Compare the Political Regime Type in China And the United States. Which of Two Would You Prefer to Do Business in and Why?
Organizations, Politics & Society
Tutorial time: Monday in each week, 5pm
Tutor: Keith Ng
Due date: 18th February 2011
Everything has its two sides, so as the political regimes, they are protecting the country’s interests, however, at the same time resisting and limiting the development of the economy of the country in some ways. As the top two powerful economic units of the world, United States and China have two totally different types of political regimes, which both have their own characteristics and significantly influences on the economy environment and business market of their countries? In the modern world, many different types of political regimes existing together at the same time from the range of directly democratic political regime to military dictatorships even fascism. And each type of country’s regime will create unavoidable conflict-of-interest in business level, thus to have a better understanding of one country’s political system is getting increasingly important for an organization’s business planning and decision making. As a result, this essay will start from the introduction of the two different types of regimes that United States and China government applied and which will have a lateral effect on stability of politics; which has a focus on intellectual propriety protection; which provide a better tax policy for foreigner investment and which government prefer a powerful control on business market. Body
United States believes neo-liberalism, which according to Campbell and Pedersen (2001) is “heterogeneous set of institutions consisting of various ideas, social and economic policies, and ways of organizing political and economic activity. It includes institutionalized normative principles favoring free-market solutions to economic problems, rather than bargaining or indicative planning, and a dedication to controlling inflation even at the expense of full employment.” Actually neo-liberalism stands as a part of the Democracy ideology, which the business market is quite free for any investment from both in and outside world. On the other hand, as People’s Republic of China (PRC) was founded on 1st October 1949, PRC has become a “one-party” country and significant affected the structure of political system of China. China believes communism, which could be traced to Marxism of class struggle plays a central role in understanding society’s allegedly inevitable development from bourgeois oppression under capitalism to a socialist and ultimately classless society. Based on introduction above, China and America are representing two totally different types of political regimes and each of them has a dramatic influence on business level. The following will have comparisons from four aspects between China and Unite States to determine the effects brought by different types of political regimes. Firstly, China has a more stable political environment than United States, as China is “one-party” state since 1949 and politicians could set and apply a long-term policy without any invasions from other parties with different opinions, which in most cases be good for creating a stable and persistence economic market. For instance, “on 1978 Deng Xiaoping prompted the “open door” policy, since then China has ushered in a new era of modernization and growth.” (Valeria 2008) Now 32years has gone, open the market to outside world is still insisted by Chinese government and the “GDP growth rate of China is keeping above 8 per cent these years.” (Valeria2008) Moreover, under the backdrop of “open door” policy there is creating “a lot of opportunities for foreign direct investment (FDI), and made China the largest recipient of FDI since 2003.” (Valeria 2008) However, in United States, different parties will be bias for their own...
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