The financial crisis is an opportunity and a challenge to China's model

The development of China and some other political systems over the years has shown that a democratic polity is not necessarily effective in serving the public, and that the Chinese system does not necessarily provide effective service to the people, but that it may not be a major institutional framework, but rather a specific system and policy. Director of the East Asian Institute Yongnian, a professor and director of research at the Institute of Chinese Policy at the University of Nottingham, contemporary Chinese studies, has recently shown many signs that the world's expectations of China and its recognition of the Chinese model are growing rapidly. First, after the financial crisis, countries around the world still hope that the United States and other Western countries in the process of economic recovery plays an important role. While many are hopeful about developing countries such as China, there is little clarity about what emerging economies can do. Since the Second World War, the American-led Western camp has always played a key role in rescuing the world's economic crisis.　　Asian countries, including Japan, have a role to play, and they are only supporting roles. But this time it is totally different. Indicators suggest that Asia's economy is returning to normalcy and even revival. In the west, although the economic crisis has bottomed out and has rebounded to some extent in general, people still do not see its significance in the recovery of the world economy. Especially in the United States, people have been expecting the United States to be the leader. In the aftermath of the crisis, countries around the world have been able to "save" the American economy in a different way, in large part because people realise that if the US economic crisis deepens, it will further affect the country's economy.　　But at least the US has not been able to play such a role so far. Compared with the US, China has played a key role in the Asian economic recovery process. China does not have a financial crisis of its own, but is deeply affected by the external financial crisis.　　The Chinese government, while shouldering various international responsibilities, is using all the power possible to revive its economy. Financial and economic lever the western countries often have only financial leverage in the process of rescuing the economy, but lack economic lever.　　But the Chinese government can use both financial and economic levers to rescue the crisis, because of its large state-owned economy. The results are obvious. These initiatives have not only led to a recovery in their own economies, but have also led to a pick-up in Asia, especially in North-east Asia and South-East Asia. It is a clear fact that most of the economies closely related to the Chinese economy are beginning to show growth momentum. And China's recovery has had a positive effect on Western economies. If China's role was limited to Asia in the aftermath of the 1997 financial crisis, China's role beyond Asia would have a positive impact on the global economy.　　For example, it has been found that the economic growth of Germany and France is very much related to their growing trade with China. China's economic performance has impressed the Western world with China.　　However, the issue is not only the economic role of China, from a deep perspective is the development model of China. The concept of "China model" has been put forward for many years, ChinaThe government itself has been very cautious in this respect and has not openly accepted or objected to the concept. The Chinese model itself is still in the process of development, and China also faces many problems and challenges in the course of development, and whether this model is successful or not remains to be tested.　　But from an external standpoint, people don't look at the Chinese model that way. The American scholar, Francis Fukuyama, who once claimed that Western democracy was "the end of History", has been revising his views over the years. He had previously elevated the western system of democratic freedom to a morally high level. But the repetition of the "third wave" of democracy and the rise of China suggest that the idea of "the end of history" has been greatly challenged.　　Recently, Fushan noted that despite the rise of India in Asia and India as the world's largest democracy, many developing countries tend to be more efficient in China. The development of the open political system in China shows that the development of the political system is open.　　Although China is also known as an authoritarian system, the name is not important, and it is important that China is developing a political system that conforms to its own cultural, social and economic development levels. The only ideology that the Chinese government now has is populism, trying to combine the government's work and the interests of its people. The Chinese government has also worked to improve the transparency of the government process and to establish mechanisms to make officials accountable to the people.　　China's political system, especially during the crisis, has shown efficiency, whether it is dealing with the earthquake in Sichuan or coping with the financial crisis, and the superiority of the Chinese system has emerged as opposed to other political systems.　　The development of China and some other political systems over the years has shown that a democratic polity is not necessarily effective in serving the public, and that the Chinese system does not necessarily provide effective service to the people, but it may not be a big institutional framework, but some specific systems and policies. These changes in the perception and perception of China by the international community are indeed an opportunity for the Chinese model. This is not only the hard power of China, but also the soft power. The hard power mainly refers to the economic power of China and its objective external influence, which can be experienced by the outside world, and the soft power is the subjective cognition of the economic influence that China can produce. (It is clear that the soft power here is a conscious perception of China, based on the influence of hard power, which is very different from the soft power that is being vigorously pushed by the Chinese authorities.) Opportunities and challenges the financial crisis has tested China's development model, and China's performance in coping with the crisis has increased the influence of the Chinese model. But from another point of view, the emergence of these changes is a great challenge to the Chinese model. At the heart of the challenge is the sustainability of the Chinese model. The challenge to sustainability comes from two internal and external dimensions. The external challenge is that when China becomes the core force of the world economy, the economic foreign policy of the world will put China as its first agenda to formulate economic policies and strategies for China, thus giving the ChineseCause great external pressure.　　Internal challenges mainly refer to the difficult transition of China's economic development model. The Chinese model is a general term concept, because China in the past 30 years of reform and opening-up, different stages of economic development has different models. In the early days, economic growth was simply the most important indicator of GDP growth. Despite the rapid development, it has led to endless problems, such as income distribution, social justice and environmental pressure, and so on. If these problems are not dealt with effectively, then China's economic model will be difficult to sustain.　　Therefore, since the beginning of this century, the Chinese government has sought to transform the development model, and sustainability, environmental protection and social equity have become the subject words of the new model. The loss of opportunities for transition from the transformation of the development model, this financial crisis is actually a good opportunity. On the macro level, China can be confident in its own mixed economic model. The pressure from the financial crisis has eliminated many backward industries. More importantly, the Chinese government has begun to build a consumer society of domestic consumption.　　The domestic demand type society is undoubtedly the most important factor of China's economic growth in the future, and also the most important symbol of China's economic rise, that is, transforming from the world's big factories to become the world's consumers. However, there are many factors that are leading to the loss of this opportunity. Now China's economic recovery is the product of a huge government stimulus package, driven by a lot of investment. Will a large bank loan cause massive bad debts? The Chinese government has spent a lot of effort after the 1997 financial crisis to deal with bad debts, and if this massive investment once again leads to the emergence of large amounts of bad debts, there will undoubtedly be an endogenous financial crisis.　　In stimulating domestic demand, the government mainly through a variety of financial and economic initiatives to improve residents ' consumption capacity, but more important a consumer society needs the institutional basis is still missing, that is, in social security, health and education reform, etc., progress is not very big. More importantly, many places are losing an opportunity to upgrade their industries. The financial crisis has led to the collapse of many backward enterprises and industries. This would have provided a condition for industrial upgrading. However, many local governments mistakenly understand that the growth of GDP, in order to achieve a certain target to save many should be eliminated or even eliminated the enterprise. Many high consumption and polluting businesses have been revived by the financial crisis. From this perspective, the financial crisis has greatly delayed China's industrial upgrading.　　The financial crisis is effectively hindering the transformation of China's economic development model. In this sense, while China's economic rise and influence in the world are indeed proud, it is more important to keep a cool head and see the great challenges the Chinese model is experiencing. Only when we see the many problems hidden in China's development model and find a way to solve these problems, can this model be sustained and China will truly rise.