After a long period of isolation, China embarked on an open
door policy in 1978. Keen to modernize her economy and
improve her living standards, China sought to intensify her
economic relations with Japan, one of her closest neighbours
and one of the most advanced and dynamic economies in the
world.
An air of optimism marked the signing of the Japan-China
Long Term Trade Protocol in 1978. China was confident that
this agreement would launch her into the path of modernization
in a relatively short period of time. This process of
intensification of economic links with Japan, however, was not
without difficulties. Over the years between 1979 and 1985,
the Chinese failed to fulfil key obligations of the agreement
including the non-payment for service received and the
permiting of, severe shortfalls in the supply of agreed goods.
The execution of the agreement was beset with problems. The
agreement from which both sides had hoped to reap
substantial economic benefits did not bear fruit; instead friction
developed, which had ensued with disastrous consequences
for both sides.
What was the root cause of this friction? Was it the
consequence of the incompatibility of the economic systems,
one communist and the other capitalist? Or was the failure the
result of political factors? Or could it be a much deeper reason
relating to inherent socio-cultural factors which affected the
decision-making processes in each of the countries?
This thesis seeks to examine closely the root cause of the
Chinese-Japanese trade friction. The writer argues that while
different ideologies and political systems contributed to the
problem, the dominant reason has socio-cultural origins, which
have to do with the way the Chinese and Japanese societies
evolved historically. Although both societies had Confucian
ethical underpinnings of their social systems, they began to
develop their own distinct characteristics. This coloured their
world views and had a major impact in the way each society
evolved its management practices. The Chinese rejection of
some key aspects of Confucianism and its acceptance of Qinstyle
authoritarianism, as subsequently modified by Sino-
Marxist principles, produced an organisational framework and
set of practices that did not prepare China to meet the
demands of economic modernisation. This had adversely
effected China's abilities to manage its trade relations with the
economically advanced Japan.
Section One of this thesis, which includes Chapters 1 and 2,
outlines the framework of Chinese-Japanese trade cooperation
beginning in the late 1970's. Chapter 1. seeks to give
an overview of the rationale behind China's new open-door
policy and its expectations of trade co-operation with Japan. It
outlines the nature of trade co-operation including the structure
of China-Japan trade. Chapter 2. proceeds to discuss the
ensuing difficulties and the responses of the Chinese and
Japanese governments. The writer then discusses the
subsequent actions taken by the two governments to revive the
co-operation that had gone wrong. An analysis of the faults of
both governments that led to the disastrous consequences is
then made.
Section Two, which includes Chapters 3 and 4, seeks to
examine the fundamental causes of the friction in the trade
relations between the two countries. The writer examines the
role played by socio-cultural factors and how they affected the
decision-making processes in both countries. In particular,
Chapter 3. analyses the role of feudalism in China as modified
by the emergence of the centralized bureaucracy which
characterize the Qin dynasty (221 to 207 BC). The impact of
the anti-merchantilism, which was the direct consequence of
Qin-style bureaucracy, and the question of the destruction of
the urban middle class by the bureaucracy are highlighted.
The writer argues that the absence of the urban middle class is
one of the fundamental reasons why China is unable to
produce an economically-progressive, capitalist-oriented
society. This led to a state of economic backwardness.
Chapter 4. contrasts the Chinese situation with Japan, by
analysing the ideological underpinning of Japanese society. It
outlines the various reform movements in Japan that led to the
development of a society that is economically dynamic . A
modern state has emerged in Japan in contrast to the
emergence of a backward society in China. The writer also
discusses the influence of Japanese Confucian values in the
development of this modern state. This was to have a
significant impact on Japanese management philosophy and
practices.
The last Section, which includes Chapter 5, 6, and 7,
discusses the lessons to be learnt from the trade friction
betwen the two countries. In particular, Chapter 5. analyses
the vastly different approaches taken by the Chinese in
contrast to the Japanese. The Chinese decision-making
process which is characterized by chaos, inefficiency and
bureaucratic bungling is contrasted with the Japanese style.
The latter's approach is systematic, well thought out and
meticulously planned. The Japanese, however, failed to take
into account the vastly different operating environment in their
dealings with China. Chinese behavioural responses were a
variable that the Japanese were unprepared to deal with. This
resulted in chaos in the strategic management of the trade
relations between the two countries. Notwithstanding this
friction, however, both China and Japan realize that they must
proceed with their trade relations and minimize whatever
frictions emerged over time. The last part of the thesis, Chapter
6. outlines the possible approaches that both sides can adopt
in their dealings with each other. An approach with Lindblom's
"muddling through" perspective is recommended by the writer.
Chapter 7 contains the conclusion drawn from this study.
| Identifer | oai:union.ndltd.org:ADTP/219498 |
| Date | January 1989 |
| Creators | Zhou, Jonathan, n/a |
| Publisher | University of Canberra. Management |
| Source Sets | Australiasian Digital Theses Program |
| Language | English |
| Detected Language | English |
| Rights | ), Copyright Jonathan Zhou |
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