9. The difference between the US and China is that the US is on the North American continent, whereas China lies in Asia. Consequently, inequality is greater in China than in the United States, measured by the Gini coefficient. These are valid points and deserve to be expanded upon in order to enlighten others further. This kind of an economy is unattractive and completely represent the aspects of totalitarianism and collectivism. Is a China-U.S. decoupling a real possibility? The pluralist theory denounces such centralization of power, especially in the hands of the rich or a small percentage reflecting the population, but it does support the idea of groups that control the government such as lobbying groups which are present in the country such as the NRA (OpenStax, 2020). In the countryside life retained many of its traditional elements. Citizen engagement is a necessary facet of not just American politics but also a democratic state. But defaults and bankruptcies are common in a market economy. Amid the unprecedented challenge of COVID-19, clear differences have emerged between the Chinese and American responses. Even though China has a one-party state, it, however, has eight independent political parties that are controlled by the CCP (CIA, 2020). 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. Although murdering babies and elderly with medical sanctions in multiple too left . There are several major differences: China's system is based on the governance of one political party only (China has 8 other parties that serve in a consultative role). The article reflects the author's views and not necessarily those of CGTN. The . Thats not likely, precisely because in Chinas particular brand of authoritarianism, control is key. Our response? Educated in the United States, he worked for the World Bank and J.P. Morgan and taught at the Wharton School. That has huge implications for people seeking to do business in China. A cleaner in Chongqing now owns several apartments because the CCP reformed property laws. They dont know how capitalist China is. Either way you slice it, the economies are the two strongest . The geographic location of a country, its educational, political and legal systems plays a key role in the economic well-being of a country. Sometimes, in fact, it must sacrifice economic benefits for political or military ones. 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. Empowered by Xi to deal with the corruption that had become so prevalent early in that decade, the commission can arrest and hold suspects for several months; its decisions cannot be overturned by any other entity in China, not even the supreme court. This is the logical extension of China-U.S. competition from the perspective of U.S. economic nationalism. She bought a flatthe first time anyone in her familys history had owned property. Political credibility and economic development. Today he is the CEO of PAG, a $40 billion private equity firm based in Hong Kong. This, of course, mirrors the role of U.S. defense and intelligence spending in the development of Silicon Valley. Investors have always been enticed by Chinas vast market. 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. 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. In much Western analysis the verb most commonly attached to Chinas reforms is stalled. The truth is that political reform in China hasnt stalled. Get a 100% original essay FROM A CERTIFIED WRITER! Our firm, PAG, invests throughout Asia and occasionally beyond. One reason that many people misread Chinas trajectory may be thatparticularly in the English-language promotional materials the Chinese use overseasthe country tends to portray itself as a variation on a liberal state, and therefore more trustworthy. 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. Depending on the conditions surrounding a case, the law system allows special consideration to such as a case. A country that provides its citizen with education produces better minds that can bring in better business ideas to the economy. Some distinctions between the parties. 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. 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. 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. Most significantly, the British have a democratic parliamentary government, headed by a monarch and prime minister. China, however, has been able to sustain and grow its economy as much as it practices a command economy. According to Hill (2017) "from time to time a nation will adopt a system that will merge collectivism and individualism alongside democracy". But looking back over her life story, one can see why even many young Chinese today may feel a reduced sense of predictability or trust in what the future holdsor in what their government might do next. (2016). 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. 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. In 2020 China had more billionaires than the U.S. did, and it outpaces the U.S. three to one in minting them. 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. 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 differences in political beliefs led to the formation of a two-party system in the United States, contrary to George Washington's wishes. 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. Is your time best spent reading someone elses essay? These officials preside over different tribunals and committees, which can range from civil, administrative to communication, and transport cases. As to the orientation of a new era, however, the Trump administration has yet to offer any answers or insights. While hierarchy and equality may appear to the post-Enlightenment West to be antithetical concepts, in China they remain inherently complementary. Hence, we need to understand, compare, and learn from leading values in China's political culture. 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. 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 Leninist nature of politics is also evidenced by the language used to discuss it. The PRC isn't just pragmatic, but also respectful towards all of its partners. 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 our experience, many Westerners dont understand what that means or why it matters. 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. But the third assumption can also mislead those seeking to engage with China. China is also Apples biggest market for iPhones: It has about twice as many iPhone users as the United States does. (If you want to contribute and have specific expertise, please contact us at opinions@cgtn.com. When life is (or has been within living memory) unpredictable, people tend to apply a higher discount rate to potential long-term outcomes than to short-term onesand a rate materially higher than the one applied by people living in more-stable societies. Westerners failure to appreciate this explains why many still expect China to reduce its role as investor, regulator, and, especially, intellectual property owner when that role is in fact seen as essential by the Chinese government. 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. China has been shifting away from an investment-driven growth model to one led by private consumption. But the technology war also hurts U.S. suppliers. Globalization. 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. Western systems are . 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 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 U.S., on the other hand, is a federal constitutional republic with three governmental branches sharing powers. Second, the economic structure is different. The President and the National Peoples Congress, which is the main body of the country, are all elected by the Peoples Congress. They make three plausible but false assumptions: Democracy is an inevitable consequence of economic development; authoritarian regimes are never seen as legitimate; and the Chinese think, behave, and invest much like anyone in the West. 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 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. Additionally, human development is also key for countries to realize full economic growth. The past decade has, if anything, strengthened Chinese leaders view that economic reform is possible without liberalizing politics. 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. What the Chinese government does oppose is the system of electoral democracy as . References Borner, S., Brunetti, A., & Weder, B. Mandarin. Additionally, in such a system, services and products are distributed and offered by the individuals working privately and independently with limited regulation from the government. New York: McGraw Hill/Irwin. 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 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. 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 president controls the army. 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. 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. (2016). The real danger is the Taiwan issue. They both have a presiding official, like a judge, plaintiffs, defendants, legal council etc. Springer. And the narrative has had some powerful supporters. But in China the consumer applications have come faster, making more obvious the link between government investment and products and services that benefit individuals. In such a system innovation is limited since people do don feel motivated to come up with brilliant business ideas because undesirable laws keep on blocking them. 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. Learn how to overcome barriers when working globally. Although many in the West may believe that China sees only opportunity in its 21st-century global plans, its motivation is very different. A decade ago its retail-goods market was about $1.8 trillionless than half that of the . Wherever PAG operates, we adhere to the same environmental, social, and governance policies. The founding fathers of USA forecasted their nation to be one that respects and follow basic human rights and Biblical ideas as guidance. What is the political difference between China and the USA? If the U.S. abandons the one-China policy and supports Taiwans independence, conflict will be inevitable, with unimaginable consequences for the world market. Today the differences are arguably a lot smaller, and there are many areas in which the two can benefit from cooperation. 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. This plays out every time a Western company negotiates access to the Chinese market. 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. Its currency appreciated 6% against the dollar last year. 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. Meanwhile, American consumers have paid for the higher tariffs, because the average prices of Chinese exports havent decreased. Corporatism also recognizes only one organization as its sole representative, which can be seen through the CCP (Chan, 1994). The Trump administration, however, has focused on U.S. economic interests, putting the pursuit of hegemonistic benefits in a secondary position. 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. A Shanghai journalist is paid by her state-controlled magazine to fly around the world for stories on global lifestyle trends. Our own experiences on the ground in China confirm this. 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. 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. China has stolen American jobs, the thinking goes, so we oppose China. 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. From the U.S. perspective, upholding the banner of freedom and democracy no longer matters. 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%. 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. Thus many Chinese consumers prefer the short-term gains of the stock market to locking their money away in long-term savings vehicles. Trumps trade war was an abject failure. 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. 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. 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 pandemic has added urgency, but American politicians appear not to have found the answers. they are digging deep to create the city's first metro system and doing so in just five years' time . It continues apace. - Quora Answer (1 of 17): Americans hold the individual in the highest regard, whereas Chinese hold the community in the highest regard. ), Copyright 2020 CGTN. I see no systemic risk either in Chinas banking system or in its economy. Unfortunately, you cant copy samples. Yet they found common ground to work in mutually beneficial ways. 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. What is it that Americans dont understand about China? Until that happens, the world will remain unstable as the U.S. aggressively tries to eliminate political diversity. Weijian Shan was born in China and had his life upended by the Cultural Revolution. 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. A decade ago its retail-goods market was about $1.8 trillionless than half that of the United States. Chinas is the only major economy that requires no special approval for foreign direct investments, although some sectors, such as Lived Change media and the internet, are on a negative list that restricts them. The United States had maintained a fairly consistent foreign policy until Trump. 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 executive branch of the government holds the highest position of head of state and the cabinet as well, which is appointed by the National Peoples Congress. The difference in efficiency between the central and local groups is significant. This review discusses recent efforts to systematically compare three leading values in China's philosophical traditionsmeritocracy, hierarchy, and harmony . Short-Term gains of the United States had maintained a fairly consistent foreign policy until Trump billion private equity firm in. To one led by private consumption gains of the stock market to locking money... 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