Research Korner: Topics On China

THE WRITTEN CONSTITUTION OF THE PEOPLE’S REPUBLIC OF CHINA: ANALYSIS OF QI YULING V. CHEN XIAOQ

THE WRITTEN CONSTITUTION OF THE PEOPLE’S REPUBLIC OF CHINA: ANALYSIS OF QI YULING V. CHEN XIAOQ Table of Contents   I.      Introduction.. 3 II.     The Constitution of the People’s Republic of China.. 4 III.        The Qi Yuling Case.. 5 A.    Analysis of the Implications of the Qi Yuling Case Ruling.. 6 B.    Significance of the Ruling.. 7 IV.       Conclusion.. 8       I.              Introduction The constitution of a nation tends to build the framework of the legal system of the country. It is normally regarded as one of the foundations of the nation. The subsequent laws and legislations that are ratified in a particular state should concur with the basic principles espoused by the constitution. Major countries like the United States and Japan adhere to this convention. Their individual constitutions contribute to the overall political and legal structures that are carried out in their respective jurisdiction. To some extent, this is even regarded as the highest authority in their borders. In the absence of this piece of document as well as the regard of the state to its principles, difficulties pertaining to the consideration of certain political activities as within the just and valid standards of the land will prevail. In the same manner, its absence presents an invitation to abuse the authority of certain individuals in influential positions in the government. Looking at the claims above, it appears that the conditions surrounding China seems grim. This paper will be providing an analysis on the relevance of the People’s Republic of China (PRC) constitution on the country’s political and legal frameworks. In order to fully focus on the recent events in the constitutional element of the PRC, an examination of the Qi Yuling Case will be carried out. The significance of this ruling as well as the implications on the legal framework of China will be discussed in the latter parts of this paper. The observations and arguments given in this paper will be supported by the existing literature on the constitutional law in PRC.   II.            The Constitution of the People’s Republic of China Before the “groundbreaking” case of Qi Yuling v Chen Xiaoqi, the constitution of China is nothing more than a piece of bound document that intimates the theoretical structure of the Chinese state and the consequent legal system. However, the contents of the constitution and principles stated within is apparently far from what is actually observed in the real setting. Speaking of the contents of the constitution, it has been revised quite frequently as compared to the other basic laws of other western countries. There have been accounts intimating that the contents of the constitution changes in the instance that the leadership in the country changes. This brings the idea that the constitution of China has been reduced to a mere form of advertisement to spread propaganda coming from every new leadership of the Chinese government.   Up until the Qi Yuling case, the courts in PRC rarely apply the principles of the constitution as well as the actual clauses which institute the rights of the public. Another fact that contributes to the account of the constitution being a farce is the absence of judicial review. This means that the courts are not able to revise a statute or any piece of legislation no matter how obviously unconstitutional it appears. The major implication of this reality is that the public is left to endure bad laws ratified by its leaders. What is worse it that these are still binding and that there is limited means to make it right. This shows that the ruling held in the Qi Yuling case is not only unprecedented, but also revolutionary as signs towards constitutionalism on the legal system of China are evident.  III.           The Qi Yuling Case This case is about a certain Qi Yuling (plaintiff) who was rejected in entering an educational institution in the Shandong Province. The main reason for this rejection is that the school intimated that she was already enrolled. It was later found out that another Chen Xiaoqi (defendant) has taken the identity of the plaintiff and consequently used it to register in the said educational institution using the name of Qi Yuling. The plaintiff filed a lawsuit against the defendant maintaining that she was denied of her right to education as guaranteed by Article 46 of the PRC Constitution. The case was brought up to the Supreme People’s Court (SPC) which eventually declared that the right of the plaintiff was indeed violated. In 2001, the case was decided with the courts awarding a total of over a hundred thousand Yuan to the plaintiff for economic damages and emotional damages brought about by her infringed right to receive education. The problem in the said decision is that there was no explanation on the ruling whatsoever. Being one of the seminal cases in Chinese history, it rocked the legal world of the country as the verdict intimated that courts can now take on remedies directly from the constitution. To date, debates as to whether the said case will have a lingering effect on the legal framework of the country or would it be a mere footnote in history. The following parts of this paper will provide an examination on the implications of the ruling and the possible significance of the case in China.    A.   Analysis of the Implications of the Qi Yuling Case Ruling In this case, a direct use of the theoretical principles of the constitution is actually employed. In doing so, the ruling made by the SPC apparently became the first of its kind to protect the basic constitutional right of an individual. Based on the information about the case, it appears that the fundamental rights of Qi Yuling were the one that triggered the conviction of the defendants of the case. Furthermore, this made the constitution as a major tool in protecting the rights of the public. It allows for the judicial redress and allows precedent for courts to use the constitution in its rulings, which also forges the actual relationship between the state and the people. There are several effects on the ruling of the Qi Yuling case on the social and legal construct of China in terms of restoring the constitutional rights of the people. The ruling intimate that the appropriate way of redressing these rights is through the courts. In the same manner, the ruling, as it has made a considerable amount of noise, made the public aware of its constitutional rights. In addition to that, the theoretical attribute of these rights has been realized because of the ruling. In this manner, the gap between the citizens of China and their constitution has been significantly reduced. Another implication of the ruling is that the courts actually gave precedence on the constitution over the other applicable statutory provisions. For instance, it is apparent that educational laws would have been appropriately used to determine the outcome of the case. However, the courts prompted to employ what they deem as the legislation that rises above the demands of the case. The succeeding part of the paper will look on the implications of the case in relation to the conditions and surrounding circumstances present. B.   Significance of the Ruling One could not help but be optimistic on the effects of the ruling in the Qi Yuling case. Based on the review of the ruling in the previous part, particularly in the context of the implications of the ruling, it gives considerable promise and hope for the public. However, there are signs that intimate that these potentials may be thwarted by the limited significance of the case in reality. This part will look more closely on the ruling of the case and the reality that circumscribe it.  To illustrate, the disregard of a particular statute in this case is one that points a significant limitation for the doctrine provided by the case. Basically, the applicable laws and statutes in education are circumvented not because of its unconstitutionality. This may be a sign that the courts merely made the ruling just to establish a legal precedent, especially in instances where the statutory provisions available for the courts provide provisions that are irrelevant to the case. This means that the ruling of the courts intimated that they have no other choice but to apply constitution as there are no other rules applicable. In other words, the use of the PRC Constitution is used as a supplement to the existing statutory laws implemented in the land.   Inherently, it is a civil case. However, the major players in this judicial episode includes major bodies of the state such as the public schools which eventually was found to have contributed to the infringing the right of the plaintiff. It is a bold move on the part of the courts as it essentially shows signs of independence from the ruling parties provided by the state. However, being a civil case, it may fall short on having the maximum brunt that it expects as it is far from being a constitutional litigation case. Furthermore, the parties involved in the case, being it a civil one, are essentially treated as equals. This means that despite the presence of state bodies in the fray, it is the private defendants that felt the overall force of the decision. In addition, there are some uncertainties that add up to the cloud over this significant period in the Chinese legal system. One looming issue is the compatibility of the enforcement of this doctrine and the political attribute of the state.  Specifically, PRC is inherently a state that is governed by a single party, the Chinese Communist Party (CCP). The problem rests on the possibility of manipulation and blatant wielding of influence in instances where there is conflict of interest. There is quite a shadow of doubt looming over the capacity of the courts to stay independent of the whims of the CCP.   IV.          Conclusion The conditions surrounding the legal framework of China is said to be unique. This is especially true in its regard on its basic laws as maintained in its Constitution. The discussions above have provided the conditions surrounding the regard on the constitution of China before and after the Qi Yuling case. The study implied that the constitution of China appears to be a mere manifesto of the current leadership of the country, not an actual legal document. However, the recent Qi Yuling case has become one of the forerunners in the said jurisdiction to address the said document as a basis of its ruling. To a certain degree, it appears that China is closely adhering to constitutionalism. The problem in this regard is that believing this as a fact and expecting future accounts similar to the Qi Yuling case would be too good to be true. With the considerably radical leadership in the Chinese government as well as the inherent culture of abuse in terms of authority, the constitution of China will essentially continue to have insignificant influence on the legal system of the country. The constitution will continue to be a mere document despite the creation of a legal doctrine in the form of the Qi Yuling case. It is the contention of this paper that regardless on the number of reforms or revisions made in constitution of China; it will essentially be without the capacity to develop as a legal foundation of the country. The drive towards constitutionalism should be taken by the state intensively to guarantee that the changes will eventually stick and trigger reforms in the process. On the whole, the PRC Constitution still have a lengthy ride before achieving what is accomplished by the Constitution of the United States. Nevertheless, the recent events in the Chinese setting remind us that there is always a possibility for China to take on and consequently embrace these changes.

THE WRITTEN CONSTITUTION OF THE PEOPLE’S REPUBLIC OF CHINA: ANALYSIS OF QI YULING V. CHEN XIAOQ

THE WRITTEN CONSTITUTION OF THE PEOPLE’S REPUBLIC OF CHINA: ANALYSIS OF QI YULING V. CHEN XIAOQ Table of Contents I. ...

Human Resources Development in China

2.) What is “globalization”? What are the major changes to organizations brought about by globalization? How does it impact on China business and human resources practices? What is globalization?           Amicably, globalization has been hotly debated in such business arena over the years and has contributed a lot to such country’s economy and business such as in its market approaches and manpower activities particularly in China’s business and human resource practices as the focus for this assignment. As such definitions of globalization do vary widely and that perhaps, one of its core feature involves the “permeability of traditional boundaries of every kind” that would include physical borders such as Chinese nation states and less tangible borders such as those of cultural norms integration (Cited from, Parker, 1998, p. 6). Truly, globalization do integrate government plans like in their regulation with regards to such internet activities those that may include e-business in China and possibly create novel laws in such internet business. For instance, several Chinese efforts to introduce website censorship in order to series certain European Union directives dealing with issues such as copyright, internet businesses have been faced with growing tide of Internet regulation. Indeed, globalization brings about rapid changes in China as such business success relating to e-business may evenly require some regulation ranging from common global standards going direct to such legal reinforcements of such electronic signature for example. What are the major changes to organizations brought about by globalization?           The major changes to organizations due to globalization will be centering on several globalized organization that amiably depend on people, those people who are “willing to take personal initiative and to cooperate with one another, who have self-confidence and commitment to Chinese company and who are able to execute relatively routine tasks with the same proficiency as they are willing to learn new skills and ways to take the company to the next stages of ambition” (Cited from, Bartlett and Ghoshal, 1995, p. 11). Thus, the change within human resource is visible by then as globalization of human resource in Chinese organization can basically embrace some of underlying social process that may override the constraints of China’s geography and ethnicity indirectly (Cited from, Levitt, 1983). For instance, some of the members, no matter where they work, are acculturated to embrace the values and the beliefs of the globalized Chinese organization (Cited from, Nahavandi and Maleksadeh, 1988).           Furthermore, within the sanctions of globalized organization, it can be that the, human resource management or HRM will be acting as control system that ensures acculturation of such business members from within the organization and amiably directs their behavior towards better accomplishment of an ideal organizational mission and business objectives (Cited from, Eneroth and Larsson, 1996). Moreover, HRM in China in function does consists of aspects in selection, rewards, appraisal, social duties and the development of individual workers in order to contribute such desirable achievement to be utilized in realizing business environment functions as well as organization goals from within (Cited from, Eneroth and Larrson, 1996, p. 8). Thus, there can be changes within China’s HRM structure and context as brought about by strong effect of globalization, there can be such acknowledgment reality implying crucial dimension of global business approach or strategy, the change reflects as globalized organization in China do venture well into diverse structure arrangements that requires integration of business markets in lieu to certain strategic utilization of human resource practice, backed with economic support and application of technology and its related advances. Aside, such changes has equated the process of globalization in promoting awareness to democracy of such business economic growth in China and the opportunity to strengthen human resource management in practice that possibly converge the interests of stable countries as well as the rich nations. How does it impact on China business and human resources practices?           According to Secretary General of UNCTAD, the two causes of the South East Asian crises were: “excessive openness to the world economy” and “inability to manage this openness” on the part of the South East Asian governments. Rucipero recounts that, after the liberalization the 1990s, the trade deficit of those countries was three percentage points of GNP higher than it was in the 1970s, while their average economic development growth rate was lower by two percentage points. For his own opinion, globalization failed to assure sustainable economic growth in the developing countries (Cited from, UNCTAD, 1999). Believing that, other involved parties like, in business do simply blamed globalization for deepening vertical and horizontal income inequalities. Special criticism was reserved for those neo-classical economists who talked about wealth “trickle down” effects.           Besides, through joining the World Trade Organization, China has demonstrated her commitment towards further economic reform and engaging global economy. However, one of the critical areas of debate has been in the area of employment relations: issues such as implementation of international labour standards, the role of trade unions, working conditions, wage-price factors in relation to cost of production and export competition in global market, social protection and social inequality against fairness and justice, power of multinational corporations, global division of labour versus Chinese labour diversity in industrial democracy against power control and corruption and others (Cited from, Chan and Chuen, 2001). However, the imbalance of power within HR labour relations is quite obvious in such Chinese enterprises wherein management power has expanded without setting very defined limits and where labour has become increasingly passive and vulnerable. However, it is crucial for global community and the Chinese people to seek informed perspective on the current situation and the future engagement of Chinese economy into the global economic system, as well as China's underlying reforms within economic and business levels.           In addition, one aspect of globalization debate is on the terrain of social regulation, specifically the regulation of the labour market and employment relations. One side of the argument claims that globalization appears to be eroding the power of nation-state, limiting its capacity to regulate labour relations and in turn reducing the potential leverage of organized labour to influence such regulation (Cited from, Elger and Edwards, 1999, pp. 1-40). The argument claims that there in fact, remain important actors in the regulation of labour, and this is not just through the passive provision of support and infrastructure to firms or industrial districts but also entails active choices regarding the way in which labour is regulated (Cited from, Elger and Edwards, 1999, p. 27). As for the case of Chinese economic reform and open door policy, consequence for terrains of labour market regulation and labour relations at macro level and micro level is vividly challengeable and complex. Another terrain of globalization argument has been closer to China's home ground, for example the impact of globalization on labour markets and human resources within the East Asian region (Cited from, Warner, 2002, pp. 384-98; Zhu and Warner, 2003). There can be about labour-markets, one of imperative factors influenced by globalization and such influence had direct impact on human life of the people. Since labour is one of main resource of Asian developing countries, the HR in manpower market will amicably register to such impact due to the changes in business parameters of the country (Cited from, Warner, 2002, p. 388). Certainly, some of the critics regard globalization as being part of “zero-sum game” wherein benefits found in HR practice are not properly distributed between the key business players within the organization (Cited from, Warner, 2002, p. 388). Aside, presence of tough competition by means of providing cheap labour in order to magnet foreign investment can eventually result in race to the bottom within process of certain business operations (Cited from, Chuen, 2001, p. 34).           Ideally, Budhwar and Debrah (Cited from, 2004) mention that, HRM practices are largely driven by external factors in China within the important economic conditions, company size and the owner's background and culture that HRM in China comprise set of practices in the service of the employers to maintain employment relationships. As there is a need to develop global approaching of competing in terms of production and human resource upgrading as the issues related to personnel management which does not only include personnel administration but there can be strategic point of view. Henceforth, HRM implies critical success factor for foreign companies operating in China as it stresses on the importance of focusing on human resource strategies that enables different context that the global approaches had impacted the people in terms of its culture, government, laws and systems as well as the culture of Chinese business.           Thus, globalization can brought about changes in business environment creates pressure which makes adaptations of business strategy inevitable and hence adaptations of human resource management in China. It can be true that there are certain preferences and shifts in company policies regarding manpower and succession planning, recruiting; training, performance and compensation management which is determined by the owner's business is striving. The HR policies and practices have casual relationship with business realities in lieu of maintaining an optimum employment relationship through the challenges that brings global impact to human resource approaches and its HR practices. The impact has geared towards the intervention that has been minimal from setting up initiatives for long-term manpower development as the government may not favor laws mandating trade unionism from within such minimum wage for human labor. Hence, Snape and Chan (Cited from, 1999) offer three reasons for this: the small size of establishments in manufacturing and private sector services, cultural resistance of workers towards joining unions and openly challenging their employer’s hostility towards unions.           Instead of work-related issues, unions engage mostly in activities outside the workplace and providing educational and health services to members. The consequence of institutional permissiveness for HR managers is that they can adopt a set of highly versatile and flexible HR practices based on individual employment contracts (Cited from, Cheung et al., 2000; Ng and Wright, 2002). Firms can adjust their compensation based on individual performance and prevailing market conditions. Conversely, individuals can negotiate their wages and salaries according to their individual bargaining power. Furthermore, HR priorities should be prepared to place even more resources on supporting activities. Helping the business sectors meet their needs, university education should focus on training personnel for logistics management, process engineering, information systems, finance and management.           There has also been a greater emphasis on equal opportunities with the growth of pressure groups calling for greater rights for women and the beginning of an interest in racial issues. There is the presence of local Chinese family business having significant number of employees as the success was built on businesses in textiles, garment manufacturing and trading and that these family businesses have grown alongside economy to expand into innovative markets. Moreover, business decision makers and management have reached to the third generation succeeding their founders and their HR policies are more comprehensive and formalized even though the HR policies are different from those promulgated by the strategic partnership model. Thus, Redding (Cited from, 1993) and Westwood and Chan (Cited from, 1992) suggested that the Chinese heads and their businesses encapsulate the ethnocentric values of Confucian paternalism, patriarchy and personalism as seen in their power connected to ownership, a distinct style of benevolently autocratic leadership and personalistic as opposed to neutral relations and the management style is paternalistic emphasizing harmony and compliance (Cited from, Westwood and Chan, 1992) The Chinese management style propagates unique employment relationships marked by delicate blend and balance between a western outlook and traditional Chinese values.           However, the there has been a useful development which was accompanied by major growth in the financial and business services sectors and the associated upgrading in the occupations by a rise in the educational standards. The need to sustain harmonious relationships in the workplace is critical and a good deal of energy needs to be expended in establishing, building up and maintaining good interpersonal relationships and social networks, both within and outside organizations. This can be prime requirement in Chinese organizations that business relationships in these countries are facilitated on guanxi, which describes the quality of relationships that are developed over time and which centre on the social rules of favors and reciprocity and mutual obligation as guanxi networks are essential feature of doing business in China. There has such issue of diffuseness as it tends to mean that life spheres are less differentiated and fragmented in specific cultures as apparent where people in order for them not to engage in work related activities at any time in connection to such own business. There are influences in the development of HRM in China there refers to management practices as being used to regulate employment relationships in sizable organizations (Cited from, Armstrong and Long, 1994). The human resource management approach had taken over and that the labor pool had made available by the influx of combined immigrants from China (Cited from, Cheung et al., 2000).           During certain times, human resource management were administration oriented, perceived as less strategic and so personnel management would be a more fitting characterization as there was plentiful supply from the refugee pool and the postwar baby boom (Cited from, Chen, 2000) as some of the managerial positions were often filled by expatriates. (Cited from, Ng and Ip, 1999). The Chinese companies had adjusted to new business environment with revised HR measures (Cited from, Fosh et al., 1999; Cheung et al., 2000) as it was more cautious in recruitment and moved towards performance-based compensation as the companies needed to tackle new HR issues such as downsizing and employee retrenchment and identified the need for more structure and flexibility HR practices. (Cited from, Cheung, 2001). More companies have adopted strategic HRM as compared to traditional HRM. There was also more outsourcing of HR functions in training, development and recruitment. There is a spectrum of relative degrees of HRM partnership that underpinned HR policies and practices from strategic partnership administration at the other. This relative continuum of HR involvement in the business strategy is attributable to the size and the ownership of the firms. (Cited from, Redding and Wong, 1986; Shaw et al., 1993; Snape et al., 1998). However, the HRM functions are still found to be separated from the decision and power core of the businesses and from other business operations in the company, performing an administrative rather than strategic role. There was the effect of globalization as externally oriented and open economy and adopted international regulation and set up human rights commission (Cited from, Ng and Wright, 2002). Assessment           Positively, China possibly expresses growth in lieu to the development of HRM from such business that the country is open with and do compete from within the reality of a fast changing globalized business market as it can be that, several Chinese businesses will need to be more HR adaptive and eager to adopt to such changes and be effective in its HRM practices and principle oriented manners of handling employees/staff. Then, supporting the role of China in providing ideal service to people coming from positive dominance within the accessible functions of their business society. Lastly, there is a need for China to have precise advantage in technology utilization as it emphasizes global paradigm for the Chinese companies like the SME’s operating the country, to apply and execute well such as those planned and developed ways in strategically driven HR practices that do speed up the requirement within Chinese business in terms of better people management that is ideal for future situations that can change China as a whole.       REFERENCES Armstrong, M. and Long, P. (1994) The reality of strategic HRM, London: IPM. Bartlett, C.A., Goshal, S. (1995), "Rebuilding behavioral context: turn process reengineering into people rejuvenation", Sloan Management Review, Vol. 37 No.1, pp.11-23 Budhwar, P.S. (2004). Managing Human Resources in Asia-Pacific, Routledge New York pp. 75-89 Chan, A . and Chuen L.T. (2001), "The impact of the WTO on workers in China, Part I", The Chinese Economy, Vol. 34 No.3, pp.3-93. Chen, E.K.Y. (2000) "The economic setting, " in D.G. Lethbridge and S.H. Ng (eds.) The business environment: Oxford University Press, pp. 3-46. Cheung, G., Ho, E.Y.Y., Ng, S.K. and Poon, C.Y.W. (2000) "Business restructuring in Hong Kong, " in D.G. Lethbridge and S.H. Ng (eds.) The business environment in Hong Kong, Hong Kong: Oxford University Press, pp. 154-184. Cheung, S. (2001) Human resource management strategies and practices in Hong Kong: Hong Kong Institute of Human Resource Management. Chuen, L.T. (2001), "Several issues regarding the impact of the WTO on China's social development", The Chinese Economy, Vol. 34 No.3, pp.33-50 Elger, T., Edwards, P. (1999), "National states and the regulation of labour in the global economy: an introduction", in Edwards, P., Elger, T. (Eds),The Global Economy, National State and the Regulation of Labour, Mansell, London and New York, NY, pp.1-41 Eneroth, K, Larsson, R. (1996), "The human side of strategic change", International Studies of Management and Organization, Vol. 26 No.1, pp.3-15.   Enright, M., Scott, E. and Leung, E. (1999) Hong Kong's competitiveness beyond the Asian crisis, Hong Kong: HKTDC Research Department. Fosh, P., Chan, A.W., Chow, W.W.S., Snape, E. and Westwood, R. (1999) Hong Kong management and labour: Change and continuity, London: Routledge. Levitt, T (1983), "The globalization of markets", Harvard Business Review, Vol. 61 No.3, pp.92-102 Nahavandi, A., Malekzadeh, A.R. (1988), "Acculturation of mergers and acquisitions", Academy of Management Review, Vol. 13 No.1, pp.79-90 Ng, S.H. and Ip, O. (1999) "Manpower, " in L.C.H. Chow and Y.K. Fan (eds.) The other Hong Kong report 1998, HRM in Hong Kong: Chinese University of Hong Kong Press. Ng, S.H. and Wright, R. (2002) " Hong Kong, " in M. Zanko (ed.) Handbook of human resource management policies and practices in Asia-Pacific economies, Cheltenham: Edward Elgar, pp. 167-259. Parker, B. (1998), Globalization and Business Practice: Managing Across Boundaries, Sage, London Redding, G. and Wong, G.Y.Y. (1986) "The psychology of Chinese organizational behaviour, " in M.H. Bond (ed.) The psychology of the Chinese people, Hong Kong: Oxford University Press Shaw, J.B., Tang, F.Y.T., Fisher, C.D. and Kirkbride, P.S. (1993) "Organizational and environmental factors related to HRM practices in Hong Kong: A cross cultural expanded replication, " International Journal of Human Resource Management 4 (4): 785-815. Snape, E. and Chan, A. (1999) " Hong Kong trade unions: In search of a role, " in P. Fosh, A.W. Chan, W.W.S. Chow, E. Snape and R. Westwood (eds.) Hong Kong management and labour: Change and continuity, London: Routledge, pp. 255-270.   UNCTAD (1999), Report of the Secretary General of UNCTAD to UNCTAD X, United Nations, Geneva, Vol. TD/380 Warner, M. (1995), The Management of Human Resources in Chinese Industry, Macmillan, London and St Martins Press, New York, NY Warner, M. (2002), "Globalization, labour-markets and human resources in Asia-Pacific economies: an overview", International Journal of Human Resource Management, Vol. 13 No.3, pp.384-98. Westwood, R. and Chan, A. (1992) "Headship and leadership, " in R. Westwood (ed.) Organizational behaviour: Southeast Asian perspectives, Hong Kong: Longman, pp. 118-143. Zhu, Y., Warner, M. (2003), "HRM in East Asia", in Harzing, A-W. (Eds),International Human Resource Management, Sage, London

Human Resources Development in China

2.) What is “globalization”? What are the major changes to organizations brought about by globalization? How does it impact on China busi...

Foreign direct investment (FDI) activities in China

EXECUTIVE SUMMARY This essay utilized Palm, Inc. as the model multinational corporation to review its present foreign direct investment (FDI) activities in China and how they dealt with critical situations. From the analysis, key trends in the FDI activities were then identified, how it worked and its effectiveness in dealing with critical situations was ascertained. The paper then moved on to assess the impacts of FDI on China with regard to its suitability to critical situations, during which the importance of FDI in relation to the strategy being followed by China was determined also. An overall analysis of the performance and effectiveness of China’s FDI policies was also conducted to assess and compare the capabilities of these policies with those of others. Gaps in the FDI policies of China were then identified. Finally, several choices of strategies to improve the FDI policies of China as effective means in critical situations were recommended and evaluated in terms of appropriateness to the issues reviewed, feasibility in carrying out the options and acceptability within the key stakeholders and decision makers. Several key implementation issues related to managing strategic change were also addressed as well.       INTRODUCTION As a person with knowledge of Foreign Direct Investment (FDI) in China, the author has always brought up to his superiors the viability of strategy formation regarding the analysis of this topic and at times fails to understand the reasons or logic behind certain strategic implementations imposed on it. By delving into this project paper, the author intends to have better insights into how Foreign Direct Investment (FDI) in China is thought up, formulated and then imparted down. The author hopes to have an in-depth understanding as to how the Foreign Direct Investment (FDI) enables China to compete effectively and profitably in this era of internationalization where competition is extremely intense. In order to reinforce the learning objectives, two key focal issues were focused upon, i.e. innovation and diversity. Innovation was discussed with regard to Foreign Direct Investment (FDI) in China where it was renowned for its developmental capabilities to constantly innovate. Diversity came under strategic thinking and formation as the author considered the diverse culture, political climate, economic surroundings, social environment, technological settings, government policies and legal systems in order to better understand the issues being discussed.     FDI defined Foreign direct investment (FDI) occurs when a parent enterprise instigates a long term investment with a foreign direct investor. This leads to the efficient and effective implementation of the policies and tasks necessary to satisfy a customers, employees, and management of the transnational corporation. Foreign direct investment (FDI) focuses on the careful management of the processes involved in the establishment of acceptable investments and services (Amsden, 2001). More often than not, small companies don't really have the capabilities to implement foreign direct investment. Instead, these companies engage in activities that various schools of economics typically associate with foreign direct investment. These activities include the trading of products, product development, production and distribution. However, foreign direct investment deals with all operations done within multinational companies and organizations. Activities such as the management of purchases, the control of inventories, logistics and evaluations are often related with foreign direct investment. A great deal of emphasis lies on the efficiency and effectiveness of processes. Therefore, foreign direct investment includes the analysis and management of internal processes. Palm, Inc. will be the model multinational corporation (MNC) that will be used in this research based on their history in foreign direct investment. The Impact of FDI in China Despite the adverse economic trends in the first half of the year because of certain restrictions in the FDI policies of China, the country as a whole still experienced a relatively robust economic growth. It is estimated that China, taken together, posted a better-than-expected GDP growth of 4.5% last year, slightly higher than the 4.1% growth that they achieved in 2002 (Loughran et al. 2004). It is a common knowledge that the FDI policies of China are still relatively new and is still in its early stages of development. However, it has shown signs of rapid growth and it is being estimated that there will be more entrepreneurs and multinational corporations that will invest in the country within the year. And it is further being expected that within the next years the tremendous growth and technological advancements will continue in China. E-commerce and multimedia terminals are just some of the technological advancements already being expected. Therefore, the continued growth and development will also make it imperative for localization to occur in China in the years to come. The Importance of FDI in China China has experienced electoral and political transitions and crises in the last 12 months following the implementation of FDI policies.  There have been at least four political trends that have emanated from these events. These are: (a) the cry for democracy and reforms in the FDI policies; (b) increased popular and local-level assertiveness; (c) greater public accountability; (d) re-definition of the concepts of power and politics. Also, the forms of political economies have slowly shifted from a bipolar (big government-big business) to a tri-polar structure (authorities - private sector – civil society).               The implementation of the Free Trade Area, or FTA, which laid out a comprehensive program of regional tariff reduction in the Chinese market, will be continuously implemented in phases through the year 2008 (Berger et al. 2003). Over the course of the next several years, the programs in tariff reductions were made broader. Efforts to eliminate non-tariff barriers and develop common real estate market standards were initiated. In addition, China also was able to formulate framework agreements for the intra-regional liberalization of FDI. Industrial complementation schemes meant to encourage intra-regional investment were also approved. Case Study Palm, Inc. is a business entity specializing in mobile computing. Its products enable its customers to put the power of computing in their hands, along the process accessing the information they need.  Palm, Inc. was established in 1992 by Jeff Hawkins, Donna Dubinsky, and Ed Colligan, which later co-invented  the Palm Pilot. Palm, Inc. aims for sustainable growth as a broad market leader in mobile computing as well as for segment leadership, hence the rationale for its foreign direct investment activities in China. In both cases, the Palm, Inc. brands will play a crucial part. Palm, Inc. is able to establish its broad leadership in China usually by acquiring other strong mobile computing companies and their products, which are then combined into a new, larger company. Offering training to its employees, improving the company operations, and the introduction of new technologies then reinforces the positions of the various Palm products. This practically results in economies of scale that is able to create a distribution network for both the local and international Palm products. If a market is already in the control of other mobile computing companies, Palm, Inc. devotes its attention towards the development of a premium segment with its various Palm products.             The mission of Palm, Inc.’s foreign direct investment activities in China is to secure the growth of its business in a sustainable manner within the country, while at the same time constantly improving the company’s profitability. The strategy to achieve this involves four elements: <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Striving in order to reach a leading position in China</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Focusing on securing a competitive share of the mobile computing market segments within China. </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Working in order to improve the company’s efficiency and cut costs in operations. </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Continuous growth through selective acquisitions within China for as long as they are able to create shareholder value. </li>   Risks, Barriers, Crisis There have been social and cultural trends that have been evident over the last 12 months after the restrictions in the FDI policies in China. These include: (a) the irreversible rise of civil society against the restrictions; (b) the rise of civil society blends perfectly with a tri-polar structure of political economy; (c) the increase in the roles of intellectuals; and (d) the beginning of a period of introspection (Gertler et al. 2004). The creation of restrictive FDI policies, commercialization, and protection has been a significant source of comparative advantage of multinational corporations and economies and a major driver of their competitive strategies. Indeed, China is fully aware of the pressing need for a long-term policy commitment to collectively transform its FDI policies into one which is largely based on knowledge, driven by innovation and sustained by the active participation of all major sectors. China has pledged to work together to help accelerate the pace and scope of policy formulation, commercialization and protection; to improve the regional framework of FDI policies and institutions, including the development and harmonization of enabling monitoring and evaluation systems; to promote cooperation and dialogues within China as well with the country’s organizations; to strengthen FDI related human and institutional capabilities in the country, including fostering greater public awareness of issues and implications relating to its FDI. Overcoming Barriers and Improvement There is definitely a need to reconcile both the inside-out and outside-in capabilities. While China’s FDI policies involve focusing on its core competencies with market position following its resource base, the country will be put into a disadvantageous position should it choose to neglect both the macro as well as the macro environment. Therefore, China has to be aware of the latest FDI changes, as well as changes in political, economic, legal and even demographic trends in order to develop the outside-in capabilities, such as market sensing, customer linking, channel bonding and technology monitoring. The advantages enjoyed by Palm, Inc. may come in the form of increased revenues. Knowing what the Chinese market demands and the latest trends could help the company fully exploit its research and development capabilities to come out with products which are not only cost-effective but also high in quality. The strategic option can even be used as marketing tool where the focus is on staying close to their customers and listening to their feedbacks. On the flip side of the coin, there will be huge mobilization of resources involved, and the associated risks bestowed on Palm, Inc. Nevertheless, the mentioned strategic option seems the most practical in the wake of globalization, since there is a sudden shift towards a more integrated and independent world economy. The key stakeholders too should not have any objections so long as Palm, Inc.’s core business is not threatened. By virtue of China’s centralized control of its FDI policies, it is being expected that major barriers should not exist in carrying out such an option except additional time may be required given the scope and span of operations. CONCLUSION The results of the analysis carried out on the FDI policies of China indicated very significant effects, even amidst the threats of unrest. Therefore, we could conclude that the China and its FDI policies could still be expected to improve faster than average. The review of the impacts of FDI on China’s capabilities and resources revealed very little inconsistencies regarding its FDI policies. This is coherent with their traditional inside-out approach. However, the need to reconcile both the inside-out and outside-in approaches becomes imperative now. The analysis among the environment as well as the restrictions on China’s FDI policies revealed certain gaps, most of which are biased towards the environment. However, these gaps paved the way towards determining a number of recommended strategic options to secure the competitiveness of China’s FDI policies. Also, the Chinese government has to find a balance between adherence to internal forces within the management and to the changing forces of the environment in order to implement such strategic options.   REFERENCES Amsden, A. 2001. The Rise of “The Rest”: Challenges to the West from Late-Industrializing Economies. New York: Oxford University Press.  Berger, Allen N., Rebecca S. Demsetz and Philip E. Strahan, 2003. Journal of Banking and Finance 23, 135-94.   Gertler, Mark and Simon Gilchrist, 2004. Quarterly Journal of Economics, 309-40.   Loughran, T., J. Ritter and K. Rydqvist, 2004. Pacific-Basin Finance Journal 2, 165-199. www.Palm.Com. Retrieved November 3, 2006

Foreign direct investment (FDI) activities in China

EXECUTIVE SUMMARY This essay utilized Palm, Inc. as the model multinational corporation to review its present foreign direct investme...

The Financial Sector in China

The Financial Sector in China It is the case of the already economic-awaken China.  By opening its doors to international commerce, its exchange rate system aroused concerns from the world commodity currency of United States Dollar.  Thus, the formerly fixed exchange rate Renminbi had to realize appreciation which is out of the conventional state-owned decision-making and policy.  The China’s Central Bank is unwilling to accept command from the US, partly some of inherent protection to Western imperialism, rather chose to act according to its own will.  Due to this, it is slowly but indirectly granting the wishes of the commodity currency through seemingly adapting some features of floating exchange rate system.    Perhaps, one of the unchallenged consequences of international trade, floating exchange rate system ensures that the economic performance of a nation will be reflected through its own currency.  As in the case of the reincarnated China, foreign direct and portfolio investments serve as key contributors to its fast surging economy.  A lively-active market entails inflation which in turn increases the local demand for the currency of both consumers (to buy the products) and producers (to finance capital requirements).  Hence, as supply and demand law posits, its currency faces appreciation.   However, tagging the country as one of the best destinations of FDI, due to demand potential of its enormous consumers and labor-cost advantages, did little to tickle government authorities.  Emanated by 8.03 to 8.02 appreciation against the dollar, such minimal increase posted the highest gain of the currency since it began revaluing Renminbi to accord international market forces.  Can be viewed as highly conservative floating exchange rate system, it also recently allowed its major banks to reflect revaluation trends.  But why is China so conservative to embrace the “invisible hand” of currency valuation?  Is it purely political regimen to imply world power, protection of local producers/ consumers or simply adaptation flaws for a millennia-old centrally-planned form of governance?   Probably, China does not want risks to emerge abruptly parallel to its abrupt adaptation of floating system.  It can lead to inflation and adverse effects to balance of payments which the state cannot act on readily because national forces widened into complex and ever-changing international forces.  Rather the state wanted a smooth shift as it builds the necessary institutions to help its policies address the exchange rate issues in the future.  Thus, the gradual approach of China to freely float its currency in the international arena is preferred both for the benefit of its population and install supremacy of its government against other countries.    Local producers are given the time to obtain efficiency in its operations, as reflecting the US measure of the under-priced of Renminbi could mean more expensive export merchandise detrimental to its balance of payments.  In a similar way, consumers are provided with cues on what to expect to their wages and price level in the upcoming future, therefore, preventing public panic of any abrupt development.  Lastly, the state avoids its political ideals to be inflicted by other customs especially to affect the minds of its citizens.  This argument is concretized how the government created their own internet search engine to filter down political and “destructive” global information.       Implications Wealthier countries have the ability to obtain substantial amount of foreign reserves to hedge unintended fluctuations in the world market.  This inequality of liquidity makes poorer countries dependent to them in their economic judgment.  More appropriately, poor countries acting like so when the wealthy counterpart is an important trade partner.  As a result, its floating rate performance will have the same direction as the wealthy one.  The problem is in the event of global recession, these poorer countries will not be saved by their partners’ mere currency harmony rather it involves the former to save its currency within its own borders.    Thus, there is little and partial advantages of both fixed and floating system for the poorer one.  Trade liberalization at the international level demand its local producers to be efficient and technologically competitive to push the local BOP upward while the government is duty-bound to replenish foreign reserves for future contingencies.  Globalization means independence and competitiveness of both currency and national economy.  As China handles its global position, poorer countries should have the billion dollar reserves in their Treasury to obtain not only economic security put also national identity.            Spot exchange rates are risky for MNEs as the primary determinant of host country demand depends largely on the price of its goods, services, labor and entrepreneurship (GSLE).  Particularly true to unstable currencies, price competitiveness of an exporting MNE is pegged on fluctuations of host country’s currency.  If spot rate suggests that the host (say, Japan) currency depreciates, home MNE (say, based in US) GLSE becomes expensive since importers face a stronger dollar.  When sold to end-users, adverse reactions such as added-costs without added-value or simply look at the exporter’s products as unfair may result.  If the spot rate change is cyclical, the MNE is on a relatively comfortable zone.  However, when fluctuations are regular and the direction is unpredictable, the submission of MNE to trade depends on how much risk it can hold.  When MNE investors become anxious in achieving expected foreign cash flows, this is when hedging becomes useful.                 Since forward foreign currency contracts assume that parties tend to maximize their utility, it can also predict the expected spot rate of foreign currency.  This can be helpful for risk-averse MNEs especially when they are only engaging to get a break-even point or fair gains from trade.  It can simply quote its desired level of foreign currency valuation with respect to its GLSE.  Thus, international trade tends to be stable in both demand and supply since speculation is minimized in favor of arriving at forward rates.  In the financial market, forward rates can also result for investors to continuously invest over a period of with little slack time.  As a result, in-need MNEs can gain access to capital easily and readily.  This will also imply that investors are less speculating rather they become more firm-specific.  In effect, quality of products and efficiency can also be outcomes of forward quotations.       Credit:ivythesis.typepad.com

The Financial Sector in China

The Financial Sector in China It is the case of the already economic-awaken China. By opening its doors to international commerce, it...

Deng Xiaoping: China’s Paramount Leader

Deng Xiaoping: China’s Paramount Leader               Deng Xiaoping was one of the most influential people in modern Chinese history. He led China into a new era of economic stability. He was a great leader. However, he will also be remembered as the man who ordered troops to clear Tiananmen Square in 1989.   Strengths:               According to  (1991), Deng's strategy of regaining power was through a circuitous route: eschewing a frontal bid for power, he set out to use his supporters to whittle away the ideological foundation of the Hua regime and to create a political atmosphere that enhanced his own prestige (). While constantly criticizing the leaders who had risen to power during the Cultural Revolution, Deng did not press for their immediate removal. In return, he was able to add his own supporters to the Politburo and the Central Committee. Deng also pushed through changes that facilitated the expansion of his power base. From the very beginning of Deng's return to power in 1978, he realized that he had to have a corps of solid supporters to ensure the survival of the new regime first and then to mount a program of economic construction. However, the basis must be a unified party under a unified leadership. Initially, however, he probably thought that this unity could be achieved by two measures. One measure was to bar those with known deviant tendencies from entering into the leadership. While leaders who had previously made mistakes were allowed to repent and redeem themselves, certain types of people were disqualified to serve as leaders. They included party members who had engaged in destructive activities, had strong factional propensities, or had mistreated other comrades and betrayed the party's interest. A second measure was to ensure that the people to be incorporated into the leadership were politically reliable and ideologically correct. This need was met by the rehabilitation of old cadres. It did not take long, however, for Deng and his associates to realize that these measures were not enough. Even though known deviants were blocked from entering the leadership, many more deviants had already occupied leadership positions on all levels. Unless they were removed, party unity would be an illusive goal. On the other hand, although the rehabilitated old cadres met the requirement of political reliability, their competence was highly doubtful. Eventually, the party concluded that the best way to ensure the continuity of their reform programs was to reconstitute thoroughly the leadership on all levels. Only when the party's organization was placed under the firm control of a new generation of revolutionary successors could its reform programs have a fair chance of success (Hsi-Sheng 1991, p.43). Deng Xiaoping insists that his reforms have achieved much more success, and therefore enjoy much more popular support, than did Mao's programs. These factors, he believes, greatly increase the prospects that the reforms will survive him. But Deng has not been content to leave matters to chance. Like Mao, he has also undertaken an active program of political and organizational restructuring designed to institutionalize the reforms he has sponsored. Deng has attempted to restaff and restructure the Chinese political system to maintain, perpetuate, and institutionalize the reforms. This aspect of Deng's broader reform program has had three principal components, each one designed to address one of the organizational problems just outlined. They include reforming the Party and state bureaucracies and the policymaking process to provide a solid base of political and technical support for Deng's reforms; redefining the roles and interrelationships of the Party, the army, and the government; and designing and implementing arrangements for the political succession to Deng Xiaoping ( 1987).               Under Deng’s Leadership, China’s relations with the West improved markedly. From the mid-1970s into the 1990s, Deng Xiaoping did more than any other PRC leader to promote relations between China and the rest of the world, particularly through the ‘open-door policy’. He visited the USA, Japan, France, East and South-east Asia, and demonstrated in a number of ways—cultural and personal, as well as political and economic—openness towards the world outside China. Particularly during the early 1980s, he made skilful use of the international media in furthering China’s ends. (Goodman 1994, p.121). Deng traveled abroad and had a series of amicable meetings with western leaders. He was the first Chinese leader to visit the United States in 1979 to meet with President Carter at the White House shortly after the US broke diplomatic relations with the Republic of China and established them with PRC (People’s Republic of China). There were also significant improvements in Sino-Japanese relations under his leadership. Another achievement of Deng was the agreement signed by Britain and China on December 19, 1984 (Sino-British Joint Declaration) under which Hong Kong was to be handed over to the People’s Republic of China in 1997.   Weaknesses:               According to (1994), China's evolution in the Deng era shared some similarities with that of the Mao era. Just as Mao twice blocked democracy only to sink into despotism during the Korean War in 1950 and again in 1956 during the Hungarian affair, Deng halted the democratic progression embarked upon after the 1978 Third Plenum. In 1979, at the time of the Sino-Vietnamese War, and in 1980, at the time of the Polish crisis, Deng stopped the engine of progress toward democracy that he had thrown into gear. He thus set a course toward a new despotic empire. In the beginning, however, Deng had consolidated his power by relying on the forces of reform at the heart of the Party and on the democracy movement at the heart of Chinese society (). At one time, Deng Xiaoping captured the forces of reform in China and seemed ready to march forward. But he was a pragmatic politician without profound insight. He lacked a fixed target and too frequently altered his judgment and changed his decisions in reaction to the immediate situation, making one concession after another. He made the wrong decision with sudden changes in direction away from reform, and thus squandered the best opportunity for meaningful reform in China. Deng is a pragmatist at heart, and his views and concerns change in accord with immediate political needs. He was bombarded with criticisms both from Democracy Wall and from within the Party. Deng was also notorious for his implementation of force and violence to solve internal issues. Whenever China was confronted with difficulties that could not be solved solely by administrative means, Mao Zedong relied on mass campaigns. Deng, however, always turned to military solutions and violence. This taste for patriarchal autocracy and military violence was Deng Xiaoping's Achilles' heel. Eventually it betrayed his rational deliberations. It caused his conflict with Hu Yaobang, for Hu Yaobang recognized that problems of public order and social problems were normal phenomena that should not raise any concern in a big country and that a method of comprehensive treatment should be adopted along with solving problems through normal legal procedures. Deng Xiaoping, however, advocated all kinds of extreme notions, such as "everyone that comes should be seized; counterattack should be heavy, severe, and rapid; kill a few and seize a few; send them to the remote regions of Xinjiang, Ningxia, Gansu and revoke their residence permits in Beijing.   Mistakes               Deng Xiaoping pushed reform for nearly two decades, exposing an entire generation to the sweet taste of economic betterment. One of Deng’s mistakes is the lack of toleration for criticism of the government, as illustrated by the 1989 massacre of pro-democracy demonstrators in Tiananmen Square. Many of Deng’s critics believed that it was Deng who issued the order for the People’s Liberation Army troops to open fire on the democracy protesters in Tiannmen Square. Soldiers and tanks from the 27th and 28th Armies of the People’s Liberation army were sent to take control of the city. These forces were confronted by Chinese students in the streets of Beijing and the ensuing violence resulted in both civilian and army deaths. The government refused to acknowledge that any deaths had occurred because of the violence. The violent suppression of the Tiananmen Square protest caused widespread international condemnation of the People’s Republic of China. Deng was accused of suppressing any signs of political freedom that would undermine the direction of his economic reforms. The political ambiguity of Deng's personality has proven to be an insoluble contradiction between his rational deliberative style and his passion for violent military action and for patriarchal dictatorship, a passion deeply anchored within himself that he cannot get rid of. His taste for patriarchy, tied to his "patron of the steelworks" complex, as Mao put it, have led him to act in ways contrary to his rational deliberations. He did not want the highest leadership position, but he would not allow anyone else to assume the role of patriarch into which he fitted so well. Deng has also left a China with a high economic growth rate but with underlying economic problems, widespread unemployment and little change in China’s tradition of authoritarian government.       Lessons from Abraham Lincoln:   1. Consistency 2. Leadership of firmness and moral rigidity 3. Passion for peace and forgiveness 4. Flexibility and generosity               Abraham Lincoln is considered as one of the greatest leaders of all time. He led his country at the time of its greatest crises. It was a true leadership of firmness and moral rigidity, balanced by a passion for peace and forgiveness. In his planning for peace, the president was flexible and generous, encouraging Southerners to lay down their arms and join speedily in reunion. Lincoln’s achievements include saving the Union, unifying the United States and freeing the slaves. Lincoln’s leadership qualities were evident in his close supervision of the victorious war effort. He brilliantly handled the factions of the Republican party by bringing the leaders into his cabinet and forcing them to cooperate. He took a moderate view of reconstruction, seeking to speedily re-unite the nation through a policy of generous reconciliation. His assassination made him a martyr for the ideal of national unity. Lincoln is noted for his lasting influence on US politics. He sought to redefine republican values. He also promoted nationalism and enlarge the powers of the federal government.     Leadership Theories:               Deng Xiaoping’s Theory emphasized economic construction and stability. He was able to led China to a phenomenal economic growth. Four principles compose Deng’s ledearship theory. These principles are Marxism and Leninism, Party Loyalty, Subjection to leadership and Thoughts of Mao Zedong. Deng Xiaoping Theory has been regarded as continuity and new stage and new outlook of Marxist philosophy in contemporary China. It is the guiding ideology in building Socialism with Chinese characteristics. Deng Xiaoping’s Theory contributed in the liberation of the spirit in contemporary China. The core principle of the Theory are “emancipating the mind” and seeking truth from facts”. Seeking truth from facts is the quintessence of Marxism-Leninism and Mao Zedong thought.   Marxism-Leninism There were elements in Marxism-Leninism that appealed to Chinese leaders. The Marxist idea of alienation had relevance for social conditions in China. Alienation, in the Marxist sense, describes the fragmentation of man's work in the industrial process, his loss of identification with its products, and his resultant inability to realize his full human potential. Marxism-Leninism promised unique solutions to a number of economic and social problems. If other revolutionary programs sought to oust the existing government, the Chinese Communists also wanted to overthrow the social class (the traditional elite) that dominated society.   Mao Zedong Thought Mao Zedong Thought is the ideology of class struggle. Mao Zedong Thought is the pinnacle of Marxism-Leninism in the present era. It is the ultimate and most living Marxism-Leninism, the compass guiding the Chinese people's revolution and socialist construction, a powerful ideological weapon in opposing imperialism and modern revisionism, and a powerful ideological weapon in the revolutionary struggle of all the people of the world ( 1996).                           Credit:ivythesis.typepad.com

Deng Xiaoping: China’s Paramount Leader

Deng Xiaoping: China’s Paramount Leader Deng Xiaoping was one of the most influential people in modern Chinese history....