China's influence on the American legal system resulting from China's rise to power.

• Author: Scott, Mark A.

1. INTRODUCTION II. CHINA'S INFLUENCE OVER TODAY'S WORLD A. A Historical Perspective: The Decline of the 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 America 3. Some Implications C. Evidence of China's Current Influence on the United States 1. China's Economic and Social Influence on the United States 2. China's Current Influence on the 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 the West 1. Contract Law 2. Property Rights 3. Dispute Resolution IV. CONCLUSION I. INTRODUCTION

   This article evaluates the future impact China may have on the 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 the United States. (2)

   As China's second-largest trading partner, the United States must not under-prioritize the significance of China's recent growth. (3) As China grows, the U.S.' reciprocal relationship with China also grows. The importance of this relationship, however, is not merely economic. As the economic transactions increase, cross-border trade, which is facilitated by the increasing ability to use technology, will also increase and force relationships between the 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, the 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 the outside world) (5) China has experienced "the largest reduction of poverty and one of the fastest increases in income levels ever seen." (6) In addition to being the world's fastest growing economy, China may now rank as the fourth-largest economy in the world (7) and is set to be the largest economy by 2026. (8)

   The U.S.-Sino relationship has been relatively consistent through the past few decades, albeit not without complications. "America has long sought a modernizing, reform-minded China that acts cooperatively with the United States and behaves constructively both in the region and globally." (9) Essentially, the United States, in consideration of the many uncertainties facing China's recent growth, is promoting market capitalism, democracy, and the rule of law. (10)

   In accordance with China's transition into a market economy and the U.S. policy to aid modernization, China began to re-develop its legal system, which it had abandoned in the 1950s. In doing so, China commenced many ideological and social changes. Moreover, China's recent economic growth and introduction into the global economy has also enhanced China's economic dependence on the United States. These changes have also caused unprecedented Western influence. (11) Allowing Western influence is "changing the political equilibrium" because the Chinese government relies on economic prosperity for its legitimacy. (12) Western influence has also compelled China to adopt aspects of a Western-style economic legal system. (13)

   Notwithstanding the recent anti-Chinese rhetoric emerging from various outlets, which parallels the anti-Japanese sentiments prevalent during the 1980s, (14) recent literature suggests that this is not the predominant view. Instead, most legal, political, and economic articles argue that despite the inevitable differences arising from diverse cultures and histories, "cooperation and common prosperity" is the most common thrust behind mainstream political views. (15)

   Regarding the recent developments accompanying China's growth, which include a link between Chinese and U.S. economies, an increasing number of transactions between the two nations, and the numerous studies concluding that U.S. legal tradition is influencing China, it logically follows that China's legal traditions will also influence the American legal system.

   To be clear, this article is not about whether China will adopt a Western-style legal system, which is an issue that has been addressed in many academic disciplines and in many works by legal professionals. (16) Instead, this article proceeds largely on the assumptions that China will not soon become a Western-style liberal democracy, that China's economy will continue to grow, and that this growth may eventually counter the current global status held by the United States. (17) Operating under these presumptions, this article suggests that such a future will create more transactions between the United States and China, and that these dealings will empower China with an ability to influence certain characteristics and decisions of other states. It therefore follows that the United States will be among those states influenced by China. As a result of this likely impact and in consideration of the economic relationship between the two states, this article suggests that China will influence the American legal system through two specific routes: (1) authority and (2) reciprocity.

   This article provides legal, historical, and sociological analyses to predict China's future influence over the United States. It proceeds in four parts. Part II defines "legal influence" from a sociological context. A historical and sociological discussion is provided, focusing on three inquiries: (1) an analysis of the rise and fall of the British Empire; (2) an examination of China's current behavior towards developing nations, observing China's influence on less powerful nations; and, (3) an evaluation of areas that allude to Chinese influence on the United States.

   Part III explores the concept of law in China, from early understandings in Confucianism and legalism to more recent treatments in Chinese Communism. Recent efforts made by the People's Republic of China to strengthen the nation's legal institutions are then considered. This discussion provides the background necessary to analyze the likelihood and extent of Chinese influence on other nations. Part III also examines recent Chinese legal trends, explores the differences between these trends and those of other national legal systems, and proposes examples of probable influence that China may have on the U.S. legal system.

   Finally, Part IV concludes that there is a high probability that Chinese culture and tradition will influence the American legal system because China's drive towards modernity is compelling the United States to sustain economic growth, attract foreign investors, and increase its number of transnational exchanges. This competitive process will make the United States more susceptible to ideological coercion or inducement in a global system where China holds authoritative leverage.

2. CHINA'S INFLUENCE OVER TODAY'S WORLD

   Before any analysis is possible, it is necessary to define "legal influence." The term "legal" is defined as "of or relating to law." (18) "Influence" is defined as affecting something in a certain way, "to alter it or impinge on it in some way." (19) By way of contrast, the term "power" refers to the ability to effect something, "to bring about or accomplish it." (20) A separate analysis of power and influence is beyond the purview of this article, and the two are not distinguished here. That is to say, this article places its focus on the analysis of whether there will be any "affect" or "effect," and not whether the object bringing about the change "affected" or "effected" something.

   In light of these considerations, the analysis contained within takes a cross-cultural approach, meaning that the data is compiled from an analysis of different national cultures. (21) According to social influence theories, there are six general principles of social influence. (22) An analysis of all six principles lies outside the scope of this article, however, it is enough to focus on two of these principles: (1) authority, which is "the tendency to comply to the expectations of others with higher status or greater expertise;" (23) and, (2) reciprocity, which is "returning positively valued outcomes to those from whom they are received." (24) Thus, this article defines legal influence as cross-cultural structural influence relating to law, which is derived from authority and reciprocity. (25) These forms of influence are not mutually exclusive, but they do vary enough to warrant independent considerations.

   This part of the article first explores legal influence in a historical perspective and examines the influence resulting from the corresponding rise of the United States and the decline of Great Britain during the first half of the twentieth century. It will then compare China's influence resulting from its possible rise to power, converging on the basic perceptions of power and influence. The article then examines China's recent influence on developing nations, concentrating on authoritative influence. This analytical focus will specifically address the driving policies and effects of China's increasing presence in these nations, and contemplates similar changes that may occur between China and the United States, presupposing that China's growth will continue to the point where it will have authoritative leverage. Finally, this article will examine recent legal influences that China has had on the United States, focusing on influence derived from the reciprocal relationship between the two nations.

   1. A Historical Perspective: The Decline of the British Empire

      This section will analyze comparable historical circumstances to clarify the future of U.S.-Sino relations. In doing so, this section addresses two inquiries. The first analysis compares and contrasts the basic perceptions of power and influence...