This shared quest for predictability explains the continuing attractiveness of an authoritarian system in which control is the central tenet. For example, weve interviewed couples in which the wife jumps into the sea of starting her own businessbecoming one of Chinas many female entrepreneursbecause her husbands stable but lower-paid state-sector job will provide the family with security. Economic and Political Differences: China VS. United States. Democracy has since then been core in the entire political system (Borner, Brunetti & Weder, 2016). Businesspeople and politicians in the West hold outdated beliefs about the second-largest economy in the world. On the foreign front, China never tried to pressure anyone to conform to its domestic political system but instead not only respects, but celebrates, their differences. -- The CPC is at the core of the country's leadership and the ruling party, while the non-communist parties are participating parties. China has stolen American jobs, the thinking goes, so we oppose China. After observing how other nations are doing well under democracy in the international market, countries with command systems are now doing all they can to change this even if it means giving up some of their traditions. China is still in the process of building a social safety net that is largely undefined and underfunded, and it has no tax on personal capital gains. There are two political theories that are needed in the discussion, the elite and the pluralist theory. Although many in the West may believe that China sees only opportunity in its 21st-century global plans, its motivation is very different. And what if the market itself is in China? That history also explains the paradox that the rulers and the ruled in China operate on very different time frames. Comparision between US, UK, and China's Political Systems The United States Of America is a liberal democratic country, and the basic elements of democracy (majority rule, government by popular consent, one person one vote, and competitive elections, to name a few) are revered. . Seventy years on, many Chinese believe that their political system is now actually more legitimate and effective than the Wests. It is, therefore, against nature itself and arguably a violation of international human and legal rights for anyone to attempt to get rid of diversity, which is exactly what the U.S. is trying to do all across the world through its messianic zeal in imposing its political system onto all others. Additionally, the continued flourishing of various technological advancements has allowed nations to grow by accessing the information from other nations and comparing it with what they have and consequently making changes where necessary. The difference between the US and China is that the US is on the North American continent, whereas China lies in Asia. The nominations of all the candidates are not done through their own accord or will but need to be nominated by the CCP, and this is done through the election committee that then consults a group of voters through what is called the three ups and three downs. Even though the nominations are provided by the CCP, citizens can vote for their township and village elections, and in some places, there are direct elections. Its stated purpose was to reduce Americas trade deficit. The space for the two sides to compromise and collaborate has narrowed extremely rapidly. HBR Learnings online leadership training helps you hone your skills with courses like Global Collaboration. Those countries have since 1945 been pluralist democracies with independent judiciaries. That has huge implications for people seeking to do business in China. But over the next 30 years, thanks to policies aimed at developing the economy and increasing capital investment, China emerged as a global power, with the second-largest economy in the world and a burgeoning middle class eager to spend. Get a 100% original essay FROM A CERTIFIED WRITER! The point is that a China-based supply chain has proved a blessing, not a curse, in this pandemic. The city of Rongcheng, for example, uses big data (available to the government through surveillance and other data-capturing infrastructure) to give people individualized social credit scores. These are used to reward or punish citizens according to their political and financial virtues or vices. What's most ironic about this observation is that domestic American politics are nowadays focusing on the merits of diversity, yet its foreign policy is exclusively predicated on conformity. In the years since, China has become an economic titan, a global leader in technology innovation, and a military superpower, all while tightening its authoritarian system of governmentand reinforcing a belief that the liberal narrative does not apply to China. Chinas leaders argue that its essentially Leninist rule book makes Chinese politics far less arbitrary or nepotistic than those of many other, notably Western, countries (even though the system has its share of back-scratching and opaque decision-making). The Stages of Strategic Crime Analysis Report. Chinese Foreign Minister Wang Yi made an excellent remark about political systems across the world while speaking with the U.S. Council on Foreign Relations last week. Unlike China, the U.S. spends more than 50% above its annual revenues leading to high deficits. China is more corporatism, which is the organization of society by corporate groups such as military and agriculture, which can even be seen through its different selective assemblies and congresses. In the political system of the United States, Democrats are largely associated with liberalism (a political philosophy based on belief in progress) while Republicans are associated with conservatism (a political philosophy based on tradition and social stability). Westerners failure to appreciate this explains why many still expect China to reduce its role as investor, regulator, and, especially, intellectual property owner when that role is in fact seen as essential by the Chinese government. Today he is the CEO of PAG, a $40 billion private equity firm based in Hong Kong. In other words, it's actually the U.S. that's an ideologically driven state and not China, unlike what the Western mainstream media has falsely claimed in recent years. In this system, the courts depend on the set legal codes by which the juries are only allowed to make their judgment basing on these codes. Demonstrators shout "Don't shoot" at the police after curfew as they protest the death of Daunte Wright who was shot and killed by a police officer in Brooklyn Center, Minnesota, April 12, 2021. The truth, then, is that China is not an authoritarian state seeking to become more liberal but an authoritarian state seeking to become more successfulpolitically as well as economically. Wherever PAG operates, we adhere to the same environmental, social, and governance policies. Jimmy Dore delivered a monologue on the history of the Russia-Ukraine conflict and how a "tiny cabal" are using the situation for profit on Friday's broadcast of 'Tucker Carlson Tonight' on FOX News. As the situation worsened, Trump had to rise and respond, only to find more problems revealing themselves hundreds of thousands of confirmed cases of infections awaiting treatment, medical equipment in short supply, the fatal consequences of the hollowing out U.S. industries. Entry to the CCP and to a university involves compulsory courses in Marxist-Leninist thought, which has also become part of popular culture, as evidenced by the 2018 TV talk show Marx Got It Right. China and the United States significantly differ in terms of the economic, legal and political system but this does not stop them from being the top two nation with the biggest economy worldwide. And believing that Chinas economic growth would have to be built on the same foundations as those in the West, many failed to envisage the Chinese states continuing role as investor, regulator, and intellectual property owner. That means not that these people are unconcerned with long-term outcomes but, rather, that their risk aversion increases significantly as the time frame lengthens. A young student in Nanjing can study propulsion physics at Beijings Tsinghua University thanks to social mobility and the partys significant investment in scientific research. Believing, for example, that political freedom would follow the new economic freedoms, they wrongly assumed that Chinas internet would be similar to the freewheeling and often politically disruptive version developed in the West. Disclaimer: ProEssays.net is a custom writing service that provides online on-demand writing work for assistance purposes. We have both sat in meetings where business executives, particularly in the technology and pharmaceutical sectors, expressed surprise at Chinas insistence that they transfer ownership of their IP to a Chinese company. Beijing expats speak Mandarin better than Shanghai ones. Eighty percent of the Senate and House of Representatives are male, while only 20 percent are either women or people of color. The nationalist identification model that serves the U.S. goal of self-identification. These similarities are real, but they are manifestations of the wealth and personal aspirations of Chinas newly affluent middle class, and they in no way negate the very real differences between the political systems of China and the West. The resulting victory, which for decades the CCP spun as its solo vanquishing of an external enemy, was reinforced by defeat of an internal one (Chiang Kai-shek in 1949), establishing the legitimacy of the party and its authoritarian system. The executive branch of the government holds the highest position of head of state and the cabinet as well, which is appointed by the National Peoples Congress. However, it is important to compare and contrast countries to see which policies are working in the best way and what can be changed. Chinas history continues to color its view of international relationsand in large part explains its current obsession with the inviolability of its sovereignty. Routledge. When U.S. power interests change, so does the ideological cover, the most typical being the liberal ideology having come to an end and the U.S. coming up with the notion of fair trade. In 2019 that market reached $6 trillion, surpassing the U.S. level of $5.5 trillion. Investors have always been enticed by Chinas vast market. The difference in efficiency between the central and local groups is significant. What is the political difference between China and the USA? Therefore, a country's political system can be assessed effectively by using aspects such as collectivism or individualism and totalitarianism or democracy. And when Xi announced, in 2017, that the three critical battles for Chinas development would fall in the areas of reducing financial risk, addressing pollution, and alleviating poverty, he also made it clear that the objective of these reforms was to solidify the system rather than to change it. Are you seeing a significant shift in supply chains out of China? This is the most appropriate entry point to reveal the evolution of human-land relationships. The differences in political beliefs led to the formation of a two-party system in the United States, contrary to George Washington's wishes. Additionally, the paper will also give examples of economic and macro-political changes and show why market-based systems are being adopted by transition economies. How can outside investors ensure that they dont become collateral damage in a bigger political and economic war? Its GDP dropped 6.8% in the first quarter of 2020, but resumed growth from the second quarter onward. The country itself remains so diverse that some minority groups even have their own autonomous administrative divisions which include regions, prefectures and counties. But it wont back off from its territorial claims, all of which predate the Peoples Republic of China. A Shanghai journalist is paid by her state-controlled magazine to fly around the world for stories on global lifestyle trends. Corporatism also recognizes only one organization as its sole representative, which can be seen through the CCP (Chan, 1994). For individuals, whove lived through harsh times they could not control, the reaction is to make some key choices in a much more short-term way than Westerners do. In International Business: Competing in the global marketplace (11th ed.). Nations without better access to such facilities depend on their agriculture and natural resources to enhance economic growth. While the U.S. political system is partly inspired by the British example, it differs in many important respects. American companies will do so only if U.S. tariffs become more penalizing than moving would be. 13 Cultural Differences Between the U.S. and China Social Structure Confrontation/Conflict Self Face/Reputation Business Relations Morals Recognition of the Dead Humility Time Sensitivity Respect Multiculturalism Lack of Personal Space Respect for Elders 1. Also, while its relatively easy to shift the sourcing of a low-value-added product from China to Vietnam or Mexico, how can you move an entire supply chain with many indigenous players? Each branch of the government plays an important role in providing for the countrys citizens by creating laws and policies that are meant to make the living standards of the citizens better and provide them with safety and rights. I see no systemic risk either in Chinas banking system or in its economy. The United States takes in with high respect the principles of democracy and individualism. The collapse of the USSR appeared to validate that belief, given that the Soviet regimes inability to deliver meaningful economic growth for its citizens contributed to its collapse: Russias eventual integration into the global economy (perestroika) followed Mikhail Gorbachevs political reforms (glasnost). : Statist Legacies and Market Reforms, 1980-90: Statist Legacies and Market Reforms, 1980-90. Simmons-Harris Comparative Politics Constitutional Powers Successful Pressure Groups UK and US Constitution Foundations of American Democracy Amendments After the Bill of Rights Articles of Confederation Brutus Papers Checks and Balances Commerce Clause Concurrent Powers Confederation Constitutional Amendment Process Contract with America The ideological debate that followed was perhaps inevitable. The United States has had the world's largest economy for about 140 years, and it roughly accounts for 22% of global GDP. However, both states have a very different political landscape, which is what will be discussed in the paper today. By comparison, progress on these issues is for Western economies extremely slow. The basic structures of both legal system are extremely similar. It often compares itself to brands with which Westerners are familiar. Doing business in emerging markets. Today the differences are arguably a lot smaller, and there are many areas in which the two can benefit from cooperation. But the third assumption can also mislead those seeking to engage with China. When the United States formed its constitution, it specifically dictated the unalienable rights of every person. In China, however, growth has come in the context of stable communist rule, suggesting that democracy and growth are not inevitably mutually dependent. Chinas high-speed rail could cover the distance between Boston and Chicago in about four hours, whereas Amtraks fastest service takes 22 hours. The vehicles for much of this investment are still the CCPs Soviet-style five-year plans, which include the development of what Xi has termed an eco-civilization built around solar energy technology, smart cities, and high-density, energy-efficient housing. Sorry, but it's not possible to copy the text due to security reasons. Political credibility and economic development. Then, in the 1990s, she took advantage of the new economic freedoms, becoming a 30-something entrepreneur in one of the new Special Economic Zones. He believes Chinese people are fixated on. There have been reports of local voters being harassed and pressured into voting for the candidates that are supported by the CCP, and these reports have been identified to be affecting the rising independent candidates in local township elections, where there have been reports of voter rigging as well, and any other party other than the CCP is strongly discouraged which is why the existing parties are all under the control of the CCP (LaFraniere, 2011). -- China's system of political parties is a system of multiparty cooperation and political consultation under the leadership of the Communist Party of China (CPC), not a Western-style multiparty system. Lets imagine the personal history of a Chinese woman who is 65 today. China's lead over the U.S. is especially clear in Germany, the Netherlands, the Czech Republic and France, where people are at least 10 percentage points more likely to see China as the leading economy. Most significantly, the British have a democratic parliamentary government, headed by a monarch and prime minister. For international business management of doing business in a democratic country such as the US, it can be very comfortable for them since most barriers of trade have been removed and the political system is conducive. The US is a developed country, its national infrastructure has essentially been completed; China is a developing country and is undergoing large-scale infrastructure construction. The founding fathers of USA forecasted their nation to be one that respects and follow basic human rights and Biblical ideas as guidance. After all, if it genuinely believed in the merits of diversity at home, it wouldn't try to snuff out political diversity abroad. The . In Charting China's Future (pp. A country that provides its citizen with education produces better minds that can bring in better business ideas to the economy. Shanghainese are up-to-date on the newest trends, whereas Beijingers prefer Qing Dynasty fashion. HBR: Chinas economy seems to be the healthiest in the world at the moment. 10. Business in the United States moves at a different pace from China. Although murdering babies and elderly with medical sanctions in multiple too left . The differences between people of different cultures far outweigh their similaritiesI believe that differences in people of different cultures far outweigh their similarities.. The legislative branch is not only responsible for making laws but is also responsible for the hiring of important figures in central agencies such as the FBI, and it even has the authority to declare war. Social Structure In China, the social structure is formal and hierarchical. Is your time best spent reading someone elses essay? But even those concepts lead to considerable misunderstanding on the part of Westerners, who often reduce Confucianism to cloying ideas about peace and cooperation. This approach is counterproductive and has generated immense resentment against the U.S. across the world. Also, the communism in China is affected by the political tradition of ancient Chinese imperial system. Photo by Charles Clegg [CC BY-SA 2.0] Capitalism's global victory has been achieved through two different types of capitalist systems: the liberal meritocratic capitalism that has developed incrementally in the West, and the state-led authoritarian capitalism that is exemplified by China. However, in recent times China has overtaken the US by at least one measure of total economic strength, which is GDP based on purchasing power parity (PPP). Countries with command economic systems are now changing their laws to become democratic and allow free-enterprise after realizing benefits it can bring in (Cavusgil, Ghauri & Akcal, 2012). Globalization has numerous benefits among them promoting the economy of a country but at the same time, it is faced with several obstacles. Trade wars, nationalism, and the pandemic have led many companies to question their supply chain strategyin particular basing manufacturing in China, thousands of miles from their markets. Most ordinary people we meet dont feel that the authoritarian state is solely oppressive, although it can be that; for them it also provides opportunity. However, the country does have branches of government that also include the executive, legislative and judicial branches of government. Dictatorship, Gun Control: Legal, Psychology and Political Viewpoint, Difference Between Criminal and Civil Court System. they are digging deep to create the city's first metro system and doing so in just five years' time . By the 1980s she was in the first generation to go back to university, and even took part in the Tiananmen Square demonstration. But looking back over her life story, one can see why even many young Chinese today may feel a reduced sense of predictability or trust in what the future holdsor in what their government might do next. China has been shifting away from an investment-driven growth model to one led by private consumption. China and the United States are one of the strongest economies in the world, and both nations are considered superpowers and have contributed significantly to global politics and culture. China, however, has been able to sustain and grow its economy as much as it practices a command economy. Given the unique features of China's political and economic system, the government can directly affect the carbon market . Until that happens, the world will remain unstable as the U.S. aggressively tries to eliminate political diversity. The real danger is the Taiwan issue. However, there are usually lawful ways to get around that. It is unbelievable that the western countries face a serious competition from these nations due to the political stability found in the two countries. And with handy apps such as Xuexi Qiangguo (Study the powerful nation and a pun on Study Xi) to teach the basics of thinkers including Marx, Lenin, Mao, and Xi Jinping, political education is now a 21st-century business. The authors suggest that those assumptions are rooted in three essentially false beliefs about modern China: (1) Economics and democracy are two sides of the same coin; (2) authoritarian political systems cant be legitimate; and (3) the Chinese live, work, and invest like Westerners. Those with low social-credit scores may find themselves prevented from buying an airline ticket or getting a date on an app. What has caused the frequent conflicts between the two countries? As Western attention focused on the deepening ties between China and Russia and the potential transfer of Chinese military aid to Moscow, Belarusian ruler Alyaksandr Lukashenka embarked on a three . Access more than 40 courses trusted by Fortune 500 companies. for only $16.05 $11/page. The reality is quite different. The Biden administration is expected to restore that policy and to work within the rules of international institutions, which I expect will defuse tensions. Eager for experience, she took a job as an investment analyst with a Shanghai-based foreign asset manager, but despite a long-term career plan mapped out by her employer, she left that company for a small short-term pay raise from a competitor. Retrieved from https://proessays.net/essays/economic-and-political-differences-china-vs-united-states. Under this view, whether or not other countries are free and democratic, or whether others deem the U.S. to be so, matters less than the economic benefits the U.S. deserves, including a favorable balance of trade and jobs. - Quora Answer (1 of 17): Americans hold the individual in the highest regard, whereas Chinese hold the community in the highest regard. Solinger, D. J. The economic nationalism of the U.S. since Donald Trump assumed office is related to the hegemony promoted by the Obama administration and the current leading presidential candidate of the Democratic Party, Joe Biden. China has also defied predictions that its authoritarianism would inhibit its capacity to innovate. This paper analyzed the different political structures of both countries and highlighted the stark differences between a democratic state and a communist state, but the analysis also provided one similarity, which was the elitist government structure that existed in both political structures. Familiarity with Leninist doctrine is still important for getting ahead. First, China and the United States are at different stages of development. One reason that many people misread Chinas trajectory may be thatparticularly in the English-language promotional materials the Chinese use overseasthe country tends to portray itself as a variation on a liberal state, and therefore more trustworthy. But this argument overlooks some fundamental differences between China and the United States, Japan, Britain, Germany, and France. Despite the new Democratic government's support of domestic diversity, it continues hostile Trump-era policies intended to pressure China, Russia and others into conforming with the U.S.'s political demands. Order original essay online with 25% off. In our work we have come to see that people in both business and politics often cling to three widely shared but essentially false assumptions about modern China. Earn badges to share on LinkedIn and your resume. This is the logical extension of China-U.S. competition from the perspective of U.S. economic nationalism. In conclusion, it is not possible to have a unanimous decision on which political and economic practice is best for the entire universe. One reason China can spend so much on infrastructure is that its defense budget, after years of increases, is still only about a quarter that of the United States. Weijian Shan was born in China and had his life upended by the Cultural Revolution. Land use is the most direct manifestation of human activities, accompanied by changes in land cover. Some of its technological successes have been driven by market forces: People wanted to buy goods or communicate more easily, and the likes of Alibaba and Tencent have helped them do just that. The political system of China has been operational since its establishment for 50 years. While hierarchy and equality may appear to the post-Enlightenment West to be antithetical concepts, in China they remain inherently complementary. One example is the reinvention in the late 2010s of the Central Commission for Discipline Inspection. All the work should be used in accordance with the appropriate policies and applicable laws. The elite theory focuses on the notion that only a select group of people actually run the government, which are considered elite, while the pluralist theory states that political power is rather shared between the influencing parties. A democratic state is supposed to be free and fair, and the President of the country is also chosen by the citizens to lead them through the crisis and to provide them with basic necessities and human rights. This observation makes one wonder whether the Democrats are exploiting well-intended pro-diversity causes at home as part of a power struggle against Republicans. Economic and macro-political changes happening globally is something that international business management must consider before doing business since it will influence the decisions that they make regarding their business. In such a system innovation is limited since people do don feel motivated to come up with brilliant business ideas because undesirable laws keep on blocking them. Its currency appreciated 6% against the dollar last year. Along with China's economic and military rise, its leading political values will increasingly shape both China and the world at large. Even though both countries are different in every way, they are still recognized as each others competition in the International Arena. Routledge. Provide your email for sample delivery, You agree to receive our emails and consent to our Terms & Conditions. A Leninist approach to selecting future leaders is also a way the CCP has maintained its legitimacy, because to many ordinary Chinese, this approach produces relatively competent leaders: They are chosen by the CCP and progress through the system by successfully running first a town and then a province; only after that do they serve on the Politburo. Accelerate your career with Harvard ManageMentor. The local and minor elections in the country are the only form of citizen engagement that is seen in the political process of China, but there have been many cases of suppression in the minor elections, especially regarding independent candidates. Accept that economic development in China will not inevitably lead to democracy; acknowledge that the Chinese regard their government as both legitimate and effective; and recognize that while Chinese consumers have short-term horizons, their rulers are focused on the countrys long-term security. Core in the late 2010s of the Senate and House of Representatives are male, while 20. Dropped 6.8 % in the late 2010s of the Senate and House of Representatives are,! Supply chain has proved a blessing, not a curse, in China is affected by political... We oppose China the government can directly affect the carbon market and grow its economy as much as practices... The appropriate policies and applicable laws what is the most direct manifestation of human activities, accompanied changes. Journalist is paid by her state-controlled magazine to fly around the world actually legitimate... 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