Group 3

Members:
Michelle Borromeo
Nj Ramilo Bandiez
LexterJames Blas
Maika Batallones
Renato E bona jr

Section: MKT - 1G
Time and date: September 18 at 10:33 pm

I. Background

(Background of Taiwan)
Taiwan's economy, which is frequently called a "miracle," has changed dramatically from being
a civilization centered on agriculture to being a wealthy, industrialized superpower. Midway
through the 20th century, a strategic shift in industries from manual production industries to
technology-intensive sectors propelled this rapid expansion. This expansion was made possible
by the government's smart planning, a high savings rate, a knowledgeable workforce, and a lot
of foreign investment. The growth of Taiwan's semiconductor sector, which is now the
foundation of the island's economy and a vital link in the worldwide supply chain for technology,
was essential to this shift. Taiwan's economy is heavily reliant on foreign trade, with its main
source of income coming from the export of high-tech goods like electronics and computer
microchips.

(Background of China)
China has seen significant changes in its economic history since 1949, going from a Mao
Zedong-era, centralized command economy to a market-based socialist model that has grown
to become a major force in the world economy. The emphasis on rapid industrialization and
collectivization in the early decades had certain advantages, but there were also periods of
severe financial instability, particularly during the Great Leap Forward. One significant initiative
was Deng Xiaoping's 1978 Transformation and Democracy campaign. This systematic, forward-
thinking strategy produced distributed economic management, market mechanisms, and
internationally accessible commerce and investment. The Household Responsibility System's
disintegration of agriculture and the creation of Special Economic Zones, also known as for
attracting in foreign investment and technology, were two important early reforms. These
reforms laid the groundwork for China's "commercial breakthrough" by unleashing significant
production, especially in the voluntary industrial and agricultural sectors.

II. Political system

The Chinese political system operates as a one-party authoritarian state under the Chinese
Communist Party (CCP), which directs a state-managed economic system officially known as
the "socialist market economy". The CCP dominate and hold power in the economy, controlling
the government, armed forces, and all levers of administrative authority. The economic system
blends market mechanisms, private sector enterprise, and international investment with
significant state intervention and control.
However the Taiwan political system has a democratic, semi-presidential political system that
has importantly shaped its high-tech, market economy and private enterprise. This system,
which hardened the following democratization in the 1990s, has provided the political stability
necessary for Taiwan's economic "MIRACLE" , its transformation from an agricultural-based
society to a developed, industrial giant economic powerhouse. But, the political landscape is
dominated by tensions with mainland China, which introduces significant geopolitical risk that
directly impacts the economy.

III. Economic system

The best way to characterize the economic structure of China is as a socialist market economy,
which combines market-oriented policies with central planning. Market forces are becoming
more and more important in distributing resources and propelling economic activity, even
though the government still has authority over important sectors

Taiwan is regarded by the International Monetary Fund (IMF) as a developed nation with a
strong free-market economy. The country's economic prosperity, which is defined by its export-
oriented nature, is largely attributable to its industrial revolution. Economic and Trade Policies
Taiwan promotes international trade through its liberal trade policy. However, mainland Chinese
products are restricted to protect national security and economic prosperity.

IV. Legal system

Taiwan's legal system is based on the Republic of China's 1947 Constitution, with a strong
influence from German and Japanese law. The judiciary is independent and overseen by the
Judicial Yuan. Taiwan's liberal democracy emphasizes human rights, with landmark rulings like
same-sex marriage legalization. The unique five-branch government structure, inspired by Sun
Yat-sen's political theory, distinguishes Taiwan from other democracies.

China's legal system is influenced by socialist principles and led by the Chinese Communist
Party (CCP). The National People's Congress is the highest legislative body, and courts are
independent but subject to the CCP's authority. While China has codified laws, human rights are
often limited by state priorities. The legal system operates primarily as a governance instrument
under one-party rule, unlike Taiwan's democratic system.

Taiwan and China have distinct civil law systems due to political differences. Taiwan operates
as a democratic state with a separate judiciary, allowing its courts to advance human rights.
China's legal system, under the Chinese Communist Party, is subordinated to the National
People's Congress, with courts subordinated to Party directives. Although China modernized its
legal codes, it often uses them as governance tools rather than safeguarding individual rights.
V. Conclusion

China’s economic rise demonstrates the impact of major reforms, especially Deng Xiaoping’s
policies, in shifting from a command economy to a market-oriented system. These changes
opened the country to global trade and investment, making it one of the world’s leading
economies.

Taiwan’s economic success shows how effective planning, investment in technology, and
reliance on global trade can transform an agricultural society into a modern industrial economy.
Its strong semiconductor industry made it a key player in the global supply chain.

Reference:
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Source: Taiwan.gov.tw https://share.google/PFVgBNjeHSUS5oU

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Source:

https://www.nyulawglobal.org/globalex/taiwan.html
https://www.tulanelawreview.org/pub/volume61/issue6/the-modern-chinese-legal-system?
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