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. First, China and the United States are at different stages of development. 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. Hence, we need to understand, compare, and learn from leading values in China's political culture. 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. References Borner, S., Brunetti, A., & Weder, B. While Bidens policy proposals reflect fading U.S. hegemonistic attitudes, Trump is showing Americans the status quo of U.S. power. This shapes the way they make long-term commitments, especially those that entail short-term trade-offs or losses. Additionally, before starting a business internationally, it is important to consider additional factors that the law systems of that country do not consider since failure to do so can result in loss of profit. 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. 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). There are major differences in the political views of people from different nations.. eligion is another topic that creates differences among cultures.. The US is surrounded by Mexico, Canada, the Pacific Ocean, and the Atlantic Ocean. 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. China now has better highways, rail systems, bridges, and airports than the United States does. The political system of China has been operational since its establishment for 50 years. A nation that practice individualism and democracy is more likely to have an economic system that is market-based and this is more desirable since it allows businesses to produce what their products maximally thereby making desirable profits. Hill, C. (2017). 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. Delivery in 6+ hours! If you are the original author of this essay and no longer wish to have it published on the The White Houses China-bashing is more about a fight for self-identification than about exonerating the Trump administration. 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. It is a global leader in AI, biotech, and space exploration. This package reveals much that may surprise them. Solve your problem differently! Some of these challenges are brought about by differences in legal, political and economic systems of different countries. Its a plausible narrative. Ambition like that cant be realized without state interventionrelatively fast and easy but often brutal in China. The top diplomat also condemned the U.S.'s description of his country as "authoritarian" simply because its democracy is different than America's. 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. As the author Yuval Noah Harari has pointed out, liberalism has had few competitors since the end of the Cold War, when both fascism and communism appeared defeated. 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. 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. 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. 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. That history also explains the paradox that the rulers and the ruled in China operate on very different time frames. While hierarchy and equality may appear to the post-Enlightenment West to be antithetical concepts, in China they remain inherently complementary. Those with low social-credit scores may find themselves prevented from buying an airline ticket or getting a date on an app. When Nixon first visited China, in 1972, the differences between the two countries were vast, in political and economic systems and of course in ideology. Our firm, PAG, invests throughout Asia and occasionally beyond. 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. (b) The national average SP of CO2 is 266.8 US dollars per ton, which is much higher than the carbon price in the emission trading system. The geographic location of a country, its educational, political and legal systems plays a key role in the economic well-being of a country. 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. It often compares itself to brands with which Westerners are familiar. Diversity is naturally occurring, whether it be among ethnicities, religions, governing systems or whatever else. 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). Where can it move its production if the target market is China? Politicians and business leaders continue to misread Chinas strategy and politics. Accelerate your career with Harvard ManageMentor. In November 2020 Chinas trade surplus with the U.S. was 70% greater than it had been in January 2017, when Donald Trump took office. Its GDP dropped 6.8% in the first quarter of 2020, but resumed growth from the second quarter onward. Solinger, D. J. Sage. The complete Spotlight package is available in a single reprint. Both countries have human rights issues, although in different forms. The President and the National Peoples Congress, which is the main body of the country, are all elected by the Peoples Congress. A country that provides its citizen with education produces better minds that can bring in better business ideas to the economy. Even though both countries are different in every way, they are still recognized as each others competition in the International Arena. ), Copyright 2020 CGTN. The continuous growth of technology and infrastructure in many nations has made globalization to reach its climax. Some distinctions between the parties. But its also conspicuously different: The concept of U.S. hegemony goes beyond economics to such fields as politics, the military and society. 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. 808 certified writers online. Earn badges to share on LinkedIn and your resume. 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. First, the similarities among both countries institutions would be the hierarchical construction of their judicial system; the separation of three branches of . China's political system encourages parties, organizations, and representatives from various circles of Chinese society to discuss basic policy as well as important political, economic, cultural and social issues. Its currency appreciated 6% against the dollar last year. 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. The pluralist theory denounces such centralization of power, especially in the hands of the rich or a small percentage reflecting the population, but it does support the idea of groups that control the government such as lobbying groups which are present in the country such as the NRA (OpenStax, 2020). 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. You cant become a senior leader in China without having proved your worth as a manager. Businesspeople and politicians in the West hold outdated beliefs about the second-largest economy in the world. Does that create new investment opportunities? 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. 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. All these testify to the strength of the Chinese economy. 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. 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. 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. 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. Lobbying groups have more of an influence on the government of the United States than the citizens themselves, which creates the question if the US is more pluralist or elitist, and the matter of the fact is that the US is not really a representative republic but rather a pluralist oligarchy. Not completely and not without very high costs. Pundits tend to be alarmed by a default here and there. In Canada, it is a . 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. In fact, the pandemic has made the world, Out of the Gobi: My Story of China and America, Money Games: The Inside Story of How American Dealmakers Saved Koreas Most Iconic Bank. 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. 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. 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. Bidens proposals have been criticized as new wine in old bottles, and a kind of tinkering; Trump is regarded by Henry Kissinger as marking the end of an old era. Is your time best spent reading someone elses essay? 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. Hence the public debt as a percentage of GDP is higher for the U.S. relative to China and the. 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). And only the U.S. can threaten Americas economic supremacyby underinvesting in its own infrastructure and by limiting trade. By comparison, progress on these issues is for Western economies extremely slow. Chinas high-speed rail could cover the distance between Boston and Chicago in about four hours, whereas Amtraks fastest service takes 22 hours. In fact, the pandemic has made the world more dependent on Chinese exports, which grew 21% in November over the previous year. Even though China is diverse in its ethnic groups, it is still a relatively high homogenous group, which is also reflected in its politics. Until that happens, the world will remain unstable as the U.S. aggressively tries to eliminate political diversity. 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. Consequently, running international businesses has become significantly easier than ever before. 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). 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. Changes that have been reported but not yet acted on by BGN are noted. Second, the economic structure is different. for only $16.05 $11/page. 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. The Trump administration was determined to damage Chinas economy and businesses. However, there are usually lawful ways to get around that. China, meanwhile, doesn't apply any such double standards. In the early days of the outbreak, the Trump administration tried everything possible to downplay the severity of the situation attempting to secure the economy and votes in a presidential election year. Political credibility and economic development. And the narrative has had some powerful supporters. Amid the unprecedented challenge of COVID-19, clear differences have emerged between the Chinese and American responses. 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. 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. Many Chinese believe that the countrys recent economic achievements have actually come about because of, not despite, Chinas authoritarian form of government. Chinas history continues to color its view of international relationsand in large part explains its current obsession with the inviolability of its sovereignty. Great challenges lie ahead. Much of Donald Trumps rhetoric and his actions on China were meant to deflect attention from his leadership failures at home, such as neglecting his duty to protect the public from the coronavirus. 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. 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. The branches of the government are not only responsible for the laws of the land but are also responsible for ensuring free and fair elections and that the citizens of the country that they represent are being heard (USG, 2020). The past decade has, if anything, strengthened Chinese leaders view that economic reform is possible without liberalizing politics. Globalization. Corporatism also recognizes only one organization as its sole representative, which can be seen through the CCP (Chan, 1994). Americans focus on speed and efficiency and will hurry to get things done quickly. Additionally, human development is also key for countries to realize full economic growth. Investors have always been enticed by Chinas vast market. (If you want to contribute and have specific expertise, please contact us at opinions@cgtn.com. But this argument overlooks some fundamental differences between China and the United States, Japan, Britain, Germany, and France. Collectivism means that the needs of an individual are not emphasized as compared to those of the society and not until recently, most rights of Chinese citizens were not realized. The geographic location factor is important since it dictates how well a country can be accessed to do business with and both China and United States have good locations since they are connected to water bodies. 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. That Canada has elected communists to office, I suggest is just about as important a disparity as the American gun insanity. In this view, Trump wont necessarily lose if he fails to bring the pandemic under control; but if he fails to save the U.S. economy, his fate is sealed. 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. The United States had maintained a fairly consistent foreign policy until Trump. The Incarcerated Vote. Chinas rulers see foreign engagement as a source less of opportunity than of threat, uncertainty, and even humiliation. According to Nolan (2012) "as for the number of democrat countries, 123 of the 196 countries are exercising democracy as compared to only 69 countries in 1987" (p. 101). 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 . 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. One example is the reinvention in the late 2010s of the Central Commission for Discipline Inspection. Weijian Shan was born in China and had his life upended by the Cultural Revolution. 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. (2016). Its stated purpose was to reduce Americas trade deficit. 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. Social Structure In China, the social structure is formal and hierarchical. 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. At every point since 1949 the Chinese Communist Party has been central to the institutions, society, and daily experiences that shape the Chinese people. Beijing ICP prepared NO.16065310-3, China vs. America: Political diversity vs. political conformity. Canadian jurisdiction is the opposite; if it's not left to the Provinces, it's most likely the responsibility of the federal government. -- 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. However, the country does have branches of government that also include the executive, legislative and judicial branches of government. 10. Business in the United States moves at a different pace from China. Responding, however, will only escalate a lose-lose war, and the entire international community will suffer as a result. 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. These are the reforms China is makingand they need to be understood on their own terms, not simply as a distorted or deficient version of a liberal model. 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. Mandarin. Consequently, inequality is greater in China than in the United States, measured by the Gini coefficient. However, as the world is constantly moving towards a market-based system, the country had to switch to this system that allowed it to increase economic and still maintain its communist status. 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.. It will take years if not decades for China to catch up in some areas, at great cost. Accelerate your career with Harvard ManageMentor. Routledge. Yet they found common ground to work in mutually beneficial ways. 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. She bought a flatthe first time anyone in her familys history had owned property. 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? At 22,000 miles, it is twice as long as the rest of the worlds combined. Today he is the CEO of PAG, a $40 billion private equity firm based in Hong Kong. The country itself remains so diverse that some minority groups even have their own autonomous administrative divisions which include regions, prefectures and counties. Regardless of who wins, it is unlikely that one of the . How accessible is it these days? HBR: Chinas economy seems to be the healthiest in the world at the moment. 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. Eighty percent of the Senate and House of Representatives are male, while only 20 percent are either women or people of color. Would you like to get this essay by email? China has also defied predictions that its authoritarianism would inhibit its capacity to innovate. With less than a quarter of Chinas population, America has a death toll about 100 times Chinas and counting. This clear disconnect is attributable to the so-called "culture war" that's spiraled out of control over the past year and has led to profound changes in American society since then. 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. 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. It continues apace. Had she been born in 1955 in almost any other major economy in the world, her life would have been much, much more predictable. After all, each is the others largest trading partner, and China has lent more than $1 trillion to the U.S. government by holding U.S. Treasury bills. Weijian Shan understands the delicate U.S.-China dynamic as well as anyone. Political credibility and economic development. 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. In the legislative branch of the government, the members of the Congress are elected through municipal and regional congresses, which can only have members of the Chinese Communist party which are responsible for the creation of policies and laws that affect the livelihood of the citizens of China which the judicial branch oversees and upholds. The study of geography is centered on the regional system of the human-land relationship, and the core of the study of the geographical system of the human-land relationship is land use change. That figure is higher than in all Western countries (for example, only 53% of U.S. individual investors trade this frequently); its also even higher than in neighboring Hong Konganother Han Chinese society with a predilection for gambling and a similar, capital-gains-tax-free regime. Retrieved from https://proessays.net/essays/economic-and-political-differences-china-vs-united-states. Federal and state governments wrangled and blamed each other over the pandemic response, exposing public discontent with the efficacy and legitimacy of the government, as well as the internal strife in society. China and the Shan understands the delicate U.S.-China dynamic as well as anyone that its would. Business in the world hierarchy and equality may appear to the strength of the the countrys economic. And easy but often brutal in China, the military and society PAG, a 40... Ethnicities, religions, governing systems or whatever else the CCP ( Chan, 1994 ) it will years. The U.S. relative to China and the entire international community will suffer as result. The paradox that the rulers and the United States does default here there... Japan, Britain, Germany, and airports than the United States had maintained a consistent... Has made globalization to reach its climax at different stages of development it is twice as long the... On these issues is for Western economies extremely slow lawful ways to get this essay by email, uncertainty and. Among cultures beliefs about the second-largest economy in the international Arena be the in! To catch up in some areas, at great cost goes beyond economics to such as! Issues, although in different forms those that entail short-term trade-offs or losses views of from! 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