The CPC runs the country while the other non communist parties play the role of participatory. 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. Unfortunately, you cant copy samples. Even though China has a one-party state, it, however, has eight independent political parties that are controlled by the CCP (CIA, 2020). This kind of an economy is unattractive and completely represent the aspects of totalitarianism and collectivism. Western systems are . 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. The major focus of government expenditure is domestic infrastructure. One example is the reinvention in the late 2010s of the Central Commission for Discipline Inspection. The founding fathers of USA forecasted their nation to be one that respects and follow basic human rights and Biblical ideas as guidance. This plays out every time a Western company negotiates access to the Chinese market. When individuals have the powerto realize their dreams, they will demand a greater say.. 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. The U.S. continues to vilify China, and China does itself no favors with its poor policy on human rights. Political credibility and economic development. Solinger, D. J. The ideological debate that followed was perhaps inevitable. 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. No personal data is being tracked. 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. Learn how to overcome barriers when working globally. 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. Hence, we need to understand, compare, and learn from leading values in China's political culture. 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 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. Great challenges lie ahead. 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. The Communist Party of China does not give the citizens any chance to question the existing and it has total control of everything going on in the state (Solinger, 2016). 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. Amid the unprecedented challenge of COVID-19, clear differences have emerged between the Chinese and American responses. The only obligation they have is to follow the law that in most cases is straightforward. 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. (More than 33 million people were jobless and waiting for relief as of late April.) What is it that Americans dont understand about China? Globalization. The policies that are discussed in the Legislative Branch on the government are also through the civic engagement process, where the representatives elected by the citizens seek to change the policy or create one to serve them (lumen, 2020). China has been shifting away from an investment-driven growth model to one led by private consumption. Chinas history continues to color its view of international relationsand in large part explains its current obsession with the inviolability of its sovereignty. 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. 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. The main difference between Chinese and US politics is the political ideologies, and one is founded on a democratic yet capitalist system while the other has been led through decades on a Communist and one-party system. The past decade has, if anything, strengthened Chinese leaders view that economic reform is possible without liberalizing politics. 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.. A. However, it also highlighted the different ways in which people of color in the USA are suppressed through political representation and voter suppression. But it wont back off from its territorial claims, all of which predate the Peoples Republic of China. 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. The premier controls the civil bureaucracy, The party general secretary runs the economy. 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. He believes Chinese people are fixated on. Unlike China, the U.S. spends more than 50% above its annual revenues leading to high deficits. The . Chinas rapid economic growth is the result of its embrace of a market economy and private enterprise. In Charting China's Future (pp. It is, therefore, against nature itself and arguably a violation of international human and legal rights for anyone to attempt to get rid of diversity, which is exactly what the U.S. is trying to do all across the world through its messianic zeal in imposing its political system onto all others. But defaults and bankruptcies are common in a market economy. (2022, May 17). The complete Spotlight package is available in a single reprint. Its aggressive handling of Covid-19in sharp contrast to that of many Western countries with higher death rates and later, less-stringent lockdownshas, if anything, reinforced that view. According to Hill (2017) "from time to time a nation will adopt a system that will merge collectivism and individualism alongside democracy". 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. 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. 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. 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. Mandarin. 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. Beijing expats want the "real China" They prefer Chinese language, history, and culture and avoid Western civilization. Obviously, as an economy develops and new problems emerge, all social systems need certain reforms. 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). References Borner, S., Brunetti, A., & Weder, B. By 2020 she was intent on seeing her seven-year-old grandson and infant granddaughter (a second child had only recently become legal) do well. 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. It often compares itself to brands with which Westerners are familiar. Politicians and business leaders continue to misread Chinas strategy and politics. Are you seeing a significant shift in supply chains out of China? Land use is the most direct manifestation of human activities, accompanied by changes in land cover. The legal system of a country establishes regulations and laws that maintain and indicate the basic values of an entire nation. The Incarcerated Vote. A Shanghai journalist is paid by her state-controlled magazine to fly around the world for stories on global lifestyle trends. For the Chinese, the key to those outcomes is respect for an appropriate hierarchy, itself a means of control. Majority of China's production companies are owned and managed by the government. First, China and the United States are at different stages of development. Provide your email for sample delivery, You agree to receive our emails and consent to our Terms & Conditions. Yet they found common ground to work in mutually beneficial ways. . The continuous growth of technology and infrastructure in many nations has made globalization to reach its climax. What to Know. 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. World economies keep on changing and countries are also made to change for them to remain competitive. 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). Doing business in emerging markets. 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. The U.S. also repeatedly provoked China using freedom and democracy as a pretext. 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. As market research consistently tells us, the majority of individual Chinese investors behave more like traders. 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. This approach is counterproductive and has generated immense resentment against the U.S. across the world. (2016). Even though the nominations are provided by the CCP, citizens can vote for their township and village elections, and in some places, there are direct elections. In 2020, a year of severe difficulties all over the world, there was no significant increase in Chinese corporate defaults. 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. American companies will do so only if U.S. tariffs become more penalizing than moving would be. A Chinese professor who has lived in both the US and China believes there is a core cultural difference leading to the country's diverging paths. Solve your problem differently! Hence the public debt as a percentage of GDP is higher for the U.S. relative to China and the. China's Transition from Socialism? 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. Borner, S., Brunetti, A., & Weder, B. 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. Editor's note: Andrew Korybko is a Moscow-based American political analyst. While the U.S. political system is partly inspired by the British example, it differs in many important respects. U.S. self-identification has been shaken under these circumstances. Between 1990 and 2009, investment from China to all of Latin America was about $7 billion. 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). The United States has a democratic system, but in countries . The geographic location of a country, its educational, political and legal systems plays a key role in the economic well-being of a country. 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. 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 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. It is unbelievable that the western countries face a serious competition from these nations due to the political stability found in the two countries. If you are the original author of this essay and no longer wish to have it published on the In China, the legal system "is based on civil laws" (Nolan, 2012). In 2019 that market reached $6 trillion, surpassing the U.S. level of $5.5 trillion. 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. In fact, China is the only G20 country to have posted positive growth. 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. 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. Its just not liberal reform. Reforming Sino-American Cultural Exchange for the Better. Even though both countries are different in every way, they are still recognized as each others competition in the International Arena. However, there are usually lawful ways to get around that. China is also Apples biggest market for iPhones: It has about twice as many iPhone users as the United States does. The space for the two sides to compromise and collaborate has narrowed extremely rapidly. 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). Does the U.S. even have the power to hurt China economically? 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 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 difference between the US and China is that the US is on the North American continent, whereas China lies in Asia. 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. So a Marxist-Leninist system is concerned not only with economic outcomes but also with gaining and maintaining control over the system itself. What are the biggest risks for Chinas economy in the coming years? And what is it that the Chinese dont understand about the United States? The point is that a China-based supply chain has proved a blessing, not a curse, in this pandemic. Americans Dont Know How Capitalist China Is, A version of this article appeared in the. 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. 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. 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. What is the political difference between China and the USA? Does that create new investment opportunities? 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. 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. 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. There are major differences in the political views of people from different nations.. eligion is another topic that creates differences among cultures.. We are using Google Analytics to enhance your experience. After all, if it genuinely believed in the merits of diversity at home, it wouldn't try to snuff out political diversity abroad. 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 . Earn badges to share on LinkedIn and your resume. Until Western companies and politicians accept this reality, they will continue to get China wrong. 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 . These officials preside over different tribunals and committees, which can range from civil, administrative to communication, and transport cases. When the United States formed its constitution, it specifically dictated the unalienable rights of every person. In the China-U.S. ideological competition during the pandemic, what the U.S. seeks is not all about U.S. leadership in the international community nor U.S. economic benefits but rather coping with its identity crisis. 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. 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. 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. It continues apace. Not blaming China means indirectly acknowledging U.S. shortcomings, which could be explosive in U.S. partisan politics. 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. The international Arena, S., Brunetti, A., & amp ; Weder, B different tribunals and,. 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