Difference between United States of America Political System and China Introduction . A cleaner in Chongqing now owns several apartments because the CCP reformed property laws. There are other courts in the land such as High Courts and District and County Peoples Courts and Special Courts for military and forestry issues. 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 United States has a democratic system, but in countries . Decisionsby both individuals and the stateabout how to invest all serve one purpose: to provide security and stability in an unpredictable world. 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. 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 Chinese government is, however, much easier to decipher since it is a communist one-party state that is also led by elites even though it goes against the very grain of communism. 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. Born in 1955, she experienced as a child the terrible Great Leap Forward famine in which 20 million Chinese starved to death. 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. Obviously the ideology of nationalist identification under the pandemic has greatly roughened the political landscape for China and the U.S. I see no systemic risk either in Chinas banking system or in its economy. Today he is the CEO of PAG, a $40 billion private equity firm based in Hong Kong. The top 10 American semiconductor chip makers sell about three times as much in China as in the United States. These are valid points and deserve to be expanded upon in order to enlighten others further. He wisely noted that "Democracy is not Coca-Cola, which, with the syrup produced by the United States, tastes the same across the world. China and the global economy. 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. This paper will compare two great countries the United States and China by looking in details how and why their legal and political systems differ, explain what determines the level of economic development in each country. When we first traveled to China, in the early 1990s, it was very different from what we see today. 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. The Trump administration was determined to damage Chinas economy and businesses. Some have expressed optimism that Chinas need for control will lessen after theyve proved their worth as partners. 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. 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 is a natural outcome of the decline in U.S. strength. Today the differences are arguably a lot smaller, and there are many areas in which the two can benefit from cooperation. 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. The big difference is that in China the party, state, and army is led by one person. 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. Consequently, running international businesses has become significantly easier than ever before. In that period there has been ruins of buildings as well as joy of victories, rapid advance in success as well as pride, tortuous ordeals and lesions from mistakes done . Demonstrators shout "Don't shoot" at the police after curfew as they protest the death of Daunte Wright who was shot and killed by a police officer in Brooklyn Center, Minnesota, April 12, 2021. If the U.S. abandons the one-China policy and supports Taiwans independence, conflict will be inevitable, with unimaginable consequences for the world market. 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). 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. It often compares itself to brands with which Westerners are familiar. But defaults and bankruptcies are common in a market economy. In contrast, the U.S. always does the inverse and never misses an opportunity to pressure others in increasingly creative ways. Hence the old joke that Chinas definition of a win-win scenario is one in which China wins twice. 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 aggressive handling of Covid-19in sharp contrast to that of many Western countries with higher death rates and later, less-stringent lockdownshas, if anything, reinforced that view. While the U.S. political system is partly inspired by the British example, it differs in many important respects. Americans focus on speed and efficiency and will hurry to get things done quickly. This means that business contracts are not usually detailed in China since the civil codes do not cover most laws. 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. 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. China has also defied predictions that its authoritarianism would inhibit its capacity to innovate. From the U.S. perspective, upholding the banner of freedom and democracy no longer matters. Such ideas may appear very different from the outward-facing, Confucian concepts of benevolence and harmony that China presents to its international, English-speaking audience. 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 political system of China has been operational since its establishment for 50 years. 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 Chinese can see this as crass and boastful, while in the United States, humility can be regarded as a sign of weakness. Unlike China, the U.S. spends more than 50% above its annual revenues leading to high deficits. 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). As to the orientation of a new era, however, the Trump administration has yet to offer any answers or insights. 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. 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. Is your time best spent reading someone elses essay? Each branch of the government plays an important role in providing for the countrys citizens by creating laws and policies that are meant to make the living standards of the citizens better and provide them with safety and rights. 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. 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. Its GDP dropped 6.8% in the first quarter of 2020, but resumed growth from the second quarter onward. The space for the two sides to compromise and collaborate has narrowed extremely rapidly. People who do take long-term career risks often do so only after fulfilling their primary need for short-term security. Beijing ICP prepared NO.16065310-3, China vs. America: Political diversity vs. political conformity. Even though China has a one-party state, it, however, has eight independent political parties that are controlled by the CCP (CIA, 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. 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. Why do leaders in the West persist in getting China so wrong? China is also often at pains to suggest to foreign governments or investors that it is similar to the West in many aspectsconsumer lifestyles, leisure travel, and a high demand for tertiary education. Even though both countries are different in every way, they are still recognized as each others competition in the International Arena. Chinas leaders argue that its essentially Leninist rule book makes Chinese politics far less arbitrary or nepotistic than those of many other, notably Western, countries (even though the system has its share of back-scratching and opaque decision-making). The difference between the US and China is that the US is on the North American continent, whereas China lies in Asia. It will take years if not decades for China to catch up in some areas, at great cost. 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. 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 legal system of a country establishes regulations and laws that maintain and indicate the basic values of an entire nation. China, if it doesnt respond to U.S. nationalist challenges, will face soaring nationalist pressures at home. 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. Western systems are . He was born in China, and his life was upended during the Cultural Revolution, when he was sent off to do farm labor in the Gobi Desert. 9. Sage. 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. Ambition like that cant be realized without state interventionrelatively fast and easy but often brutal in China. 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. . Hire a professional with VAST experience! That means not that these people are unconcerned with long-term outcomes but, rather, that their risk aversion increases significantly as the time frame lengthens. This is a belief alien to many Western business executives, especially if theyve had experience with other authoritarian regimes. Solinger, D. J. (2012). 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. 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. Hence, we need to understand, compare, and learn from leading values in China's political culture. Even in Beijing many people wore Mao suits and cycled everywhere; only senior Chinese Communist Party (CCP) officials used cars. HBR Learnings online leadership training helps you hone your skills with courses like Global Collaboration. (More than 33 million people were jobless and waiting for relief as of late April.) But the state-owned sector remains too big and inefficient. 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. What has caused the frequent conflicts between the two countries? How can outside investors ensure that they dont become collateral damage in a bigger political and economic war? The critical distinction is that the Chinese system is not only Marxist, its Marxist-Leninist. This shapes the way they make long-term commitments, especially those that entail short-term trade-offs or losses. It continues apace. 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. 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. Is it that Chinas development doesnt conform with the values of freedom and democracy, or that Chinas growing strength is a threat to U.S. hegemony? The well-being and economic development is another key branch of a political system that affects business operations (Solinger, 2016). 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. The Vietnamese premier is very powerful. Civic engagement is not just on an individual basis but is also done through the use of groups and communities. The PRC isn't just pragmatic, but also respectful towards all of its partners. Those countries have since 1945 been pluralist democracies with independent judiciaries. 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. She bought a flatthe first time anyone in her familys history had owned property. What is the political difference between China and the USA? Reforming Sino-American Cultural Exchange for the Better. However, the beliefs and positions of political parties change over time, so . 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). 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. In other words, the U.S. position as hegemon doesnt necessarily bring it any economic benefits. 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. The Stages of Strategic Crime Analysis Report. However, it also highlighted the different ways in which people of color in the USA are suppressed through political representation and voter suppression. 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. Earn badges to share on LinkedIn and your resume. Unfortunately, you cant copy samples. Both countries have human rights issues, although in different forms. Depending on the conditions surrounding a case, the law system allows special consideration to such as a case. The commission has succeeded in reducing corruption in large part because it is essentially above the lawsomething unimaginable in a liberal democracy. And what if the market itself is in China? 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. That has political implications, of coursefor example, that the public ownership of assets is necessary to ensure an equal distribution of wealthbut the economic outcomes are the focus. 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 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. Accelerate your career with Harvard ManageMentor. 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. Weijian Shan was born in China and had his life upended by the Cultural Revolution. The task, in both China and the West, is to reduce the gap between the ideal of basic human rights and the reality. China's Transition from Socialism? 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. However, it is important to compare and contrast countries to see which policies are working in the best way and what can be changed. The United States has had the world's largest economy for about 140 years, and it roughly accounts for 22% of global GDP. Our firm, PAG, invests throughout Asia and occasionally beyond. Earn badges to share on LinkedIn and your resume. As market research consistently tells us, the majority of individual Chinese investors behave more like traders. A country that provides its citizen with education produces better minds that can bring in better business ideas to the economy. Majority of China's production companies are owned and managed by the government. A Shanghai journalist is paid by her state-controlled magazine to fly around the world for stories on global lifestyle trends. Investors have always been enticed by Chinas vast market. 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. One example is the reinvention in the late 2010s of the Central Commission for Discipline Inspection. By the 1980s she was in the first generation to go back to university, and even took part in the Tiananmen Square demonstration. The White Houses China-bashing is more about a fight for self-identification than about exonerating the Trump administration. That has huge implications for people seeking to do business in China. Politicians and business leaders continue to misread Chinas strategy and politics. The Leninist nature of politics is also evidenced by the language used to discuss it. 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. These are the reforms China is makingand they need to be understood on their own terms, not simply as a distorted or deficient version of a liberal model. HBR Learnings online leadership training helps you hone your skills with courses like Global Collaboration. 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 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 CPC runs the country while the other non communist parties play the role of participatory. 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. 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). 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. These officials preside over different tribunals and committees, which can range from civil, administrative to communication, and transport cases. Accelerate your career with Harvard ManageMentor. What are the dangers in Americas continued demonization of China? Retrieved from https://proessays.net/essays/economic-and-political-differences-china-vs-united-states. The Biden administration is expected to restore that policy and to work within the rules of international institutions, which I expect will defuse tensions. 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. 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, That focus on securing short-term gain is why the young asset manager in Shanghai left a good long-term job for a relatively small but immediate pay raisebehavior that still plagues many businesses trying to retain talent and manage succession pipelines in China. 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. Globalization has numerous benefits among them promoting the economy of a country but at the same time, it is faced with several obstacles. 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. In Vietnam, there are three different people. Worse, the U.S. has displayed an institutional helplessness in the face of such fundamental problems. 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. Weijian Shan understands the delicate U.S.-China dynamic as well as anyone. The U.S. continues to vilify China, and China does itself no favors with its poor policy on human rights. Economic and Political Differences: China VS. United States. Some distinctions between the parties. In fact, China is the only G20 country to have posted positive growth. 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. Until Western companies and politicians accept this reality, they will continue to get China wrong. That Canada has elected communists to office, I suggest is just about as important a disparity as the American gun insanity. 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. Beijing expats want the "real China" They prefer Chinese language, history, and culture and avoid Western civilization. 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. 13 Cultural Differences Between the U.S. and China Social Structure Confrontation/Conflict Self Face/Reputation Business Relations Morals Recognition of the Dead Humility Time Sensitivity Respect Multiculturalism Lack of Personal Space Respect for Elders 1. -- China'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. The ideological debate that followed was perhaps inevitable. Exploding unemployment exposed the wide wealth gap in U.S. society. But its also conspicuously different: The concept of U.S. hegemony goes beyond economics to such fields as politics, the military and society. In International Business: Competing in the global marketplace (11th ed.). Even though the nominations are provided by the CCP, citizens can vote for their township and village elections, and in some places, there are direct elections. What are the biggest risks for Chinas economy in the coming years? Avoid editing or writing from scratch! Order original essay online with 25% off. 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. 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). 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. China's political system encourages parties, organizations, and representatives from various circles of Chinese society to discuss basic policy as well as important political, economic, cultural and social issues. China, however, has been able to sustain and grow its economy as much as it practices a command economy. Globalization. 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. 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. What to Know. In fact, many Chinese believe that the countrys recent economic achievementslarge-scale poverty reduction, huge infrastructure investment, and development as a world-class tech innovatorhave come about because of, not despite, Chinas authoritarian form of government. Learn how to overcome barriers when working globally. Chinas rulers, therefore, see foreign engagement as a source less of opportunity than of threat, uncertainty, and even humiliation. Either way you slice it, the economies are the two strongest . Both countries have a Judicial, Executive, and Legislative branch. 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. Starved to death the 1980s she was in the late 2010s of the decline in U.S. strength revise views. Catch up in some areas, at Great cost what are the dangers in Americas continued of! 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