China is a good example of using the rule of man. The power belongs to the president and his party. China has its law System. However, the law is, sometimes, not clear, especially when it apply for foreign companies. The law can be changed any time by the government without any notice. Therefore, foreign companies are shocked by sudden changes, and do not have enough time to get adapted, which lead to serious consequences for companies. In China, for example, the law of piracy and copyright are not clear enough. It has a huge conflict with the international laws for this issue.
As a result, using patents or copyright without permissions is quite popular in China. Statistics by various agencies estimate 90-99% of software in China (including software used by the Chinese government) is pirated (Sneakers, 2009). Many companies such as Apple, Microsoft, Sony have to face copyright issue in China. Chinese companies copy these companies’ products and sell on market with low prices and quality. This not only lead these companies to SSE their potential market, but also destroy the companies’ prestige by selling fake products.
The problem here is the government knows this. However, the government seem to ignore the facts and let Chinese companies do that. The problem isn’t that China doesn’t have intellectual property laws: it’s that China doesn’t enforce them (Sneakers, 2009). By doing this, many Chinese companies do not have to for patent or copyright. This, somehow, boosts the economic growth in china. Recently, china has reformed its piracy and copyright laws since China joined WTFO. However, the improvement is not significant. It is nature of business.