The US is surrounded by Mexico, Canada, the Pacific Ocean, and the Atlantic Ocean. 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. HBR: Chinas economy seems to be the healthiest in the world at the moment. From the U.S. perspective, upholding the banner of freedom and democracy no longer matters. One reason China can spend so much on infrastructure is that its defense budget, after years of increases, is still only about a quarter that of the United States. 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. . All these testify to the strength of the Chinese economy. The legal system of a country plays a key role in terms of its marketing and investment opportunities. 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. By comparison, progress on these issues is for Western economies extremely slow. But much of the technological progress has come from a highly innovative and well-funded military that has invested heavily in Chinas burgeoning new industries. Chinas high-speed rail could cover the distance between Boston and Chicago in about four hours, whereas Amtraks fastest service takes 22 hours. 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. Obviously the ideology of nationalist identification under the pandemic has greatly roughened the political landscape for China and the U.S. The point is that a China-based supply chain has proved a blessing, not a curse, in this pandemic. 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. Does the U.S. even have the power to hurt China economically? Solinger, D. J. The CPC runs the country while the other non communist parties play the role of participatory. 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. That Canada has elected communists to office, I suggest is just about as important a disparity as the American gun insanity. The task, in both China and the West, is to reduce the gap between the ideal of basic human rights and the reality. The Trump administration, however, has focused on U.S. economic interests, putting the pursuit of hegemonistic benefits in a secondary position. 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. However, the country does have branches of government that also include the executive, legislative and judicial branches of government. Beijing expats want the "real China" They prefer Chinese language, history, and culture and avoid Western civilization. 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. 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. That has political implications, of coursefor example, that the public ownership of assets is necessary to ensure an equal distribution of wealthbut the economic outcomes are the focus. No personal data is being tracked. Since China is a communist and one-party state, citizen engagement is lower in comparison to democratic states. First, the similarities among both countries institutions would be the hierarchical construction of their judicial system; the separation of three branches of . 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. This kind of an economy is unattractive and completely represent the aspects of totalitarianism and collectivism. 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. Yet they found common ground to work in mutually beneficial ways. We have both sat in meetings where business executives, particularly in the technology and pharmaceutical sectors, expressed surprise at Chinas insistence that they transfer ownership of their IP to a Chinese company. The past decade has, if anything, strengthened Chinese leaders view that economic reform is possible without liberalizing politics. 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. In International Business: Competing in the global marketplace (11th ed.). Cavusgil, S. T., Ghauri, P. N., & Akcal, A. ProEssays website, please click below to request its removal: Liked this essay sample but need an original one? The difference between the US and China is that the US is on the North American continent, whereas China lies in Asia. Some real differences between the two countries do exist, but they have historically managed them without escalating tensions. 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. Shanghainese are up-to-date on the newest trends, whereas Beijingers prefer Qing Dynasty fashion. 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. Chinas rulers see foreign engagement as a source less of opportunity than of threat, uncertainty, and even humiliation. As well argue in the following pages, these assumptions reflect gaps in their knowledge about Chinas history, culture, and language that encourage them to draw persuasive but deeply flawed analogies between China and other countries. Even though the laws of the United States provide every individual regardless of creed and color to vote, there have been instances of voter suppression reported, especially in relation to minorities, and this oppression has been systemic and has existed throughout the history of the US. Accelerate your career with Harvard ManageMentor. What are the biggest risks for Chinas economy in the coming years? China and the global economy. It continues apace. 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, 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). Earn badges to share on LinkedIn and your resume. Springer. Additionally, before starting a business internationally, it is important to consider additional factors that the law systems of that country do not consider since failure to do so can result in loss of profit. 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. Both countries have human rights issues, although in different forms. The real danger is the Taiwan issue. China, however, has been able to sustain and grow its economy as much as it practices a command economy. 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. The one long-term asset class in which increasing numbers of Chinese are investedthat is, residential property, ownership of which grew from 14% of 25-to-69-year-olds in 1988 to 93% by 2008is driven also by the need for security: Unlike all other assets, property ensures a roof over ones head if things go wrong, in a system with limited social welfare and a history of sudden policy changes. In 2020 China had more billionaires than the U.S. did, and it outpaces the U.S. three to one in minting them. Even though both countries are different in every way, they are still recognized as each others competition in the International Arena. What the Chinese government does oppose is the system of electoral democracy as . 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. American companies will do so only if U.S. tariffs become more penalizing than moving would be. Today he is the CEO of PAG, a $40 billion private equity firm based in Hong Kong. Are you seeing a significant shift in supply chains out of China? In the early 2010s she started moderating her previously outspoken political comments on Weibo as censorship tightened up. Its stated purpose was to reduce Americas trade deficit. 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. The United States takes in with high respect the principles of democracy and individualism. Weijian Shan understands the delicate U.S.-China dynamic as well as anyone. China, meanwhile, doesn't apply any such double standards. 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. Politicians and business leaders continue to misread Chinas strategy and politics. The economic nationalism of the U.S. since Donald Trump assumed office is related to the hegemony promoted by the Obama administration and the current leading presidential candidate of the Democratic Party, Joe Biden. Even though China has a one-party state, it, however, has eight independent political parties that are controlled by the CCP (CIA, 2020). Until that happens, the world will remain unstable as the U.S. aggressively tries to eliminate political diversity. Some of these challenges are brought about by differences in legal, political and economic systems of different countries. 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. 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. 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. This, of course, mirrors the role of U.S. defense and intelligence spending in the development of Silicon Valley. Our response? HBR Learnings online leadership training helps you hone your skills with courses like Global Collaboration. The commission has succeeded in reducing corruption in large part because it is essentially above the lawsomething unimaginable in a liberal democracy. 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). Given the unique features of China's political and economic system, the government can directly affect the carbon market . Only a sudden surge of such events would herald an economic crisis. The United States had maintained a fairly consistent foreign policy until Trump. This means that business contracts are not usually detailed in China since the civil codes do not cover most laws. 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. In 2019 that market reached $6 trillion, surpassing the U.S. level of $5.5 trillion. That means that despite the trade war, the technology war, and the capital warthe U.S. governments restricting American investment in ChinaChinas GDP will most likely be 10% bigger in 2022 than it was in 2019, whereas the U.S. economy probably will only recover to 2019 levels by 2022, according to the International Monetary Fund. The differences between people of different cultures far outweigh their similaritiesI believe that differences in people of different cultures far outweigh their similarities.. 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. 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. Americans focus on speed and efficiency and will hurry to get things done quickly. 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. Avoid editing or writing from scratch! Disclaimer: ProEssays.net is a custom writing service that provides online on-demand writing work for assistance purposes. 808 certified writers online. (2016). 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. In China, however, growth has come in the context of stable communist rule, suggesting that democracy and growth are not inevitably mutually dependent. Consequently, inequality is greater in China than in the United States, measured by the Gini coefficient. 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. 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. Routledge. 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. Leninism, however, is essentially a political doctrine; its primary aim is control. But even those concepts lead to considerable misunderstanding on the part of Westerners, who often reduce Confucianism to cloying ideas about peace and cooperation. Even though China is diverse in its ethnic groups, it is still a relatively high homogenous group, which is also reflected in its politics. In China, the legal system "is based on civil laws" (Nolan, 2012). Today the differences are arguably a lot smaller, and there are many areas in which the two can benefit from cooperation. When individuals have the powerto realize their dreams, they will demand a greater say.. 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. ChatGPT has become a sensation since its public release in November, with its ability to produce plausible responses to text prompts, including requests to write essays. 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). This shapes the way they make long-term commitments, especially those that entail short-term trade-offs or losses. Additionally, the paper will also give examples of economic and macro-political changes and show why market-based systems are being adopted by transition economies. Shan: Despite initial blunders, China has handled the coronavirus pandemic well through strict lockdowns and mass testing. Where can it move its production if the target market is China? As to the orientation of a new era, however, the Trump administration has yet to offer any answers or insights. The United States has a democratic government system with three branches in the system, legislative, executive, and judicial. China has been shifting away from an investment-driven growth model to one led by private consumption. 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. A democratic state is supposed to be free and fair, and the President of the country is also chosen by the citizens to lead them through the crisis and to provide them with basic necessities and human rights. Learn how to overcome barriers when working globally. Editor's note: Andrew Korybko is a Moscow-based American political analyst. Obviously, as an economy develops and new problems emerge, all social systems need certain reforms. 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. Its currency appreciated 6% against the dollar last year. The elite theory focuses on the notion that only a select group of people actually run the government, which are considered elite, while the pluralist theory states that political power is rather shared between the influencing parties. This plays out every time a Western company negotiates access to the Chinese market. 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. Along with China's economic and military rise, its leading political values will increasingly shape both China and the world at large. 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