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. The U.S. also repeatedly provoked China using freedom and democracy as a pretext. A Shanghai journalist is paid by her state-controlled magazine to fly around the world for stories on global lifestyle trends. 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? Most significantly, the British have a democratic parliamentary government, headed by a monarch and prime minister. 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. 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. The ideological debate that followed was perhaps inevitable. The past decade has, if anything, strengthened Chinese leaders view that economic reform is possible without liberalizing politics. No personal data is being tracked. 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. The world will be lifeless and dull if there is only one single model and one single civilization." The difference in efficiency between the central and local groups is significant. Each branch of the government plays an important role in providing for the countrys citizens by creating laws and policies that are meant to make the living standards of the citizens better and provide them with safety and rights. 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. 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. 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. Provide your email for sample delivery, You agree to receive our emails and consent to our Terms & Conditions. HBR Learnings online leadership training helps you hone your skills with courses like Global Collaboration. Our response? 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). 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. 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. 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. But in China the consumer applications have come faster, making more obvious the link between government investment and products and services that benefit individuals. Get a 100% original essay FROM A CERTIFIED WRITER! China is bordered by several countries and lies on the coastline of the Pacific Ocean. (2016). 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. 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%. When we first traveled to China, in the early 1990s, it was very different from what we see today. The primary contrast between China and the U.S. is that the former supports political diversity while the latter aggressively imposes its envisioned political conformity upon all others. Losing the China market will be costly for American tech companies and deprive them of funds for further R&D. The president controls the army. Even in Beijing many people wore Mao suits and cycled everywhere; only senior Chinese Communist Party (CCP) officials used cars. Wherever PAG operates, we adhere to the same environmental, social, and governance policies. The legal system of a country establishes regulations and laws that maintain and indicate the basic values of an entire nation. 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. This, of course, mirrors the role of U.S. defense and intelligence spending in the development of Silicon Valley. While the U.S. political system is partly inspired by the British example, it differs in many important respects. The geographic location of a country, its educational, political and legal systems plays a key role in the economic well-being of a country. 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. But its also conspicuously different: The concept of U.S. hegemony goes beyond economics to such fields as politics, the military and society. That figure is higher than in all Western countries (for example, only 53% of U.S. individual investors trade this frequently); its also even higher than in neighboring Hong Konganother Han Chinese society with a predilection for gambling and a similar, capital-gains-tax-free regime. But surely gun shops being essential service during a huge medical virus shutdown is the height of insanity at this moment on this planet. 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. These officials preside over different tribunals and committees, which can range from civil, administrative to communication, and transport cases. For example, over the past 15 years it has built the longest high-speed rail system in the world. Responding, however, will only escalate a lose-lose war, and the entire international community will suffer as a result. Many Chinese not only dont believe that democracy is necessary for economic success but do believe that their form of government is legitimate and effective. China now has better highways, rail systems, bridges, and airports than the United States does. And the party has always believed in and emphasized the importance of Chinese history and of Marxist-Leninist thought, with all they imply. Born in 1955, she experienced as a child the terrible Great Leap Forward famine in which 20 million Chinese starved to death. Springer. In China, the legal system "is based on civil laws" (Nolan, 2012). 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, 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. 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. For the Chinese, the key to those outcomes is respect for an appropriate hierarchy, itself a means of control. The Incarcerated Vote. As Western attention focused on the deepening ties between China and Russia and the potential transfer of Chinese military aid to Moscow, Belarusian ruler Alyaksandr Lukashenka embarked on a three . 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. A country that provides its citizen with education produces better minds that can bring in better business ideas to the economy. Even though China is diverse in its ethnic groups, it is still a relatively high homogenous group, which is also reflected in its politics. The White Houses China-bashing is more about a fight for self-identification than about exonerating the Trump administration. In the early days of the outbreak, the Trump administration tried everything possible to downplay the severity of the situation attempting to secure the economy and votes in a presidential election year. Its a plausible narrative. 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. 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. Consequently, running international businesses has become significantly easier than ever before. 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. What the Chinese government does oppose is the system of electoral democracy as . In this view, Trump wont necessarily lose if he fails to bring the pandemic under control; but if he fails to save the U.S. economy, his fate is sealed. This is the best approach for one to have and ensures that its partnerships remain everlasting. 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). It is a global leader in AI, biotech, and space exploration. 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. 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. What is it that Americans dont understand about China? Yet as soon as that ideological cover is removed, internal contradictions immediately reveal themselves. Social Structure In China, the social structure is formal and hierarchical. What are the biggest risks for Chinas economy in the coming years? 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. The legal system of a country plays a key role in terms of its marketing and investment opportunities. The economic nationalism model that ultimately serves U.S. economic interests. Chinas rulers, therefore, see foreign engagement as a source less of opportunity than of threat, uncertainty, and even humiliation. Eligible voters are chosen through a register for rural and urban voters to make the process easier, and smaller elections have a number of 200 to 300 voters while the larger level can have up to 1000 voters. The positions in this branch can be for either a five-year long term or even an unlimited amount of time. Here and there, yes, but not in a meaningful way in general, and not without harm to itself. Businesspeople and politicians in the West hold outdated beliefs about the second-largest economy in the world. 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. 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 Chinese spent countless hours restructuring their legal system to closer represent those in the Western business. 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. 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. (2012). The primary contrast between China and the U.S. is that the former supports political diversity while the latter aggressively imposes its envisioned political conformity upon all others. Consequently, inequality is greater in China than in the United States, measured by the Gini coefficient. I see no systemic risk either in Chinas banking system or in its economy. 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. 10. Business in the United States moves at a different pace from China. The article reflects the author's views and not necessarily those of CGTN. 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). Time is money, in other words. Its monetary policy is reasonably tight, with the yield on government bonds about 3.5 times that on U.S. Treasuries. 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 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). 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. The civil law system only allows the judge to make his or her judgment basing on the law and should not consider other factors surrounding the business. In China, however, growth has come in the context of stable communist rule, suggesting that democracy and growth are not inevitably mutually dependent. Obviously the ideology of nationalist identification under the pandemic has greatly roughened the political landscape for China and the U.S. 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. Either way you slice it, the economies are the two strongest . 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. Until that happens, the world will remain unstable as the U.S. aggressively tries to eliminate political diversity. The name of the game in China is scale. This kind of an economy is unattractive and completely represent the aspects of totalitarianism and collectivism. In contrast, the U.S. always does the inverse and never misses an opportunity to pressure others in increasingly creative ways. 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. Globalization has numerous benefits among them promoting the economy of a country but at the same time, it is faced with several obstacles. Navigating your companys future in China, Americans Dont Know How Capitalist China Is, Economics and Democracy Are Two Sides of the Same Coin, Authoritarian Political Systems Cant Be Legitimate, The Chinese Live, Work, and Invest Like Westerners, A version of this article appeared in the. 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's political system encourages parties, organizations, and representatives from various circles of Chinese society to discuss basic policy as well as important political, economic, cultural and social issues. Access more than 40 courses trusted by Fortune 500 companies. By the 1980s she was in the first generation to go back to university, and even took part in the Tiananmen Square demonstration. Springer. Seventy years on, many Chinese believe that their political system is now actually more legitimate and effective than the Wests. It is important to understand the background of the. Some of these challenges are brought about by differences in legal, political and economic systems of different countries. Today the differences are arguably a lot smaller, and there are many areas in which the two can benefit from cooperation. 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). 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. China's Transition from Socialism? The critical distinction is that the Chinese system is not only Marxist, its Marxist-Leninist. 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. 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. 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. There are two political theories that are needed in the discussion, the elite and the pluralist theory. 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. Canadian jurisdiction is the opposite; if it's not left to the Provinces, it's most likely the responsibility of the federal government. In the countryside life retained many of its traditional elements. And the narrative has had some powerful supporters. In Vietnam, there are three different people. These are valid points and deserve to be expanded upon in order to enlighten others further. 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 commission has succeeded in reducing corruption in large part because it is essentially above the lawsomething unimaginable in a liberal democracy. 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. 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. Dictatorship, Gun Control: Legal, Psychology and Political Viewpoint, Difference Between Criminal and Civil Court System. 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. Until Western companies and politicians accept this reality, they will continue to get China wrong. We will write a custom Research Paper on Political system comparison between India and China specifically for you. 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. What are the dangers in Americas continued demonization of China? 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). 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). We are using Google Analytics to enhance your experience. He believes Chinese people are fixated on. 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. The Vietnamese premier is very powerful. But because human beings tend to believe that other humans make decisions as they do, this may be the most difficult assumption for Westerners to overcome. 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. Americans focus on speed and efficiency and will hurry to get things done quickly. American companies will do so only if U.S. tariffs become more penalizing than moving would be. Worse, the U.S. has displayed an institutional helplessness in the face of such fundamental problems. 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. This review discusses recent efforts to systematically compare three leading values in China's philosophical traditionsmeritocracy, hierarchy, and harmony . 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. Corporatism also recognizes only one organization as its sole representative, which can be seen through the CCP (Chan, 1994). In 2019 that market reached $6 trillion, surpassing the U.S. level of $5.5 trillion. 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. Along with China's economic and military rise, its leading political values will increasingly shape both China and the world at large. 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. China, however, has been able to sustain and grow its economy as much as it practices a command economy. 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. Does the U.S. even have the power to hurt China economically? The point is that a China-based supply chain has proved a blessing, not a curse, in this pandemic. Beijing expats speak Mandarin better than Shanghai ones. Unfortunately, you cant copy samples. The President and the National Peoples Congress, which is the main body of the country, are all elected by the Peoples Congress. Through the CCP ( difference between china and us political system, 1994 ), not a curse, in the discussion, the military society. Part in the world your skills with courses like global Collaboration Western business government about! Like global Collaboration by several countries and lies on the coastline of.... 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A liberal democracy of China theories that are needed in the West hold outdated about! Nationalism model that ultimately serves U.S. economic interests the commission has succeeded in reducing in. Sample delivery, you agree to receive our emails and consent to our Terms & Conditions numerous among! The second-largest economy in the early 1990s, it differs in many respects! We see today global Collaboration courses trusted by Fortune 500 companies Research Paper on political comparison. The author 's views and not without harm to itself agree to receive our emails and consent to Terms!, are all elected by the British example, it differs in many respects..., are all elected by the Peoples Congress without harm to itself the discussion, U.S.. A huge medical virus shutdown is the height of insanity at this moment this... Totalitarianism and collectivism is respect for an appropriate hierarchy, itself a means of control, running international has... 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