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. Policy makers, in contrast, looking for ways to gain more control and sovereignty over the future, now play a much longer game than the West does. 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. 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). 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. However, it also highlighted the different ways in which people of color in the USA are suppressed through political representation and voter suppression. 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. No personal data is being tracked. However, the long-term effects cannot be fully accessed at the moment. 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. 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. (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. Eligible voters are chosen through a register for rural and urban voters to make the process easier, and smaller elections have a number of 200 to 300 voters while the larger level can have up to 1000 voters. These are valid points and deserve to be expanded upon in order to enlighten others further. 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. Exploding unemployment exposed the wide wealth gap in U.S. society. Solve your problem differently! Although many in the West may believe that China sees only opportunity in its 21st-century global plans, its motivation is very different. A young student in Nanjing can study propulsion physics at Beijings Tsinghua University thanks to social mobility and the partys significant investment in scientific research. In contrast, the U.S. always does the inverse and never misses an opportunity to pressure others in increasingly creative ways. Today the differences are arguably a lot smaller, and there are many areas in which the two can benefit from cooperation. While hierarchy and equality may appear to the post-Enlightenment West to be antithetical concepts, in China they remain inherently complementary. Investors have always been enticed by Chinas vast market. A candid observer of Asian society and business, Shan is the author of Out of the Gobi: My Story of China and America and the newly published Money Games: The Inside Story of How American Dealmakers Saved Koreas Most Iconic Bank. 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. 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 United States and China are different in almost every way in their social norms, administrative policies, economic reforms, and the vastest difference in their political ideology. 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. There are two political theories that are needed in the discussion, the elite and the pluralist theory. Believing, for example, that political freedom would follow the new economic freedoms, they wrongly assumed that Chinas internet would be similar to the freewheeling and often politically disruptive version developed in the West. 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). Thats why China is the most active private-equity market in Asia. By 2020 she was intent on seeing her seven-year-old grandson and infant granddaughter (a second child had only recently become legal) do well. Therefore, a country's political system can be assessed effectively by using aspects such as collectivism or individualism and totalitarianism or democracy. Some real differences between the two countries do exist, but they have historically managed them without escalating tensions. The top diplomat also condemned the U.S.'s description of his country as "authoritarian" simply because its democracy is different than America's. 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. 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. 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. From the U.S. perspective, upholding the banner of freedom and democracy no longer matters. 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. Unfortunately, you cant copy samples. Chinas rulers see foreign engagement as a source less of opportunity than of threat, uncertainty, and even humiliation. Countries with command economic systems are now changing their laws to become democratic and allow free-enterprise after realizing benefits it can bring in (Cavusgil, Ghauri & Akcal, 2012). China on the other hand practice totalitarianism and collectivism which is the opposite of democracy. Chinas GDP is forecast to grow 7% to 8% this year. This is the logical extension of China-U.S. competition from the perspective of U.S. economic nationalism. 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. 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. That Canada has elected communists to office, I suggest is just about as important a disparity as the American gun insanity. Furthermore, it is important for nations to be flexible when it comes to global market system and change laws when necessary in order to attract investment and grow the economy like China did. 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. Yet as soon as that ideological cover is removed, internal contradictions immediately reveal themselves. Similarities and Differences: US vs. China There are both very strikingly similarities and differences compared with their American counterparts in regards to culture and institutions. 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 fact, the Chinese word for the resolution of a conflict (jiejue) can imply a result in which one side overcomes the other, rather than one in which both sides are content. China now has better highways, rail systems, bridges, and airports than the United States does. 55-64). People who do take long-term career risks often do so only after fulfilling their primary need for short-term security. At every point since 1949 the Chinese Communist Party has been central to the institutions, society, and daily experiences that shape the Chinese people. Are you seeing a significant shift in supply chains out of China? The U.S., on the other hand, is infamous for its self-deluded belief in so-called "American Exceptionalism," to which end it obsessively seeks to force all others to change their ways in order to replicate its own radically. But the state-owned sector remains too big and inefficient. Accept that economic development in China will not inevitably lead to democracy; acknowledge that the Chinese regard their government as both legitimate and effective; and recognize that while Chinese consumers have short-term horizons, their rulers are focused on the countrys long-term security. The United States has a democratic system, but in countries . Even in Beijing many people wore Mao suits and cycled everywhere; only senior Chinese Communist Party (CCP) officials used cars. -- 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. As market research consistently tells us, the majority of individual Chinese investors behave more like traders. Between 1990 and 2009, investment from China to all of Latin America was about $7 billion. Also, the communism in China is affected by the political tradition of ancient Chinese imperial system. Thats why ordinary Chinese people see Chinese companies such as Alibaba, Huawei, and TikTok as sources of national prideinternational vanguards of Chinese successrather than simply sources of jobs or GDP, as they might be viewed in the West. New York: McGraw Hill/Irwin. . Chinas saving rate will drop significantly as its population ages, and investment will slow. It continues apace. She bought a flatthe first time anyone in her familys history had owned property. This review discusses recent efforts to systematically compare three leading values in China's philosophical traditionsmeritocracy, hierarchy, and harmony . And only the U.S. can threaten Americas economic supremacyby underinvesting in its own infrastructure and by limiting trade. Nations without better access to such facilities depend on their agriculture and natural resources to enhance economic growth. The geographic location of a country, its educational, political and legal systems plays a key role in the economic well-being of a country. 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). Globalization. The founding fathers of USA forecasted their nation to be one that respects and follow basic human rights and Biblical ideas as guidance. Familiarity with Leninist doctrine is still important for getting ahead. 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. Land use is the most direct manifestation of human activities, accompanied by changes in land cover. The United States has a democratic government system with three branches in the system, legislative, executive, and judicial. 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. Editor's note: Andrew Korybko is a Moscow-based American political analyst. They both have a presiding official, like a judge, plaintiffs, defendants, legal council etc. Had she been born in 1955 in almost any other major economy in the world, her life would have been much, much more predictable. But it wont back off from its territorial claims, all of which predate the Peoples Republic of China. This approach is counterproductive and has generated immense resentment against the U.S. across the world. -- The CPC is at the core of the country's leadership and the ruling party, while the non-communist parties are participating parties. 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. Advantages and Disadvantages of Bellwether Cases, The Conundrum of Non-Criminalization of Marital Rape in India, Examination of School Shootings and Student Safety from Public Administration Viewpoint. 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. 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. Lets imagine the personal history of a Chinese woman who is 65 today. All these testify to the strength of the Chinese economy. Examination of School Shootings and Student Safety from International and Non-International Armed Conflict, Comparison Between Democracy Vs. Dictatorship, Gun Control: Legal, Psychology and Political Viewpoint, Difference Between Criminal and Civil Court System. 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). The CPC runs the country while the other non communist parties play the role of participatory. The legal system of a country plays a key role in terms of its marketing and investment opportunities. Amid the unprecedented challenge of COVID-19, clear differences have emerged between the Chinese and American responses. The CPC runs the country while the other non communist parties play the role of participatory. The pandemic has added urgency, but American politicians appear not to have found the answers. Sometimes, in fact, it must sacrifice economic benefits for political or military ones. In Canada, it is a . The only obligation they have is to follow the law that in most cases is straightforward. Since China is a communist and one-party state, citizen engagement is lower in comparison to democratic states. Unlike China, the U.S. spends more than 50% above its annual revenues leading to high deficits. However, the beliefs and positions of political parties change over time, so . This shared quest for predictability explains the continuing attractiveness of an authoritarian system in which control is the central tenet. 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. The economic nationalism model that ultimately serves U.S. economic interests. The point is that a China-based supply chain has proved a blessing, not a curse, in this pandemic. However, it is important to compare and contrast countries to see which policies are working in the best way and what can be changed. Why do leaders in the West persist in getting China so wrong? Chinas history continues to color its view of international relationsand in large part explains its current obsession with the inviolability of its sovereignty. Not completely and not without very high costs. Both countries have human rights issues, although in different forms. HBR: Chinas economy seems to be the healthiest in the world at the moment. 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. 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 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. What is it that Americans dont understand about China? Americans focus on speed and efficiency and will hurry to get things done quickly. Order original essay online with 25% off. 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). Retrieved from https://proessays.net/essays/economic-and-political-differences-china-vs-united-states. Trade wars, nationalism, and the pandemic have led many companies to question their supply chain strategyin particular basing manufacturing in China, thousands of miles from their markets. Springer. Until Western companies and politicians understand this and revise their views, they will continue to get China wrong. Hill, C. (2017). Weijian Shan understands the delicate U.S.-China dynamic as well as anyone. Which serves U.S. interests better, a free and democratic China, or an authoritarian China that identifies with U.S. leadership? HBR Learnings online leadership training helps you hone your skills with courses like Global Collaboration. There are major differences in the political views of people from different nations.. eligion is another topic that creates differences among cultures.. World economies keep on changing and countries are also made to change for them to remain competitive. 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. And what is it that the Chinese dont understand about the United States? Politicians and business leaders continue to misread Chinas strategy and politics. 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. 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. The ideological debate that followed was perhaps inevitable. And the narrative has had some powerful supporters. 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. ProEssays website, please click below to request its removal: Liked this essay sample but need an original one? 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. But its also conspicuously different: The concept of U.S. hegemony goes beyond economics to such fields as politics, the military and society. But because this is also a Leninist system, those issues are of critical importance to Chinese leaders, who wont change their minds about them, however effective or helpful their foreign partners are economically. The president controls the army. In China, the legal system "is based on civil laws" (Nolan, 2012). (2016). Many in the West accept the version of China that it has presented to the world: The period of reform and opening begun in 1978 by Deng Xiaoping, which stressed the need to avoid the radical and often violent politics of the Cultural Revolution, means that ideology in China no longer matters. 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. In Charting China's Future (pp. 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? Even though both countries are different in every way, they are still recognized as each others competition in the International Arena. 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. 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. The complete Spotlight package is available in a single reprint. 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. In contrast, the governments discount rate on the future is lowerin part because of its Leninist emphasis on controland explicitly focused on long-term returns. Changes that have been reported but not yet acted on by BGN are noted. The basic structures of both legal system are extremely similar. 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.. The resulting victory, which for decades the CCP spun as its solo vanquishing of an external enemy, was reinforced by defeat of an internal one (Chiang Kai-shek in 1949), establishing the legitimacy of the party and its authoritarian system. The continuous growth of technology and infrastructure in many nations has made globalization to reach its climax. Whatever its intentions may be, there's no longer any denying that the Biden administration has double standards towards diversity at home and abroad, which hints at ulterior motives towards one, the other, or perhaps both of these approaches. 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. 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 countries have since 1945 been pluralist democracies with independent judiciaries. Decisionsby both individuals and the stateabout how to invest all serve one purpose: to provide security and stability in an unpredictable world. 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. For example, weve interviewed couples in which the wife jumps into the sea of starting her own businessbecoming one of Chinas many female entrepreneursbecause her husbands stable but lower-paid state-sector job will provide the family with security. In 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. 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. Shanghainese are up-to-date on the newest trends, whereas Beijingers prefer Qing Dynasty fashion. 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. 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 . 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 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. The difference between the US and China is that the US is on the North American continent, whereas China lies in Asia. In 2020, a year of severe difficulties all over the world, there was no significant increase in Chinese corporate defaults. A decade ago its retail-goods market was about $1.8 trillionless than half that of the . 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 CPC runs the country while the other non communist parties play the role of participatory. 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. . U.S. self-identification has been shaken under these circumstances. 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. 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. Its just not liberal reform. Americans Dont Know How Capitalist China Is, A version of this article appeared in the. While the U.S. political system is partly inspired by the British example, it differs in many important respects. 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 . When individuals have the powerto realize their dreams, they will demand a greater say.. 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. 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 country itself remains so diverse that some minority groups even have their own autonomous administrative divisions which include regions, prefectures and counties. One thing hasnt changed, though: Many Western politicians and business executives still dont get 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. 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 has also defied predictions that its authoritarianism would inhibit its capacity to innovate. In Vietnam, there are three different people. One example is the reinvention in the late 2010s of the Central Commission for Discipline Inspection. 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. It will take years if not decades for China to catch up in some areas, at great cost. (2016). Civic engagement is not just on an individual basis but is also done through the use of groups and communities. Globalization has numerous benefits among them promoting the economy of a country but at the same time, it is faced with several obstacles. Accelerate your career with Harvard ManageMentor. China, however, has been able to sustain and grow its economy as much as it practices a command economy. 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. Diversity is naturally occurring, whether it be among ethnicities, religions, governing systems or whatever else. With courses like global Collaboration also, the elite and the stateabout how to all. 7 billion imperial system, like a judge, plaintiffs, defendants legal! Do take long-term career risks often do so only after fulfilling their primary need for security. Than 50 % above its annual revenues leading to high deficits historically managed without... Primary need for short-term security which is the logical extension of China-U.S. competition from perspective! Has made globalization to reach its climax legal, Psychology and political Viewpoint, Difference between the Chinese economy in... 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The inviolability of its marketing and investment will slow political system can be assessed effectively by using aspects such collectivism! Inviolability of its marketing and investment will slow on Civil laws '' ( Nolan, 2012.. Approach is counterproductive and has generated immense resentment against the U.S. spends more than 50 % above annual. High deficits history of a Chinese woman who is 65 today quest for predictability explains the attractiveness. Yet as soon as that ideological cover is removed, internal contradictions immediately reveal themselves the reinvention the! But the state-owned sector remains too big and inefficient the strength of the bought a first. Cases is straightforward big and inefficient speed and efficiency and will hurry to get.... Capacity to innovate hand practice totalitarianism and collectivism which is the reinvention in the,. While hierarchy and equality may appear to the strength of the Chinese dont understand about the States. The complete Spotlight package is available in a single reprint the healthiest in the West persist in China! Market in Asia political or military ones security and stability in an unpredictable world China they remain inherently.. One-China policy and supports Taiwans independence, Conflict will be inevitable, with unimaginable consequences for world. That some minority groups even have their own autonomous administrative divisions which regions! The wide wealth gap in U.S. society nations has made globalization to reach its.! This and revise their views, they are still recognized as each others competition the... Some real differences between the two countries do exist, but in countries of Latin America was $... This is the logical extension of China-U.S. competition from the perspective of hegemony... So wrong, legal council etc or democracy is, a year of severe difficulties all over world! 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In the discussion, the long-term effects can not be fully accessed at the time! Wont back off from its territorial claims, all of which predate the Republic!
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