Government and business are two intimate entities whose operations are inseparable. The government of state forms the cornerstone of business success or failure. Thus, business success in any country or state is highly dependable on the interactions of the government in place and the business operators. This is because the government revenue is derived from the business transactions which are carried out within and without the boundaries of the state. Thus, the governments of different countries affect the overall business transactions in various ways. Some of the government models give ease business operations than others. In china and Australia, this is not quite different and unusual. It is quite clear that the two countries are set within the same geographical region. The provision of this intimates countries in location provides them with several similar business environments from which they can draw identical merits and demerits in trades and industrial development. Hence, our anticipation in the business performances and outcomes in both two states should not many disparities in economic growth and development. (Kim, 1998). However, there are widely and separate discrepancies when the two states are examine. These discrepancies which are realized do arise from both natural factors considerations and human activity factors. The effect of these differences is the wide variation in government- business relations. The wide gap which is portrayed in the government – business relations in the two states has resulted in to different rates in the economic transition both in the former past periods as well as the current times. This has been agitated not only in the two nations- (china and Australia), but it has also been trend demonstrated when comparisons are done in other states from all corners of the world. Traditionally, china state economy which is related to business growth has been affected by the human activities. This made Chinese economy largely to suffer in general. The inflictions in the economy by this time served as teaching lesson to the Chinese people in the formulation implementation of constitutional laws of the state. The economy crisis took place when the country was in entire need to have escalating economic expansion to cater for the needs of increased population in the nation. Consequently, they had to find ways of solving the scourge which deprived them their wealthy leading to unstable economic state. Thus, china has been vigilant on formulating and implementing all that which touches growth of the country’s economy. China’s decision on the formation of government was one of the paramount factors to the establishment stable country after the enormous destruction on economy by self interested individuals. They set on the tradition of having government which comprised of communism system. The shifting from anarchy system in governing to the communism government was perfected to deliver higher services to the citizens. However, what a horrible representation can people have with such establishment? It would have been equally important if the new system had not been adopted. (Kwong, 2000). The communism government which plans and control the economy proved to be compounded with many problems in the delivery of services to the citizens. There was no single advantage in ensure that the services were delivered effectively to