55-64). Both countries have a Judicial, Executive, and Legislative branch. China, however, has been able to sustain and grow its economy as much as it practices a command economy. There are major differences in the political views of people from different nations.. eligion is another topic that creates differences among cultures.. Since China is a communist and one-party state, citizen engagement is lower in comparison to democratic states. China and the global economy. Consequently, inequality is greater in China than in the United States, measured by the Gini coefficient. China is among the most open markets in the world: It is the largest trading nation and also the largest recipient of foreign direct investment, surpassing the United States in 2020. Order original essay online with 25% off. 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. The PRC isn't just pragmatic, but also respectful towards all of its partners. Does that create new investment opportunities? Its monetary policy is reasonably tight, with the yield on government bonds about 3.5 times that on U.S. Treasuries. they are digging deep to create the city's first metro system and doing so in just five years' time . Either way you slice it, the economies are the two strongest . These are valid points and deserve to be expanded upon in order to enlighten others further. China now has better highways, rail systems, bridges, and airports than the United States does. Losing the China market will be costly for American tech companies and deprive them of funds for further R&D. Some real differences between the two countries do exist, but they have historically managed them without escalating tensions. 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. Considering that China adopted the system of the dynamic market much later than other nations, it has done remarkably well to have such a positive impact on its economy. 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. PAG invested about $100 million in a digital music business in China a few years back which subsequently merged with a similar business and changed its name to Tencent Music Entertainment. The President and the National Peoples Congress, which is the main body of the country, are all elected by the Peoples Congress. Hence the old joke that Chinas definition of a win-win scenario is one in which China wins twice. Half of the representatives in Congress are millionaires with their median net worth reported to be more than a million. One example is the reinvention in the late 2010s of the Central Commission for Discipline Inspection. 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 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. (2016). He wisely noted that "Democracy is not Coca-Cola, which, with the syrup produced by the United States, tastes the same across the world. 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. 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. However, it also highlighted the different ways in which people of color in the USA are suppressed through political representation and voter suppression. 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. The Chinese can see this as crass and boastful, while in the United States, humility can be regarded as a sign of weakness. While Bidens policy proposals reflect fading U.S. hegemonistic attitudes, Trump is showing Americans the status quo of U.S. power. Decisionsby both individuals and the stateabout how to invest all serve one purpose: to provide security and stability in an unpredictable world. The commission has succeeded in reducing corruption in large part because it is essentially above the lawsomething unimaginable in a liberal democracy. Ambition like that cant be realized without state interventionrelatively fast and easy but often brutal in China. 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. The space for the two sides to compromise and collaborate has narrowed extremely rapidly. 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. 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. Those with low social-credit scores may find themselves prevented from buying an airline ticket or getting a date on an app. What are the biggest risks for Chinas economy in the coming years? (If you want to contribute and have specific expertise, please contact us at opinions@cgtn.com. People who do take long-term career risks often do so only after fulfilling their primary need for short-term security. GM sells more cars in China than in the U.S., Canada, and Mexico combined. 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. But defaults and bankruptcies are common in a market economy. 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. The reality is quite different. He believes Chinese people are fixated on. Chinas Good War: How World War II Is Shaping a New Nationalism. 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. Investors have always been enticed by Chinas vast market. 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. Changes that have been reported but not yet acted on by BGN are noted. However, the country does have branches of government that also include the executive, legislative and judicial branches of government. The Chinese premier less so. 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. Until that happens, the world will remain unstable as the U.S. aggressively tries to eliminate political diversity. New York: McGraw Hill/Irwin. In other words, the U.S. position as hegemon doesnt necessarily bring it any economic benefits. A Chinese professor who has lived in both the US and China believes there is a core cultural difference leading to the country's diverging paths. 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. This is the logical extension of China-U.S. competition from the perspective of U.S. economic nationalism. Political discourse in China remains anchored in Marxist-Leninist ideas of struggle (douzheng) and contradiction (maodun)both seen as attributes that force a necessary and even healthy confrontation that can help achieve a victorious outcome. This, of course, mirrors the role of U.S. defense and intelligence spending in the development of Silicon Valley. But it wont back off from its territorial claims, all of which predate the Peoples Republic of China. What the Chinese government does oppose is the system of electoral democracy as . That focus on securing short-term gain is why the young asset manager in Shanghai left a good long-term job for a relatively small but immediate pay raisebehavior that still plagues many businesses trying to retain talent and manage succession pipelines in China. Obviously, as an economy develops and new problems emerge, all social systems need certain reforms. This means that business contracts are not usually detailed in China since the civil codes do not cover most laws. Yet as soon as that ideological cover is removed, internal contradictions immediately reveal themselves. The technology war waged by the Trump administration forced China to develop critical technologies, such as semiconductor chips, for which it has relied on U.S. suppliers. 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. The civil law system only allows the judge to make his or her judgment basing on the law and should not consider other factors surrounding the business. Routledge. The pandemic has profoundly shaken the U.S. sense of superiority in values, culture and systems since the Enlightenment, and by extension the entire West. Many Chinese believe that the countrys recent economic achievements have actually come about because of, not despite, Chinas authoritarian form of government. It is important to understand the background of the political systems in both China and the United States in order to compare both, especially the theoretical system of governance they follow, whether a pluralist or oligarchical system. The U.S., on the other hand, is infamous for its self-deluded belief in so-called "American Exceptionalism," to which end it obsessively seeks to force all others to change their ways in order to replicate its own radically. Retrieved from https://proessays.net/essays/economic-and-political-differences-china-vs-united-states. As to the orientation of a new era, however, the Trump administration has yet to offer any answers or insights. 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. 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. He was born in China, and his life was upended during the Cultural Revolution, when he was sent off to do farm labor in the Gobi Desert. Earn badges to share on LinkedIn and your resume. Sorry, but it's not possible to copy the text due to security reasons. Second, the economic structure is different. And what is it that the Chinese dont understand about the United States? What is it that Americans dont understand about China? 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). For the Chinese, the key to those outcomes is respect for an appropriate hierarchy, itself a means of control. 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. Today he is the CEO of PAG, a $40 billion private equity firm based in Hong Kong. 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. Get a 100% original essay FROM A CERTIFIED WRITER! . For instance, a business that wants to invest in China from the US, it must be prepared for more restrictions and should not expect Chines courts to consider the condition that leads to a certain situation since their law does not permit this. 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. By the 1980s she was in the first generation to go back to university, and even took part in the Tiananmen Square demonstration. Access more than 40 courses trusted by Fortune 500 companies. But surely gun shops being essential service during a huge medical virus shutdown is the height of insanity at this moment on this planet. Political credibility and economic development. Some distinctions between the parties. 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 CPC runs the country while the other non communist parties play the role of participatory. Eighty percent of the Senate and House of Representatives are male, while only 20 percent are either women or people of color. Is it that Chinas development doesnt conform with the values of freedom and democracy, or that Chinas growing strength is a threat to U.S. hegemony? That Canada has elected communists to office, I suggest is just about as important a disparity as the American gun insanity. What are the dangers in Americas continued demonization of China? The ideological debate that followed was perhaps inevitable. 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. 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. Our response? But this argument overlooks some fundamental differences between China and the United States, Japan, Britain, Germany, and France. 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. Unlike China, the U.S. spends more than 50% above its annual revenues leading to high deficits. Delivery in 6+ hours! Land use is the most direct manifestation of human activities, accompanied by changes in land cover. 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. 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. In Canada, it is a . Solve your problem differently! Educated in the United States, he worked for the World Bank and J.P. Morgan and taught at the Wharton School. The Communist Party of China (CPC) harbors no supremacist beliefs and doesn't plan to export its governing model abroad. I see no systemic risk either in Chinas banking system or in its economy. Springer. The positions in this branch can be for either a five-year long term or even an unlimited amount of time. Thats why ordinary Chinese people see Chinese companies such as Alibaba, Huawei, and TikTok as sources of national prideinternational vanguards of Chinese successrather than simply sources of jobs or GDP, as they might be viewed in the West. They make three plausible but false assumptions: Democracy is an inevitable consequence of economic development; authoritarian regimes are never seen as legitimate; and the Chinese think, behave, and invest much like anyone in the West. American companies will do so only if U.S. tariffs become more penalizing than moving would be. There are two political theories that are needed in the discussion, the elite and the pluralist theory. The complete Spotlight package is available in a single reprint. While the U.S. political system is partly inspired by the British example, it differs in many important respects. The difference in efficiency between the central and local groups is significant. That history also explains the paradox that the rulers and the ruled in China operate on very different time frames. Not blaming China means indirectly acknowledging U.S. shortcomings, which could be explosive in U.S. partisan politics. When the United States formed its constitution, it specifically dictated the unalienable rights of every person. Meanwhile, American consumers have paid for the higher tariffs, because the average prices of Chinese exports havent decreased. In contrast, the governments discount rate on the future is lowerin part because of its Leninist emphasis on controland explicitly focused on long-term returns. Americans Dont Know How Capitalist China Is, A version of this article appeared in the. If a business is successful, its usually open to taking outside capital so that it can quickly expand nationwide. What is the political difference between China and the USA? Why do leaders in the West persist in getting China so wrong? Trumps trade war was an abject failure. The US is surrounded by Mexico, Canada, the Pacific Ocean, and the Atlantic Ocean. The differences in political beliefs led to the formation of a two-party system in the United States, contrary to George Washington's wishes. Citizen engagement is a necessary facet of not just American politics but also a democratic state. The Trump administration was determined to damage Chinas economy and businesses. 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). In China, however, growth has come in the context of stable communist rule, suggesting that democracy and growth are not inevitably mutually dependent. China on the other hand practice totalitarianism and collectivism which is the opposite of democracy. 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). (2022, May 17). Mandarin. 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. China has also defied predictions that its authoritarianism would inhibit its capacity to innovate. Weijian Shan understands the delicate U.S.-China dynamic as well as anyone. At every point since 1949 the Chinese Communist Party has been central to the institutions, society, and daily experiences that shape the Chinese people. Editor's note: Andrew Korybko is a Moscow-based American political analyst. And the narrative has had some powerful supporters. Its currency appreciated 6% against the dollar last year. Routledge. 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. 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. Accelerate your career with Harvard ManageMentor. Americans focus on speed and efficiency and will hurry to get things done quickly. U.S. self-identification has been shaken under these circumstances. Even though both countries are different in every way, they are still recognized as each others competition in the International Arena. It continues apace. A Shanghai journalist is paid by her state-controlled magazine to fly around the world for stories on global lifestyle trends. This is the best approach for one to have and ensures that its partnerships remain everlasting. for only $16.05 $11/page. 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. However, it is important to compare and contrast countries to see which policies are working in the best way and what can be changed. 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. The . 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. 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). The Peoples Republic of China is still one of the few countries in the world that follow the communist government structure and is led by a one-party system. If the U.S. abandons the one-China policy and supports Taiwans independence, conflict will be inevitable, with unimaginable consequences for the world market. 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. Chinas history continues to color its view of international relationsand in large part explains its current obsession with the inviolability of its sovereignty. 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%. 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. 10. Business in the United States moves at a different pace from China. 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