A decade ago its retail-goods market was about $1.8 trillionless than half that of the . Thats why China is the most active private-equity market in Asia. Which serves U.S. interests better, a free and democratic China, or an authoritarian China that identifies with U.S. leadership? China is also often at pains to suggest to foreign governments or investors that it is similar to the West in many aspectsconsumer lifestyles, leisure travel, and a high demand for tertiary education. Routledge. Is a China-U.S. decoupling a real possibility? 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). The reality is quite different. Additionally, before starting a business internationally, it is important to consider additional factors that the law systems of that country do not consider since failure to do so can result in loss of profit. The complete Spotlight package is available in a single reprint. Either way you slice it, the economies are the two strongest . 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. The President and the National Peoples Congress, which is the main body of the country, are all elected by the Peoples Congress. The nationalist identification model that serves the U.S. goal of self-identification. 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 often compares itself to brands with which Westerners are familiar. 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. The CPC runs the country while the other non communist parties play the role of participatory. From the U.S. perspective, upholding the banner of freedom and democracy no longer matters. Federal and state governments wrangled and blamed each other over the pandemic response, exposing public discontent with the efficacy and legitimacy of the government, as well as the internal strife in society. The White Houses China-bashing is more about a fight for self-identification than about exonerating the Trump administration. The world will be lifeless and dull if there is only one single model and one single civilization." One thing hasnt changed, though: Many Western politicians and business executives still dont get China. The basic structures of both legal system are extremely similar. (If you want to contribute and have specific expertise, please contact us at opinions@cgtn.com. 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. Weijian Shan understands the delicate U.S.-China dynamic as well as anyone. 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. Accelerate your career with Harvard ManageMentor. (2012). During the Cold War in the 20th century, and particularly afterward, the U.S. sought to establish and consolidate its leadership role in the international community in the name of freedom and democracy so much so that U.S. hegemony was also often referred to as hegemonic liberalism.. Policy makers, in contrast, looking for ways to gain more control and sovereignty over the future, now play a much longer game than the West does. Meanwhile, American consumers have paid for the higher tariffs, because the average prices of Chinese exports havent decreased. 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. However, the beliefs and positions of political parties change over time, so . 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. This is the most appropriate entry point to reveal the evolution of human-land relationships. Chinas leaders argue that its essentially Leninist rule book makes Chinese politics far less arbitrary or nepotistic than those of many other, notably Western, countries (even though the system has its share of back-scratching and opaque decision-making). 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. 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. 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. 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. Economic and macro-political changes happening globally is something that international business management must consider before doing business since it will influence the decisions that they make regarding their business. (2016). 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. China is also Apples biggest market for iPhones: It has about twice as many iPhone users as the United States does. The name of the game in China is scale. 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). 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 explains why the People's Republic of China (PRC) never attaches any political strings to its economic deals nor makes ultimatums regarding any of its partners. The differences in political beliefs led to the formation of a two-party system in the United States, contrary to George Washington's wishes. 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 only obligation they have is to follow the law that in most cases is straightforward. The resulting victory, which for decades the CCP spun as its solo vanquishing of an external enemy, was reinforced by defeat of an internal one (Chiang Kai-shek in 1949), establishing the legitimacy of the party and its authoritarian system. Although many in the West may believe that China sees only opportunity in its 21st-century global plans, its motivation is very different. 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 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 legal system of a country plays a key role in terms of its marketing and investment opportunities. Political credibility and economic development. How can outside investors ensure that they dont become collateral damage in a bigger political and economic war? Until that happens, the world will remain unstable as the U.S. aggressively tries to eliminate political diversity. 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. China on the other hand practice totalitarianism and collectivism which is the opposite of democracy. 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. With less than a quarter of Chinas population, America has a death toll about 100 times Chinas and counting. 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, 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. 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. Civic engagement ensures that the government is serving the people and not the other way around. This plays out every time a Western company negotiates access to the Chinese market. The Stages of Strategic Crime Analysis Report. Since China is a communist and one-party state, citizen engagement is lower in comparison to democratic states. In 2020, a year of severe difficulties all over the world, there was no significant increase in Chinese corporate defaults. When the United States formed its constitution, it specifically dictated the unalienable rights of every person. The truth, then, is that China is not an authoritarian state seeking to become more liberal but an authoritarian state seeking to become more successfulpolitically as well as economically. Some of these challenges are brought about by differences in legal, political and economic systems of different countries. 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. 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. Some of its technological successes have been driven by market forces: People wanted to buy goods or communicate more easily, and the likes of Alibaba and Tencent have helped them do just that. This is the logical extension of China-U.S. competition from the perspective of U.S. economic nationalism. That Canada has elected communists to office, I suggest is just about as important a disparity as the American gun insanity. There are two political theories that are needed in the discussion, the elite and the pluralist theory. They still blame foreign interference for many of their misfortunes, even if it occurred more than a century ago. Its monetary policy is reasonably tight, with the yield on government bonds about 3.5 times that on U.S. Treasuries. Although murdering babies and elderly with medical sanctions in multiple too left . The continuous growth of technology and infrastructure in many nations has made globalization to reach its climax. China now has better highways, rail systems, bridges, and airports than the United States does. Its GDP dropped 6.8% in the first quarter of 2020, but resumed growth from the second quarter onward. Chinas rulers see foreign engagement as a source less of opportunity than of threat, uncertainty, and even humiliation. In fact, China is the only G20 country to have posted positive growth. However, in recent times China has overtaken the US by at least one measure of total economic strength, which is GDP based on purchasing power parity (PPP). The . The complete Spotlight package is available in a single reprint. The United States had maintained a fairly consistent foreign policy until Trump. Ambition like that cant be realized without state interventionrelatively fast and easy but often brutal in 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). Obviously the ideology of nationalist identification under the pandemic has greatly roughened the political landscape for China and the U.S. 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. Springer. Americans focus on speed and efficiency and will hurry to get things done quickly. HBR Learnings online leadership training helps you hone your skills with courses like Global Collaboration. 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 major focus of government expenditure is domestic infrastructure. China has also defied predictions that its authoritarianism would inhibit its capacity to innovate. 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. : Statist Legacies and Market Reforms, 1980-90: Statist Legacies and Market Reforms, 1980-90. And believing that Chinas economic growth would have to be built on the same foundations as those in the West, many failed to envisage the Chinese states continuing role as investor, regulator, and intellectual property owner. 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 . Its currency appreciated 6% against the dollar last year. 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. 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. Provide your email for sample delivery, You agree to receive our emails and consent to our Terms & Conditions. By the 1980s she was in the first generation to go back to university, and even took part in the Tiananmen Square demonstration. For the Chinese, the key to those outcomes is respect for an appropriate hierarchy, itself a means of control. 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. 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. Where can it move its production if the target market is China? 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. A Shanghai journalist is paid by her state-controlled magazine to fly around the world for stories on global lifestyle trends. Sometimes, in fact, it must sacrifice economic benefits for political or military ones. The city of Rongcheng, for example, uses big data (available to the government through surveillance and other data-capturing infrastructure) to give people individualized social credit scores. These are used to reward or punish citizens according to their political and financial virtues or vices. 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. It seems that the only country that can stifle Chinas growth is China itselfif it makes major policy mistakes. The CPC runs the country while the other non communist parties play the role of participatory. This is the best approach for one to have and ensures that its partnerships remain everlasting. In conclusion, it is not possible to have a unanimous decision on which political and economic practice is best for the entire universe. 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. 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. Countries with command economic systems are now changing their laws to become democratic and allow free-enterprise after realizing benefits it can bring in (Cavusgil, Ghauri & Akcal, 2012). 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