Introduction

This book has considered the political and economic arguments in favour of a pro-competition policy enforced by statutory provisions. The influence of international organisations on potential adopter nations to rely on competitive markets with appropriate protections for the competitive mechanism has also been outlined, with particular reference to Greater China. The actual and contemplated competition law systems of China, Hong Kong and Taiwan have been described and analysed in the context of their own particular political, economic and legal settings. How ever, no comprehensive explanation of the existing state of affairs in the studied jurisdictions has yet been offered.

This chapter will provide that explanation by using grounded theory to create a hypothesis. The key to understanding both the current features of the competition systems in each jurisdiction and their likely future development, lies in their unique political and institutional environment.

This chapter will also sketch the relevant aspects of their respective political economy conditions; describe and analyse the arguments on the merits of whether authoritarian or democratic structures are best in optimising economic market-orientated growth and link this debate to the ability of a jurisdiction successfully to adopt and operate a pro-competition regime. The particular circumstances pertaining in Greater China will then be recalled from the narrative chapters, so allowing the creation of the explanatory hypothesis.

Political economy of Greater China

Competition policy and law have deep roots in the economic theory that informs the rationale for the political choice to adopt a market basis for economic management.