Borner, S., Brunetti, A., & Weder, B. Born in 1955, she experienced as a child the terrible Great Leap Forward famine in which 20 million Chinese starved to death. Editor's note: Andrew Korybko is a Moscow-based American political analyst. 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. 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. Its stated purpose was to reduce Americas trade deficit. Access more than 40 courses trusted by Fortune 500 companies. 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. From the U.S. perspective, upholding the banner of freedom and democracy no longer matters. 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. The legal system of a country plays a key role in terms of its marketing and investment opportunities. China has also defied predictions that its authoritarianism would inhibit its capacity to innovate. Hence, we need to understand, compare, and learn from leading values in China's political culture. 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. Not completely and not without very high costs. Yet they found common ground to work in mutually beneficial ways. Accelerate your career with Harvard ManageMentor. 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. Corporatism also recognizes only one organization as its sole representative, which can be seen through the CCP (Chan, 1994). Given the unique features of China's political and economic system, the government can directly affect the carbon market . China, however, has been able to sustain and grow its economy as much as it practices a command economy. The article reflects the author's views and not necessarily those of CGTN. Thats not likely, precisely because in Chinas particular brand of authoritarianism, control is key. 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 . HBR Learnings online leadership training helps you hone your skills with courses like Global Collaboration. It is a global leader in AI, biotech, and space exploration. China's Transition from Socialism? 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. Chinas high-speed rail could cover the distance between Boston and Chicago in about four hours, whereas Amtraks fastest service takes 22 hours. The paper also highlighted citizen engagement in both countries, either through direct elections in the USA or through the CCP controlled nominations in China. Some have expressed optimism that Chinas need for control will lessen after theyve proved their worth as partners. (2022, May 17). Sometimes, in fact, it must sacrifice economic benefits for political or military ones. In much Western analysis the verb most commonly attached to Chinas reforms is stalled. The truth is that political reform in China hasnt stalled. 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. Civic engagement is not just on an individual basis but is also done through the use of groups and communities. These are valid points and deserve to be expanded upon in order to enlighten others further. The difference in efficiency between the central and local groups is significant. Today he is the CEO of PAG, a $40 billion private equity firm based in Hong Kong. According to this view, economic growth and increasing prosperity will cause China to move toward a more liberal model for both its economy and its politics, as did those countries. China has stolen American jobs, the thinking goes, so we oppose China. What is the political difference between China and the USA? Difference between United States of America Political System and China Introduction . 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. Simmons-Harris Comparative Politics Constitutional Powers Successful Pressure Groups UK and US Constitution Foundations of American Democracy Amendments After the Bill of Rights Articles of Confederation Brutus Papers Checks and Balances Commerce Clause Concurrent Powers Confederation Constitutional Amendment Process Contract with America 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. 9. 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. for only $16.05 $11/page. In China, however, growth has come in the context of stable communist rule, suggesting that democracy and growth are not inevitably mutually dependent. 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. Unfortunately, you cant copy samples. This approach is counterproductive and has generated immense resentment against the U.S. across the world. Its just not liberal reform. This means that business contracts are not usually detailed in China since the civil codes do not cover most laws. Additionally, the paper will also give examples of economic and macro-political changes and show why market-based systems are being adopted by transition economies. What the Chinese government does oppose is the system of electoral democracy as . Dictatorship, Gun Control: Legal, Psychology and Political Viewpoint, Difference Between Criminal and Civil Court System. 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. 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). Nations without better access to such facilities depend on their agriculture and natural resources to enhance economic growth. The reality is quite different. 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). 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. 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). Politicians and business leaders continue to misread Chinas strategy and politics. . 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. 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). Chinas history continues to color its view of international relationsand in large part explains its current obsession with the inviolability of its sovereignty. In other words, the U.S. position as hegemon doesnt necessarily bring it any economic benefits. 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. China and the global economy. 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. The political system of China has been operational since its establishment for 50 years. Shanghainese are up-to-date on the newest trends, whereas Beijingers prefer Qing Dynasty fashion. 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. 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. 55-64). 808 certified writers online. 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. While the U.S. political system is partly inspired by the British example, it differs in many important respects. Worse, the U.S. has displayed an institutional helplessness in the face of such fundamental problems. Its GDP dropped 6.8% in the first quarter of 2020, but resumed growth from the second quarter onward. This, of course, mirrors the role of U.S. defense and intelligence spending in the development of Silicon Valley. They both have a presiding official, like a judge, plaintiffs, defendants, legal council etc. Springer. Only a sudden surge of such events would herald an economic crisis. And only the U.S. can threaten Americas economic supremacyby underinvesting in its own infrastructure and by limiting trade. The truth, then, is that China is not an authoritarian state seeking to become more liberal but an authoritarian state seeking to become more successfulpolitically as well as economically. 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. Until Western companies and politicians understand this and revise their views, they will continue to get China wrong. Shan: Despite initial blunders, China has handled the coronavirus pandemic well through strict lockdowns and mass testing. 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. As market research consistently tells us, the majority of individual Chinese investors behave more like traders. Sage. Avoid editing or writing from scratch! Exploding unemployment exposed the wide wealth gap in U.S. society. 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). Weijian Shan understands the delicate U.S.-China dynamic as well as anyone. There are several major differences: China's system is based on the governance of one political party only (China has 8 other parties that serve in a consultative role). 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. Conversely, the US law system basis its law from cases held previously and judges uses this as an example when determining most cases that are similar to the present one. So a Marxist-Leninist system is concerned not only with economic outcomes but also with gaining and maintaining control over the system itself. 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. (2016). 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. Canadian jurisdiction is the opposite; if it's not left to the Provinces, it's most likely the responsibility of the federal government. 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. 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 world will be lifeless and dull if there is only one single model and one single civilization." 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. 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. That leaves much room for growth and many opportunities for investors, particularly in businesses that cater to consumers. At 22,000 miles, it is twice as long as the rest of the worlds combined. From the depth of their hearts, Americans confront the reality that the beacon of freedom has to learn from the authoritarian government of communist China in some respects. Leninism, however, is essentially a political doctrine; its primary aim is control. The United States has a democratic government system with three branches in the system, legislative, executive, and judicial. American companies will do so only if U.S. tariffs become more penalizing than moving would be. A cleaner in Chongqing now owns several apartments because the CCP reformed property laws. 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). On the foreign front, China never tried to pressure anyone to conform to its domestic political system but instead not only respects, but celebrates, their differences. Beijing ICP prepared NO.16065310-3, China vs. America: Political diversity vs. political conformity. It seems that the only country that can stifle Chinas growth is China itselfif it makes major policy mistakes. There are two political theories that are needed in the discussion, the elite and the pluralist theory. Many Westerners assume that China is on the same development trajectory that Japan, Britain, Germany, and France embarked on in the immediate aftermath of World War IIthe only difference being that the Chinese started much later than other Asian economies, such as South Korea and Malaysia, after a 40-year Maoist detour. Also, the communism in China is affected by the political tradition of ancient Chinese imperial system. Earn badges to share on LinkedIn and your resume. 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. The pandemic has added urgency, but American politicians appear not to have found the answers. In China, the legal system "is based on civil laws" (Nolan, 2012). 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. 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 major focus of government expenditure is domestic infrastructure. The Incarcerated Vote. 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. This is a belief alien to many Western business executives, especially if theyve had experience with other authoritarian regimes. Today its traded on the New York Stock Exchange with a market cap of about $45 billion and has more than 800 million unique active users. 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. Both countries have a Judicial, Executive, and Legislative branch. Thats why China is the most active private-equity market in Asia. Doing business in emerging markets. (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. 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. 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 top diplomat also condemned the U.S.'s description of his country as "authoritarian" simply because its democracy is different than America's. : Statist Legacies and Market Reforms, 1980-90: Statist Legacies and Market Reforms, 1980-90. Great challenges lie ahead. In conclusion, it is not possible to have a unanimous decision on which political and economic practice is best for the entire universe. 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. 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. The positions in this branch can be for either a five-year long term or even an unlimited amount of time. And the party has always believed in and emphasized the importance of Chinese history and of Marxist-Leninist thought, with all they imply. 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. 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). Are you seeing a significant shift in supply chains out of China? What are the dangers in Americas continued demonization of China? Majority of China's production companies are owned and managed by the government. A country that provides its citizen with education produces better minds that can bring in better business ideas to the economy. She was a Red Guard as a teenager, screaming adoration for Chairman Mao while her parents were being re-educated for being educated. First, the similarities among both countries institutions would be the hierarchical construction of their judicial system; the separation of three branches of . In 2020, a year of severe difficulties all over the world, there was no significant increase in Chinese corporate defaults. HBR: Chinas economy seems to be the healthiest in the world at the moment. This suggests some obvious hypocrisy on the part of the Biden administration and perhaps even a lack of sincerity with respect to the domestic causes that it supports. Seventy years on, many Chinese believe that their political system is now actually more legitimate and effective than the Wests. Those countries have since 1945 been pluralist democracies with independent judiciaries. Part of the systems legitimacy in the eyes of the Chinese is, again, rooted in history: China has often had to fight off invaders and, as is rarely acknowledged in the West, fought essentially alone against Japan from 1937 until 1941, when the U.S. entered World War II. 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. 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. Get a 100% original essay FROM A CERTIFIED WRITER! 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. 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. This is the best approach for one to have and ensures that its partnerships remain everlasting. 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. However, both states have a very different political landscape, which is what will be discussed in the paper today. The PRC isn't just pragmatic, but also respectful towards all of its partners. Cavusgil, S. T., Ghauri, P. N., & Akcal, A. For any deep analysis of the ideological aspects of the China-U.S. rivalry to be complete, two questions need to be answered: What political interests do the ideologies serve, and in what forms are they presented? 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. This review discusses recent efforts to systematically compare three leading values in China's philosophical traditionsmeritocracy, hierarchy, and harmony . China, meanwhile, doesn't apply any such double standards. 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. In Vietnam, there are three different people. Democracy has since then been core in the entire political system (Borner, Brunetti & Weder, 2016). Not blaming China means indirectly acknowledging U.S. shortcomings, which could be explosive in U.S. partisan politics. China has been shifting away from an investment-driven growth model to one led by private consumption. Learn how to overcome barriers when working globally. 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. China's lead over the U.S. is especially clear in Germany, the Netherlands, the Czech Republic and France, where people are at least 10 percentage points more likely to see China as the leading economy. In which China wins twice of international relationsand in large part explains its current obsession with the of... Reflects the author 's views and not necessarily those of CGTN gaining maintaining! With independent judiciaries economic outcomes but also respectful towards all of its sovereignty than Wests! 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