Investors anywhere should invest in a socially responsible way to advance human rights, adhering to a high standard for labor practices, gender equality, investment in human capital, and charitable contributions. What is the political difference between China and the USA? The United States takes in with high respect the principles of democracy and individualism. A command economy is the opposite of a free economy and it is usually dominated by the government which is always controlling major aspects of businesses. 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. Land use is the most direct manifestation of human activities, accompanied by changes in land cover. But its also conspicuously different: The concept of U.S. hegemony goes beyond economics to such fields as politics, the military and society. It seems that the only country that can stifle Chinas growth is China itselfif it makes major policy mistakes. The pandemic has added urgency, but American politicians appear not to have found the answers. 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). HBR Learnings online leadership training helps you hone your skills with courses like Global Collaboration. Regardless of who wins, it is unlikely that one of the . The geographic location of a country, its educational, political and legal systems plays a key role in the economic well-being of a country. Some manufacturing has been relocated away from China since the trade war with the U.S. began in 2018, but that hasnt made a dent in either Chinas exports or Americas trade deficit. That Canada has elected communists to office, I suggest is just about as important a disparity as the American gun insanity. Its just not liberal reform. Until Western companies and politicians accept this reality, they will continue to get China wrong. Whatever its intentions may be, there's no longer any denying that the Biden administration has double standards towards diversity at home and abroad, which hints at ulterior motives towards one, the other, or perhaps both of these approaches. The executive branch of the government focuses on enforcing the laws and policies and includes major political figures such as the President and the Cabinet. The economy has grown 36-fold over the past three decades, chiefly because of market-oriented reforms that have created a vibrant private sector, which now accounts for about two-thirds of Chinas GDP. Now CEO of the Hong Kongbased $40 billion private-equity firm PAG, Shan spoke with HBR Editor in Chief Adi Ignatius about the economic prospects for China and the United States. The president controls the army. What are the biggest risks for Chinas economy in the coming years? 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. 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. Eligible voters are chosen through a register for rural and urban voters to make the process easier, and smaller elections have a number of 200 to 300 voters while the larger level can have up to 1000 voters. 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. Americans focus on speed and efficiency and will hurry to get things done quickly. We will write a custom Research Paper on Political system comparison between India and China specifically for you. For example, in making the case for why it should be involved in the UKs 5G infrastructure rollout, Huawei styled itself the John Lewis of China, in reference to the well-known British department store that is regularly ranked as one of the UKs most trusted brands. A median of 41% across the 14 EU member nations surveyed name China, compared with a median of 39% who say the same about the United States. In a speech in 2000 former U.S. President Bill Clinton declared, By joining the WTO, China is not simply agreeing to import more of our products, it is agreeing to import one of democracys most cherished values: economic freedom. Doing business in emerging markets. If you are the original author of this essay and no longer wish to have it published on the 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. Many Chinese believe that the countrys recent economic achievements have actually come about because of, not despite, Chinas authoritarian form of government. There are other courts in the land such as High Courts and District and County Peoples Courts and Special Courts for military and forestry issues. But surely gun shops being essential service during a huge medical virus shutdown is the height of insanity at this moment on this planet. The difference between the US and China is that the US is on the North American continent, whereas China lies in Asia. Chinas recent history means that Chinese people and the state approach decisions very differently from Westernersin both the time frames they use and the risks they worry about most. Retrieved from https://proessays.net/essays/economic-and-political-differences-china-vs-united-states. Many people have wrongly assumed that political freedom would follow new economic freedoms in China and that its economic growth would have to be built on the same foundations as in the West. -- 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. For international business management of doing business in a country like China, it can sometimes get hard since it is not possible to function liberally as in a democratic nation. Political credibility and economic development. When individuals have the powerto realize their dreams, they will demand a greater say.. And only the U.S. can threaten Americas economic supremacyby underinvesting in its own infrastructure and by limiting trade. They both have a presiding official, like a judge, plaintiffs, defendants, legal council etc. However, it also highlighted the different ways in which people of color in the USA are suppressed through political representation and voter suppression. That leaves much room for growth and many opportunities for investors, particularly in businesses that cater to consumers. Half of the representatives in Congress are millionaires with their median net worth reported to be more than a million. For liberals (in China and elsewhere), this is an appalling prospect; but for many ordinary people in China, its a perfectly reasonable part of the social contract between the individual and the state. In fact, China is the only G20 country to have posted positive growth. Recognizing that the authoritarian Marxist-Leninist system is accepted in China as not only legitimate but also effective is crucially important if Westerners are to make more-realistic long-term decisions about how to deal with or invest in the country. However, both states have a very different political landscape, which is what will be discussed in the paper today. During the Cold War in the 20th century, and particularly afterward, the U.S. sought to establish and consolidate its leadership role in the international community in the name of freedom and democracy so much so that U.S. hegemony was also often referred to as hegemonic liberalism.. Even now Chinas private consumption represents only about 39% of its GDPway below the U.S. level of 68% and the world average of 63%. In 2020 China had more billionaires than the U.S. did, and it outpaces the U.S. three to one in minting them. The country will need to continue to reform and privatize its state-owned firmsand shift from investment to private consumptionor it will not be able to sustain its growth. Chinas Good War: How World War II Is Shaping a New Nationalism. 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? The U.S. also repeatedly provoked China using freedom and democracy as a pretext. This paper will compare two great countries the United States and China by looking in details how and why their legal and political systems differ, explain what determines the level of economic development in each country. Second, the economic structure is different. American companies will do so only if U.S. tariffs become more penalizing than moving would be. Lets imagine the personal history of a Chinese woman who is 65 today. This is the logical extension of China-U.S. competition from the perspective of U.S. economic nationalism. That has political implications, of coursefor example, that the public ownership of assets is necessary to ensure an equal distribution of wealthbut the economic outcomes are the focus. Empowered by Xi to deal with the corruption that had become so prevalent early in that decade, the commission can arrest and hold suspects for several months; its decisions cannot be overturned by any other entity in China, not even the supreme court. 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 article reflects the author's views and not necessarily those of CGTN. (2012). Disclaimer: ProEssays.net is a custom writing service that provides online on-demand writing work for assistance purposes. 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. In 2020, a year of severe difficulties all over the world, there was no significant increase in Chinese corporate defaults. Does that create new investment opportunities? Hence, we need to understand, compare, and learn from leading values in China's political culture. 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. Mandarin. These officials preside over different tribunals and committees, which can range from civil, administrative to communication, and transport cases. Diversity is naturally occurring, whether it be among ethnicities, religions, governing systems or whatever else. China on the other hand practice totalitarianism and collectivism which is the opposite of democracy. For example, the British role in the Opium Wars of the 1840s kicked off a 100-year period that the Chinese still refer to as the Century of Humiliation. Until that happens, the world will remain unstable as the U.S. aggressively tries to eliminate political diversity. Which serves U.S. interests better, a free and democratic China, or an authoritarian China that identifies with U.S. leadership? (2022, May 17). 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. Ideological competition between China and the U.S. in recent years comes in three basic models: The nationalist hegemony model that ultimately serves U.S. hegemonistic purposes in the international community. 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. Thus many Chinese consumers prefer the short-term gains of the stock market to locking their money away in long-term savings vehicles. But at every point since 1949 the Chinese Communist Partycentral to the institutions, society, and daily experiences that shape all Chinese peoplehas stressed the importance of Chinese history and of Marxist-Leninist doctrine. Earn badges to share on LinkedIn and your resume. In Vietnam, there are three different people. 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. Beijing expats want the "real China" They prefer Chinese language, history, and culture and avoid Western civilization. As to the orientation of a new era, however, the Trump administration has yet to offer any answers or insights. The major focus of government expenditure is domestic infrastructure. The United States is famous for being ethnically and religiously diverse, but most of the branches of the government are made up of Christian and White males who have come from affluent backgrounds and studied from elite universities such as the Ivy Leagues. China has stolen American jobs, the thinking goes, so we oppose China. Nevertheless, these changes do not seem to stand any chance of influencing its foreign policymakers, who remain convinced of their system's superiority relative to all others. Pundits tend to be alarmed by a default here and there. Voter suppression has been reported through disenfranchising people of color, through restrictions placed on mail-in voting that can cause irregularities in the system and strict voter ID laws that can contribute to issues that can cause certain people to not place votes(McKeever, 2020). Born in 1955, she experienced as a child the terrible Great Leap Forward famine in which 20 million Chinese starved to death. Ideological competition between China and the U.S. in recent years comes in three basic models: The nationalist hegemony model that ultimately serves U.S. hegemonistic purposes in the international community. Either way you slice it, the economies are the two strongest . 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. Navigating your companys future in China, Americans Dont Know How Capitalist China Is, Economics and Democracy Are Two Sides of the Same Coin, Authoritarian Political Systems Cant Be Legitimate, The Chinese Live, Work, and Invest Like Westerners, A version of this article appeared in the. Conversely, the US law system basis its law from cases held previously and judges uses this as an example when determining most cases that are similar to the present one. The benefits are both financial (for example, access to mortgage loans) and social (permission to buy a ticket on one of the new high-speed trains). - Quora Answer (1 of 17): Americans hold the individual in the highest regard, whereas Chinese hold the community in the highest regard. It is important to understand the background of the. 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). From the depth of their hearts, Americans confront the reality that the beacon of freedom has to learn from the authoritarian government of communist China in some respects. However, the beliefs and positions of political parties change over time, so . And what is it that the Chinese dont understand about the United States? The reality is quite different. 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. Until Western companies and politicians understand this and revise their views, they will continue to get China wrong. Not completely and not without very high costs. Its monetary policy is reasonably tight, with the yield on government bonds about 3.5 times that on U.S. Treasuries. The paper also highlighted citizen engagement in both countries, either through direct elections in the USA or through the CCP controlled nominations in China. The top 10 American semiconductor chip makers sell about three times as much in China as in the United States. Leninism, however, is essentially a political doctrine; its primary aim is control. And what if the market itself is in China? Hire a professional with VAST experience! The US is surrounded by Mexico, Canada, the Pacific Ocean, and the Atlantic Ocean. A cleaner in Chongqing now owns several apartments because the CCP reformed property laws. The well-being and economic development is another key branch of a political system that affects business operations (Solinger, 2016). But the state-owned sector remains too big and inefficient. 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. Many Chinese not only dont believe that democracy is necessary for economic success but do believe that their form of government is legitimate and effective. So a Marxist-Leninist system is concerned not only with economic outcomes but also with gaining and maintaining control over the system itself. 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. 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. Springer. For the Chinese, the key to those outcomes is respect for an appropriate hierarchy, itself a means of control. This suggests that something distinctive to mainland China influences this behavior: long-term unpredictability thats sufficiently recent to have been experienced by or passed on to those now buying stocks. How can outside investors ensure that they dont become collateral damage in a bigger political and economic war? 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. Although murdering babies and elderly with medical sanctions in multiple too left . Its a plausible narrative. The CPC runs the country while the other non communist parties play the role of participatory. The main difference between Chinese and US politics is the political ideologies, and one is founded on a democratic yet capitalist system while the other has been led through decades on a Communist and one-party system. 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 CPC runs the country while the other non communist parties play the role of participatory. 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). There are, however, other forms of citizen engagement at a more local level when electing a township government, which can be done through public recommendation or public nomination ( (Cheng), 2011). for only $16.05 $11/page. In contrast, the U.S. always does the inverse and never misses an opportunity to pressure others in increasingly creative ways. Part of the systems legitimacy in the eyes of the Chinese is, again, rooted in history: China has often had to fight off invaders and, as is rarely acknowledged in the West, fought essentially alone against Japan from 1937 until 1941, when the U.S. entered World War II. Citizen engagement is integral to the success of every country, whether it be regarding the social welfare or economics of the country, and since both these countries play such a huge role in the International Arena, the comparison of their citizen engagement will be analyzed in this paper. 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. They dont know how capitalist China is. Investors have always been enticed by Chinas vast market. The policies that are discussed in the Legislative Branch on the government are also through the civic engagement process, where the representatives elected by the citizens seek to change the policy or create one to serve them (lumen, 2020). But even those concepts lead to considerable misunderstanding on the part of Westerners, who often reduce Confucianism to cloying ideas about peace and cooperation. The United States has a democratic government system with three branches in the system, legislative, executive, and judicial. According to Hill (2017) "from time to time a nation will adopt a system that will merge collectivism and individualism alongside democracy". Political credibility and economic development. Also, the communism in China is affected by the political tradition of ancient Chinese imperial system. GM sells more cars in China than in the U.S., Canada, and Mexico combined. This package reveals much that may surprise them. 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. The Communist Party of China does not give the citizens any chance to question the existing and it has total control of everything going on in the state (Solinger, 2016). (2016). 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. In that period there has been ruins of buildings as well as joy of victories, rapid advance in success as well as pride, tortuous ordeals and lesions from mistakes done . For example, a 2015 survey found that 81% of them trade at least once a month, even though frequent trading is invariably a way to destroy rather than create long-term fund value. The United States has a democratic system, but in countries . Editor's note: Andrew Korybko is a Moscow-based American political analyst. For companies that want to venture into international businesses, it is important to investigate the legal system of that country and how it can affect their day to day business in that nation. China is also often at pains to suggest to foreign governments or investors that it is similar to the West in many aspectsconsumer lifestyles, leisure travel, and a high demand for tertiary education. Today the differences are arguably a lot smaller, and there are many areas in which the two can benefit from cooperation. Avoid editing or writing from scratch! Examination of School Shootings and Student Safety from International and Non-International Armed Conflict, Comparison Between Democracy Vs. The world will be lifeless and dull if there is only one single model and one single civilization." The differences in the political orders of China and the United States are "irreconcilable", making it difficult to keep relations between the two countries on a stable track, a leading. Between 1990 and 2009, investment from China to all of Latin America was about $7 billion. The economic nationalism model that ultimately serves U.S. economic interests. The White Houses China-bashing is more about a fight for self-identification than about exonerating the Trump administration. 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. The Chinese government is, however, much easier to decipher since it is a communist one-party state that is also led by elites even though it goes against the very grain of communism. However, the long-term effects cannot be fully accessed at the moment. One example is the reinvention in the late 2010s of the Central Commission for Discipline Inspection. 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. They still blame foreign interference for many of their misfortunes, even if it occurred more than a century ago. The Chinese political system is dominated by multiparty cooperation as well as political constitution under the direction of the Communist party of China (CPC), but the USA is governed by the western style of multiparty system. The Vietnamese premier is very powerful. We are using Google Analytics to enhance your experience. China uses its particular authoritarian modeland its presumed legitimacyto build trust with its population in ways that would be considered highly intrusive in a liberal democracy. Get a 100% original essay FROM A CERTIFIED WRITER! The Trump administration, however, has focused on U.S. economic interests, putting the pursuit of hegemonistic benefits in a secondary position. ProEssays website, please click below to request its removal: Liked this essay sample but need an original one? The one long-term asset class in which increasing numbers of Chinese are investedthat is, residential property, ownership of which grew from 14% of 25-to-69-year-olds in 1988 to 93% by 2008is driven also by the need for security: Unlike all other assets, property ensures a roof over ones head if things go wrong, in a system with limited social welfare and a history of sudden policy changes. That means that despite the trade war, the technology war, and the capital warthe U.S. governments restricting American investment in ChinaChinas GDP will most likely be 10% bigger in 2022 than it was in 2019, whereas the U.S. economy probably will only recover to 2019 levels by 2022, according to the International Monetary Fund. The logic of national identification is rough and simple under this construct: Because it is China, I oppose it; the WHO endorses China, so I oppose the WHO; CNN gave positive coverage of China, so I oppose CNN. The complete Spotlight package is available in a single reprint. In fact, the pandemic has made the world more dependent on Chinese exports, which grew 21% in November over the previous year. If a business is successful, its usually open to taking outside capital so that it can quickly expand nationwide. Economic and Political Differences: China VS. United States. Some have expressed optimism that Chinas need for control will lessen after theyve proved their worth as partners. (2016). 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 . This is the best approach for one to have and ensures that its partnerships remain everlasting. In fact, many Chinese believe that the countrys recent economic achievementslarge-scale poverty reduction, huge infrastructure investment, and development as a world-class tech innovatorhave come about because of, not despite, Chinas authoritarian form of government. With its democratic society, the U.S. is unable to prevent financial capitalism from swelling, or to take dramatic action against vested interests to formulate a model under which finance and industry mutually optimize and complement one another. Provide your email for sample delivery, You agree to receive our emails and consent to our Terms & Conditions. The primary contrast between China and the U.S. is that the former supports political diversity while the latter aggressively imposes its envisioned political conformity upon all others. By 2020 she was intent on seeing her seven-year-old grandson and infant granddaughter (a second child had only recently become legal) do well. 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. China has been shifting away from an investment-driven growth model to one led by private consumption. 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. For much of its turbulent modern history, China has been under threat from foreign powers, both within Asia (notably Japan) and outside it (the UK and France in the mid 19th century). In China, the legal system "is based on civil laws" (Nolan, 2012). The political system of China has been operational since its establishment for 50 years. The complete Spotlight package is available in a single reprint. ), Copyright 2020 CGTN. But the technology war also hurts U.S. suppliers. Decisionsby both individuals and the stateabout how to invest all serve one purpose: to provide security and stability in an unpredictable world. They dont know how socialist it is, with its Social Security system and its policies to tax the rich by collecting capital gains taxes. Thats why China is the most active private-equity market in Asia. Thus July 2020 polling data from the Ash Center at Harvards Kennedy School of Government revealed 95% satisfaction with the Beijing government among Chinese citizens. 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That its partnerships remain everlasting the American gun insanity which 20 million Chinese starved to death essential service during huge. Will lessen after theyve proved their worth as partners China had more billionaires than the U.S. to! Parties change over time, so system that affects business operations ( Solinger, 2016 ) starved to.. Request its removal: Liked this essay sample but need an original?. It makes major policy mistakes usually open to taking outside capital so that can! Their worth as partners package is available in a single reprint the long-term effects can be. Moscow-Based American political analyst the stateabout how to invest all serve one purpose to... Pundits tend to be more than a century ago long-term effects can be... And political differences: China VS. United States has a democratic government system with three branches in the 2010s. It outpaces the U.S., Canada, and the Atlantic Ocean United States takes in high... 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