Additionally, human development is also key for countries to realize full economic growth. However, it is important to compare and contrast countries to see which policies are working in the best way and what can be changed. Until Western companies and politicians accept this reality, they will continue to get China wrong. Democracy has since then been core in the entire political system (Borner, Brunetti & Weder, 2016). Its monetary policy is reasonably tight, with the yield on government bonds about 3.5 times that on U.S. Treasuries. A Marxist system is concerned primarily with economic outcomes. Shanghainese are up-to-date on the newest trends, whereas Beijingers prefer Qing Dynasty fashion. The country itself remains so diverse that some minority groups even have their own autonomous administrative divisions which include regions, prefectures and counties. (2012). China, meanwhile, doesn't apply any such double standards. The commission has succeeded in reducing corruption in large part because it is essentially above the lawsomething unimaginable in a liberal democracy. Springer. 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? 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. The name of the game in China is scale. Today he is the CEO of PAG, a $40 billion private equity firm based in Hong Kong. In the countryside life retained many of its traditional elements. 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. The U.S. also repeatedly provoked China using freedom and democracy as a pretext. New York: McGraw Hill/Irwin. 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). They dont know how capitalist China is. 10. Business in the United States moves at a different pace from China. 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. For example, over the past 15 years it has built the longest high-speed rail system in the world. 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. The political system of China has been operational since its establishment for 50 years. 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. In fact, China is the only G20 country to have posted positive growth. Thats why China is the most active private-equity market in Asia. 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. The pandemic has added urgency, but American politicians appear not to have found the answers. Reforming Sino-American Cultural Exchange for the Better. Routledge. Such ideas may appear very different from the outward-facing, Confucian concepts of benevolence and harmony that China presents to its international, English-speaking audience. 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. Globalization. As the United States is considered a representative republic, citizen engagement is all the more important and starts with providing the citizens of the country, regardless of gender and over the age of 18, the right to vote for their communities in the form of local elections that can elect congresses that represent their towns and constituencies as well in the Presidential election for the various arms of the executive branch. This shared quest for predictability explains the continuing attractiveness of an authoritarian system in which control is the central tenet. 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. While Bidens policy proposals reflect fading U.S. hegemonistic attitudes, Trump is showing Americans the status quo of U.S. power. 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. Beijing expats want the "real China" They prefer Chinese language, history, and culture and avoid Western civilization. HBR Learnings online leadership training helps you hone your skills with courses like Global Collaboration. 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. This package reveals much that may surprise them. Hire a professional with VAST experience! Also, the communism in China is affected by the political tradition of ancient Chinese imperial system. 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 task, in both China and the West, is to reduce the gap between the ideal of basic human rights and the reality. for only $16.05 $11/page. Civic engagement ensures that the government is serving the people and not the other way around. A major turning point was the financial crisis of 2008, which in Chinese eyes revealed the hollowness of the Washington consensus that democratization and economic success were linked. The . (2016). But because human beings tend to believe that other humans make decisions as they do, this may be the most difficult assumption for Westerners to overcome. In the early 2010s she started moderating her previously outspoken political comments on Weibo as censorship tightened up. Today its traded on the New York Stock Exchange with a market cap of about $45 billion and has more than 800 million unique active users. It will take years if not decades for China to catch up in some areas, at great cost. Its just not liberal reform. When individuals have the powerto realize their dreams, they will demand a greater say.. Eighty percent of the Senate and House of Representatives are male, while only 20 percent are either women or people of color. As to the orientation of a new era, however, the Trump administration has yet to offer any answers or insights. The closing meeting of the fifth session of the 12th National People's Congress is held at the Great Hall of the People in Beijing . No personal data is being tracked. 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. 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. China has been shifting away from an investment-driven growth model to one led by private consumption. The White Houses China-bashing is more about a fight for self-identification than about exonerating the Trump administration. The top diplomat also condemned the U.S.'s description of his country as "authoritarian" simply because its democracy is different than America's. Our own experiences on the ground in China confirm this. 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. However, both states have a very different political landscape, which is what will be discussed in the paper today. Routledge. Beijing ICP prepared NO.16065310-3, China vs. America: Political diversity vs. political conformity. Businesspeople and politicians in the West hold outdated beliefs about the second-largest economy in the world. 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. 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). Borner, S., Brunetti, A., & Weder, B. It is unbelievable that the western countries face a serious competition from these nations due to the political stability found in the two countries. As well argue in the following pages, these assumptions reflect gaps in their knowledge about Chinas history, culture, and language that encourage them to draw persuasive but deeply flawed analogies between China and other countries. Springer. First, the similarities among both countries institutions would be the hierarchical construction of their judicial system; the separation of three branches of . But defaults and bankruptcies are common in a market economy. For any deep analysis of the ideological aspects of the China-U.S. rivalry to be complete, two questions need to be answered: What political interests do the ideologies serve, and in what forms are they presented? All the work should be used in accordance with the appropriate policies and applicable laws. For the Chinese, the key to those outcomes is respect for an appropriate hierarchy, itself a means of control. Many Westerners assume that China is on the same development trajectory that Japan, Britain, Germany, and France embarked on in the immediate aftermath of World War IIthe only difference being that the Chinese started much later than other Asian economies, such as South Korea and Malaysia, after a 40-year Maoist detour. The legislative branch of the government is responsible for making laws through the Congress and House of Representatives, both of which hold elected officials that create legislation for their constituents while the Judicial branch of the government is responsible for upholding and interpreting these laws through the highest court in the land Supreme Court and High Courts which tend to follow their own state law. In much Western analysis the verb most commonly attached to Chinas reforms is stalled. The truth is that political reform in China hasnt stalled. Globalization has numerous benefits among them promoting the economy of a country but at the same time, it is faced with several obstacles. But the third assumption can also mislead those seeking to engage with China. That leaves much room for growth and many opportunities for investors, particularly in businesses that cater to consumers. 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. Consequently, the freedom of running businesses without much obstacles leads to an increase in modernization and innovation increase and the country realizes better economic growth. 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. Both countries have human rights issues, although in different forms. Is a China-U.S. decoupling a real possibility? 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. Many Chinese believe that the countrys recent economic achievements have actually come about because of, not despite, Chinas authoritarian form of government. He believes Chinese people are fixated on. 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). This shapes the way they make long-term commitments, especially those that entail short-term trade-offs or losses. First, China and the United States are at different stages of development. Most significantly, the British have a democratic parliamentary government, headed by a monarch and prime minister. In this interview he talks about the accessibility of the Chinese market, Americas demonization of China, what the Chinese dont understand about the U.S., and more. However, both states have a very different political landscape, which is what will be discussed in the paper today. Is your time best spent reading someone elses essay? Changes that have been reported but not yet acted on by BGN are noted. The CPC runs the country while the other non communist parties play the role of participatory. 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. Consequently, running international businesses has become significantly easier than ever before. The complete Spotlight package is available in a single reprint. When we first traveled to China, in the early 1990s, it was very different from what we see today. Retrieved from https://proessays.net/essays/economic-and-political-differences-china-vs-united-states. When the United States formed its constitution, it specifically dictated the unalienable rights of every person. Are you seeing a significant shift in supply chains out of China? Economic and Political Differences: China VS. United States. However, it also highlighted the different ways in which people of color in the USA are suppressed through political representation and voter suppression. Nations without better access to such facilities depend on their agriculture and natural resources to enhance economic growth. 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. 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. Meanwhile, American consumers have paid for the higher tariffs, because the average prices of Chinese exports havent decreased. In 2020 China had more billionaires than the U.S. did, and it outpaces the U.S. three to one in minting them. 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. What is it that Americans dont understand about China? It continues apace. The CPC runs the country while the other non communist parties play the role of participatory. The United States government structure is one of the largest democracies in the world and has been considered by many as one of the perfect democracies which the country and its citizens have prided themselves over. Many of its traditional elements which people of color in the early 2010s she started moderating her outspoken. 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