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. A Shanghai journalist is paid by her state-controlled magazine to fly around the world for stories on global lifestyle trends. 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. I see no systemic risk either in Chinas banking system or in its economy. 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. 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. 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. It seems that the only country that can stifle Chinas growth is China itselfif it makes major policy mistakes. 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. Along with China's economic and military rise, its leading political values will increasingly shape both China and the world at large. Thats why China is the most active private-equity market in Asia. 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. But even those concepts lead to considerable misunderstanding on the part of Westerners, who often reduce Confucianism to cloying ideas about peace and cooperation. In Canada, it is a . 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. According to Hill (2017) "from time to time a nation will adopt a system that will merge collectivism and individualism alongside democracy". 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 U.S., on the other hand, is a federal constitutional republic with three governmental branches sharing powers. The White Houses China-bashing is more about a fight for self-identification than about exonerating the Trump administration. One thing hasnt changed, though: Many Western politicians and business executives still dont get China. This is a belief alien to many Western business executives, especially if theyve had experience with other authoritarian regimes. And what if the market itself is in China? 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. When we first traveled to China, in the early 1990s, it was very different from what we see today. HBR Learnings online leadership training helps you hone your skills with courses like Global Collaboration. 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. Additionally, human development is also key for countries to realize full economic growth. The premier controls the civil bureaucracy, The party general secretary runs the economy. 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. 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. 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. All these testify to the strength of the Chinese economy. 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. Many Chinese believe that the countrys recent economic achievements have actually come about because of, not despite, Chinas authoritarian form of government. 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. Does that create new investment opportunities? 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). 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. 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. While hierarchy and equality may appear to the post-Enlightenment West to be antithetical concepts, in China they remain inherently complementary. The CPC runs the country while the other non communist parties play the role of participatory. China, meanwhile, doesn't apply any such double standards. China has stolen American jobs, the thinking goes, so we oppose China. Today the differences are arguably a lot smaller, and there are many areas in which the two can benefit from cooperation. In this interview he talks about the accessibility of the Chinese market, Americas demonization of China, what the Chinese dont understand about the U.S., and more. 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. Consequently, running international businesses has become significantly easier than ever before. In 2020 China had more billionaires than the U.S. did, and it outpaces the U.S. three to one in minting them. (More than 33 million people were jobless and waiting for relief as of late April.) In our work we have come to see that people in both business and politics often cling to three widely shared but essentially false assumptions about modern China. For the Chinese, the key to those outcomes is respect for an appropriate hierarchy, itself a means of control. 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. In International Business: Competing in the global marketplace (11th ed.). The U.S. continues to vilify China, and China does itself no favors with its poor policy on human rights. 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. 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. 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 . Trumps trade war was an abject failure. They dont know how capitalist China is. The pandemic has profoundly shaken the U.S. sense of superiority in values, culture and systems since the Enlightenment, and by extension the entire West. The differences between people of different cultures far outweigh their similaritiesI believe that differences in people of different cultures far outweigh their similarities.. 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. 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. With less than a quarter of Chinas population, America has a death toll about 100 times Chinas and counting. When the United States formed its constitution, it specifically dictated the unalienable rights of every person. If China were concerned only with economic outcomes, it would welcome foreign businesses and investors and, provided they helped deliver economic growth, would treat them as equal partners, agnostic as to who owned the IP or the majority stake in a joint venture. China has been shifting away from an investment-driven growth model to one led by private consumption. 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. The Trump administration was determined to damage Chinas economy and businesses. Sorry, but it's not possible to copy the text due to security reasons. 55-64). 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. 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. On the foreign front, China never tried to pressure anyone to conform to its domestic political system but instead not only respects, but celebrates, their differences. The top 10 American semiconductor chip makers sell about three times as much in China as in the United States. 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. 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. 808 certified writers online. But the state-owned sector remains too big and inefficient. 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. Pundits tend to be alarmed by a default here and there. 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. After all, if it genuinely believed in the merits of diversity at home, it wouldn't try to snuff out political diversity abroad. China is a great example of a country undergoing a transition as not many years ago it used to practice socialism but now it has transitioned to a dynamic market making it have a second largest economy in the entire world overtaking many great nations. There are two political theories that are needed in the discussion, the elite and the pluralist theory. 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 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. Thus many Chinese consumers prefer the short-term gains of the stock market to locking their money away in long-term savings vehicles. The reality is quite different. (b) The national average SP of CO2 is 266.8 US dollars per ton, which is much higher than the carbon price in the emission trading system. The top diplomat also condemned the U.S.'s description of his country as "authoritarian" simply because its democracy is different than America's. Believing, for example, that political freedom would follow the new economic freedoms, they wrongly assumed that Chinas internet would be similar to the freewheeling and often politically disruptive version developed in the West. Until Western companies and politicians accept this reality, they will continue to get China wrong. ), Copyright 2020 CGTN. 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. In fact, the Chinese word for the resolution of a conflict (jiejue) can imply a result in which one side overcomes the other, rather than one in which both sides are content. Chinas rulers, therefore, see foreign engagement as a source less of opportunity than of threat, uncertainty, and even humiliation. Both countries have a Judicial, Executive, and Legislative branch. For instance, a business that wants to invest in China from the US, it must be prepared for more restrictions and should not expect Chines courts to consider the condition that leads to a certain situation since their law does not permit this. GM sells more cars in China than in the U.S., Canada, and Mexico combined. Political discourse in China remains anchored in Marxist-Leninist ideas of struggle (douzheng) and contradiction (maodun)both seen as attributes that force a necessary and even healthy confrontation that can help achieve a victorious outcome. The Chinese premier less so. Even though both countries are different in every way, they are still recognized as each others competition in the International Arena. 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. 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 Stages of Strategic Crime Analysis Report. Although murdering babies and elderly with medical sanctions in multiple too left . The president controls the army. A Leninist approach to selecting future leaders is also a way the CCP has maintained its legitimacy, because to many ordinary Chinese, this approach produces relatively competent leaders: They are chosen by the CCP and progress through the system by successfully running first a town and then a province; only after that do they serve on the Politburo. Regardless of who wins, it is unlikely that one of the . By the 1980s she was in the first generation to go back to university, and even took part in the Tiananmen Square demonstration. Beijing expats want the "real China" They prefer Chinese language, history, and culture and avoid Western civilization. However, it is important to compare and contrast countries to see which policies are working in the best way and what can be changed. They still blame foreign interference for many of their misfortunes, even if it occurred more than a century ago. Sometimes, in fact, it must sacrifice economic benefits for political or military ones. In conclusion, it is not possible to have a unanimous decision on which political and economic practice is best for the entire universe. The differences in political beliefs led to the formation of a two-party system in the United States, contrary to George Washington's wishes. Nobody can take America's newfound domestic support for diversity seriously until it finally starts applying the same principles abroad like China does. Delivery in 6+ hours! Not blaming China means indirectly acknowledging U.S. shortcomings, which could be explosive in U.S. partisan politics. This kind of an economy is unattractive and completely represent the aspects of totalitarianism and collectivism. Obviously, as an economy develops and new problems emerge, all social systems need certain reforms. But the third assumption can also mislead those seeking to engage with China. Since China is a communist and one-party state, citizen engagement is lower in comparison to democratic states. The United States had maintained a fairly consistent foreign policy until Trump. 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. The difference between the US and China is that the US is on the North American continent, whereas China lies in Asia. 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. 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. 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. That leaves much room for growth and many opportunities for investors, particularly in businesses that cater to consumers. Beijing ICP prepared NO.16065310-3, China vs. America: Political diversity vs. political conformity. The collapse of the USSR appeared to validate that belief, given that the Soviet regimes inability to deliver meaningful economic growth for its citizens contributed to its collapse: Russias eventual integration into the global economy (perestroika) followed Mikhail Gorbachevs political reforms (glasnost). And what is it that the Chinese dont understand about the United States? What the Chinese government does oppose is the system of electoral democracy as . How accessible is it these days? Hill, C. (2017). The pandemic has added urgency, but American politicians appear not to have found the answers. -- The CPC is at the core of the country's leadership and the ruling party, while the non-communist parties are participating parties. Time is money, in other words. 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. What are the dangers in Americas continued demonization of China? For much of its turbulent modern history, China has been under threat from foreign powers, both within Asia (notably Japan) and outside it (the UK and France in the mid 19th century). This approach is counterproductive and has generated immense resentment against the U.S. across the world. There are major differences in the political views of people from different nations.. eligion is another topic that creates differences among cultures.. Unlike China, the U.S. spends more than 50% above its annual revenues leading to high deficits. Even now Chinas private consumption represents only about 39% of its GDPway below the U.S. level of 68% and the world average of 63%. The closing meeting of the fifth session of the 12th National People's Congress is held at the Great Hall of the People in Beijing . Order original essay online with 25% off. 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