In 2019 that market reached $6 trillion, surpassing the U.S. level of $5.5 trillion. The Incarcerated Vote. 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 commission has succeeded in reducing corruption in large part because it is essentially above the lawsomething unimaginable in a liberal democracy. Investors have always been enticed by Chinas vast market. 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. For liberals (in China and elsewhere), this is an appalling prospect; but for many ordinary people in China, its a perfectly reasonable part of the social contract between the individual and the state. 10. Business in the United States moves at a different pace from China. The Chinese spent countless hours restructuring their legal system to closer represent those in the Western business. 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. All the work should be used in accordance with the appropriate policies and applicable laws. 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). -- The CPC is at the core of the country's leadership and the ruling party, while the non-communist parties are participating parties. China's lead over the U.S. is especially clear in Germany, the Netherlands, the Czech Republic and France, where people are at least 10 percentage points more likely to see China as the leading economy. 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. Great challenges lie ahead. : Statist Legacies and Market Reforms, 1980-90: Statist Legacies and Market Reforms, 1980-90. Hire a professional with VAST experience! PAG invested about $100 million in a digital music business in China a few years back which subsequently merged with a similar business and changed its name to Tencent Music Entertainment. Time is money, in other words. The PRC isn't just pragmatic, but also respectful towards all of its partners. Thats not likely, precisely because in Chinas particular brand of authoritarianism, control is key. The United States has a democratic government system with three branches in the system, legislative, executive, and judicial. Its just not liberal reform. 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. We have both sat in meetings where business executives, particularly in the technology and pharmaceutical sectors, expressed surprise at Chinas insistence that they transfer ownership of their IP to a Chinese company. 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. 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. they are digging deep to create the city's first metro system and doing so in just five years' time . While Bidens policy proposals reflect fading U.S. hegemonistic attitudes, Trump is showing Americans the status quo of U.S. power. The Peoples Republic of China is still one of the few countries in the world that follow the communist government structure and is led by a one-party system. The United States had maintained a fairly consistent foreign policy until Trump. 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. 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. 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. It will take years if not decades for China to catch up in some areas, at great cost. How can outside investors ensure that they dont become collateral damage in a bigger political and economic war? 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. From the depth of their hearts, Americans confront the reality that the beacon of freedom has to learn from the authoritarian government of communist China in some respects. This is a belief alien to many Western business executives, especially if theyve had experience with other authoritarian regimes. Between 1990 and 2009, investment from China to all of Latin America was about $7 billion. Retrieved from https://proessays.net/essays/economic-and-political-differences-china-vs-united-states. 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. 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. Learn how to overcome barriers when working globally. It is unbelievable that the western countries face a serious competition from these nations due to the political stability found in the two countries. In the countryside life retained many of its traditional elements. 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. 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). Nobody can take America's newfound domestic support for diversity seriously until it finally starts applying the same principles abroad like China does. 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. Globalization has numerous benefits among them promoting the economy of a country but at the same time, it is faced with several obstacles. 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. 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. Accelerate your career with Harvard ManageMentor. Trumps trade war was an abject failure. China is among the most open markets in the world: It is the largest trading nation and also the largest recipient of foreign direct investment, surpassing the United States in 2020. 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. The president controls the army. The difference between the US and China is that the US is on the North American continent, whereas China lies in Asia. Chinas rulers see foreign engagement as a source less of opportunity than of threat, uncertainty, and even humiliation. 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? The White Houses China-bashing is more about a fight for self-identification than about exonerating the Trump administration. In contrast, the U.S. always does the inverse and never misses an opportunity to pressure others in increasingly creative ways. At 22,000 miles, it is twice as long as the rest of the worlds combined. The country itself remains so diverse that some minority groups even have their own autonomous administrative divisions which include regions, prefectures and counties. Chinas saving rate will drop significantly as its population ages, and investment will slow. 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. 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. Leninism, however, is essentially a political doctrine; its primary aim is control. As market research consistently tells us, the majority of individual Chinese investors behave more like traders. Majority of China's production companies are owned and managed by the government. 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. The United States has a democratic system, but in countries . This is the best approach for one to have and ensures that its partnerships remain everlasting. Obviously, as an economy develops and new problems emerge, all social systems need certain reforms. Accelerate your career with Harvard ManageMentor. Its monetary policy is reasonably tight, with the yield on government bonds about 3.5 times that on U.S. Treasuries. 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. 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. So a Marxist-Leninist system is concerned not only with economic outcomes but also with gaining and maintaining control over the system itself. Jimmy Dore delivered a monologue on the history of the Russia-Ukraine conflict and how a "tiny cabal" are using the situation for profit on Friday's broadcast of 'Tucker Carlson Tonight' on FOX News. Beijing expats want the "real China" They prefer Chinese language, history, and culture and avoid Western civilization. However, both states have a very different political landscape, which is what will be discussed in the paper today. 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. But the state-owned sector remains too big and inefficient. They dont know how capitalist China is. 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. 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). Hence the old joke that Chinas definition of a win-win scenario is one in which China wins twice. 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. 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. Earn badges to share on LinkedIn and your resume. 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. The United States takes in with high respect the principles of democracy and individualism. Amid the unprecedented challenge of COVID-19, clear differences have emerged between the Chinese and American responses. The United States has had the world's largest economy for about 140 years, and it roughly accounts for 22% of global GDP. We will write a custom Research Paper on Political system comparison between India and China specifically for you. 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. It seems that the only country that can stifle Chinas growth is China itselfif it makes major policy mistakes. Americans Dont Know How Capitalist China Is, A version of this article appeared in the. Our firm, PAG, invests throughout Asia and occasionally beyond. 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. China has also defied predictions that its authoritarianism would inhibit its capacity to innovate. Routledge. HBR Learnings online leadership training helps you hone your skills with courses like Global Collaboration. Our response? Most significantly, the British have a democratic parliamentary government, headed by a monarch and prime minister. World economies keep on changing and countries are also made to change for them to remain competitive. In fact, China is the only G20 country to have posted positive growth. Those countries have since 1945 been pluralist democracies with independent judiciaries. 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. Editor's note: Andrew Korybko is a Moscow-based American political analyst. 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. After all, each is the others largest trading partner, and China has lent more than $1 trillion to the U.S. government by holding U.S. Treasury bills. A cleaner in Chongqing now owns several apartments because the CCP reformed property laws. Also, the communism in China is affected by the political tradition of ancient Chinese imperial system. The world will be lifeless and dull if there is only one single model and one single civilization." The continuous growth of technology and infrastructure in many nations has made globalization to reach its climax. Unlike China, the U.S. spends more than 50% above its annual revenues leading to high deficits. Unfortunately, you cant copy samples. 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. And only the U.S. can threaten Americas economic supremacyby underinvesting in its own infrastructure and by limiting trade. A Leninist approach to selecting future leaders is also a way the CCP has maintained its legitimacy, because to many ordinary Chinese, this approach produces relatively competent leaders: They are chosen by the CCP and progress through the system by successfully running first a town and then a province; only after that do they serve on the Politburo. 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). Access more than 40 courses trusted by Fortune 500 companies. Half of the representatives in Congress are millionaires with their median net worth reported to be more than a million. They both have a presiding official, like a judge, plaintiffs, defendants, legal council etc. Not completely and not without very high costs. References Borner, S., Brunetti, A., & Weder, B. 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. 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. 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. This plays out every time a Western company negotiates access to the Chinese market. This approach is counterproductive and has generated immense resentment against the U.S. across the world. The Chinese can see this as crass and boastful, while in the United States, humility can be regarded as a sign of weakness. The U.S., on the other hand, is a federal constitutional republic with three governmental branches sharing powers. 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. Beijing expats speak Mandarin better than Shanghai ones. The . Losing the China market will be costly for American tech companies and deprive them of funds for further R&D. China now has better highways, rail systems, bridges, and airports than the United States does. Today the differences are arguably a lot smaller, and there are many areas in which the two can benefit from cooperation. China, meanwhile, doesn't apply any such double standards. But the third assumption can also mislead those seeking to engage with China. The major focus of government expenditure is domestic infrastructure. That history also explains the paradox that the rulers and the ruled in China operate on very different time frames. 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. She bought a flatthe first time anyone in her familys history had owned property. 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? In Charting China's Future (pp. The top 10 American semiconductor chip makers sell about three times as much in China as in the United States. 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. But surely gun shops being essential service during a huge medical virus shutdown is the height of insanity at this moment on this planet. In 2020 China had more billionaires than the U.S. did, and it outpaces the U.S. three to one in minting them. Sorry, but it's not possible to copy the text due to security reasons. 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%. She was a Red Guard as a teenager, screaming adoration for Chairman Mao while her parents were being re-educated for being educated. While the U.S. political system is partly inspired by the British example, it differs in many important respects. Even in Beijing many people wore Mao suits and cycled everywhere; only senior Chinese Communist Party (CCP) officials used cars. Given the unique features of China's political and economic system, the government can directly affect the carbon market . The differences in the political orders of China and the United States are "irreconcilable", making it difficult to keep relations between the two countries on a stable track, a leading. The CPC runs the country while the other non communist parties play the role of participatory. He believes Chinese people are fixated on. Why do leaders in the West persist in getting China so wrong? A Marxist system is concerned primarily with economic outcomes. The CPC runs the country while the other non communist parties play the role of participatory. The political system of China has been operational since its establishment for 50 years. 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. 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. China's Transition from Socialism? You cant become a senior leader in China without having proved your worth as a manager. But defaults and bankruptcies are common in a market economy. 55-64). As the author Yuval Noah Harari has pointed out, liberalism has had few competitors since the end of the Cold War, when both fascism and communism appeared defeated. The big difference is that in China the party, state, and army is led by one person. When the United States formed its constitution, it specifically dictated the unalienable rights of every person. 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. The Communist Party of China (CPC) harbors no supremacist beliefs and doesn't plan to export its governing model abroad. However, the long-term effects cannot be fully accessed at the moment. In other words, it's actually the U.S. that's an ideologically driven state and not China, unlike what the Western mainstream media has falsely claimed in recent years. 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. Second, the economic structure is different. Political credibility and economic development. Solve your problem differently! Learn how to overcome barriers when working globally. 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. The complete Spotlight package is available in a single reprint. Both countries have human rights issues, although in different forms. 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. 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. China and the global economy. In such a system innovation is limited since people do don feel motivated to come up with brilliant business ideas because undesirable laws keep on blocking them. What is it that Americans dont understand about China? 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 legal system of a country plays a key role in terms of its marketing and investment opportunities. In much Western analysis the verb most commonly attached to Chinas reforms is stalled. The truth is that political reform in China hasnt stalled. But the technology war also hurts U.S. suppliers. The point is that a China-based supply chain has proved a blessing, not a curse, in this pandemic. The Leninist nature of politics is also evidenced by the language used to discuss it. 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