Where can it move its production if the target market is China? The pluralist theory denounces such centralization of power, especially in the hands of the rich or a small percentage reflecting the population, but it does support the idea of groups that control the government such as lobbying groups which are present in the country such as the NRA (OpenStax, 2020). The 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). The reality is quite different. And the party has always believed in and emphasized the importance of Chinese history and of Marxist-Leninist thought, with all they imply. This is a natural outcome of the decline in U.S. strength. Until Western companies and politicians understand this and revise their views, they will continue to get China wrong. However, it also highlighted the different ways in which people of color in the USA are suppressed through political representation and voter suppression. 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. Some distinctions between the parties. 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. 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. 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. 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. Decisionsby both individuals and the stateabout how to invest all serve one purpose: to provide security and stability in an unpredictable world. American companies will do so only if U.S. tariffs become more penalizing than moving would be. If you are the original author of this essay and no longer wish to have it published on the 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. Hence the public debt as a percentage of GDP is higher for the U.S. relative to China and the. This review discusses recent efforts to systematically compare three leading values in China's philosophical traditionsmeritocracy, hierarchy, and harmony . Chinas rulers, therefore, see foreign engagement as a source less of opportunity than of threat, uncertainty, and even humiliation. 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. What is it that Americans dont understand about China? The collapse of the USSR appeared to validate that belief, given that the Soviet regimes inability to deliver meaningful economic growth for its citizens contributed to its collapse: Russias eventual integration into the global economy (perestroika) followed Mikhail Gorbachevs political reforms (glasnost). 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. Here and there, yes, but not in a meaningful way in general, and not without harm to itself. Wherever PAG operates, we adhere to the same environmental, social, and governance policies. 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. 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. The paper also highlighted citizen engagement in both countries, either through direct elections in the USA or through the CCP controlled nominations in China. The U.S., on the other hand, is a federal constitutional republic with three governmental branches sharing powers. 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. Consequently, running international businesses has become significantly easier than ever before. Amid the unprecedented challenge of COVID-19, clear differences have emerged between the Chinese and American responses. Political discourse in China remains anchored in Marxist-Leninist ideas of struggle (douzheng) and contradiction (maodun)both seen as attributes that force a necessary and even healthy confrontation that can help achieve a victorious outcome. Accelerate your career with Harvard ManageMentor. 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. Would you like to get this essay by email? -- 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. Its currency appreciated 6% against the dollar last year. And when Xi announced, in 2017, that the three critical battles for Chinas development would fall in the areas of reducing financial risk, addressing pollution, and alleviating poverty, he also made it clear that the objective of these reforms was to solidify the system rather than to change it. 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. 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. Accept that economic development in China will not inevitably lead to democracy; acknowledge that the Chinese regard their government as both legitimate and effective; and recognize that while Chinese consumers have short-term horizons, their rulers are focused on the countrys long-term security. The . 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 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. Retrieved from https://proessays.net/essays/economic-and-political-differences-china-vs-united-states. Cavusgil, S. T., Ghauri, P. N., & Akcal, A. 55-64). Majority of China's production companies are owned and managed by the government. . Access more than 40 courses trusted by Fortune 500 companies. 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. But the third assumption can also mislead those seeking to engage with China. Does that create new investment opportunities? Under this view, whether or not other countries are free and democratic, or whether others deem the U.S. to be so, matters less than the economic benefits the U.S. deserves, including a favorable balance of trade and jobs. The Trump administration was determined to damage Chinas economy and businesses. 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. Hence, we need to understand, compare, and learn from leading values in China's political culture. In China, the legal system "is based on civil laws" (Nolan, 2012). Its GDP dropped 6.8% in the first quarter of 2020, but resumed growth from the second quarter onward. The pandemic has added urgency, but American politicians appear not to have found the answers. The commission has succeeded in reducing corruption in large part because it is essentially above the lawsomething unimaginable in a liberal democracy. But in China the consumer applications have come faster, making more obvious the link between government investment and products and services that benefit individuals. In fact, the pandemic has made the world, Out of the Gobi: My Story of China and America, Money Games: The Inside Story of How American Dealmakers Saved Koreas Most Iconic Bank. HBR: Chinas economy seems to be the healthiest in the world at the moment. Delivery in 6+ hours! This plays out every time a Western company negotiates access to the Chinese market. There are two political theories that are needed in the discussion, the elite and the pluralist theory. In conclusion, it is not possible to have a unanimous decision on which political and economic practice is best for the entire universe. But because human beings tend to believe that other humans make decisions as they do, this may be the most difficult assumption for Westerners to overcome. 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 . According to Hill (2017) "from time to time a nation will adopt a system that will merge collectivism and individualism alongside democracy". 9. 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. That leaves much room for growth and many opportunities for investors, particularly in businesses that cater to consumers. 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. He wisely noted that "Democracy is not Coca-Cola, which, with the syrup produced by the United States, tastes the same across the world. While Bidens policy proposals reflect fading U.S. hegemonistic attitudes, Trump is showing Americans the status quo of U.S. power. Born in 1955, she experienced as a child the terrible Great Leap Forward famine in which 20 million Chinese starved to death. 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. 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. For the Chinese, the key to those outcomes is respect for an appropriate hierarchy, itself a means of control. The U.S. continues to vilify China, and China does itself no favors with its poor policy on human rights. Sorry, but it's not possible to copy the text due to security reasons. 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. - Quora Answer (1 of 17): Americans hold the individual in the highest regard, whereas Chinese hold the community in the highest regard. This shared quest for predictability explains the continuing attractiveness of an authoritarian system in which control is the central tenet. Its monetary policy is reasonably tight, with the yield on government bonds about 3.5 times that on U.S. Treasuries. 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. Even in Beijing many people wore Mao suits and cycled everywhere; only senior Chinese Communist Party (CCP) officials used cars. Is a China-U.S. decoupling a real possibility? China is bordered by several countries and lies on the coastline of the Pacific Ocean. Countries with command economic systems are now changing their laws to become democratic and allow free-enterprise after realizing benefits it can bring in (Cavusgil, Ghauri & Akcal, 2012). 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. The article reflects the author's views and not necessarily those of CGTN. This is the logical extension of China-U.S. competition from the perspective of U.S. economic nationalism. Many Chinese believe that the countrys recent economic achievements have actually come about because of, not despite, Chinas authoritarian form of government. What is the political difference between China and the USA? If a business is successful, its usually open to taking outside capital so that it can quickly expand nationwide. Looking into the future, the path for China-U.S. cooperation will become more tortuous owing to the nationalist ideological struggle triggered by the coronavirus. Chinas GDP is forecast to grow 7% to 8% this year. Worse, the U.S. has displayed an institutional helplessness in the face of such fundamental problems. 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. Americans focus on speed and efficiency and will hurry to get things done quickly. How can outside investors ensure that they dont become collateral damage in a bigger political and economic war? The US is a developed country, its national infrastructure has essentially been completed; China is a developing country and is undergoing large-scale infrastructure construction. These are valid points and deserve to be expanded upon in order to enlighten others further. 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. For instance, a business that wants to invest in China from the US, it must be prepared for more restrictions and should not expect Chines courts to consider the condition that leads to a certain situation since their law does not permit this. It often compares itself to brands with which Westerners are familiar. China has stolen American jobs, the thinking goes, so we oppose China. Today he is the CEO of PAG, a $40 billion private equity firm based in Hong Kong. The Chinese spent countless hours restructuring their legal system to closer represent those in the Western business. The pandemic has profoundly shaken the U.S. sense of superiority in values, culture and systems since the Enlightenment, and by extension the entire West. 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. 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. 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. Civic engagement is not just on an individual basis but is also done through the use of groups and communities. It is important to understand the background of the. Which serves U.S. interests better, a free and democratic China, or an authoritarian China that identifies with U.S. leadership? The legal system of a country plays a key role in terms of its marketing and investment opportunities. What to Know. But the technology war also hurts U.S. suppliers. 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). In contrast, the U.S. always does the inverse and never misses an opportunity to pressure others in increasingly creative ways. Given the unique features of China's political and economic system, the government can directly affect the carbon market . 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). I see no systemic risk either in Chinas banking system or in its economy. 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. However, it is important to compare and contrast countries to see which policies are working in the best way and what can be changed. In our experience, many Westerners dont understand what that means or why it matters. Even though the laws of the United States provide every individual regardless of creed and color to vote, there have been instances of voter suppression reported, especially in relation to minorities, and this oppression has been systemic and has existed throughout the history of the US. -- The CPC is at the core of the country's leadership and the ruling party, while the non-communist parties are participating parties. 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. 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. 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