that begins to bring its dividends.

 

It is clear that without modern technology and upgraded machineries it is impossible to do. As you can see, the Chinese Confucian-Communist express has successfully mastered modern technologies and confidently crowd out global speculative capitalism in its ‘canonical’ economic territory.

 

 

•Management of the Chinese economic miracle

 

Modern management is based on planning, accounting, control and feedback. For example, the American management model is to rebuild a management structure that is followed by search managers for it. The Asian (Japanese) model of management is based on the individual qualities of managers, on the basis of which the structure of management is constructed.

 

The Chinese model of management combines the American and Asian model of management, filling them with its own, Chinese specificity - based on Confucianism, national psychology and culture of management and production, in particular, high productivity and patriotism.

 

Former Ambassador of the People’s Republic of China to Ukraine, Mr. Zhou Li, believes that China is a country with deep historical and cultural traditions. Among the features of national character, he distinguishes a strong sense of patriotism, love for work, wisdom, courage. He argues that, regardless of social status (worker, peasant, intellectual, teacher), almost every Chinese chooses work instead of leisure. And this allows the Chinese to tackle any problem[23].

 

Confucianism taught the Chinese to have not only a patriarchal attitude to power, but also formed the skills and habits of team play. This commanding Chinese game has an extremely powerful influence on the development of modern Chinese society, which demonstrates the stable development of the national economy for several decades.

 

The modern Chinese national dream is the building of a medium-rich society, which requires the hard work of ordinary Chinese people and effective management by the leadership of the Chinese state.

Hard-working Chinese has already become a world legend. However, it should be noted that at the beginning of the 21st century, the Chinese took very promising world market niches – electronics, telecommunication, light industry, biomedicine, the demand for which, even in times of crisis, does not change critically for the national economy of the PRC.

 

China’s GDP is largely based on the export of finished products. When it declines, the Chinese state pledges to increase the solvency of the population, stimulate domestic consumption and redistribute products to the domestic market.

 

However, the giant domestic market of China is a guarantee of certain stability. For example, Xiamen King Long United Automotive Industry Company, Ltd. despite successful export activity sells two-thirds of its products on the domestic market. In a globalized world it is impossible to be the first in all. But it is very important to use own managerial and technological advantages in combination with the experience of other countries. For example, the King Long Company buys assembly sets and components for its buses from the US and Germany. And it sells one third of its buses to Germany, Great Britain and Italy. At the same time, they have their own patents and technologies[24].

 

The availability of own patents and technologies is an important prerequisite for building a competitive economy. However, without the effective implementation of scientific developments in concrete production, patent and technological advantages can remain interesting theoretical developments that do not have their real implementation.

 

At the end of the twentieth century, the so-called technology parks, which allowed to bring science and production closer, became popular in the world. China’s economic miracle is largely based on the effective state management of the PRC in the organizing the work of technology parks. One of the striking examples of this activity is the work of the Technology park in the city Xi’an, Shaanxi Province.

 

In our opinion, the Chinese economic miracle is based on the peculiarities of the Chinese model of public management, which actively uses modern information and communication, and innovation and marketing technologies.

 

Currently, the PRC is the world’s largest exporter of hundreds types of products. Half of the world’s best-selling cameras, a third of air conditioners, a quarter of washing machines and every fifth fridge are manufactured in China. We do not have to speak about such consumer goods as clothes, shoes, watches, sewing machines, etc.

 

Experts say that all this was made possible by the mutually beneficial agreement of the Chinese government with the global business. China has opened up its domestic market to global corporations and has received investments and modern technology in return. Everyone has won as you can see...

 

In modern China, there are 53 zones of high and new technologies and more than 70 scientific and technical zones for specialists who have received higher education abroad. Among them – technology parks, which are engaged in fundamental and applied research and implement them in real life.

 

Technology parks and scientific and technological zones are one of the powerful sources of the Chinese economic miracle and bring real money to the budget of the PRC. For example, the firms and enterprises of the Shaanxi Xi’an Technology park in 2014 paid taxes of 46 Yuan Trillion. It is approximately 7 USD Trillion[25].

 

Shaanxi Province is considered one of the historical centers of Chinese statehood. Here, the Chinese emperor Qin Shi Huang united all the Chinese empires of that period into one empire in 221 BC. He created a united army, conducted administrative and territorial and economic reforms, simplified the hieroglyphic letter, introduced a single currency, taxes and state standards.

 

It was more than 2,000 years ago, but the division of China in the province remained approximately the same as it was during the reign of the Emperor Qin Shi Huang. And Shaanxi Province (with other Central-Chinese provinces) remains a powerful civilization core of modern China. The first Chinese plane, the first color TV, the first car was made here. Shaanxi Province is a leader in space, engineering, electronics and light industry. Since the establishment of the PRC in 1949 the 27 major country projects out of 56 were implemented in Xi’an [26].

 

Now China has the second economy in the world in terms of production. At the same time, it has over 1.3 billion inhabitants who need to be fed and provided a decent standard of living. How does the Chinese state with 60% of its territory composed by mountains and deserts, manage to ensure a steady imptoving in the living standards of its citizens?

 

An extremely important factor in the Chinese economic miracle is the harmonious combination of the responsibility of ordinary citizens, the effectiveness of management and a common understanding of ways to improve people’s welfare. What, in fact, is one of the main principles of building a social state.

 

The initiative, responsibility and effective team play based on the principles of Confucianism are the basic principles for the successful advancement of Chinese society in the direction of raising the standard of living of their citizens. The psychology of the Chinese is very patriotic: “I am a Chinese. I live in the Middle Kingdom. Never look back!” The main Chinese dream is a middle-income society, job creation and the fight against corruption[27].

 

By developing the national industry and introducing new technologies, the Chinese have successfully used their climatic advantages in the traditional field of the Chinese economy - agriculture.

 

For example, few people know that China is the home of kiwi, and the PRC with New Zealand is the global leader in kiwi exports in the world. More than a century ago, thanks to the efforts of the British colonists, kiwi seedlings fell from China into New Zealand. Although the People’s Republic of China and New Zealand are rivals on the world market for kiwi, different climatic zones partially remove these contradictions. In China, the harvest of kiwi is taking place in October, and in New Zealand it is in winter. The vast majority of cultivated fruits are consumed on the domestic market, but 15% goes to exports: Germany, the USA, Thailand, Korea, and Ukraine.

 

Chinese farmers have learned not only to cultivate quality products, but also to keep them and trade them with modern technology. In particular, in the collective farms of county Zhouzhi, work on electronic sales of kiwi using the Internet is under way.

 

China has always been famous for its agrarian sector of the economy. Here it was invented the technology of making silk. People in China learned to grow and consume tea. So it is not surprising that in a situation of human overpopulation the food issue is essencially a matter of life and death of Chinese society.

 

According to the Ambassador of Ukraine to the People’s Republic of China, Mr. Oleg Dyomin, the Chinese traditionally collect 2-3 harvests on their lands. People there do not have overestimated social demands to the state. If they are given the opportunity to find work, they through their diligence fully provide their families[28].

 

The Chinese agrarian sector feed over 1 billion and 300 million of the Chinese. This means that the Chinese successfully solve their food problems. And one of the driving force of the Chinese economic is the development of agrarian technology parks.

 

For example, Yanlin’s modern agro-cultural park in Shaanxi Province, covering 100 square kilometers, has united the Park of Technological Research, the Park of Innovations in Modern Agriculture, the Park of International Cooperation in Science and Technology, the park of modern agricultural enterprises, the plant cultivation park, park of agricultural processing and logistics park.

 

It allows active use of modern technologies in livestock farming and crop production, food industry and biopharmaceuticals, and as a consequence to meet the needs of Chinese citizens in food.

 

 

  • Chinese dragon and free economic zones 

 

The globalization of economic life has actualized the development of such a phenomenon of the world economy as a free economic zone (FEZ). Few people know that the FEZ is not the invention of modern civilization. But many know that free economic zones actually ‘pulled’ the Chinese economy in 30 years to the top of the global economic pyramid.

 

The first documented FEZ was proclaimed in 166 BC on the Greek island Delos, which was a sacred and trading center of the so-called Delos Union headed by Athens. In its best times the island of Delos, whose area is only 5 square km, had up to 20 thousand people!

 

On the island foreign merchants were exempted from taxes, customs duties and administrative procedures, that stimulated the development of international trade between the Mediterranean countries at that time.

 

In the Middle Ages, the customs procedures were very expensive and bureaucratized. The first prototype of the Free Economic Zone was the status of a ‘free port’ granted in 1595 to the Italian city Genoa. At the same time ‘porto-franco’ areas were created in Hamburg, Bremen, Marseilles, Livorno and others. In 1704 FEZ was established in Gibraltar, which was annexed by England from Spain, in 1819 - in Singapore and in 1848 - in the Chinese Hong Kong. At the beginning of the twentieth century FEZs are created in Malta, Sulini and Aden.

 

Usually the territory of the ‘porto-franco’ was separated from the rest of the territory by a special customs border. The movement of goods between ‘porto-franco’ and foreign countries was carried out without restrictions and payment of customs duties. And there was usual customs regime for goods movement throughout the country.

 

This contributed not only to the development of international trade, but also to the economic recovery of a certain city, such as the Chinese city Xiamen with a free economic zone where local citizens can buy imported goods at wholesale.

 

In general, according to the decisions of the International Kyoto Conference (1973), a free economic zone is understood as a part of the country territory in which goods are treated as objects outside the customs territory and which are not subject to normal customs control and taxation.

 

The legal category of the Free Economic Zone is actively using the UN structures, the International Labor Organization (ILO), the World Association of Free Economic Zones and the European Union. ‘Porto-franco’, now called free trade zones (FEZs), is a very popular type of free economic zone.

 

In fact, the free trade area is a duty-free trading and warehouse area, which is considered as a territory located outside the state border in terms of the financial regime but remain a part of the national territory. One of the common types of FEZs is a ‘duty free’ - stores in major international airports, airplanes and steamships.

 

As the Chinese public experience shows, the state which has established a free trade zone reap profits. Her income consists of rent for premises and mechanisms and services for sorting, packaging and partial processing of imported goods. It is extremely important that foreign investors should not go and collect permits and stamps in administrative offices. Accordingly, there is no need to pay bribes to officials that eliminates the conditions for corruption.

 

According to the Chinese experts, the main features of the Free Economic Zone in the PRC are the follows three: the exemption of tax for the period of 3-5 years on imported equipment, tax exemptions and the creation of infrastructure at the expense of the local government. This is true for the Chinese FEZ policy in the early 80’s of the last century.

 

Free trade zones, in fact, are typical economic enclaves that are separated from their country by internal borders. Generally, they have rather limited impact on the economy of the host country of the FEZ. However, in the regional aspect   existence of such a zone can give a tangible effect thanks to investment revenue, road construction, communications, employment growth, and increase local budget revenues.

 

An interesting experience has been accumulated by the Chinese in the process of functioning of the FEZ in the city Xiamen, which is an important hub of the Maritim Silk Road. From here European and Chinese goods move to Malaysia, Singapore, Indonesia, Thailand, the Philippines, Vietnam, India, Sri Lanka and Iran. And the goods from these countries of Southeast Asia go to China, Central Asia and Europe.

 

Life is much brighter than simple economic schemes. For example, in the Xiamen, which is located on the shore of the Yellow Sea, the Free Economic Zone was initially created, and then it became a modern and dynamic Free Trade Area. Here, since 2015, 77 pilot projects have been implemented.

 

In the framework of the Great Silk Road from the city Xiamen, a direct railroad route to Europe was opened, that allowed to shorten the period of cargo transportation from 30-45 days to 15. All services in the free trade zone are provided on one-stop-shop principle. For example, custom clearing of goods, which previously occupied 4-5 hours, now takes only 5-10 minutes thanks to the Internet.

 

An interesting information for analysis is given by the functional structure of the FEZ of Xiamen. The largest number of  enterprises here are electronics - 22%, engineering - 10%, logistics - 10%, tourism - 8% and finance - 8%. The work of these enterprises provides an increase in incomes of the city population by 10-12% per year. And this is impressive[29].

 

Thus, in 1980, the leadership of the PRC, within the framework of the concept of ‘four modernizations’ of the architect of Chinese reforms, Deng Xiaoping, created four similar FEZs in Shenzhen, Zhuhai, Shantou and Xiamen for the purpose of testing innovation policies that were planned to be introduced in other parts of China. The experience was spectacular: in these four economic zones after 5 years of their existence 20% of all foreign direct investment came.

 

After the implementation of the ‘open door policy’ the gross domestic product of the PRC increased by an average of 9% annually. And in 2014, China came out on the first place in terms of global exports - 12.4%, leaving behind the US - 8.6% and Germany - 8.0%. On share of global import, China took the 2nd position - 10.3%, passing the United States ahead - 12.7% and outperforming Germany - 6.4%[30].

 

China carried out other FEZ policy in the former British colony of Hong Kong. According to the deputy head of the international department of the Central Committee of the Communist Party of China Zhou Li, Hong Kong returned to the homeland in 1997 after the British concession status. At that time the Hong Kong Special Administrative Region of the People's Republic of China was established and now it is functioning under the Chinese Constitution and the Basic Law of Hong Kong.

 

According to the decision of the PRC Government, Hong Kong and Shanghai turn into China’s international financial centers[31].

In addition to the Free Trade Area (FTA), other types of Free Economic Zones (EEZs), such as Offshore Financial Centers (OFCs), are actively developing in Hong Kong and Shanghai.

 

Offshore financial centers is a product of global trans-national banks (TNBs) and financial corporations (TNCs). Currently, more than a third of operations in the world capital market are carried out in offshore such as Nassau, Bahamas, Bermuda and Cayman Islands. In these mini-states, only real estate taxes, registration fees, stamp duties, etc. are collected. And the Chinese are studying this experience very carefully...

 

Another type of the most common FEZs in the world is business zones (US, UK) and technology parks (USA, Germany, Japan, Singapore). For example, in the United States business zones are set up to revive depressed regions and districts in 37 states. They are exempted from taxes in wholesale and retail trade, taxes on payment for utility services; also, there are investment incentives and allowance for profit.

 

Chinese experts have carefully studied this world experience in creating business zones and technology parks, which filled their management, namely the state regulation of these important social processes.

Particular attention is paid to technology parks, which effectively ensure the implementation of science in production. For example, the technology park in the city Xi’an (Shaanxi Province) was established in 1991. It includes such well-known corporations as Samsung from Korea, IBM from the USA, NTT from Japan, etc. The main areas of activity are electronics and information technologies, medicine and modern mechanical engineering. In recent years, biomedicine has been intensively developed. If the first capital to the statutory contribution was only 100 000 Yuan, then by 2016 only 100 Yuan Trillion had been invested in biomedicine[32].

 

The Chinese have a very conceptual and symbolic thinking. For example, the dragon originally was a symbol of the imperial power and consequently the Chinese state. Therefore, when they talk about the strong growth of the Chinese economy, the term "Chinese dragon" is often used. At the same time, the Chinese respect the frog, which is a symbol of well-being and abundance. If you recieve as a present a porcelain figure of frog that holds a coin in the mouth, it means that you will have a successful business and economic prosperity.

 

Judging by the fact that the model of Chinese social management actually and significantly improves living standards of the Chinese, this experience should be carefully studied. Especially in part of the attachment of the ‘Chinese dragon’ to such types of Free Economic Zones (Free Economic Zones) as Free Trade Zones (FTAs), Offshore Financial Centers (OFCs) and Technology parks... The Chinese economy annually boosts GDP by 6-7%. Free economic zone 16-17%[33]. Thus, free economic zones are a powerful engine of the Chinese economy.

 

China has already undergone a period of extensive development. At this stage of its history, the People’s Republic of China effectively taking advantage of the benefits of globalization, is increasing industrial production and introducing new technologies, which is the key to the successful development of modern China.

 

Summing up, it is worth noting that today two global economies dominate in the world: the USA and the PRC. The American economy is built on liberalism and individualism in a free market with minimal state regulation. The Chinese economy is based on Confucian patriarchy and collectivism with the dominance of state regulation of market processes. Both economies are effective and provide a decent standard of living in their countries, which is the main task of any state that seeks to be social.

 

Summary

China has already undergone a period of extensive development by the concept of "four modernizations" and now the state is increasing the industrial production by using modern technologies. There is no doubt that state-oriented Confucianism, modernized in social terms by Chinese socialism, is one of the main factors of the modern ‘Chinese economic miracle’.

However, given the more than two thousand years history of Confucianism in this country, taking into account the symbiosis of Confucianism, Buddhism and Taoism, we can say that the Chinese national idea, the Chinese dream and the Chinese national character play an important role in Chinese success. Analyzing Chinese success, researchers often draw attention to the vast human resources of China and pay little attention to the natural potential of the Chinese economy, not to mention the cultural and civilization potential of Chinese society. Consequently, China has quite enough resources for its economic development and uses them quite efficiently.

And if such a social system and such a national idea, multiplied by persistent work and the use of modern technology, ensure the growth of the social welfare of the average Chinese citizen, we need carefully study this public experience and draw the appropriate conclusions.

As a result, the Chinese Confucian-Communist express has successfully mastered modern technologies and confidently crowd out global speculative capitalism in its ‘canonical’ economic territory. The modern Chinese national dream is the building of a medium-rich society, which requires the hard work of ordinary Chinese people and effective management by the leadership of the Chinese state. The initiative, responsibility and effective team play based on the principles of Confucianism are the basic principles for the successful advancement of Chinese society in the direction of raising the standard of living of their citizens.

It should be noted that the Chinese economic miracle is based on the peculiarities of the Chinese model of public management, which actively uses modern information and communication, and innovation and marketing technologies.

 

 

 

 

 

 

 



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[26] "Chinese dragon" and free economic zones. Valery Bebyk's film. - Available at:

[27] Chinese dream and national character. Valery Bebyk's film. - Available at:


[28] Management of the Chinese Economic Miracle. Valery Bebyk's film. - Available at:


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[30] "Chinese dragon" and free economic zones. Valery Bebyk's film. - Available at:

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[32] "Chinese dragon" and free economic zones. Valery Bebyk's film. - Available at:

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Создан 20 апр 2019