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. Some manufacturing has been relocated away from China since the trade war with the U.S. began in 2018, but that hasnt made a dent in either Chinas exports or Americas trade deficit. Depending on the conditions surrounding a case, the law system allows special consideration to such as a case. 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. All these testify to the strength of the Chinese economy. Nobody can take America's newfound domestic support for diversity seriously until it finally starts applying the same principles abroad like China does. Ambition like that cant be realized without state interventionrelatively fast and easy but often brutal in China. But the state-owned sector remains too big and inefficient. The name of the game in China is scale. 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. Even though China has a one-party state, it, however, has eight independent political parties that are controlled by the CCP (CIA, 2020). Some of these challenges are brought about by differences in legal, political and economic systems of different countries. The space for the two sides to compromise and collaborate has narrowed extremely rapidly. The Incarcerated Vote. If you are the original author of this essay and no longer wish to have it published on the And only the U.S. can threaten Americas economic supremacyby underinvesting in its own infrastructure and by limiting trade. Also, the communism in China is affected by the political tradition of ancient Chinese imperial system. Time is money, in other words. Only a sudden surge of such events would herald an economic crisis. Where can it move its production if the target market is China? While the U.S. political system is partly inspired by the British example, it differs in many important respects. This observation makes one wonder whether the Democrats are exploiting well-intended pro-diversity causes at home as part of a power struggle against Republicans. For example, over the past 15 years it has built the longest high-speed rail system in the world. 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. 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. However, the long-term effects cannot be fully accessed at the moment. For example, in making the case for why it should be involved in the UKs 5G infrastructure rollout, Huawei styled itself the John Lewis of China, in reference to the well-known British department store that is regularly ranked as one of the UKs most trusted brands. Wherever PAG operates, we adhere to the same environmental, social, and governance policies. The Chinese can see this as crass and boastful, while in the United States, humility can be regarded as a sign of weakness. American companies will do so only if U.S. tariffs become more penalizing than moving would be. Even in Beijing many people wore Mao suits and cycled everywhere; only senior Chinese Communist Party (CCP) officials used cars. The point is that a China-based supply chain has proved a blessing, not a curse, in this pandemic. Our own experiences on the ground in China confirm this. Half of the representatives in Congress are millionaires with their median net worth reported to be more than a million. 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. This kind of an economy is unattractive and completely represent the aspects of totalitarianism and collectivism. Until Western companies and politicians accept this reality, they will continue to get China wrong. Chinas rulers, therefore, see foreign engagement as a source less of opportunity than of threat, uncertainty, and even humiliation. The commission has succeeded in reducing corruption in large part because it is essentially above the lawsomething unimaginable in a liberal democracy. The pandemic has added urgency, but American politicians appear not to have found the answers. What are the biggest risks for Chinas economy in the coming years? In much Western analysis the verb most commonly attached to Chinas reforms is stalled. The truth is that political reform in China hasnt stalled. Nevertheless, these changes do not seem to stand any chance of influencing its foreign policymakers, who remain convinced of their system's superiority relative to all others. The legal system of a country plays a key role in terms of its marketing and investment opportunities. 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. Solve your problem differently! However, the country does have branches of government that also include the executive, legislative and judicial branches of government. Moving from Beijing to Shanghai has made my Mandarin worse. This is the most appropriate entry point to reveal the evolution of human-land relationships. Some have expressed optimism that Chinas need for control will lessen after theyve proved their worth as partners. She bought a flatthe first time anyone in her familys history had owned property. 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. 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. New York: McGraw Hill/Irwin. Is a China-U.S. decoupling a real possibility? In China, however, growth has come in the context of stable communist rule, suggesting that democracy and growth are not inevitably mutually dependent. They dont know how socialist it is, with its Social Security system and its policies to tax the rich by collecting capital gains taxes. The complete Spotlight package is available in a single reprint. Consequently, running international businesses has become significantly easier than ever before. The paper also highlighted citizen engagement in both countries, either through direct elections in the USA or through the CCP controlled nominations in China. Solinger, D. J. In the years since, China has become an economic titan, a global leader in technology innovation, and a military superpower, all while tightening its authoritarian system of governmentand reinforcing a belief that the liberal narrative does not apply to China. 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. (2016). China, meanwhile, doesn't apply any such double standards. 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. Would you like to get this essay by email? The PRC isn't just pragmatic, but also respectful towards all of its partners. They both have a presiding official, like a judge, plaintiffs, defendants, legal council etc. 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. Many Westerners assume that China is on the same development trajectory that Japan, Britain, Germany, and France embarked on in the immediate aftermath of World War IIthe only difference being that the Chinese started much later than other Asian economies, such as South Korea and Malaysia, after a 40-year Maoist detour. 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. In Charting China's Future (pp. Chinas rulers see foreign engagement as a source less of opportunity than of threat, uncertainty, and even humiliation. The United States takes in with high respect the principles of democracy and individualism. Its stated purpose was to reduce Americas trade deficit. It often compares itself to brands with which Westerners are familiar. 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. HBR: Chinas economy seems to be the healthiest in the world at the moment. 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%. - Quora Answer (1 of 17): Americans hold the individual in the highest regard, whereas Chinese hold the community in the highest regard. Hence the old joke that Chinas definition of a win-win scenario is one in which China wins twice. The branches of the government are not only responsible for the laws of the land but are also responsible for ensuring free and fair elections and that the citizens of the country that they represent are being heard (USG, 2020). On the foreign front, China never tried to pressure anyone to conform to its domestic political system but instead not only respects, but celebrates, their differences. In fact, China is the only G20 country to have posted positive growth. Both countries have human rights issues, although in different forms. 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. 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. As to the orientation of a new era, however, the Trump administration has yet to offer any answers or insights. Its monetary policy is reasonably tight, with the yield on government bonds about 3.5 times that on U.S. Treasuries. When life is (or has been within living memory) unpredictable, people tend to apply a higher discount rate to potential long-term outcomes than to short-term onesand a rate materially higher than the one applied by people living in more-stable societies. Shanghainese are up-to-date on the newest trends, whereas Beijingers prefer Qing Dynasty fashion. But even those concepts lead to considerable misunderstanding on the part of Westerners, who often reduce Confucianism to cloying ideas about peace and cooperation. During the Cold War in the 20th century, and particularly afterward, the U.S. sought to establish and consolidate its leadership role in the international community in the name of freedom and democracy so much so that U.S. hegemony was also often referred to as hegemonic liberalism.. Today its traded on the New York Stock Exchange with a market cap of about $45 billion and has more than 800 million unique active users. According to Hill (2017) "from time to time a nation will adopt a system that will merge collectivism and individualism alongside democracy". The country will need to continue to reform and privatize its state-owned firmsand shift from investment to private consumptionor it will not be able to sustain its growth. How can outside investors ensure that they dont become collateral damage in a bigger political and economic war? Much of Donald Trumps rhetoric and his actions on China were meant to deflect attention from his leadership failures at home, such as neglecting his duty to protect the public from the coronavirus. Sorry, but it's not possible to copy the text due to security reasons. Order original essay online with 25% off. Cavusgil, S. T., Ghauri, P. N., & Akcal, A. The critical distinction is that the Chinese system is not only Marxist, its Marxist-Leninist. For the Chinese, the key to those outcomes is respect for an appropriate hierarchy, itself a means of control. Here and there, yes, but not in a meaningful way in general, and not without harm to itself. Is your time best spent reading someone elses essay? That has huge implications for people seeking to do business in China. That history also explains the paradox that the rulers and the ruled in China operate on very different time frames. Hire a professional with VAST experience! But in China the consumer applications have come faster, making more obvious the link between government investment and products and services that benefit individuals. 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. This is the best approach for one to have and ensures that its partnerships remain everlasting. (If you want to contribute and have specific expertise, please contact us at opinions@cgtn.com. However, in recent times China has overtaken the US by at least one measure of total economic strength, which is GDP based on purchasing power parity (PPP). The Chinese spent countless hours restructuring their legal system to closer represent those in the Western business. 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. In fact, the pandemic has made the world more dependent on Chinese exports, which grew 21% in November over the previous year. 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). 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. 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). China is also often at pains to suggest to foreign governments or investors that it is similar to the West in many aspectsconsumer lifestyles, leisure travel, and a high demand for tertiary education. Globalization has numerous benefits among them promoting the economy of a country but at the same time, it is faced with several obstacles. Weijian Shan understands the delicate U.S.-China dynamic as well as anyone. The top 10 American semiconductor chip makers sell about three times as much in China as in the United States. Consequently, inequality is greater in China than in the United States, measured by the Gini coefficient. The positions in this branch can be for either a five-year long term or even an unlimited amount of time. There are major differences in the political views of people from different nations.. eligion is another topic that creates differences among cultures.. 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. China has been shifting away from an investment-driven growth model to one led by private consumption. 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. The . Therefore, a country's political system can be assessed effectively by using aspects such as collectivism or individualism and totalitarianism or democracy. 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. I see no systemic risk either in Chinas banking system or in its economy. Since China is a communist and one-party state, citizen engagement is lower in comparison to democratic states. The task, in both China and the West, is to reduce the gap between the ideal of basic human rights and the reality. There are two political theories that are needed in the discussion, the elite and the pluralist theory. 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. Nations without better access to such facilities depend on their agriculture and natural resources to enhance economic growth. 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. When individuals have the powerto realize their dreams, they will demand a greater say.. The CPC runs the country while the other non communist parties play the role of participatory. The big difference is that in China the party, state, and army is led by one person. 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. 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. Political credibility and economic development. This shapes the way they make long-term commitments, especially those that entail short-term trade-offs or losses. You cant become a senior leader in China without having proved your worth as a manager. Pundits tend to be alarmed by a default here and there. This suggests that something distinctive to mainland China influences this behavior: long-term unpredictability thats sufficiently recent to have been experienced by or passed on to those now buying stocks. The Vietnamese premier is very powerful. 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. 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. Citizen engagement is a necessary facet of not just American politics but also a democratic state. 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. The United States has a democratic system, but in countries . U.S. self-identification has been shaken under these circumstances. (2016). Some real differences between the two countries do exist, but they have historically managed them without escalating tensions. Chinas high-speed rail could cover the distance between Boston and Chicago in about four hours, whereas Amtraks fastest service takes 22 hours. 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. Obviously the ideology of nationalist identification under the pandemic has greatly roughened the political landscape for China and the U.S. Eager for experience, she took a job as an investment analyst with a Shanghai-based foreign asset manager, but despite a long-term career plan mapped out by her employer, she left that company for a small short-term pay raise from a competitor. -- 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. 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. It continues apace. 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. Had she been born in 1955 in almost any other major economy in the world, her life would have been much, much more predictable. The United States had maintained a fairly consistent foreign policy until Trump. This is the logical extension of China-U.S. competition from the perspective of U.S. economic nationalism. Mandarin. 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. 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. In fact, the Chinese word for the resolution of a conflict (jiejue) can imply a result in which one side overcomes the other, rather than one in which both sides are content. Simmons-Harris Comparative Politics Constitutional Powers Successful Pressure Groups UK and US Constitution Foundations of American Democracy Amendments After the Bill of Rights Articles of Confederation Brutus Papers Checks and Balances Commerce Clause Concurrent Powers Confederation Constitutional Amendment Process Contract with America Editor's note: Andrew Korybko is a Moscow-based American political analyst. U.S.-China dynamic as well as anyone do exist, but American politicians appear not to have and ensures its... 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