We are using Google Analytics to enhance your experience. China, however, has been able to sustain and grow its economy as much as it practices a command economy. Lets be honest: A rising China may be a threat to Americas economic and technological supremacy, but not to its national security, because China doesnt export its ideology or political system and doesnt seek regime change anywhere in the world. This shared quest for predictability explains the continuing attractiveness of an authoritarian system in which control is the central tenet. In fact, the pandemic has made the world more dependent on Chinese exports, which grew 21% in November over the previous year. Most significantly, the British have a democratic parliamentary government, headed by a monarch and prime minister. 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, China vs. United States Government Definitions Administrative divisions : This entry generally gives the numbers, designatory terms, and first-order administrative divisions as approved by the US Board on Geographic Names (BGN). You cant become a senior leader in China without having proved your worth as a manager. Delivery in 6+ hours! This is the best approach for one to have and ensures that its partnerships remain everlasting. As the author Yuval Noah Harari has pointed out, liberalism has had few competitors since the end of the Cold War, when both fascism and communism appeared defeated. 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. For example, over the past 15 years it has built the longest high-speed rail system in the world. Many in the West accept the version of China that it has presented to the world: The period of reform and opening begun in 1978 by Deng Xiaoping, which stressed the need to avoid the radical and often violent politics of the Cultural Revolution, means that ideology in China no longer matters. 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. Unlike China, the U.S. spends more than 50% above its annual revenues leading to high deficits. This clear disconnect is attributable to the so-called "culture war" that's spiraled out of control over the past year and has led to profound changes in American society since then. Even in Beijing many people wore Mao suits and cycled everywhere; only senior Chinese Communist Party (CCP) officials used cars. 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. When U.S. power interests change, so does the ideological cover, the most typical being the liberal ideology having come to an end and the U.S. coming up with the notion of fair trade. Shanghainese are up-to-date on the newest trends, whereas Beijingers prefer Qing Dynasty fashion. Until Western companies and politicians accept this reality, they will continue to get China wrong. At every point since 1949 the Chinese Communist Party has been central to the institutions, society, and daily experiences that shape the Chinese people. 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 you are the original author of this essay and no longer wish to have it published on the Even though China has a one-party state, it, however, has eight independent political parties that are controlled by the CCP (CIA, 2020). Changes that have been reported but not yet acted on by BGN are noted. Although there are key historical and political differences between China's relationship to Taiwan and Russia's relationship to Ukraine, there are parallels, too, especially in the present . Consequently, inequality is greater in China than in the United States, measured by the Gini coefficient. 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. 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. Whatever its intentions may be, there's no longer any denying that the Biden administration has double standards towards diversity at home and abroad, which hints at ulterior motives towards one, the other, or perhaps both of these approaches. 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. Yet as soon as that ideological cover is removed, internal contradictions immediately reveal themselves. 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. Between 1990 and 2009, investment from China to all of Latin America was about $7 billion. - Quora Answer (1 of 17): Americans hold the individual in the highest regard, whereas Chinese hold the community in the highest regard. But it wont back off from its territorial claims, all of which predate the Peoples Republic of China. However, it also highlighted the different ways in which people of color in the USA are suppressed through political representation and voter suppression. In other words, the U.S. position as hegemon doesnt necessarily bring it any economic benefits. A candid observer of Asian society and business, Shan is the author of Out of the Gobi: My Story of China and America and the newly published Money Games: The Inside Story of How American Dealmakers Saved Koreas Most Iconic Bank. The country itself remains so diverse that some minority groups even have their own autonomous administrative divisions which include regions, prefectures and counties. Beijing ICP prepared NO.16065310-3, China vs. America: Political diversity vs. political conformity. The positions in this branch can be for either a five-year long term or even an unlimited amount of time. While Bidens policy proposals reflect fading U.S. hegemonistic attitudes, Trump is showing Americans the status quo of U.S. power. Familiarity with Leninist doctrine is still important for getting ahead. With its democratic society, the U.S. is unable to prevent financial capitalism from swelling, or to take dramatic action against vested interests to formulate a model under which finance and industry mutually optimize and complement one another. 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. In the political system of the United States, Democrats are largely associated with liberalism (a political philosophy based on belief in progress) while Republicans are associated with conservatism (a political philosophy based on tradition and social stability). 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. Despite the new Democratic government's support of domestic diversity, it continues hostile Trump-era policies intended to pressure China, Russia and others into conforming with the U.S.'s political demands. In China, the legal system "is based on civil laws" (Nolan, 2012). 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). Although many in the West may believe that China sees only opportunity in its 21st-century global plans, its motivation is very different. One example is the reinvention in the late 2010s of the Central Commission for Discipline Inspection. Sometimes, in fact, it must sacrifice economic benefits for political or military ones. 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. Part of the systems legitimacy in the eyes of the Chinese is, again, rooted in history: China has often had to fight off invaders and, as is rarely acknowledged in the West, fought essentially alone against Japan from 1937 until 1941, when the U.S. entered World War II. 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. China has stolen American jobs, the thinking goes, so we oppose China. In our experience, many Westerners dont understand what that means or why it matters. Are you seeing a significant shift in supply chains out of China? This shapes the way they make long-term commitments, especially those that entail short-term trade-offs or losses. The president controls the army. Accelerate your career with Harvard ManageMentor. The United States has had the world's largest economy for about 140 years, and it roughly accounts for 22% of global GDP. Majority of China's production companies are owned and managed by the government. (2012). Get a 100% original essay FROM A CERTIFIED WRITER! 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. After observing how other nations are doing well under democracy in the international market, countries with command systems are now doing all they can to change this even if it means giving up some of their traditions. Investors have always been enticed by Chinas vast market. Then, in the 1990s, she took advantage of the new economic freedoms, becoming a 30-something entrepreneur in one of the new Special Economic Zones. 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. 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. The Peoples Republic of China is still one of the few countries in the world that follow the communist government structure and is led by a one-party system. 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). Half of the representatives in Congress are millionaires with their median net worth reported to be more than a million. Which serves U.S. interests better, a free and democratic China, or an authoritarian China that identifies with U.S. leadership? 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. But defaults and bankruptcies are common in a market economy. It continues apace. Is it that Chinas development doesnt conform with the values of freedom and democracy, or that Chinas growing strength is a threat to U.S. hegemony? Hence, we need to understand, compare, and learn from leading values in China's political culture. The CPC runs the country while the other non communist parties play the role of participatory. 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. Where can it move its production if the target market is China? 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. All the work should be used in accordance with the appropriate policies and applicable laws. In China, however, growth has come in the context of stable communist rule, suggesting that democracy and growth are not inevitably mutually dependent. -- 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. 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. The task, in both China and the West, is to reduce the gap between the ideal of basic human rights and the reality. 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. Diversity is naturally occurring, whether it be among ethnicities, religions, governing systems or whatever else. Its GDP dropped 6.8% in the first quarter of 2020, but resumed growth from the second quarter onward. Both countries have human rights issues, although in different forms. 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. The paper also highlighted citizen engagement in both countries, either through direct elections in the USA or through the CCP controlled nominations in China. China is more corporatism, which is the organization of society by corporate groups such as military and agriculture, which can even be seen through its different selective assemblies and congresses. Its currency appreciated 6% against the dollar last year. 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. 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. World economies keep on changing and countries are also made to change for them to remain competitive. Here and there, yes, but not in a meaningful way in general, and not without harm to itself. Eighty percent of the Senate and House of Representatives are male, while only 20 percent are either women or people of color. He wisely noted that "Democracy is not Coca-Cola, which, with the syrup produced by the United States, tastes the same across the world. HBR Learnings online leadership training helps you hone your skills with courses like Global Collaboration. 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. (2016). 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. The difference in efficiency between the central and local groups is significant. 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. This is the logical extension of China-U.S. competition from the perspective of U.S. economic nationalism. Pundits tend to be alarmed by a default here and there. China, if it doesnt respond to U.S. nationalist challenges, will face soaring nationalist pressures at home. 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. 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. Today he is the CEO of PAG, a $40 billion private equity firm based in Hong Kong. A young student in Nanjing can study propulsion physics at Beijings Tsinghua University thanks to social mobility and the partys significant investment in scientific research. However, the long-term effects cannot be fully accessed at the moment. 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. Educated in the United States, he worked for the World Bank and J.P. Morgan and taught at the Wharton School. (2016). In contrast, the governments discount rate on the future is lowerin part because of its Leninist emphasis on controland explicitly focused on long-term returns. The Communist Party of China (CPC) harbors no supremacist beliefs and doesn't plan to export its governing model abroad. 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. Amid the unprecedented challenge of COVID-19, clear differences have emerged between the Chinese and American responses. The nationalist identification model that serves the U.S. goal of self-identification. The Vietnamese premier is very powerful. The US is surrounded by Mexico, Canada, the Pacific Ocean, and the Atlantic Ocean. Many Chinese believe that the countrys recent economic achievements have actually come about because of, not despite, Chinas authoritarian form of government. Considering that China adopted the system of the dynamic market much later than other nations, it has done remarkably well to have such a positive impact on its economy. One thing hasnt changed, though: Many Western politicians and business executives still dont get China. Globalization has numerous benefits among them promoting the economy of a country but at the same time, it is faced with several obstacles. 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. 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. Wherever PAG operates, we adhere to the same environmental, social, and governance policies. What is the political difference between China and the USA? Learn how to overcome barriers when working globally. The differences in the political orders of China and the United States are "irreconcilable", making it difficult to keep relations between the two countries on a stable track, a leading. The Chinese can see this as crass and boastful, while in the United States, humility can be regarded as a sign of weakness. Why do leaders in the West persist in getting China so wrong? 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. In the early 2010s she started moderating her previously outspoken political comments on Weibo as censorship tightened up. 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. 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. However, there are usually lawful ways to get around that. The Trump administration was determined to damage Chinas economy and businesses. China, meanwhile, doesn't apply any such double standards. The political system of China has been operational since its establishment for 50 years. That, perhaps, is why its current president and (more crucially) party general secretary, Xi Jinping, has let it be known that he considers Gorbachev a traitor to the cause for liberalizing as he did, thereby destroying the Communist Partys hold on the USSR. 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. People who do take long-term career risks often do so only after fulfilling their primary need for short-term security. The U.S. also repeatedly provoked China using freedom and democracy as a pretext. The executive branch of the government focuses on enforcing the laws and policies and includes major political figures such as the President and the Cabinet. Navigating your companys future in China, Americans Dont Know How Capitalist China Is, Economics and Democracy Are Two Sides of the Same Coin, Authoritarian Political Systems Cant Be Legitimate, The Chinese Live, Work, and Invest Like Westerners, A version of this article appeared in the. Exploding unemployment exposed the wide wealth gap in U.S. society. Meanwhile, American consumers have paid for the higher tariffs, because the average prices of Chinese exports havent decreased. From the U.S. perspective, upholding the banner of freedom and democracy no longer matters. A cleaner in Chongqing now owns several apartments because the CCP reformed property laws. 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. The differences in political beliefs led to the formation of a two-party system in the United States, contrary to George Washington's wishes. Yet they found common ground to work in mutually beneficial ways. It often compares itself to brands with which Westerners are familiar. There are two political theories that are needed in the discussion, the elite and the pluralist theory. This plays out every time a Western company negotiates access to the Chinese market. For international business management of doing business in a democratic country such as the US, it can be very comfortable for them since most barriers of trade have been removed and the political system is conducive. Social Structure In China, the social structure is formal and hierarchical. 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. They dont know how capitalist China is. As the situation worsened, Trump had to rise and respond, only to find more problems revealing themselves hundreds of thousands of confirmed cases of infections awaiting treatment, medical equipment in short supply, the fatal consequences of the hollowing out U.S. industries. Chinas Good War: How World War II Is Shaping a New Nationalism. Policy makers, in contrast, looking for ways to gain more control and sovereignty over the future, now play a much longer game than the West does. However, both states have a very different political landscape, which is what will be discussed in the paper today. A command economy is the opposite of a free economy and it is usually dominated by the government which is always controlling major aspects of businesses. Not blaming China means indirectly acknowledging U.S. shortcomings, which could be explosive in U.S. partisan politics. He was born in China, and his life was upended during the Cultural Revolution, when he was sent off to do farm labor in the Gobi Desert. 10. Business in the United States moves at a different pace from China. The legislative branch of the government is responsible for making laws through the Congress and House of Representatives, both of which hold elected officials that create legislation for their constituents while the Judicial branch of the government is responsible for upholding and interpreting these laws through the highest court in the land Supreme Court and High Courts which tend to follow their own state law. The United States government structure is one of the largest democracies in the world and has been considered by many as one of the perfect democracies which the country and its citizens have prided themselves over. 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. The complete Spotlight package is available in a single reprint. In Vietnam, there are three different people. Chinas saving rate will drop significantly as its population ages, and investment will slow. Decisionsby both individuals and the stateabout how to invest all serve one purpose: to provide security and stability in an unpredictable world. 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. They both have a presiding official, like a judge, plaintiffs, defendants, legal council etc. The United States had maintained a fairly consistent foreign policy until Trump. 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? 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). 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. The local and minor elections in the country are the only form of citizen engagement that is seen in the political process of China, but there have been many cases of suppression in the minor elections, especially regarding independent candidates. In much Western analysis the verb most commonly attached to Chinas reforms is stalled. The truth is that political reform in China hasnt stalled. If the U.S. abandons the one-China policy and supports Taiwans independence, conflict will be inevitable, with unimaginable consequences for the world market. 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. Its stated purpose was to reduce Americas trade deficit. That leaves much room for growth and many opportunities for investors, particularly in businesses that cater to consumers. For example, a 2015 survey found that 81% of them trade at least once a month, even though frequent trading is invariably a way to destroy rather than create long-term fund value. That has huge implications for people seeking to do business in China. Borner, S., Brunetti, A., & Weder, B. 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. She bought a flatthe first time anyone in her familys history had owned property. GM sells more cars in China than in the U.S., Canada, and Mexico combined. Americans Dont Know How Capitalist China Is, A version of this article appeared in the. For the Chinese, the key to those outcomes is respect for an appropriate hierarchy, itself a means of control. Advantages and Disadvantages of Bellwether Cases, The Conundrum of Non-Criminalization of Marital Rape in India, Examination of School Shootings and Student Safety from Public Administration Viewpoint. These are valid points and deserve to be expanded upon in order to enlighten others further. Those with low social-credit scores may find themselves prevented from buying an airline ticket or getting a date on an app. The legal system of a country establishes regulations and laws that maintain and indicate the basic values of an entire nation. As to the orientation of a new era, however, the Trump administration has yet to offer any answers or insights. 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. Truth is that political reform in China than in the U.S. spends more than million! Experience, many Westerners dont understand what that means or why it matters China all! Positions in this branch can be for either a five-year long term or even an unlimited amount of time the., he worked for the higher tariffs, because the average prices of Chinese exports havent decreased more! 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