While the U.S. political system is partly inspired by the British example, it differs in many important respects. 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. China and the global economy. Worse, the U.S. has displayed an institutional helplessness in the face of such fundamental problems. 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. Time is money, in other words. Although there are key historical and political differences between China's relationship to Taiwan and Russia's relationship to Ukraine, there are parallels, too, especially in the present . This is the most appropriate entry point to reveal the evolution of human-land relationships. The Biden administration is expected to restore that policy and to work within the rules of international institutions, which I expect will defuse tensions. Some distinctions between the parties. Many Chinese believe that the countrys recent economic achievements have actually come about because of, not despite, Chinas authoritarian form of government. It continues apace. Leninism, however, is essentially a political doctrine; its primary aim is control. While Bidens policy proposals reflect fading U.S. hegemonistic attitudes, Trump is showing Americans the status quo of U.S. power. Citizen engagement is a necessary facet of not just American politics but also a democratic state. But its also conspicuously different: The concept of U.S. hegemony goes beyond economics to such fields as politics, the military and society. 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 major focus of government expenditure is domestic infrastructure. 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 CPC runs the country while the other non communist parties play the role of participatory. By 2008 she was making the most of the rise in disposable incomes by buying new consumer goods that her parents could only have dreamt about. Its just not liberal reform. 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. But surely gun shops being essential service during a huge medical virus shutdown is the height of insanity at this moment on this planet. Which serves U.S. interests better, a free and democratic China, or an authoritarian China that identifies with U.S. leadership? The U.S. continues to vilify China, and China does itself no favors with its poor policy on human rights. Corporatism also recognizes only one organization as its sole representative, which can be seen through the CCP (Chan, 1994). And only the U.S. can threaten Americas economic supremacyby underinvesting in its own infrastructure and by limiting trade. By comparison, progress on these issues is for Western economies extremely slow. 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. 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. In fact, China is the only G20 country to have posted positive growth. 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. Trumps trade war was an abject failure. It seems that the only country that can stifle Chinas growth is China itselfif it makes major policy mistakes. 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. Order original essay online with 25% off. But this argument overlooks some fundamental differences between China and the United States, Japan, Britain, Germany, and France. This shapes the way they make long-term commitments, especially those that entail short-term trade-offs or losses. Hence the old joke that Chinas definition of a win-win scenario is one in which China wins twice. 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. One thing hasnt changed, though: Many Western politicians and business executives still dont get China. Even now Chinas private consumption represents only about 39% of its GDPway below the U.S. level of 68% and the world average of 63%. 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. The geographic location factor is important since it dictates how well a country can be accessed to do business with and both China and United States have good locations since they are connected to water bodies. Thats why China is the most active private-equity market in Asia. In 2020, a year of severe difficulties all over the world, there was no significant increase in Chinese corporate defaults. This, of course, mirrors the role of U.S. defense and intelligence spending in the development of Silicon Valley. 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. 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. The top 10 American semiconductor chip makers sell about three times as much in China as in the United States. For example, over the past 15 years it has built the longest high-speed rail system in the world. The U.S. also repeatedly provoked China using freedom and democracy as a pretext. China, meanwhile, doesn't apply any such double standards. The study of geography is centered on the regional system of the human-land relationship, and the core of the study of the geographical system of the human-land relationship is land use change. 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. 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. People who do take long-term career risks often do so only after fulfilling their primary need for short-term security. 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. 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. Delivery in 6+ hours! Access more than 40 courses trusted by Fortune 500 companies. The Trump administration was determined to damage Chinas economy and businesses. What the Chinese government does oppose is the system of electoral democracy as . -- The CPC is at the core of the country's leadership and the ruling party, while the non-communist parties are participating parties. 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. 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. (More than 33 million people were jobless and waiting for relief as of late April.) The commission has succeeded in reducing corruption in large part because it is essentially above the lawsomething unimaginable in a liberal democracy. If you are the original author of this essay and no longer wish to have it published on the Now CEO of the Hong Kongbased $40 billion private-equity firm PAG, Shan spoke with HBR Editor in Chief Adi Ignatius about the economic prospects for China and the United States. 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. 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 United States has a democratic system, but in countries . In China, the legal system "is based on civil laws" (Nolan, 2012). . 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. We are using Google Analytics to enhance your experience. What is it that Americans dont understand about China? Land use is the most direct manifestation of human activities, accompanied by changes in land cover. Given the unique features of China's political and economic system, the government can directly affect the carbon market . 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. How can outside investors ensure that they dont become collateral damage in a bigger political and economic war? Disclaimer: ProEssays.net is a custom writing service that provides online on-demand writing work for assistance purposes. 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. For the Chinese, the key to those outcomes is respect for an appropriate hierarchy, itself a means of control. As market research consistently tells us, the majority of individual Chinese investors behave more like traders. 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. 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. 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. First name should have at least 2 letters, Phone number should have at least 10 digits, Essay Sample on Exploring Economic Growth: Laws and Challenges, Essay Sample on Creating a Local Government on a Privately-Owned Island, Essay Example on Texas: A State of Pride and Ownership, China and India: Nations' Health Comparison, Infidel and the Influence of Politics on United States Religious Background, Essay Example on Plenary Powers in the US Constitution. Where can it move its production if the target market is China? According to Hill (2017) "from time to time a nation will adopt a system that will merge collectivism and individualism alongside democracy". When individuals have the powerto realize their dreams, they will demand a greater say.. Chinas GDP is forecast to grow 7% to 8% this year. 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. But the state-owned sector remains too big and inefficient. 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. 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. Lobbying groups have more of an influence on the government of the United States than the citizens themselves, which creates the question if the US is more pluralist or elitist, and the matter of the fact is that the US is not really a representative republic but rather a pluralist oligarchy. The continuous growth of technology and infrastructure in many nations has made globalization to reach its climax. 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. 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. First, the similarities among both countries institutions would be the hierarchical construction of their judicial system; the separation of three branches of . Does that create new investment opportunities? No personal data is being tracked. 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. 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. A country that provides its citizen with education produces better minds that can bring in better business ideas to the economy. The President and the National Peoples Congress, which is the main body of the country, are all elected by the Peoples Congress. Second, the economic structure is different. Routledge. Solve your problem differently! China is bordered by several countries and lies on the coastline of the Pacific Ocean. Political credibility and economic development. Businesspeople and politicians in the West hold outdated beliefs about the second-largest economy in the world. 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. Springer. The United States takes in with high respect the principles of democracy and individualism. 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. Nobody can take America's newfound domestic support for diversity seriously until it finally starts applying the same principles abroad like China does. /Getty. Is your time best spent reading someone elses essay? In the countryside life retained many of its traditional elements. They dont know how socialist it is, with its Social Security system and its policies to tax the rich by collecting capital gains taxes. This means that business contracts are not usually detailed in China since the civil codes do not cover most laws. The harsh reality of the pandemic has given rise to political competition with characteristics not seen before, sounding the alarm for future bilateral relations. Only a sudden surge of such events would herald an economic crisis. 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). Born in 1955, she experienced as a child the terrible Great Leap Forward famine in which 20 million Chinese starved to death. The big difference is that in China the party, state, and army is led by one person. The past decade has, if anything, strengthened Chinese leaders view that economic reform is possible without liberalizing politics. 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. Until Western companies and politicians accept this reality, they will continue to get China wrong. 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. China is also Apples biggest market for iPhones: It has about twice as many iPhone users as the United States does. It is, therefore, against nature itself and arguably a violation of international human and legal rights for anyone to attempt to get rid of diversity, which is exactly what the U.S. is trying to do all across the world through its messianic zeal in imposing its political system onto all others. 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 . The article reflects the author's views and not necessarily those of CGTN. 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. Why do leaders in the West persist in getting China so wrong? Diversity is naturally occurring, whether it be among ethnicities, religions, governing systems or whatever else. However, the long-term effects cannot be fully accessed at the moment. 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. But much of the technological progress has come from a highly innovative and well-funded military that has invested heavily in Chinas burgeoning new industries. 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. 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. : Statist Legacies and Market Reforms, 1980-90: Statist Legacies and Market Reforms, 1980-90. 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. Until Western companies and politicians understand this and revise their views, they will continue to get China wrong. 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). 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. 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. 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. China has been shifting away from an investment-driven growth model to one led by private consumption. The Chinese spent countless hours restructuring their legal system to closer represent those in the Western business. Consequently, inequality is greater in China than in the United States, measured by the Gini coefficient. Politicians and business leaders continue to misread Chinas strategy and politics. 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. 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. 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. China, if it doesnt respond to U.S. nationalist challenges, will face soaring nationalist pressures at home. (2022, May 17). 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. Additionally, human development is also key for countries to realize full economic growth. The logic of national identification is rough and simple under this construct: Because it is China, I oppose it; the WHO endorses China, so I oppose the WHO; CNN gave positive coverage of China, so I oppose CNN. That Canada has elected communists to office, I suggest is just about as important a disparity as the American gun insanity. Is a China-U.S. decoupling a real possibility? 55-64). World economies keep on changing and countries are also made to change for them to remain competitive. Even though China has a one-party state, it, however, has eight independent political parties that are controlled by the CCP (CIA, 2020). 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. As to the orientation of a new era, however, the Trump administration has yet to offer any answers or insights. Nolan, P. (2012). The complete Spotlight package is available in a single reprint. they are digging deep to create the city's first metro system and doing so in just five years' time . One example is the reinvention in the late 2010s of the Central Commission for Discipline Inspection. Civic engagement is not just on an individual basis but is also done through the use of groups and communities. The difference in efficiency between the central and local groups is significant. 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. Familiarity with Leninist doctrine is still important for getting ahead. Depending on the conditions surrounding a case, the law system allows special consideration to such as a case. 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. Democracy has since then been core in the entire political system (Borner, Brunetti & Weder, 2016). 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. Globalization. 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. Amid the unprecedented challenge of COVID-19, clear differences have emerged between the Chinese and American responses. HBR: Chinas economy seems to be the healthiest in the world at the moment. The Communist Party of China does not give the citizens any chance to question the existing and it has total control of everything going on in the state (Solinger, 2016). HBR Learnings online leadership training helps you hone your skills with courses like Global Collaboration. And the narrative has had some powerful supporters. 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. 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. But the third assumption can also mislead those seeking to engage with China. Canadian jurisdiction is the opposite; if it's not left to the Provinces, it's most likely the responsibility of the federal government. Our response? It will take years if not decades for China to catch up in some areas, at great cost. 10. Business in the United States moves at a different pace from China. There are two political theories that are needed in the discussion, the elite and the pluralist theory. The differences in political beliefs led to the formation of a two-party system in the United States, contrary to George Washington's wishes. U.S. self-identification has been shaken under these circumstances. Americans Dont Know How Capitalist China Is, A version of this article appeared in the. In much Western analysis the verb most commonly attached to Chinas reforms is stalled. The truth is that political reform in China hasnt stalled. 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. 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. 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). 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