China has been shifting away from an investment-driven growth model to one led by private consumption. Beijing expats speak Mandarin better than Shanghai ones. Great challenges lie ahead. He wisely noted that "Democracy is not Coca-Cola, which, with the syrup produced by the United States, tastes the same across the world. The Trump administration was determined to damage Chinas economy and businesses. That has huge implications for people seeking to do business in China. Under the pressure of aggregated economic inequality brought by globalization, and the army of unemployed people already displaced by new technologies, the U.S. government faces severe structural constraints under the present model of state-market and state-society interactions. 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. However, the country does have branches of government that also include the executive, legislative and judicial branches of government. 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? 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. In contrast, the U.S. always does the inverse and never misses an opportunity to pressure others in increasingly creative ways. The Leninist nature of politics is also evidenced by the language used to discuss it. The Biden administration is expected to restore that policy and to work within the rules of international institutions, which I expect will defuse tensions. Half of the representatives in Congress are millionaires with their median net worth reported to be more than a million. 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. However, both states have a very different political landscape, which is what will be discussed in the paper today. The economy has grown 36-fold over the past three decades, chiefly because of market-oriented reforms that have created a vibrant private sector, which now accounts for about two-thirds of Chinas GDP. The well-being and economic development is another key branch of a political system that affects business operations (Solinger, 2016). Meanwhile, American consumers have paid for the higher tariffs, because the average prices of Chinese exports havent decreased. For example, over the past 15 years it has built the longest high-speed rail system in the world. HBR Learnings online leadership training helps you hone your skills with courses like Global Collaboration. The nationalist identification model that serves the U.S. goal of self-identification. The reality is quite different. 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. 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. Some of these challenges are brought about by differences in legal, political and economic systems of different countries. But the third assumption can also mislead those seeking to engage with China. 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. However, there are usually lawful ways to get around that. Investors anywhere should invest in a socially responsible way to advance human rights, adhering to a high standard for labor practices, gender equality, investment in human capital, and charitable contributions. The legal system of a country establishes regulations and laws that maintain and indicate the basic values of an entire nation. 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. Beijing expats want the "real China" They prefer Chinese language, history, and culture and avoid Western civilization. The White Houses China-bashing is more about a fight for self-identification than about exonerating the Trump administration. All the work should be used in accordance with the appropriate policies and applicable laws. The differences in political beliefs led to the formation of a two-party system in the United States, contrary to George Washington's wishes. However, it also highlighted the different ways in which people of color in the USA are suppressed through political representation and voter suppression. Its monetary policy is reasonably tight, with the yield on government bonds about 3.5 times that on U.S. Treasuries. 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. 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. 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. Americans focus on speed and efficiency and will hurry to get things done quickly. Furthermore, it is important for nations to be flexible when it comes to global market system and change laws when necessary in order to attract investment and grow the economy like China did. She was a Red Guard as a teenager, screaming adoration for Chairman Mao while her parents were being re-educated for being educated. The difference between the US and China is that the US is on the North American continent, whereas China lies in Asia. The continuous growth of technology and infrastructure in many nations has made globalization to reach its climax. HBR Learnings online leadership training helps you hone your skills with courses like Global Collaboration. 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. Nolan, P. (2012). 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. There are major differences in the political views of people from different nations.. eligion is another topic that creates differences among cultures.. People who do take long-term career risks often do so only after fulfilling their primary need for short-term security. American companies will do so only if U.S. tariffs become more penalizing than moving would be. 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. The Vietnamese premier is very powerful. 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. 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. Retrieved from https://proessays.net/essays/economic-and-political-differences-china-vs-united-states. 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. Politicians and business leaders continue to misread Chinas strategy and politics. Looking into the future, the path for China-U.S. cooperation will become more tortuous owing to the nationalist ideological struggle triggered by the coronavirus. 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 But the technology war also hurts U.S. suppliers. By comparison, progress on these issues is for Western economies extremely slow. 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. Today the differences are arguably a lot smaller, and there are many areas in which the two can benefit from cooperation. 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. The past decade has, if anything, strengthened Chinese leaders view that economic reform is possible without liberalizing politics. Had she been born in 1955 in almost any other major economy in the world, her life would have been much, much more predictable. 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. 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. That Canada has elected communists to office, I suggest is just about as important a disparity as the American gun insanity. They dont know how socialist it is, with its Social Security system and its policies to tax the rich by collecting capital gains taxes. This plays out every time a Western company negotiates access to the Chinese market. 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. And only the U.S. can threaten Americas economic supremacyby underinvesting in its own infrastructure and by limiting trade. Accelerate your career with Harvard ManageMentor. They both have a presiding official, like a judge, plaintiffs, defendants, legal council etc. Civic engagement is not just on an individual basis but is also done through the use of groups and communities. But its also conspicuously different: The concept of U.S. hegemony goes beyond economics to such fields as politics, the military and society. The country itself remains so diverse that some minority groups even have their own autonomous administrative divisions which include regions, prefectures and counties. Shan: Despite initial blunders, China has handled the coronavirus pandemic well through strict lockdowns and mass testing. This is a natural outcome of the decline in U.S. strength. 10. Business in the United States moves at a different pace from China. 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. Access more than 40 courses trusted by Fortune 500 companies. 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. 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. These officials preside over different tribunals and committees, which can range from civil, administrative to communication, and transport cases. The President and the National Peoples Congress, which is the main body of the country, are all elected by the Peoples Congress. Eighty percent of the Senate and House of Representatives are male, while only 20 percent are either women or people of color. Borner, S., Brunetti, A., & Weder, B. Time is money, in other words. The world will be lifeless and dull if there is only one single model and one single civilization." That leaves much room for growth and many opportunities for investors, particularly in businesses that cater to consumers. He believes Chinese people are fixated on. The United States had maintained a fairly consistent foreign policy until Trump. -- 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. 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. Some have expressed optimism that Chinas need for control will lessen after theyve proved their worth as partners. Regardless of who wins, it is unlikely that one of the . Accelerate your career with Harvard ManageMentor. Conversely, the US law system basis its law from cases held previously and judges uses this as an example when determining most cases that are similar to the present one. 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. Seventy years on, many Chinese believe that their political system is now actually more legitimate and effective than the Wests. A Marxist system is concerned primarily with economic outcomes. 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. (More than 33 million people were jobless and waiting for relief as of late April.) Thats not likely, precisely because in Chinas particular brand of authoritarianism, control is key. For the Chinese, the key to those outcomes is respect for an appropriate hierarchy, itself a means of control. What has caused the frequent conflicts between the two countries? 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. 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 president controls the army. (2016). : Statist Legacies and Market Reforms, 1980-90: Statist Legacies and Market Reforms, 1980-90. A country that provides its citizen with education produces better minds that can bring in better business ideas to the economy. 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). 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. Its a plausible narrative. 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. Chinas history continues to color its view of international relationsand in large part explains its current obsession with the inviolability of its sovereignty. Until Western companies and politicians accept this reality, they will continue to get China wrong. And the narrative has had some powerful supporters. Hill, C. (2017). Some real differences between the two countries do exist, but they have historically managed them without escalating tensions. They still blame foreign interference for many of their misfortunes, even if it occurred more than a century ago. What is it that Americans dont understand about China? Also, the communism in China is affected by the political tradition of ancient Chinese imperial system. Unlike China, the U.S. spends more than 50% above its annual revenues leading to high deficits. 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. Leninism, however, is essentially a political doctrine; its primary aim is control. 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. This is the most appropriate entry point to reveal the evolution of human-land relationships. The legal system of a country plays a key role in terms of its marketing and investment opportunities. The United States has had the world's largest economy for about 140 years, and it roughly accounts for 22% of global GDP. Not blaming China means indirectly acknowledging U.S. shortcomings, which could be explosive in U.S. partisan politics. But the state-owned sector remains too big and inefficient. 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. 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. Even in Beijing many people wore Mao suits and cycled everywhere; only senior Chinese Communist Party (CCP) officials used cars. . The highest court in China is the Supreme Peoples Court, which includes the Chief Justice and over 340 other judges, including 13 that are considered grand justices. 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. 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