Compare the regime policy between US and China

Topics: Communism, Economics, Communist state Pages: 5 (1673 words) Published: February 25, 2014

When a business keep getting bigger inside the nation, manager usually looking for another country to invest in and expand their businesses. This is the result of the era of globalization economic. Marxism and Liberalism are one of the few ideologies that are suggested. Each country has adopted different ideology that suit to their background and unique culture (Savairo 2003, 103). Political regime of each country is one of those important things to look at when they choose a country to penetrate. In China and United States (US), any changes in their regime will not just affect inside the nation but can affect the global economic since they are the two biggest economics in the world. This paper will briefly describe the differences in political regime between China and US; and argue on which country should be choose to have business with; with electronic manufacturing industry as specific. Early 1950s, the Communist Party of China (CPC) had defeated the Kuomintang Party (KPT); after that, they appointed Mao Zedong as the leader of China, he had turned China into Communism. Until the present, China is a completely Communism country and CPC take all the controlling of the political system in China (Krieger 2001, 98). Karl Marx was developed his ideal of Communism world with the goal is to remove boundaries between rich and poor, high and low classes in both social and economic; to improving the low class lives and limit some of the high class assets by eliminating the ownership of property. By doing so, equal opportunities and better standard of living and health care can be achieved (Vincent 1996, 100). Lansford (2007, 190), stated that the communist government will take the profit that earned by companies and distributed equally in the society while companies keeping and using the property. Most of the key industries are actually belong to the communist government. For example, there are eight of tenth largest steel companies in China that are 100% owned and controlled by the government (Gravatt & Parr 2010, 76). Over the past decade, China have incredibly increase its global export shares to 3 percent to 10 percent, that make it become the biggest export country in the world, to surpassed Germany, China is also surpassed Japan to become the second biggest economy in the world and the third-largest in import (Anonymous 2010, 23). China economy now is a sweet cake to foreign investors because of it fast growing economy while the government try to keep its cost of production and labour as low as possible compare to US and Europe to attract more of the foreign capital. Moreover, it brings advantages for investors to operate their businesses in China as their cost of production can be minimized by saving cost on spending in wages for labour in order to maximize their profits (Fan 2007, 447). In the electronic manufacturing industry, there are a few disadvantages that China brought to its investors. For instances, product quality and standards that manufactured in China are quite low. The government did make some adjustment in the policy to increase the product quality but the real outcome has yet to achieve (Chung 2008, 730). Since living standards in China is not so high, the lifestyle and tradition have invisibly create a burden on the workers, their salaries is too low to take care of their whole family, there are nothing to guarantee for their children’s future. In that situation, it would be hard to be creativity and productive as the workers in Europe and US. The trouble is also lying in the worker minds because they do not care about products quality since it is the manager responsibilities; they just want to increase quantity to increase the salary (Lubo 2007). There are research recently have showed that quality is what holding customers back from purchase products (Baji and Sekhar 2013, 24). As a business in China, beside the skills, talent, there are one more important thing is relations. A good relation with...

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