China's Influence on the American Legal System Resulting from China's Rise to Power

I. INTRODUCTION II. CHINA'S INFLUENCE OVER TODAY'S WORLD A. A Historical Perspective: The Decline of British Empire 1. Influence and Perceptions of Power 2. Influence Through Power and Coercion B. China's Current Influence on Developing Nations 1. China's Need for Resources: A Focus on Africa 2. China's Search for Political Support: A Focus on Latin 3. Some Implications C. Evidence of China's Current Influence on United States 1. China's Economic and Social Influence on United States 2. China's Current Influence on American Legal Community III. CHINA'S CULTURE, TRADITIONS, AND LEGAL REFORM A. The Development of Chinese Legal Traditions B. The Legal Systems in China and West 1. Contract Law 2. Property Rights 3. Dispute Resolution IV. CONCLUSION I. INTRODUCTION This article evaluates future impact China may have on U.S. legal system. (1) This question is quite significant because China is a rising economic, demographic, and military power whose interests are often linked to those of United States. (2) As China's second-largest trading partner, United States must not under-prioritize significance of China's recent growth. (3) As China grows, U.S.' reciprocal relationship with China also grows. The importance of this relationship, however, is not merely economic. As economic transactions increase, cross-border trade, which is facilitated by increasing ability to use technology, will also increase and force relationships between two countries to evolve. (4) These relationships will allow each country to have far-reaching legal, political, and cultural influences on one other. Concerning China's growth, U.S. Department of State's Bureau of East Asian and Pacific Affairs has reported that since 1978 (the year when China's leaders initiated economic reforms that opened China to outside world) (5) China has experienced the largest reduction of poverty and one of fastest increases in income levels ever seen. (6) In addition to being world's fastest growing economy, China may now rank as fourth-largest economy in world (7) and is set to be largest economy by 2026. (8) The U.S.-Sino relationship has been relatively consistent through past few decades, albeit not without complications. America has long sought a modernizing, reform-minded China that acts cooperatively with United States and behaves constructively both in region and globally. (9) Essentially, United States, in consideration of many uncertainties facing China's recent growth, is promoting market capitalism, democracy, and rule of law. (10) In accordance with China's transition into a market economy and U.S. policy to aid modernization, China began to re-develop its legal system, which it had abandoned in 1950s. In doing so, China commenced many ideological and social changes. Moreover, China's recent economic growth and introduction into global economy has also enhanced China's economic dependence on United States. These changes have also caused unprecedented Western influence. (11) Allowing Western influence is changing political equilibrium because Chinese government relies on economic for its legitimacy. (12) Western influence has also compelled China to adopt aspects of a Western-style economic legal system. (13) Notwithstanding recent anti-Chinese rhetoric emerging from various outlets, which parallels anti-Japanese sentiments prevalent during 1980s, (14) recent literature suggests that this is not predominant view. Instead, most legal, political, and economic articles argue that despite inevitable differences arising from diverse cultures and histories, cooperation and common prosperity is most common thrust behind mainstream political views. …