Yalkult Background

Political system in China

Political system in China is hardly to be defined because the country practices communist and socialist with the authorization. China is led by the working class, based on the worker-peasant union and practicing people's democratic centralism. However, there are still many restrictions in many areas such as the internet, freedom of religion, reproductive rights.

Initially, the state exercise effective regulations on the society by means of planning. Social members are in an administrative pattern where they are belonged to an organization. The planned economic system and politicized society do not emerge the diversified interest pursuit among members. The social structure changes when china is transformed from a society ruled by man into ruled by law and also from a planned economy to a market economy.

Administrative division of China is divided into provinces, counties and township. The state power falls at local people’s congresses where they have the power to decide on local affairs in their respective administrative areas. The people's congresses of provinces, autonomous regions and municipalities directly under the Central Government have the power to formulate local laws and regulations. Local people's governments are local administrative organs of the state under the State Council. They are responsible and report on their work to the people's congresses at the corresponding levels and their standing committees, and to the organs of state administration at the next-higher level.

Political risk and causes in China

There are several of political risks occurs in china. One of them is constant battle between the country’s central government and the provincial and local governments over applicable law, and observance or non-observance of it. This makes it difficult for companies operating in China to know exactly what the rules are. Foreign company may confuse of it when they want to invest in China. They do not know which rules...