The only obligation they have is to follow the law that in most cases is straightforward. World economies keep on changing and countries are also made to change for them to remain competitive. 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. It is important to understand the background of the. The difference between the US and China is that the US is on the North American continent, whereas China lies in Asia. Sometimes, in fact, it must sacrifice economic benefits for political or military ones. Seventy years on, many Chinese believe that their political system is now actually more legitimate and effective than the Wests. ProEssays website, please click below to request its removal: Liked this essay sample but need an original one? Although many in the West may believe that China sees only opportunity in its 21st-century global plans, its motivation is very different. The United States has a democratic system, but in countries . In International Business: Competing in the global marketplace (11th ed.). Chinas Good War: How World War II Is Shaping a New Nationalism. Unlike China, the U.S. spends more than 50% above its annual revenues leading to high deficits. 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, Thats why China is the most active private-equity market in Asia. In contrast, the U.S. always does the inverse and never misses an opportunity to pressure others in increasingly creative ways. 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. 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. The legal system of a country plays a key role in terms of its marketing and investment opportunities. Wherever PAG operates, we adhere to the same environmental, social, and governance policies. 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. The authors suggest that those assumptions are rooted in three essentially false beliefs about modern China: (1) Economics and democracy are two sides of the same coin; (2) authoritarian political systems cant be legitimate; and (3) the Chinese live, work, and invest like Westerners. HBR Learnings online leadership training helps you hone your skills with courses like Global Collaboration. Learn how to overcome barriers when working globally. Globalization. And what is it that the Chinese dont understand about the United States? But the third assumption can also mislead those seeking to engage with China. (2022, May 17). Earn badges to share on LinkedIn and your resume. Exploding unemployment exposed the wide wealth gap in U.S. society. Earn badges to share on LinkedIn and your resume. The critical distinction is that the Chinese system is not only Marxist, its Marxist-Leninist. 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. Worse, the U.S. has displayed an institutional helplessness in the face of such fundamental problems. 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. 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. This shapes the way they make long-term commitments, especially those that entail short-term trade-offs or losses. Decisionsby both individuals and the stateabout how to invest all serve one purpose: to provide security and stability in an unpredictable world. 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. Many Chinese believe that the countrys recent economic achievements have actually come about because of, not despite, Chinas authoritarian form of government. 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. 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. The past decade has, if anything, strengthened Chinese leaders view that economic reform is possible without liberalizing politics. In our experience, many Westerners dont understand what that means or why it matters. He wisely noted that "Democracy is not Coca-Cola, which, with the syrup produced by the United States, tastes the same across the world. The Stages of Strategic Crime Analysis Report. ChatGPT has become a sensation since its public release in November, with its ability to produce plausible responses to text prompts, including requests to write essays. In terms of political system, China is unique to all other countries in the world since up to date it is still run by a Communist party (Nolan, 2012). 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. Civic engagement ensures that the government is serving the people and not the other way around. 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 . 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. Its currency appreciated 6% against the dollar last year. Delivery in 6+ hours! Our own experiences on the ground in China confirm this. She bought a flatthe first time anyone in her familys history had owned property. This, of course, mirrors the role of U.S. defense and intelligence spending in the development of Silicon Valley. 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. Springer. These similarities are real, but they are manifestations of the wealth and personal aspirations of Chinas newly affluent middle class, and they in no way negate the very real differences between the political systems of China and the West. : Statist Legacies and Market Reforms, 1980-90: Statist Legacies and Market Reforms, 1980-90. Any shift in supply chains will be gradual and partial, because its very costly to move from the most efficient supplier to the second or third best. 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 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. 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. As to the orientation of a new era, however, the Trump administration has yet to offer any answers or insights. Nolan, P. (2012). 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. At 22,000 miles, it is twice as long as the rest of the worlds combined. The United States has a democratic government system with three branches in the system, legislative, executive, and judicial. Some distinctions between the parties. The local and minor elections in the country are the only form of citizen engagement that is seen in the political process of China, but there have been many cases of suppression in the minor elections, especially regarding independent candidates. The 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. The big difference is that in China the party, state, and army is led by one person. The U.S. continues to vilify China, and China does itself no favors with its poor policy on human rights. 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. In the countryside life retained many of its traditional elements. 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 Communist Party of China does not give the citizens any chance to question the existing and it has total control of everything going on in the state (Solinger, 2016). 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. 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. 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. 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. The major focus of government expenditure is domestic infrastructure. The economy has grown 36-fold over the past three decades, chiefly because of market-oriented reforms that have created a vibrant private sector, which now accounts for about two-thirds of Chinas GDP. This explains why the People's Republic of China (PRC) never attaches any political strings to its economic deals nor makes ultimatums regarding any of its partners. 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). 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. Westerners failure to appreciate this explains why many still expect China to reduce its role as investor, regulator, and, especially, intellectual property owner when that role is in fact seen as essential by the Chinese government. 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. The President and the National Peoples Congress, which is the main body of the country, are all elected by the Peoples Congress. Additionally, in such a system, services and products are distributed and offered by the individuals working privately and independently with limited regulation from the government. The complete Spotlight package is available in a single reprint. Routledge. This is a natural outcome of the decline in U.S. strength. When individuals have the powerto realize their dreams, they will demand a greater say.. Empowered by Xi to deal with the corruption that had become so prevalent early in that decade, the commission can arrest and hold suspects for several months; its decisions cannot be overturned by any other entity in China, not even the supreme court. The country itself remains so diverse that some minority groups even have their own autonomous administrative divisions which include regions, prefectures and counties. Political credibility and economic development. 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 . If a business is successful, its usually open to taking outside capital so that it can quickly expand nationwide. In Canada, it is a . Beijing expats want the "real China" They prefer Chinese language, history, and culture and avoid Western civilization. This is the best approach for one to have and ensures that its partnerships remain everlasting. Weijian Shan was born in China and had his life upended by the Cultural Revolution. ), Copyright 2020 CGTN. The well-being and economic development is another key branch of a political system that affects business operations (Solinger, 2016). In fact, China is the only G20 country to have posted positive 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. 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. China on the other hand practice totalitarianism and collectivism which is the opposite of democracy. . By 2008 she was making the most of the rise in disposable incomes by buying new consumer goods that her parents could only have dreamt about. Get a 100% original essay FROM A CERTIFIED WRITER! Until Western companies and politicians accept this reality, they will continue to get China wrong. The paper also highlighted citizen engagement in both countries, either through direct elections in the USA or through the CCP controlled nominations in China. The 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. 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. Is a China-U.S. decoupling a real possibility? A decade ago its retail-goods market was about $1.8 trillionless than half that of the United States. 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. The reality is quite different. Majority of China's production companies are owned and managed by the government. Losing the China market will be costly for American tech companies and deprive them of funds for further R&D. While Bidens policy proposals reflect fading U.S. hegemonistic attitudes, Trump is showing Americans the status quo of U.S. power. The continuous growth of technology and infrastructure in many nations has made globalization to reach its climax. Regardless of who wins, it is unlikely that one of the . 10. Business in the United States moves at a different pace from China. 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. The logic of national identification is rough and simple under this construct: Because it is China, I oppose it; the WHO endorses China, so I oppose the WHO; CNN gave positive coverage of China, so I oppose CNN. Some have expressed optimism that Chinas need for control will lessen after theyve proved their worth as partners. Born in 1955, she experienced as a child the terrible Great Leap Forward famine in which 20 million Chinese starved to death. 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. We are using Google Analytics to enhance your experience. 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. 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. Although murdering babies and elderly with medical sanctions in multiple too left . In the early 2010s she started moderating her previously outspoken political comments on Weibo as censorship tightened up. 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). China, if it doesnt respond to U.S. nationalist challenges, will face soaring nationalist pressures at home. 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). 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.. China has also defied predictions that its authoritarianism would inhibit its capacity to innovate. 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? What's most ironic about this observation is that domestic American politics are nowadays focusing on the merits of diversity, yet its foreign policy is exclusively predicated on conformity. 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. By the 1980s she was in the first generation to go back to university, and even took part in the Tiananmen Square demonstration. Beijing ICP prepared NO.16065310-3, China vs. America: Political diversity vs. political conformity. 808 certified writers online. 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. Moving from Beijing to Shanghai has made my Mandarin worse. Some of these challenges are brought about by differences in legal, political and economic systems of different countries. Second, the economic structure is different. That Canada has elected communists to office, I suggest is just about as important a disparity as the American gun insanity. 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. Chinas saving rate will drop significantly as its population ages, and investment will slow. The White Houses China-bashing is more about a fight for self-identification than about exonerating the Trump administration. Also, the communism in China is affected by the political tradition of ancient Chinese imperial system. Its stated purpose was to reduce Americas trade deficit. 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. The executive branch of the government holds the highest position of head of state and the cabinet as well, which is appointed by the National Peoples Congress. They both have a presiding official, like a judge, plaintiffs, defendants, legal council etc. The space for the two sides to compromise and collaborate has narrowed extremely rapidly. Access more than 40 courses trusted by Fortune 500 companies. Does the U.S. even have the power to hurt China economically? But this argument overlooks some fundamental differences between China and the United States, Japan, Britain, Germany, and France. 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). Chinas rapid economic growth is the result of its embrace of a market economy and private enterprise. That, perhaps, is why its current president and (more crucially) party general secretary, Xi Jinping, has let it be known that he considers Gorbachev a traitor to the cause for liberalizing as he did, thereby destroying the Communist Partys hold on the USSR. GM sells more cars in China than in the U.S., Canada, and Mexico combined. 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. 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. 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. Most significantly, the British have a democratic parliamentary government, headed by a monarch and prime minister. Solinger, D. J. What are the dangers in Americas continued demonization of China? 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. But its also conspicuously different: The concept of U.S. hegemony goes beyond economics to such fields as politics, the military and society. She was a Red Guard as a teenager, screaming adoration for Chairman Mao while her parents were being re-educated for being educated. (If you want to contribute and have specific expertise, please contact us at opinions@cgtn.com. 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. 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. Familiarity with Leninist doctrine is still important for getting ahead. Leninism, however, is essentially a political doctrine; its primary aim is control. The Communist Party of China (CPC) harbors no supremacist beliefs and doesn't plan to export its governing model abroad. 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. 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. 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. The country will need to continue to reform and privatize its state-owned firmsand shift from investment to private consumptionor it will not be able to sustain its growth. Solve your problem differently! For much of its turbulent modern history, China has been under threat from foreign powers, both within Asia (notably Japan) and outside it (the UK and France in the mid 19th century). Those with low social-credit scores may find themselves prevented from buying an airline ticket or getting a date on an app. /Getty. How can outside investors ensure that they dont become collateral damage in a bigger political and economic war? The Chinese spent countless hours restructuring their legal system to closer represent those in the Western business. All the work should be used in accordance with the appropriate policies and applicable laws. 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. These are valid points and deserve to be expanded upon in order to enlighten others further. Both countries have human rights issues, although in different forms. Eager for experience, she took a job as an investment analyst with a Shanghai-based foreign asset manager, but despite a long-term career plan mapped out by her employer, she left that company for a small short-term pay raise from a competitor. Obviously, as an economy develops and new problems emerge, all social systems need certain reforms. Retrieved from https://proessays.net/essays/economic-and-political-differences-china-vs-united-states. China is a great example of a country undergoing a transition as not many years ago it used to practice socialism but now it has transitioned to a dynamic market making it have a second largest economy in the entire world overtaking many great nations. Chinas is the only major economy that requires no special approval for foreign direct investments, although some sectors, such as Lived Change media and the internet, are on a negative list that restricts them. Politicians and business leaders continue to misread Chinas strategy and politics. 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. Political credibility and economic development. 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. Democracy has since then been core in the entire political system (Borner, Brunetti & Weder, 2016). Where can it move its production if the target market is China? The founding fathers of USA forecasted their nation to be one that respects and follow basic human rights and Biblical ideas as guidance. According to Hill (2017) "from time to time a nation will adopt a system that will merge collectivism and individualism alongside democracy". What is it that Americans dont understand about China? 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