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. 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. Disclaimer: ProEssays.net is a custom writing service that provides online on-demand writing work for assistance purposes. 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. HBR Learnings online leadership training helps you hone your skills with courses like Global Collaboration. As the United States is considered a representative republic, citizen engagement is all the more important and starts with providing the citizens of the country, regardless of gender and over the age of 18, the right to vote for their communities in the form of local elections that can elect congresses that represent their towns and constituencies as well in the Presidential election for the various arms of the executive branch. Difference between United States of America Political System and China Introduction . 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. Businesspeople and politicians in the West hold outdated beliefs about the second-largest economy in the world. China has been shifting away from an investment-driven growth model to one led by private consumption. 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. 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. Time is money, in other words. Democracy has since then been core in the entire political system (Borner, Brunetti & Weder, 2016). The premier controls the civil bureaucracy, The party general secretary runs the economy. 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. That has huge implications for people seeking to do business in China. Given the unique features of China's political and economic system, the government can directly affect the carbon market . 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. Trumps trade war was an abject failure. HBR: Chinas economy seems to be the healthiest in the world at the moment. The United States had maintained a fairly consistent foreign policy until Trump. Until Western companies and politicians accept this reality, they will continue to get China wrong. The article reflects the author's views and not necessarily those of CGTN. When life is (or has been within living memory) unpredictable, people tend to apply a higher discount rate to potential long-term outcomes than to short-term onesand a rate materially higher than the one applied by people living in more-stable societies. A nation that practice individualism and democracy is more likely to have an economic system that is market-based and this is more desirable since it allows businesses to produce what their products maximally thereby making desirable profits. Pundits tend to be alarmed by a default here and there. 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 paper also highlighted citizen engagement in both countries, either through direct elections in the USA or through the CCP controlled nominations in China. China on the other hand practice totalitarianism and collectivism which is the opposite of democracy. Until that happens, the world will remain unstable as the U.S. aggressively tries to eliminate political diversity. However, it is important to compare and contrast countries to see which policies are working in the best way and what can be changed. 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. The reality is quite different. 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. Learn how to overcome barriers when working globally. Political credibility and economic development. Hire a professional with VAST experience! The name of the game in China is scale. In 2019 that market reached $6 trillion, surpassing the U.S. level of $5.5 trillion. Great challenges lie ahead. And the party has always believed in and emphasized the importance of Chinese history and of Marxist-Leninist thought, with all they imply. The United States takes in with high respect the principles of democracy and individualism. In China, the legal system "is based on civil laws" (Nolan, 2012). What is it that Americans dont understand about China? 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. 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. The major focus of government expenditure is domestic infrastructure. As market research consistently tells us, the majority of individual Chinese investors behave more like traders. China vs. United States Government Definitions Administrative divisions : This entry generally gives the numbers, designatory terms, and first-order administrative divisions as approved by the US Board on Geographic Names (BGN). 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. In context, the United States should be more pluralistic as it prides itself to be a melting pot, but it can be considered more of an elitist democracy. The continuous growth of technology and infrastructure in many nations has made globalization to reach its climax. Consequently, inequality is greater in China than in the United States, measured by the Gini coefficient. We will write a custom Research Paper on Political system comparison between India and China specifically for you. 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. One example is the reinvention in the late 2010s of the Central Commission for Discipline Inspection. They dont know how socialist it is, with its Social Security system and its policies to tax the rich by collecting capital gains taxes. The Chinese spent countless hours restructuring their legal system to closer represent those in the Western business. But this argument overlooks some fundamental differences between China and the United States, Japan, Britain, Germany, and France. Between 1990 and 2009, investment from China to all of Latin America was about $7 billion. But the state-owned sector remains too big and inefficient. Retrieved from https://proessays.net/essays/economic-and-political-differences-china-vs-united-states. At 22,000 miles, it is twice as long as the rest of the worlds combined. Its a plausible narrative. 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. And only the U.S. can threaten Americas economic supremacyby underinvesting in its own infrastructure and by limiting trade. Learn how to overcome barriers when working globally. 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. China is also Apples biggest market for iPhones: It has about twice as many iPhone users as the United States does. (2012). New York: McGraw Hill/Irwin. While Bidens policy proposals reflect fading U.S. hegemonistic attitudes, Trump is showing Americans the status quo of U.S. power. And believing that Chinas economic growth would have to be built on the same foundations as those in the West, many failed to envisage the Chinese states continuing role as investor, regulator, and intellectual property owner. But it wont back off from its territorial claims, all of which predate the Peoples Republic of China. And the narrative has had some powerful supporters. Borner, S., Brunetti, A., & Weder, B. I see no systemic risk either in Chinas banking system or in its economy. However, the beliefs and positions of political parties change over time, so . 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. That means that despite the trade war, the technology war, and the capital warthe U.S. governments restricting American investment in ChinaChinas GDP will most likely be 10% bigger in 2022 than it was in 2019, whereas the U.S. economy probably will only recover to 2019 levels by 2022, according to the International Monetary Fund. Its monetary policy is reasonably tight, with the yield on government bonds about 3.5 times that on U.S. Treasuries. The differences in political beliefs led to the formation of a two-party system in the United States, contrary to George Washington's wishes. Therefore, a country's political system can be assessed effectively by using aspects such as collectivism or individualism and totalitarianism or democracy. 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. Had she been born in 1955 in almost any other major economy in the world, her life would have been much, much more predictable. 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. Sorry, but it's not possible to copy the text due to security reasons. Corporatism also recognizes only one organization as its sole representative, which can be seen through the CCP (Chan, 1994). A Marxist system is concerned primarily with economic outcomes. Today the differences are arguably a lot smaller, and there are many areas in which the two can benefit from cooperation. Where can it move its production if the target market is China? It seems that the only country that can stifle Chinas growth is China itselfif it makes major policy mistakes. Not blaming China means indirectly acknowledging U.S. shortcomings, which could be explosive in U.S. partisan politics. Even though China is diverse in its ethnic groups, it is still a relatively high homogenous group, which is also reflected in its politics. 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. Responding, however, will only escalate a lose-lose war, and the entire international community will suffer as a result. The commission has succeeded in reducing corruption in large part because it is essentially above the lawsomething unimaginable in a liberal democracy. Is your time best spent reading someone elses essay? Most significantly, the British have a democratic parliamentary government, headed by a monarch and prime minister. The Vietnamese premier is very powerful. 9. Some have expressed optimism that Chinas need for control will lessen after theyve proved their worth as partners. Citizen engagement is integral to the success of every country, whether it be regarding the social welfare or economics of the country, and since both these countries play such a huge role in the International Arena, the comparison of their citizen engagement will be analyzed in this paper. In 2020 China had more billionaires than the U.S. did, and it outpaces the U.S. three to one in minting them. Unlike China, the U.S. spends more than 50% above its annual revenues leading to high deficits. Eighty percent of the Senate and House of Representatives are male, while only 20 percent are either women or people of color. The legal system of a country establishes regulations and laws that maintain and indicate the basic values of an entire nation. 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. One thing hasnt changed, though: Many Western politicians and business executives still dont get China. The Communist Party of China (CPC) harbors no supremacist beliefs and doesn't plan to export its governing model abroad. 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. We are using Google Analytics to enhance your experience. Eventually he came to the United States, where he earned a masters and a PhD at UC Berkeley, worked for the World Bank and J.P. Morgan, and taught at the Wharton School. 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. Along with China's economic and military rise, its leading political values will increasingly shape both China and the world at large. Political credibility and economic development. When we first traveled to China, in the early 1990s, it was very different from what we see today. It continues apace. 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. The Trump administration was determined to damage Chinas economy and businesses. The city of Rongcheng, for example, uses big data (available to the government through surveillance and other data-capturing infrastructure) to give people individualized social credit scores. These are used to reward or punish citizens according to their political and financial virtues or vices. Although murdering babies and elderly with medical sanctions in multiple too left . Cavusgil, S. T., Ghauri, P. N., & Akcal, A. This package reveals much that may surprise them. 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.. Seventy years on, many Chinese believe that their political system is now actually more legitimate and effective than the Wests. Its currency appreciated 6% against the dollar last year. From the U.S. perspective, upholding the banner of freedom and democracy no longer matters. Chinas saving rate will drop significantly as its population ages, and investment will slow. Chinas rulers see foreign engagement as a source less of opportunity than of threat, uncertainty, and even humiliation. What the Chinese government does oppose is the system of electoral democracy as . 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. 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. Does that create new investment opportunities? Springer. 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? Beijing expats speak Mandarin better than Shanghai ones. They still blame foreign interference for many of their misfortunes, even if it occurred more than a century ago. 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. In our experience, many Westerners dont understand what that means or why it matters. 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. The space for the two sides to compromise and collaborate has narrowed extremely rapidly. (2022, May 17). 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. 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. This plays out every time a Western company negotiates access to the Chinese market. 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. Sometimes, in fact, it must sacrifice economic benefits for political or military ones. The harsh reality of the pandemic has given rise to political competition with characteristics not seen before, sounding the alarm for future bilateral relations. 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? For example, over the past 15 years it has built the longest high-speed rail system in the world. 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. Amid the unprecedented challenge of COVID-19, clear differences have emerged between the Chinese and American responses. The difference in efficiency between the central and local groups is significant. Get a 100% original essay FROM A CERTIFIED WRITER! Voter suppression has been reported through disenfranchising people of color, through restrictions placed on mail-in voting that can cause irregularities in the system and strict voter ID laws that can contribute to issues that can cause certain people to not place votes(McKeever, 2020). Losing the China market will be costly for American tech companies and deprive them of funds for further R&D. 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. 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 complete Spotlight package is available in a single reprint. 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. -- The CPC is at the core of the country's leadership and the ruling party, while the non-communist parties are participating parties. 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. 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 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. Shanghainese are up-to-date on the newest trends, whereas Beijingers prefer Qing Dynasty fashion. Half of the representatives in Congress are millionaires with their median net worth reported to be more than a million. 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. 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. Its just not liberal reform. Chinas history continues to color its view of international relationsand in large part explains its current obsession with the inviolability of its sovereignty. By the 1980s she was in the first generation to go back to university, and even took part in the Tiananmen Square demonstration. But over the next 30 years, thanks to policies aimed at developing the economy and increasing capital investment, China emerged as a global power, with the second-largest economy in the world and a burgeoning middle class eager to spend. In contrast, the U.S. always does the inverse and never misses an opportunity to pressure others in increasingly creative ways. 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. Those with low social-credit scores may find themselves prevented from buying an airline ticket or getting a date on an app. Its stated purpose was to reduce Americas trade deficit. This kind of an economy is unattractive and completely represent the aspects of totalitarianism and collectivism. The top diplomat also condemned the U.S.'s description of his country as "authoritarian" simply because its democracy is different than America's. Obviously the ideology of nationalist identification under the pandemic has greatly roughened the political landscape for China and the U.S. 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. Changes that have been reported but not yet acted on by BGN are noted. 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. 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? It is also the duty of the representative republic to inform its citizens of their rights, and the candidacy for the elections needs to be transparent since city council members to local judges to mayors, and state legislators are all appointed through voting in the United States. The Stages of Strategic Crime Analysis Report. 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. References Borner, S., Brunetti, A., & Weder, B. What are the biggest risks for Chinas economy in the coming years? Also, the communism in China is affected by the political tradition of ancient Chinese imperial system. A country that provides its citizen with education produces better minds that can bring in better business ideas to the economy. 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. This is the best approach for one to have and ensures that its partnerships remain everlasting. The Chinese can see this as crass and boastful, while in the United States, humility can be regarded as a sign of weakness. Consequently, running international businesses has become significantly easier than ever before. Chinese Foreign Minister Wang Yi made an excellent remark about political systems across the world while speaking with the U.S. Council on Foreign Relations last week. 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. 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. Nolan, P. (2012). Even though both countries are different in every way, they are still recognized as each others competition in the International Arena. 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. 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). Solinger, D. J. 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. Be seen through the CCP ( Chan, 1994 ) indicate the basic values of an is... Political parties change over time, so, the legal system of country! Sole representative, which can be assessed effectively by using aspects such as collectivism or individualism and or! Of funds for further R & D history and of Marxist-Leninist thought, the! 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