The real danger is the Taiwan issue. Until Western companies and politicians accept this reality, they will continue to get China wrong. Worse, the U.S. has displayed an institutional helplessness in the face of such fundamental problems. The President and the National Peoples Congress, which is the main body of the country, are all elected by the Peoples Congress. But defaults and bankruptcies are common in a market economy. The Chinese can see this as crass and boastful, while in the United States, humility can be regarded as a sign of weakness. Lets be honest: A rising China may be a threat to Americas economic and technological supremacy, but not to its national security, because China doesnt export its ideology or political system and doesnt seek regime change anywhere in the world. The differences in political beliefs led to the formation of a two-party system in the United States, contrary to George Washington's wishes. 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. American companies will do so only if U.S. tariffs become more penalizing than moving would be. 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. Also, the communism in China is affected by the political tradition of ancient Chinese imperial system. 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. 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. 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. One reason that many people misread Chinas trajectory may be thatparticularly in the English-language promotional materials the Chinese use overseasthe country tends to portray itself as a variation on a liberal state, and therefore more trustworthy. 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. The premier controls the civil bureaucracy, The party general secretary runs the economy. Today the differences are arguably a lot smaller, and there are many areas in which the two can benefit from cooperation. Even though China has a one-party state, it, however, has eight independent political parties that are controlled by the CCP (CIA, 2020). The legal system of a country establishes regulations and laws that maintain and indicate the basic values of an entire nation. 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). While the U.S. political system is partly inspired by the British example, it differs in many important respects. In the countryside life retained many of its traditional elements. The past decade has, if anything, strengthened Chinese leaders view that economic reform is possible without liberalizing politics. According to Hill (2017) "from time to time a nation will adopt a system that will merge collectivism and individualism alongside democracy". As market research consistently tells us, the majority of individual Chinese investors behave more like traders. The top 10 American semiconductor chip makers sell about three times as much in China as in the United States. Under this view, whether or not other countries are free and democratic, or whether others deem the U.S. to be so, matters less than the economic benefits the U.S. deserves, including a favorable balance of trade and jobs. The world will be lifeless and dull if there is only one single model and one single civilization." Sometimes, in fact, it must sacrifice economic benefits for political or military ones. Americans focus on speed and efficiency and will hurry to get things done quickly. That history also explains the paradox that the rulers and the ruled in China operate on very different time frames. First name should have at least 2 letters, Phone number should have at least 10 digits, Essay Sample on Exploring Economic Growth: Laws and Challenges, Essay Sample on Creating a Local Government on a Privately-Owned Island, Essay Example on Texas: A State of Pride and Ownership, China and India: Nations' Health Comparison, Infidel and the Influence of Politics on United States Religious Background, Essay Example on Plenary Powers in the US Constitution. 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. In 2020 China had more billionaires than the U.S. did, and it outpaces the U.S. three to one in minting them. Access more than 40 courses trusted by Fortune 500 companies. The vehicles for much of this investment are still the CCPs Soviet-style five-year plans, which include the development of what Xi has termed an eco-civilization built around solar energy technology, smart cities, and high-density, energy-efficient housing. But this argument overlooks some fundamental differences between China and the United States, Japan, Britain, Germany, and France. The positions in this branch can be for either a five-year long term or even an unlimited amount of time. A. 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. Provide your email for sample delivery, You agree to receive our emails and consent to our Terms & Conditions. 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. 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. 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. Solinger, D. J. The old imperial bureaucracy helps modern Chinese to make the government started on more efficient point to absorb interest than any other countries (King, F. J., The United States and China Fourth Edition, 1979, He wisely noted that "Democracy is not Coca-Cola, which, with the syrup produced by the United States, tastes the same across the world. Although many in the West may believe that China sees only opportunity in its 21st-century global plans, its motivation is very different. But looking back over her life story, one can see why even many young Chinese today may feel a reduced sense of predictability or trust in what the future holdsor in what their government might do next. (2022, May 17). Looking into the future, the path for China-U.S. cooperation will become more tortuous owing to the nationalist ideological struggle triggered by the coronavirus. The founding fathers of USA forecasted their nation to be one that respects and follow basic human rights and Biblical ideas as guidance. 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. 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? This is a natural outcome of the decline in U.S. strength. Many Chinese believe that the countrys recent economic achievements have actually come about because of, not despite, Chinas authoritarian form of government. 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. In Vietnam, there are three different people. What is it that Americans dont understand about China? 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. The Chinese premier less so. Even though the laws of the United States provide every individual regardless of creed and color to vote, there have been instances of voter suppression reported, especially in relation to minorities, and this oppression has been systemic and has existed throughout the history of the US. 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. 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. Some have expressed optimism that Chinas need for control will lessen after theyve proved their worth as partners. If China were concerned only with economic outcomes, it would welcome foreign businesses and investors and, provided they helped deliver economic growth, would treat them as equal partners, agnostic as to who owned the IP or the majority stake in a joint venture. Its currency appreciated 6% against the dollar last year. Political credibility and economic development. 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. A Shanghai journalist is paid by her state-controlled magazine to fly around the world for stories on global lifestyle trends. We will write a custom Research Paper on Political system comparison between India and China specifically for you. This shapes the way they make long-term commitments, especially those that entail short-term trade-offs or losses. Along with China's economic and military rise, its leading political values will increasingly shape both China and the world at large. 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. And only the U.S. can threaten Americas economic supremacyby underinvesting in its own infrastructure and by limiting trade. Given the unique features of China's political and economic system, the government can directly affect the carbon market . If you are the original author of this essay and no longer wish to have it published on the That means not that these people are unconcerned with long-term outcomes but, rather, that their risk aversion increases significantly as the time frame lengthens. However, both states have a very different political landscape, which is what will be discussed in the paper today. Where can it move its production if the target market is China? If the U.S. abandons the one-China policy and supports Taiwans independence, conflict will be inevitable, with unimaginable consequences for the world market. Access more than 40 courses trusted by Fortune 500 companies. Consequently, running international businesses has become significantly easier than ever before. 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. What is the political difference between China and the USA? The Trump administration was determined to damage Chinas economy and businesses. But the technology war also hurts U.S. suppliers. The legal system of a country plays a key role in terms of its marketing and investment opportunities. -- The CPC is at the core of the country's leadership and the ruling party, while the non-communist parties are participating parties. The Incarcerated Vote. 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? The United States had maintained a fairly consistent foreign policy until Trump. Although there are key historical and political differences between China's relationship to Taiwan and Russia's relationship to Ukraine, there are parallels, too, especially in the present . . 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. for only $16.05 $11/page. Chinas GDP is forecast to grow 7% to 8% this year. Lets imagine the personal history of a Chinese woman who is 65 today. 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 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 . China, if it doesnt respond to U.S. nationalist challenges, will face soaring nationalist pressures at home. Ambition like that cant be realized without state interventionrelatively fast and easy but often brutal in China. Therefore, a country's political system can be assessed effectively by using aspects such as collectivism or individualism and totalitarianism or democracy. 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 . Not completely and not without very high costs. The Chinese spent countless hours restructuring their legal system to closer represent those in the Western business. As a result, economic growth came in tandem with social progress (through, for example, legislation protecting individual choice and minority rights), which made it easy to imagine that they were two sides of a coin. A Marxist system is concerned primarily with economic outcomes. Decisionsby both individuals and the stateabout how to invest all serve one purpose: to provide security and stability in an unpredictable world. The top diplomat also condemned the U.S.'s description of his country as "authoritarian" simply because its democracy is different than America's. The president controls the army. The PRC isn't just pragmatic, but also respectful towards all of its partners. There are two political theories that are needed in the discussion, the elite and the pluralist theory. 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. HBR Learnings online leadership training helps you hone your skills with courses like Global Collaboration. Reforming Sino-American Cultural Exchange for the Better. In China, the legal system "is based on civil laws" (Nolan, 2012). 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. At every point since 1949 the Chinese Communist Party has been central to the institutions, society, and daily experiences that shape the Chinese people. Unfortunately, you cant copy samples. 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. But even those concepts lead to considerable misunderstanding on the part of Westerners, who often reduce Confucianism to cloying ideas about peace and cooperation. 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. This means that business contracts are not usually detailed in China since the civil codes do not cover most laws. One reason China can spend so much on infrastructure is that its defense budget, after years of increases, is still only about a quarter that of the United States. 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. 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. 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. And the narrative has had some powerful supporters. 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. Accelerate your career with Harvard ManageMentor. In the years since, China has become an economic titan, a global leader in technology innovation, and a military superpower, all while tightening its authoritarian system of governmentand reinforcing a belief that the liberal narrative does not apply to China. Globalization has numerous benefits among them promoting the economy of a country but at the same time, it is faced with several obstacles. However, both states have a very different political landscape, which is what will be discussed in the paper today. 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. The United States takes in with high respect the principles of democracy and individualism. Doing business in emerging markets. 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. 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. Changes that have been reported but not yet acted on by BGN are noted. Chinas rulers see foreign engagement as a source less of opportunity than of threat, uncertainty, and even humiliation. 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. 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. However, there are usually lawful ways to get around that. 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. When individuals have the powerto realize their dreams, they will demand a greater say.. 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. In other words, the U.S. position as hegemon doesnt necessarily bring it any economic benefits. The CPC runs the country while the other non communist parties play the role of participatory. Most significantly, the British have a democratic parliamentary government, headed by a monarch and prime minister. The critical distinction is that the Chinese system is not only Marxist, its Marxist-Leninist. This kind of an economy is unattractive and completely represent the aspects of totalitarianism and collectivism. Hire a professional with VAST experience! 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). 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. 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. He believes Chinese people are fixated on. (2016). The highest court in China is the Supreme Peoples Court, which includes the Chief Justice and over 340 other judges, including 13 that are considered grand justices. In the China-U.S. ideological competition during the pandemic, what the U.S. seeks is not all about U.S. leadership in the international community nor U.S. economic benefits but rather coping with its identity crisis. First, China and the United States are at different stages of development. Responding, however, will only escalate a lose-lose war, and the entire international community will suffer as a result. A country that provides its citizen with education produces better minds that can bring in better business ideas to the economy. Would you like to get this essay by email? Either way you slice it, the economies are the two strongest . 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. Under the pressure of aggregated economic inequality brought by globalization, and the army of unemployed people already displaced by new technologies, the U.S. government faces severe structural constraints under the present model of state-market and state-society interactions. Examination of School Shootings and Student Safety from International and Non-International Armed Conflict, Comparison Between Democracy Vs. The only obligation they have is to follow the law that in most cases is straightforward. The basic structures of both legal system are extremely similar. In 2019 that market reached $6 trillion, surpassing the U.S. level of $5.5 trillion. 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. 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