I see no systemic risk either in Chinas banking system or in its economy. No personal data is being tracked. Entry to the CCP and to a university involves compulsory courses in Marxist-Leninist thought, which has also become part of popular culture, as evidenced by the 2018 TV talk show Marx Got It Right. Worse, the U.S. has displayed an institutional helplessness in the face of such fundamental problems. Shanghainese are up-to-date on the newest trends, whereas Beijingers prefer Qing Dynasty fashion. 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. 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). 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. 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. Until Western companies and politicians understand this and revise their views, they will continue to get China wrong. There are two political theories that are needed in the discussion, the elite and the pluralist theory. The founding fathers of USA forecasted their nation to be one that respects and follow basic human rights and Biblical ideas as guidance. Therefore, a country's political system can be assessed effectively by using aspects such as collectivism or individualism and totalitarianism or democracy. The United States has a democratic government system with three branches in the system, legislative, executive, and judicial. 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. Borner, S., Brunetti, A., & Weder, B. It seems that the only country that can stifle Chinas growth is China itselfif it makes major policy mistakes. Some distinctions between the parties. The U.S. also repeatedly provoked China using freedom and democracy as a pretext. This suggests some obvious hypocrisy on the part of the Biden administration and perhaps even a lack of sincerity with respect to the domestic causes that it supports. 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. Whatever its intentions may be, there's no longer any denying that the Biden administration has double standards towards diversity at home and abroad, which hints at ulterior motives towards one, the other, or perhaps both of these approaches. . Until Western companies and politicians accept this reality, they will continue to get China wrong. 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). It continues apace. Avoid editing or writing from scratch! According to Nolan (2012) "as for the number of democrat countries, 123 of the 196 countries are exercising democracy as compared to only 69 countries in 1987" (p. 101). 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. 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 pandemic has profoundly shaken the U.S. sense of superiority in values, culture and systems since the Enlightenment, and by extension the entire West. Accelerate your career with Harvard ManageMentor. 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. Second, the economic structure is different. For instance, a business that wants to invest in China from the US, it must be prepared for more restrictions and should not expect Chines courts to consider the condition that leads to a certain situation since their law does not permit this. A cleaner in Chongqing now owns several apartments because the CCP reformed property laws. Hence the old joke that Chinas definition of a win-win scenario is one in which China wins twice. 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. It is, therefore, against nature itself and arguably a violation of international human and legal rights for anyone to attempt to get rid of diversity, which is exactly what the U.S. is trying to do all across the world through its messianic zeal in imposing its political system onto all others. The economic nationalism model that ultimately serves U.S. economic interests. 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. Learn how to overcome barriers when working globally. The US is a developed country, its national infrastructure has essentially been completed; China is a developing country and is undergoing large-scale infrastructure construction. The only obligation they have is to follow the law that in most cases is straightforward. 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. 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. 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). The difference between the US and China is that the US is on the North American continent, whereas China lies in Asia. Under this view, whether or not other countries are free and democratic, or whether others deem the U.S. to be so, matters less than the economic benefits the U.S. deserves, including a favorable balance of trade and jobs. 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. For any deep analysis of the ideological aspects of the China-U.S. rivalry to be complete, two questions need to be answered: What political interests do the ideologies serve, and in what forms are they presented? 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. 10. Business in the United States moves at a different pace from China. Trumps trade war was an abject failure. Ideological competition between China and the U.S. in recent years comes in three basic models: The nationalist hegemony model that ultimately serves U.S. hegemonistic purposes in the international community. 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. Springer. In November 2020 Chinas trade surplus with the U.S. was 70% greater than it had been in January 2017, when Donald Trump took office. Citizen engagement is a necessary facet of not just American politics but also a democratic state. You cant become a senior leader in China without having proved your worth as a manager. One thing hasnt changed, though: Many Western politicians and business executives still dont get China. How accessible is it these days? 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. 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. Accept that economic development in China will not inevitably lead to democracy; acknowledge that the Chinese regard their government as both legitimate and effective; and recognize that while Chinese consumers have short-term horizons, their rulers are focused on the countrys long-term security. Weijian Shan was born in China and had his life upended by the Cultural Revolution. But much of the technological progress has come from a highly innovative and well-funded military that has invested heavily in Chinas burgeoning new industries. Land use is the most direct manifestation of human activities, accompanied by changes in land cover. 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. Earn badges to share on LinkedIn and your resume. The top diplomat also condemned the U.S.'s description of his country as "authoritarian" simply because its democracy is different than America's. In other words, the U.S. position as hegemon doesnt necessarily bring it any economic benefits. Sorry, but it's not possible to copy the text due to security reasons. In fact, the pandemic has made the world, Out of the Gobi: My Story of China and America, Money Games: The Inside Story of How American Dealmakers Saved Koreas Most Iconic Bank. They still blame foreign interference for many of their misfortunes, even if it occurred more than a century ago. Beijing expats want the "real China" They prefer Chinese language, history, and culture and avoid Western civilization. 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. With less than a quarter of Chinas population, America has a death toll about 100 times Chinas and counting. 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. Until that happens, the world will remain unstable as the U.S. aggressively tries to eliminate political diversity. 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. Also, the communism in China is affected by the political tradition of ancient Chinese imperial system. 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. 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. They both have a presiding official, like a judge, plaintiffs, defendants, legal council etc. The name of the game in China is scale. 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. It is important to understand the background of the. Today the differences are arguably a lot smaller, and there are many areas in which the two can benefit from cooperation. 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. Civic engagement is not just on an individual basis but is also done through the use of groups and communities. Chinas rulers see foreign engagement as a source less of opportunity than of threat, uncertainty, and even humiliation. 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 CPC runs the country while the other non communist parties play the role of participatory. 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. Familiarity with Leninist doctrine is still important for getting ahead. 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. Even though both countries are different in every way, they are still recognized as each others competition in the International Arena. Get a 100% original essay FROM A CERTIFIED WRITER! 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. 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. HBR Learnings online leadership training helps you hone your skills with courses like Global Collaboration. Globalization. Moving from Beijing to Shanghai has made my Mandarin worse. 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