Basic Introduction of the Political System in China Political systems refer to the dogmatic structures, rules, and regulations that control the state power. They dictate how the government and society relate. The government of China has been severally referred as authoritarian and corporatist. However, the primary system of government is a socialist system. The governing party in the country is the Communist Party of China (CPC). CPC power is protected in the China’s constitution. A single party that exercises the state power runs the socialist republic. The political organization of China is decentralized. As a result, the frontrunners of both the provincial and sub-provincial political levels exercise autonomy over their jurisdictions. Recently, many investors from diverse geographical locations around the globe have shifted their focus on the emerging Chinese market that has offered a rich framework for business operations. This essay analyses the effects of the political systems on businesses in China. How Political Systems Affect Businesses in China The Political Environment The country is advancing to establish a full market economy. However, the Chinese government exercises a significant control of the business policies. This situation implies that it has direct control over businesses. The head of the state bear the mandate to set a general course of the country. However, state-level bureaus and agencies are responsible for administering and enforcing commercial and industrial laws. The unitary metropolitan authorities that fall under the state level bureaus play a critical role in economic decision-making by exercising a high level of autonomy in the major cities of China (Chen 288). There are also provincial ruling classes that exercise powers in the countryside and non-Chinese populated regions. Below the provincial level are city governments mandated with administration of China’s second tier of cities (Sheng, Zhou, and Li 11). Investors carrying out business activities interact with the representatives of one or more levels of the administrative hierarchy (Sheng, Zhou, and Li 12). Investments that surpass the set up limits in particular sectors require permission from a higher level. This set of circumstances increases the time of acquiring a business license (Sheng, Zhou, and Li 12). Business activities operating in special zones can have few or no administration bureaucracies. There are laws governing business activities in each sector. Therefore, foreign investors are expected to familiarize themselves with the laws before establishing their businesses in the country (Chen 287). According to Chen, the country has a weak legal system. This set of circumstances enables people to influence commercial activities more than the existing legal infrastructure (287). The country is also said to have a dynamic economy that is suitable for both medium and long-term investments. The country’s socialist market economy enables the government to exercise control over the macroeconomic development by influencing business activities through policies and regulations (Chen 287). In a review of the corporate political actions (CPAs), Jia stated that business firms in the coun