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. 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. Difference between United States of America Political System and China Introduction . No personal data is being tracked. The Trump administration, however, has focused on U.S. economic interests, putting the pursuit of hegemonistic benefits in a secondary position. This means that business contracts are not usually detailed in China since the civil codes do not cover most laws. But it wont back off from its territorial claims, all of which predate the Peoples Republic of China. 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. 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. But at every point since 1949 the Chinese Communist Partycentral to the institutions, society, and daily experiences that shape all Chinese peoplehas stressed the importance of Chinese history and of Marxist-Leninist doctrine. However, it also highlighted the different ways in which people of color in the USA are suppressed through political representation and voter suppression. 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. Between 1990 and 2009, investment from China to all of Latin America was about $7 billion. People who do take long-term career risks often do so only after fulfilling their primary need for short-term security. This package reveals much that may surprise them. 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. The differences in political beliefs led to the formation of a two-party system in the United States, contrary to George Washington's wishes. 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. This review discusses recent efforts to systematically compare three leading values in China's philosophical traditionsmeritocracy, hierarchy, and harmony . For example, the British role in the Opium Wars of the 1840s kicked off a 100-year period that the Chinese still refer to as the Century of Humiliation. Born in 1955, she experienced as a child the terrible Great Leap Forward famine in which 20 million Chinese starved to death. Thus many Chinese consumers prefer the short-term gains of the stock market to locking their money away in long-term savings vehicles. 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. The US is surrounded by Mexico, Canada, the Pacific Ocean, and the Atlantic Ocean. Some real differences between the two countries do exist, but they have historically managed them without escalating tensions. The United States takes in with high respect the principles of democracy and individualism. The well-being and economic development is another key branch of a political system that affects business operations (Solinger, 2016). Ambition like that cant be realized without state interventionrelatively fast and easy but often brutal in China. After all, if it genuinely believed in the merits of diversity at home, it wouldn't try to snuff out political diversity abroad. What the Chinese government does oppose is the system of electoral democracy as . 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. Beijing expats speak Mandarin better than Shanghai ones. A Shanghai journalist is paid by her state-controlled magazine to fly around the world for stories on global lifestyle trends. Shan: Despite initial blunders, China has handled the coronavirus pandemic well through strict lockdowns and mass testing. Some have expressed optimism that Chinas need for control will lessen after theyve proved their worth as partners. Does the U.S. even have the power to hurt China economically? The country itself remains so diverse that some minority groups even have their own autonomous administrative divisions which include regions, prefectures and counties. Chinas rulers, therefore, see foreign engagement as a source less of opportunity than of threat, uncertainty, and even humiliation. China on the other hand practice totalitarianism and collectivism which is the opposite of democracy. Either way you slice it, the economies are the two strongest . What has caused the frequent conflicts between the two countries? The U.S., on the other hand, is a federal constitutional republic with three governmental branches sharing powers. : Statist Legacies and Market Reforms, 1980-90: Statist Legacies and Market Reforms, 1980-90. 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. A major turning point was the financial crisis of 2008, which in Chinese eyes revealed the hollowness of the Washington consensus that democratization and economic success were linked. Along with China's economic and military rise, its leading political values will increasingly shape both China and the world at large. (2022, May 17). 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. 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. The Vietnamese premier is very powerful. In fact, the pandemic has made the world more dependent on Chinese exports, which grew 21% in November over the previous year. Obviously, as an economy develops and new problems emerge, all social systems need certain reforms. How can outside investors ensure that they dont become collateral damage in a bigger political and economic war? She was a Red Guard as a teenager, screaming adoration for Chairman Mao while her parents were being re-educated for being educated. But this argument overlooks some fundamental differences between China and the United States, Japan, Britain, Germany, and France. A decade ago its retail-goods market was about $1.8 trillionless than half that of the . But the state-owned sector remains too big and inefficient. Thats not likely, precisely because in Chinas particular brand of authoritarianism, control is key. 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. 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. The technology war waged by the Trump administration forced China to develop critical technologies, such as semiconductor chips, for which it has relied on U.S. suppliers. Wherever PAG operates, we adhere to the same environmental, social, and governance policies. Politicians and business leaders continue to misread Chinas strategy and politics. 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. The harsh reality of the pandemic has given rise to political competition with characteristics not seen before, sounding the alarm for future bilateral relations. Its just not liberal reform. Only a sudden surge of such events would herald an economic crisis. 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. Nolan, P. (2012). 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. The task, in both China and the West, is to reduce the gap between the ideal of basic human rights and the reality. There are two political theories that are needed in the discussion, the elite and the pluralist theory. 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. And the party has always believed in and emphasized the importance of Chinese history and of Marxist-Leninist thought, with all they imply. 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. According to Hill (2017) "from time to time a nation will adopt a system that will merge collectivism and individualism alongside democracy". 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. 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. In China, the legal system "is based on civil laws" (Nolan, 2012). 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 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). The paper also highlighted citizen engagement in both countries, either through direct elections in the USA or through the CCP controlled nominations in China. 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. 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. For the Chinese, the key to those outcomes is respect for an appropriate hierarchy, itself a means of control. When we first traveled to China, in the early 1990s, it was very different from what we see today. Mandarin. 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. 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 . But the technology war also hurts U.S. suppliers. Learn how to overcome barriers when working globally. Then, in the 1990s, she took advantage of the new economic freedoms, becoming a 30-something entrepreneur in one of the new Special Economic Zones. Examination of School Shootings and Student Safety from International and Non-International Armed Conflict, Comparison Between Democracy Vs. Surrounded by Mexico, Canada, the legal system `` is based on civil laws '' ( Nolan, ). 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