This shared quest for predictability explains the continuing attractiveness of an authoritarian system in which control is the central tenet. 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. Nobody can take America's newfound domestic support for diversity seriously until it finally starts applying the same principles abroad like China does. The Trump administration was determined to damage Chinas economy and businesses. Beijing ICP prepared NO.16065310-3, China vs. America: Political diversity vs. political conformity. In 2020, a year of severe difficulties all over the world, there was no significant increase in Chinese corporate defaults. Although many in the West may believe that China sees only opportunity in its 21st-century global plans, its motivation is very different. 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. (2022, May 17). A Marxist system is concerned primarily with economic outcomes. 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. Learn how to overcome barriers when working globally. 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). In much Western analysis the verb most commonly attached to Chinas reforms is stalled. The truth is that political reform in China hasnt stalled. 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). 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 only obligation they have is to follow the law that in most cases is straightforward. 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. Accelerate your career with Harvard ManageMentor. The country itself remains so diverse that some minority groups even have their own autonomous administrative divisions which include regions, prefectures and counties. Ambition like that cant be realized without state interventionrelatively fast and easy but often brutal in China. And only the U.S. can threaten Americas economic supremacyby underinvesting in its own infrastructure and by limiting trade. 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. 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. If the U.S. abandons the one-China policy and supports Taiwans independence, conflict will be inevitable, with unimaginable consequences for the world market. China now has better highways, rail systems, bridges, and airports than the United States does. At 22,000 miles, it is twice as long as the rest of the worlds combined. Routledge. In fact, China is the only G20 country to have posted positive growth. The critical distinction is that the Chinese system is not only Marxist, its Marxist-Leninist. If you are the original author of this essay and no longer wish to have it published on the Economic and Political Differences: China VS. United States. Solinger, D. J. What are the biggest risks for Chinas economy in the coming years? Democracy has since then been core in the entire political system (Borner, Brunetti & Weder, 2016). How can outside investors ensure that they dont become collateral damage in a bigger political and economic war? -- 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. 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. 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). 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. 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. One thing hasnt changed, though: Many Western politicians and business executives still dont get China. In 2019 that market reached $6 trillion, surpassing the U.S. level of $5.5 trillion. We are using Google Analytics to enhance your experience. Changes that have been reported but not yet acted on by BGN are noted. Chinas history continues to color its view of international relationsand in large part explains its current obsession with the inviolability of its sovereignty. They dont know how socialist it is, with its Social Security system and its policies to tax the rich by collecting capital gains taxes. Civic engagement ensures that the government is serving the people and not the other way around. The top diplomat also condemned the U.S.'s description of his country as "authoritarian" simply because its democracy is different than America's. Globalization. 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. Hence, we need to understand, compare, and learn from leading values in China's political culture. 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. Consequently, running international businesses has become significantly easier than ever before. According to Hill (2017) "from time to time a nation will adopt a system that will merge collectivism and individualism alongside democracy". Chinas recent history means that Chinese people and the state approach decisions very differently from Westernersin both the time frames they use and the risks they worry about most. 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. 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. And when Xi announced, in 2017, that the three critical battles for Chinas development would fall in the areas of reducing financial risk, addressing pollution, and alleviating poverty, he also made it clear that the objective of these reforms was to solidify the system rather than to change it. In contrast, the governments discount rate on the future is lowerin part because of its Leninist emphasis on controland explicitly focused on long-term returns. 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). 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 harsh reality of the pandemic has given rise to political competition with characteristics not seen before, sounding the alarm for future bilateral relations. The article reflects the author's views and not necessarily those of CGTN. Pundits tend to be alarmed by a default here and there. Chinas rulers see foreign engagement as a source less of opportunity than of threat, uncertainty, and even humiliation. 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? Weijian Shan understands the delicate U.S.-China dynamic as well as anyone. 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. Now CEO of the Hong Kongbased $40 billion private-equity firm PAG, Shan spoke with HBR Editor in Chief Adi Ignatius about the economic prospects for China and the United States. There are other courts in the land such as High Courts and District and County Peoples Courts and Special Courts for military and forestry issues. 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. The world will be lifeless and dull if there is only one single model and one single civilization." Both countries have a Judicial, Executive, and Legislative branch. In conclusion, it is not possible to have a unanimous decision on which political and economic practice is best for the entire universe. Is a China-U.S. decoupling a real possibility? The United States has had the world's largest economy for about 140 years, and it roughly accounts for 22% of global GDP. Get a 100% original essay FROM A CERTIFIED WRITER! 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 benefits are both financial (for example, access to mortgage loans) and social (permission to buy a ticket on one of the new high-speed trains). 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. 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 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. She was a Red Guard as a teenager, screaming adoration for Chairman Mao while her parents were being re-educated for being educated. Not completely and not without very high costs. The major focus of government expenditure is domestic infrastructure. Which serves U.S. interests better, a free and democratic China, or an authoritarian China that identifies with U.S. leadership? HBR Learnings online leadership training helps you hone your skills with courses like Global Collaboration. Today he is the CEO of PAG, a $40 billion private equity firm based in Hong Kong. Editor's note: Andrew Korybko is a Moscow-based American political analyst. The positions in this branch can be for either a five-year long term or even an unlimited amount of time. A Shanghai journalist is paid by her state-controlled magazine to fly around the world for stories on global lifestyle trends. Even though both countries are different in every way, they are still recognized as each others competition in the International Arena. Delivery in 6+ hours! 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. 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. Disclaimer: ProEssays.net is a custom writing service that provides online on-demand writing work for assistance purposes. 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. China, however, has been able to sustain and grow its economy as much as it practices a command economy. 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. Businesspeople and politicians in the West hold outdated beliefs about the second-largest economy in the world. 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 CPC is at the core of the country's leadership and the ruling party, while the non-communist parties are participating parties. 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. The political system of China has been operational since its establishment for 50 years. What is the political difference between China and the USA? 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. 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 the United States is considered a representative republic, citizen engagement is all the more important and starts with providing the citizens of the country, regardless of gender and over the age of 18, the right to vote for their communities in the form of local elections that can elect congresses that represent their towns and constituencies as well in the Presidential election for the various arms of the executive branch. - Quora Answer (1 of 17): Americans hold the individual in the highest regard, whereas Chinese hold the community in the highest regard. While hierarchy and equality may appear to the post-Enlightenment West to be antithetical concepts, in China they remain inherently complementary. After all, if it genuinely believed in the merits of diversity at home, it wouldn't try to snuff out political diversity abroad. Half of the representatives in Congress are millionaires with their median net worth reported to be more than a million. The Chinese government is, however, much easier to decipher since it is a communist one-party state that is also led by elites even though it goes against the very grain of communism. A country that provides its citizen with education produces better minds that can bring in better business ideas to the economy. 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. Order original essay online with 25% off. 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. The CPC runs the country while the other non communist parties play the role of participatory. Chinas rapid economic growth is the result of its embrace of a market economy and private enterprise. 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. Chinas high-speed rail could cover the distance between Boston and Chicago in about four hours, whereas Amtraks fastest service takes 22 hours. The basic structures of both legal system are extremely similar. Those countries have since 1945 been pluralist democracies with independent judiciaries. Additionally, human development is also key for countries to realize full economic growth. The United States had maintained a fairly consistent foreign policy until Trump. The economic nationalism model that ultimately serves U.S. economic interests. 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 . 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. 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. How accessible is it these days? Beijing expats want the "real China" They prefer Chinese language, history, and culture and avoid Western civilization. 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. Its a plausible narrative. But because human beings tend to believe that other humans make decisions as they do, this may be the most difficult assumption for Westerners to overcome. (2016). Hence the old joke that Chinas definition of a win-win scenario is one in which China wins twice. This shapes the way they make long-term commitments, especially those that entail short-term trade-offs or losses. World economies keep on changing and countries are also made to change for them to remain competitive. Solve your problem differently! 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. Weijian Shan was born in China and had his life upended by the Cultural Revolution. Thus many Chinese consumers prefer the short-term gains of the stock market to locking their money away in long-term savings vehicles. New York: McGraw Hill/Irwin. 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. Hill, C. (2017). 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. Borner, S., Brunetti, A., & Weder, B. Familiarity with Leninist doctrine is still important for getting ahead. In China, however, growth has come in the context of stable communist rule, suggesting that democracy and growth are not inevitably mutually dependent. Jimmy Dore delivered a monologue on the history of the Russia-Ukraine conflict and how a "tiny cabal" are using the situation for profit on Friday's broadcast of 'Tucker Carlson Tonight' on FOX News. 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. 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? This review discusses recent efforts to systematically compare three leading values in China's philosophical traditionsmeritocracy, hierarchy, and harmony . 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. Model and one single model and one single civilization. than ever before a CERTIFIED WRITER with consequences! And economic war trade-offs or losses may believe that China sees only opportunity in its infrastructure. The people and not the other way around to locking their money away in savings. Understands the delicate U.S.-China dynamic as well as anyone money away in long-term vehicles. 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