Where can it move its production if the target market is China? China is bordered by several countries and lies on the coastline of the Pacific Ocean. 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. 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. 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 US is surrounded by Mexico, Canada, the Pacific Ocean, and the Atlantic Ocean. The real danger is the Taiwan issue. -- The CPC is at the core of the country's leadership and the ruling party, while the non-communist parties are participating parties. 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, In fact, China is the only G20 country to have posted positive growth. The civil law system only allows the judge to make his or her judgment basing on the law and should not consider other factors surrounding the business. Great challenges lie ahead. 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). Beijing expats want the "real China" They prefer Chinese language, history, and culture and avoid Western civilization. This is a natural outcome of the decline in U.S. strength. 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. The United States had maintained a fairly consistent foreign policy until Trump. 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. Our firm, PAG, invests throughout Asia and occasionally beyond. While the U.S. political system is partly inspired by the British example, it differs in many important respects. China has stolen American jobs, the thinking goes, so we oppose China. 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. Disclaimer: ProEssays.net is a custom writing service that provides online on-demand writing work for assistance purposes. In China, however, growth has come in the context of stable communist rule, suggesting that democracy and growth are not inevitably mutually dependent. The difference in efficiency between the central and local groups is significant. Chinas history continues to color its view of international relationsand in large part explains its current obsession with the inviolability of its sovereignty. And what if the market itself is in China? The point is that a China-based supply chain has proved a blessing, not a curse, in this pandemic. People who do take long-term career risks often do so only after fulfilling their primary need for short-term security. China on the other hand practice totalitarianism and collectivism which is the opposite of democracy. The PRC isn't just pragmatic, but also respectful towards all of its partners. The continuous growth of technology and infrastructure in many nations has made globalization to reach its climax. One thing hasnt changed, though: Many Western politicians and business executives still dont get China. Corporatism also recognizes only one organization as its sole representative, which can be seen through the CCP (Chan, 1994). It is a global leader in AI, biotech, and space exploration. 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. Some of these challenges are brought about by differences in legal, political and economic systems of different countries. 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'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. There are major differences in the political views of people from different nations.. eligion is another topic that creates differences among cultures.. The paper also highlighted citizen engagement in both countries, either through direct elections in the USA or through the CCP controlled nominations in China. Its currency appreciated 6% against the dollar last year. From the U.S. perspective, upholding the banner of freedom and democracy no longer matters. Mandarin. The pandemic has added urgency, but American politicians appear not to have found the answers. China has also defied predictions that its authoritarianism would inhibit its capacity to innovate. Not blaming China means indirectly acknowledging U.S. shortcomings, which could be explosive in U.S. partisan politics. 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. What is the political difference between China and the USA? These officials preside over different tribunals and committees, which can range from civil, administrative to communication, and transport cases. The Leninist nature of politics is also evidenced by the language used to discuss it. The United States is famous for being ethnically and religiously diverse, but most of the branches of the government are made up of Christian and White males who have come from affluent backgrounds and studied from elite universities such as the Ivy Leagues. Social Structure In China, the social structure is formal and hierarchical. It is also the duty of the representative republic to inform its citizens of their rights, and the candidacy for the elections needs to be transparent since city council members to local judges to mayors, and state legislators are all appointed through voting in the United States. 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. But over the next 30 years, thanks to policies aimed at developing the economy and increasing capital investment, China emerged as a global power, with the second-largest economy in the world and a burgeoning middle class eager to spend. In our experience, many Westerners dont understand what that means or why it matters. Citizen engagement is integral to the success of every country, whether it be regarding the social welfare or economics of the country, and since both these countries play such a huge role in the International Arena, the comparison of their citizen engagement will be analyzed in this paper. In much Western analysis the verb most commonly attached to Chinas reforms is stalled. The truth is that political reform in China hasnt stalled. 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. If China were concerned only with economic outcomes, it would welcome foreign businesses and investors and, provided they helped deliver economic growth, would treat them as equal partners, agnostic as to who owned the IP or the majority stake in a joint venture. . There are two political theories that are needed in the discussion, the elite and the pluralist theory. The country itself remains so diverse that some minority groups even have their own autonomous administrative divisions which include regions, prefectures and counties. 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 paper analyzed the different political structures of both countries and highlighted the stark differences between a democratic state and a communist state, but the analysis also provided one similarity, which was the elitist government structure that existed in both political structures. China now has better highways, rail systems, bridges, and airports than the United States does. Collectivism means that the needs of an individual are not emphasized as compared to those of the society and not until recently, most rights of Chinese citizens were not realized. 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. 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. 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 . 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. Doing business in emerging markets. 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%. Either way you slice it, the economies are the two strongest . Americans focus on speed and efficiency and will hurry to get things done quickly. 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. We will write a custom Research Paper on Political system comparison between India and China specifically for you. A democratic state is supposed to be free and fair, and the President of the country is also chosen by the citizens to lead them through the crisis and to provide them with basic necessities and human rights. As market research consistently tells us, the majority of individual Chinese investors behave more like traders. The economic nationalism of the U.S. since Donald Trump assumed office is related to the hegemony promoted by the Obama administration and the current leading presidential candidate of the Democratic Party, Joe Biden. Most significantly, the British have a democratic parliamentary government, headed by a monarch and prime minister. 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. The CPC runs the country while the other non communist parties play the role of participatory. Time is money, in other words. The Stages of Strategic Crime Analysis Report. The world will be lifeless and dull if there is only one single model and one single civilization." Since China is a communist and one-party state, citizen engagement is lower in comparison to democratic states. 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 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). The Trump administration was determined to damage Chinas economy and businesses. 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. 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. The reality is quite different. 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. What are the dangers in Americas continued demonization of China? The U.S. continues to vilify China, and China does itself no favors with its poor policy on human rights. 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. Trade wars, nationalism, and the pandemic have led many companies to question their supply chain strategyin particular basing manufacturing in China, thousands of miles from their markets. The White Houses China-bashing is more about a fight for self-identification than about exonerating the Trump administration. Is a China-U.S. decoupling a real possibility? Solve your problem differently! Additionally, the continued flourishing of various technological advancements has allowed nations to grow by accessing the information from other nations and comparing it with what they have and consequently making changes where necessary. And only the U.S. can threaten Americas economic supremacyby underinvesting in its own infrastructure and by limiting trade. In 2019 that market reached $6 trillion, surpassing the U.S. level of $5.5 trillion. The top 10 American semiconductor chip makers sell about three times as much in China as in the United States. That leaves much room for growth and many opportunities for investors, particularly in businesses that cater to consumers. Chinas high-speed rail could cover the distance between Boston and Chicago in about four hours, whereas Amtraks fastest service takes 22 hours. This package reveals much that may surprise them. A nation that practice individualism and democracy is more likely to have an economic system that is market-based and this is more desirable since it allows businesses to produce what their products maximally thereby making desirable profits. Chinas Good War: How World War II Is Shaping a New Nationalism. Accelerate your career with Harvard ManageMentor. This is the most appropriate entry point to reveal the evolution of human-land relationships. China is also Apples biggest market for iPhones: It has about twice as many iPhone users as the United States does. According to this view, economic growth and increasing prosperity will cause China to move toward a more liberal model for both its economy and its politics, as did those countries. Nolan, P. (2012). Responding, however, will only escalate a lose-lose war, and the entire international community will suffer as a result. Chinas is the only major economy that requires no special approval for foreign direct investments, although some sectors, such as Lived Change media and the internet, are on a negative list that restricts them. 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). Eventually he came to the United States, where he earned a masters and a PhD at UC Berkeley, worked for the World Bank and J.P. Morgan, and taught at the Wharton School. Globalization. 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. Cavusgil, S. T., Ghauri, P. N., & Akcal, A. It is important to understand the background of the. 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. Its GDP dropped 6.8% in the first quarter of 2020, but resumed growth from the second quarter onward. Although murdering babies and elderly with medical sanctions in multiple too left . (If you want to contribute and have specific expertise, please contact us at opinions@cgtn.com. Therefore, a country's political system can be assessed effectively by using aspects such as collectivism or individualism and totalitarianism or democracy. Beijing expats speak Mandarin better than Shanghai ones. It will take years if not decades for China to catch up in some areas, at great cost. 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. Half of the representatives in Congress are millionaires with their median net worth reported to be more than a million. 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 closing meeting of the fifth session of the 12th National People's Congress is held at the Great Hall of the People in Beijing . Eighty percent of the Senate and House of Representatives are male, while only 20 percent are either women or people of color. The vehicles for much of this investment are still the CCPs Soviet-style five-year plans, which include the development of what Xi has termed an eco-civilization built around solar energy technology, smart cities, and high-density, energy-efficient housing. 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. 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. Canadian jurisdiction is the opposite; if it's not left to the Provinces, it's most likely the responsibility of the federal government. 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. That has huge implications for people seeking to do business in China. Our own experiences on the ground in China confirm this. HBR Learnings online leadership training helps you hone your skills with courses like Global Collaboration. 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 Chinese believe that the countrys recent economic achievements have actually come about because of, not despite, Chinas authoritarian form of government. Beijing ICP prepared NO.16065310-3, China vs. America: Political diversity vs. political conformity. Even in Beijing many people wore Mao suits and cycled everywhere; only senior Chinese Communist Party (CCP) officials used cars. Leninism, however, is essentially a political doctrine; its primary aim is control. And the party has always believed in and emphasized the importance of Chinese history and of Marxist-Leninist thought, with all they imply. The United States and China are different in almost every way in their social norms, administrative policies, economic reforms, and the vastest difference in their political ideology. 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. 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. But it wont back off from its territorial claims, all of which predate the Peoples Republic of China. Does the U.S. even have the power to hurt China economically? Yet as soon as that ideological cover is removed, internal contradictions immediately reveal themselves. Routledge. 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. Empowered by Xi to deal with the corruption that had become so prevalent early in that decade, the commission can arrest and hold suspects for several months; its decisions cannot be overturned by any other entity in China, not even the supreme court. In fact, the pandemic has made the world more dependent on Chinese exports, which grew 21% in November over the previous year. They still blame foreign interference for many of their misfortunes, even if it occurred more than a century ago. 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. 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. This approach is counterproductive and has generated immense resentment against the U.S. across the world. In 2020, a year of severe difficulties all over the world, there was no significant increase in Chinese corporate defaults. Worse, the U.S. has displayed an institutional helplessness in the face of such fundamental problems. 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. So we oppose China and hierarchical quarter onward to do business in.! Work for assistance purposes than the United States does courses like global Collaboration: diversity. 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