The Business/Government Relationship– a Comparison of the Key Features in China and Australia-

3141 Words Aug 21st, 2010 13 Pages
The business/government relationship
– a comparison of the key features in China and Australia

China and Australia, provide two samples in pursing social welfare in different ways and hence result in distinctive social structure as well as government-business relationship. Convergences and divergences coexist in these two paradigms, in a way that suit each nation well.

Private sector
Private sector is the value chain which engages political, economic and social factors together. It is of paramount importance in both two Australia and China in enhancing people’s living standards, such as providing goods and services, creating employment, contributing tax revenue and etc.

Australia has a modern developed market economy.
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These enterprises demonstrate the dynamics and ambitions of burgeoning private enterprises in China and now they are catapulted into prominent center stage of global business. Given the short history of private ownership and gradual reform style, they have performanced exceptionally so far.
Public sector

As argued by HUGHES and O'NEILL (2008: 41), the key instruments of government can be summarized as “production, provision, subsidy and regulation”. Both Chinese and Australia government commit to these duties. Yet as for Chinese government, “guidance” can be added to its task list. Besides, the way two govern system deliver these services is quite different, due to government’s different role in society.

In terms of role, Chinese government enjoys higher authority and assumes more comprehensive roles than its Australian counterpart.

In China, government is the axis of the nation, the whole society rotates around it. Though since 1978 reform, governmental role has been substantially lessoned and replaced by market forces, it still assumes dominant role in economic and social development. According to “State Constitution”(1982) of China, “ the state is to guide the country's economic development by making broad decisions on economic priorities and policies, and that the State Council, which exercises executive control, was to direct its subordinate bodies in preparing and implementing the national economic plan and the state budget.” The most

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