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. But it wont back off from its territorial claims, all of which predate the Peoples Republic of China. Yet as soon as that ideological cover is removed, internal contradictions immediately reveal themselves. As to the orientation of a new era, however, the Trump administration has yet to offer any answers or insights. (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. 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. Bidens proposals have been criticized as new wine in old bottles, and a kind of tinkering; Trump is regarded by Henry Kissinger as marking the end of an old era. Consequently, inequality is greater in China than in the United States, measured by the Gini coefficient. Those countries have since 1945 been pluralist democracies with independent judiciaries. 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. Its monetary policy is reasonably tight, with the yield on government bonds about 3.5 times that on U.S. Treasuries. Some of these challenges are brought about by differences in legal, political and economic systems of different countries. Americans focus on speed and efficiency and will hurry to get things done quickly. It will take years if not decades for China to catch up in some areas, at great cost. Corporatism also recognizes only one organization as its sole representative, which can be seen through the CCP (Chan, 1994). The CPC runs the country while the other non communist parties play the role of participatory. Looking into the future, the path for China-U.S. cooperation will become more tortuous owing to the nationalist ideological struggle triggered by the coronavirus. 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. Businesspeople and politicians in the West hold outdated beliefs about the second-largest economy in the world. But the third assumption can also mislead those seeking to engage with China. The branches of the government are not only responsible for the laws of the land but are also responsible for ensuring free and fair elections and that the citizens of the country that they represent are being heard (USG, 2020). Today he is the CEO of PAG, a $40 billion private equity firm based in Hong Kong. Our response? These are the reforms China is makingand they need to be understood on their own terms, not simply as a distorted or deficient version of a liberal model. Although many in the West may believe that China sees only opportunity in its 21st-century global plans, its motivation is very different. they are digging deep to create the city's first metro system and doing so in just five years' time . 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. But defaults and bankruptcies are common in a market economy. The United States has a democratic system, but in countries . However, there are usually lawful ways to get around that. She was a Red Guard as a teenager, screaming adoration for Chairman Mao while her parents were being re-educated for being educated. Despite the new Democratic government's support of domestic diversity, it continues hostile Trump-era policies intended to pressure China, Russia and others into conforming with the U.S.'s political demands. Half of the representatives in Congress are millionaires with their median net worth reported to be more than a million. References Borner, S., Brunetti, A., & Weder, B. In 2019 that market reached $6 trillion, surpassing the U.S. level of $5.5 trillion. 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. Leninism, however, is essentially a political doctrine; its primary aim is control. Familiarity with Leninist doctrine is still important for getting ahead. The real danger is the Taiwan issue. China has been shifting away from an investment-driven growth model to one led by private consumption. Civic engagement is not just on an individual basis but is also done through the use of groups and communities. Springer. It seems that the only country that can stifle Chinas growth is China itselfif it makes major policy mistakes. In International Business: Competing in the global marketplace (11th ed.). A nation that practice individualism and democracy is more likely to have an economic system that is market-based and this is more desirable since it allows businesses to produce what their products maximally thereby making desirable profits. The legal system of a country establishes regulations and laws that maintain and indicate the basic values of an entire nation. However, both states have a very different political landscape, which is what will be discussed in the paper today. 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 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. 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. Diversity is naturally occurring, whether it be among ethnicities, religions, governing systems or whatever else. Some real differences between the two countries do exist, but they have historically managed them without escalating tensions. China has been shifting away from an investment-driven growth model to one led by private consumption. As market research consistently tells us, the majority of individual Chinese investors behave more like traders. These are valid points and deserve to be expanded upon in order to enlighten others further. Ambition like that cant be realized without state interventionrelatively fast and easy but often brutal 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. 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. Had she been born in 1955 in almost any other major economy in the world, her life would have been much, much more predictable. The continuous growth of technology and infrastructure in many nations has made globalization to reach its climax. 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. 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). 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. Sage. 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). What are the dangers in Americas continued demonization of China? Its stated purpose was to reduce Americas trade deficit. China and the global economy. For example, a 2015 survey found that 81% of them trade at least once a month, even though frequent trading is invariably a way to destroy rather than create long-term fund value. The Stages of Strategic Crime Analysis Report. Delivery in 6+ hours! Voter suppression has been reported through disenfranchising people of color, through restrictions placed on mail-in voting that can cause irregularities in the system and strict voter ID laws that can contribute to issues that can cause certain people to not place votes(McKeever, 2020). 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. That Canada has elected communists to office, I suggest is just about as important a disparity as the American gun insanity. However, as the world is constantly moving towards a market-based system, the country had to switch to this system that allowed it to increase economic and still maintain its communist status. This shared quest for predictability explains the continuing attractiveness of an authoritarian system in which control is the central tenet. Those with low social-credit scores may find themselves prevented from buying an airline ticket or getting a date on an app. 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. 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. 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. 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. Today the differences are arguably a lot smaller, and there are many areas in which the two can benefit from cooperation. The . Dictatorship, Gun Control: Legal, Psychology and Political Viewpoint, Difference Between Criminal and Civil Court System. Globalization. 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. Obviously the ideology of nationalist identification under the pandemic has greatly roughened the political landscape for China and the U.S. 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 . 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). However, it is important to compare and contrast countries to see which policies are working in the best way and what can be changed. Nations without better access to such facilities depend on their agriculture and natural resources to enhance economic growth. Yet they found common ground to work in mutually beneficial ways. In Canada, it is a . Shan: Despite initial blunders, China has handled the coronavirus pandemic well through strict lockdowns and mass testing. 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. 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. Meanwhile, American consumers have paid for the higher tariffs, because the average prices of Chinese exports havent decreased. 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. The name of the game in China is scale. The pandemic has added urgency, but American politicians appear not to have found the answers. Reforming Sino-American Cultural Exchange for the Better. 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. Since China is a communist and one-party state, citizen engagement is lower in comparison to democratic states. 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. 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. 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. Chinas saving rate will drop significantly as its population ages, and investment will slow. This, of course, mirrors the role of U.S. defense and intelligence spending in the development of Silicon Valley. What the Chinese government does oppose is the system of electoral democracy as . The difference in efficiency between the central and local groups is significant. The major focus of government expenditure is domestic infrastructure. 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. 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. When individuals have the powerto realize their dreams, they will demand a greater say.. 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 closing meeting of the fifth session of the 12th National People's Congress is held at the Great Hall of the People in Beijing . 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). 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