We are using Google Analytics to enhance your experience. The U.S., on the other hand, is infamous for its self-deluded belief in so-called "American Exceptionalism," to which end it obsessively seeks to force all others to change their ways in order to replicate its own radically. And believing that Chinas economic growth would have to be built on the same foundations as those in the West, many failed to envisage the Chinese states continuing role as investor, regulator, and intellectual property owner. The ideological debate that followed was perhaps inevitable. 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. Its just not liberal reform. 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. . Regardless of who wins, it is unlikely that one of the . 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. 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. 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. 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. However, it is important to compare and contrast countries to see which policies are working in the best way and what can be changed. Editor's note: Andrew Korybko is a Moscow-based American political analyst. Retrieved from https://proessays.net/essays/economic-and-political-differences-china-vs-united-states. 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. Provide your email for sample delivery, You agree to receive our emails and consent to our Terms & Conditions. 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. For any deep analysis of the ideological aspects of the China-U.S. rivalry to be complete, two questions need to be answered: What political interests do the ideologies serve, and in what forms are they presented? Chinas GDP is forecast to grow 7% to 8% this year. 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. The big difference is that in China the party, state, and army is led by one person. Our firm, PAG, invests throughout Asia and occasionally beyond. She bought a flatthe first time anyone in her familys history had owned property. The only obligation they have is to follow the law that in most cases is straightforward. They dont know how socialist it is, with its Social Security system and its policies to tax the rich by collecting capital gains taxes. Learn how to overcome barriers when working globally. 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. China has stolen American jobs, the thinking goes, so we oppose China. 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. Ambition like that cant be realized without state interventionrelatively fast and easy but often brutal in China. In China, however, growth has come in the context of stable communist rule, suggesting that democracy and growth are not inevitably mutually dependent. Consequently, running international businesses has become significantly easier than ever before. 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? Changes that have been reported but not yet acted on by BGN are noted. Half of the representatives in Congress are millionaires with their median net worth reported to be more than a million. 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). Mandarin. Where can it move its production if the target market is China? 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. That Canada has elected communists to office, I suggest is just about as important a disparity as the American gun insanity. Civic engagement is not just on an individual basis but is also done through the use of groups and communities. 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. 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. Earn badges to share on LinkedIn and your resume. Western systems are . However, it also highlighted the different ways in which people of color in the USA are suppressed through political representation and voter suppression. 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 fact, many Chinese believe that the countrys recent economic achievementslarge-scale poverty reduction, huge infrastructure investment, and development as a world-class tech innovatorhave come about because of, not despite, Chinas authoritarian form of government. This is the logical extension of China-U.S. competition from the perspective of U.S. economic nationalism. After all, if it genuinely believed in the merits of diversity at home, it wouldn't try to snuff out political diversity abroad. 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.. 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. Obviously the ideology of nationalist identification under the pandemic has greatly roughened the political landscape for China and the U.S. 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. First, China and the United States are at different stages of development. 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. Some of its technological successes have been driven by market forces: People wanted to buy goods or communicate more easily, and the likes of Alibaba and Tencent have helped them do just that. 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 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. All these testify to the strength of the Chinese economy. Recognizing that the authoritarian Marxist-Leninist system is accepted in China as not only legitimate but also effective is crucially important if Westerners are to make more-realistic long-term decisions about how to deal with or invest in the country. Obviously, as an economy develops and new problems emerge, all social systems need certain reforms. Any shift in supply chains will be gradual and partial, because its very costly to move from the most efficient supplier to the second or third best. 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). Corporatism also recognizes only one organization as its sole representative, which can be seen through the CCP (Chan, 1994). 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 . Those countries have since 1945 been pluralist democracies with independent judiciaries. But surely gun shops being essential service during a huge medical virus shutdown is the height of insanity at this moment on this planet. 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. 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 Chinese premier less so. It is a global leader in AI, biotech, and space exploration. When individuals have the powerto realize their dreams, they will demand a greater say.. Additionally, human development is also key for countries to realize full economic growth. But the state-owned sector remains too big and inefficient. Earn badges to share on LinkedIn and your resume. This is a natural outcome of the decline in U.S. strength. The positions in this branch can be for either a five-year long term or even an unlimited amount of time. A decade ago its retail-goods market was about $1.8 trillionless than half that of the United States. She was a Red Guard as a teenager, screaming adoration for Chairman Mao while her parents were being re-educated for being educated. It continues apace. China and the global economy. A Marxist system is concerned primarily with economic outcomes. And only the U.S. can threaten Americas economic supremacyby underinvesting in its own infrastructure and by limiting trade. Routledge. However, the beliefs and positions of political parties change over time, so . The name of the game in China is scale. Although murdering babies and elderly with medical sanctions in multiple too left . 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. The Leninist nature of politics is also evidenced by the language used to discuss it. 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. Disclaimer: ProEssays.net is a custom writing service that provides online on-demand writing work for assistance purposes. He believes Chinese people are fixated on. They still blame foreign interference for many of their misfortunes, even if it occurred more than a century ago. Wherever PAG operates, we adhere to the same environmental, social, and governance policies. Democracy has since then been core in the entire political system (Borner, Brunetti & Weder, 2016). 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. 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. What is it that Americans dont understand about China? In our experience, many Westerners dont understand what that means or why it matters. Not completely and not without very high costs. Chinas rapid economic growth is the result of its embrace of a market economy and private enterprise. With less than a quarter of Chinas population, America has a death toll about 100 times Chinas and counting. At every point since 1949 the Chinese Communist Party has been central to the institutions, society, and daily experiences that shape the Chinese people. 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. 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. One example is the reinvention in the late 2010s of the Central Commission for Discipline Inspection. A major turning point was the financial crisis of 2008, which in Chinese eyes revealed the hollowness of the Washington consensus that democratization and economic success were linked. The Trump administration, however, has focused on U.S. economic interests, putting the pursuit of hegemonistic benefits in a secondary position. Does the U.S. even have the power to hurt China economically? A decade ago its retail-goods market was about $1.8 trillionless than half that of the . 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. Americans Dont Know How Capitalist China Is, A version of this article appeared in the. Which serves U.S. interests better, a free and democratic China, or an authoritarian China that identifies with U.S. leadership? The Stages of Strategic Crime Analysis Report. 10. Business in the United States moves at a different pace from China. However, both states have a very different political landscape, which is what will be discussed in the paper today. 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. Order original essay online with 25% off. A cleaner in Chongqing now owns several apartments because the CCP reformed property laws. Its a plausible narrative. 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. Hence the old joke that Chinas definition of a win-win scenario is one in which China wins twice. Between 1990 and 2009, investment from China to all of Latin America was about $7 billion. He wisely noted that "Democracy is not Coca-Cola, which, with the syrup produced by the United States, tastes the same across the world. And the party has always believed in and emphasized the importance of Chinese history and of Marxist-Leninist thought, with all they imply. Great challenges lie ahead. for only $16.05 $11/page. Its currency appreciated 6% against the dollar last year. 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. Unfortunately, you cant copy samples. 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. References Borner, S., Brunetti, A., & Weder, B. Its GDP dropped 6.8% in the first quarter of 2020, but resumed growth from the second quarter onward. Even in Beijing many people wore Mao suits and cycled everywhere; only senior Chinese Communist Party (CCP) officials used cars. In International Business: Competing in the global marketplace (11th ed.). The past decade has, if anything, strengthened Chinese leaders view that economic reform is possible without liberalizing politics. 55-64). 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). Avoid editing or writing from scratch! Political credibility and economic development. 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. 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. Is your time best spent reading someone elses essay? Investors have always been enticed by Chinas vast market. 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. Chinas rulers see foreign engagement as a source less of opportunity than of threat, uncertainty, and even humiliation. 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. The top 10 American semiconductor chip makers sell about three times as much in China as in the United States. Hill, C. (2017). The President and the National Peoples Congress, which is the main body of the country, are all elected by the Peoples Congress. Routledge. This means that business contracts are not usually detailed in China since the civil codes do not cover most laws. 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. Hire a professional with VAST experience! This plays out every time a Western company negotiates access to the Chinese market. The article reflects the author's views and not necessarily those of CGTN. Shanghainese are up-to-date on the newest trends, whereas Beijingers prefer Qing Dynasty fashion. In fact, China is the only G20 country to have posted positive growth. There are several major differences: China's system is based on the governance of one political party only (China has 8 other parties that serve in a consultative role). The legal system of a country plays a key role in terms of its marketing and investment opportunities. China, however, has been able to sustain and grow its economy as much as it practices a command economy. Eighty percent of the Senate and House of Representatives are male, while only 20 percent are either women or people of color. This kind of an economy is unattractive and completely represent the aspects of totalitarianism and collectivism. 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. 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. The basic structures of both legal system are extremely similar. Accelerate your career with Harvard ManageMentor. How can outside investors ensure that they dont become collateral damage in a bigger political and economic war? 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. 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 . American companies will do so only if U.S. tariffs become more penalizing than moving would be. In 2019 that market reached $6 trillion, surpassing the U.S. level of $5.5 trillion. 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. There are two political theories that are needed in the discussion, the elite and the pluralist theory. 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. 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. The country itself remains so diverse that some minority groups even have their own autonomous administrative divisions which include regions, prefectures and counties. This shapes the way they make long-term commitments, especially those that entail short-term trade-offs or losses. 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. Even though China has a one-party state, it, however, has eight independent political parties that are controlled by the CCP (CIA, 2020). What are the biggest risks for Chinas economy in the coming years? 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. Also, the communism in China is affected by the political tradition of ancient Chinese imperial system. China's Transition from Socialism? Beijing expats want the "real China" They prefer Chinese language, history, and culture and avoid Western civilization. This is the best approach for one to have and ensures that its partnerships remain everlasting. These similarities are real, but they are manifestations of the wealth and personal aspirations of Chinas newly affluent middle class, and they in no way negate the very real differences between the political systems of China and the West. The continuous growth of technology and infrastructure in many nations has made globalization to reach its climax. Chinas Good War: How World War II Is Shaping a New Nationalism. The United States has had the world's largest economy for about 140 years, and it roughly accounts for 22% of global GDP. This approach is counterproductive and has generated immense resentment against the U.S. across the world. China has been shifting away from an investment-driven growth model to one led by private consumption. So a Marxist-Leninist system is concerned not only with economic outcomes but also with gaining and maintaining control over the system itself. (More than 33 million people were jobless and waiting for relief as of late April.) China is a great example of a country undergoing a transition as not many years ago it used to practice socialism but now it has transitioned to a dynamic market making it have a second largest economy in the entire world overtaking many great nations. Entry to the CCP and to a university involves compulsory courses in Marxist-Leninist thought, which has also become part of popular culture, as evidenced by the 2018 TV talk show Marx Got It Right. The legislative branch is not only responsible for making laws but is also responsible for the hiring of important figures in central agencies such as the FBI, and it even has the authority to declare war. Seventy years on, many Chinese believe that their political system is now actually more legitimate and effective than the Wests. And what if the market itself is in China? Beijing ICP prepared NO.16065310-3, China vs. America: Political diversity vs. political conformity. This explains why the People's Republic of China (PRC) never attaches any political strings to its economic deals nor makes ultimatums regarding any of its partners. 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. 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). Our response? Cavusgil, S. T., Ghauri, P. N., & Akcal, A. Sage. 808 certified writers online. However, the country does have branches of government that also include the executive, legislative and judicial branches of government. 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