Political Regime, USA and China
It is important to examine the legal-political environment of any country and determine
how it affects the business life. In view of that, it is important to reflect on the interplay of
political factors to determine which provides the preferable business environment. However, the political regime of any country comprises the unique framework of beliefs, values recognized by its political actors, and ideals of behaviour developing over time. Although understanding the differences between China and USA political regimes does not guarantee success of the venture, it helps determine which environment makes the enterprise easier.
The initial focus lay in their different political systems, upon which other forces derive their foundation. China operates a centralized system and vertical governance structure comprising central, provincial and local agencies. This illustrates that provincial and local levels subordinate to the decisions reached from the central government and serve to implement orders received from the higher leadership (Fang, 2012). Considering its size, enforcement of central government polices encounters localized atmosphere leading to different implementation. This bleeds a turbulent environment for conducting business. In contrast, the USA federalist system offers a power-sharing platform between the federal and state governments. The authority of each is set clear within the framework, replicated in exclusive jurisdiction between the state and local governments (Fang, 2012). Considering that the latter provides a mature liberal-economical atmosphere, it creates a stable business environment at USA.
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[...] Chou, J. A., & Ratner, M. (2011). The Influence of Confucius on Intellectual Property Rights in China . Journal of Emerging Markets, 8-16. Fang, G. (2012). U.S./China Differences and their Impacts on Business Behaviors . North Carolina: Womble Carlyle Sandridge & Rice. Jalalzai, F., & Krook, M. L. (2010). Beyond Hillary and Benazir: Women's Political Leadership Worldwide. [...]
[...] This leaves the ruling authorities in control of all production resources, thus a difficult tuff to conduct investments (Cho, 2011). Therefore, China disregards individual freedom to own risks and attain rewards attributed with investment. The difference in the political structures arising from their unique legal systems not only affects the social settings, but also dictates the business climate. While the legal-political system in the USA recognizes merit, the liberal-economic transition in China generates a turbulent atmosphere of conducting business. The specific legal framework in the U.S. aids the enforcement of contracts and the fulfilment of commercial obligations. [...]
[...] This ensues from the slow pace adopted in formalizing its legal system, condemning most business relationships to the risky traditional set ups. For instance, while the U.S. legal system upholds binding clauses provided in the contracts, Chinese attach significance to memorandums that are non-binding in the former system (Fang, 2012). That said on China, it disadvantages a start-up business owing to its weak legal institution to enforce contracts and oversee business transactions. The U.S political structure allows growth of an economy driven by unique capitalism, unlike the restrictive policies characterising China's communism. [...]
[...] On the contrary, the civil society in the U.S. remains politically empowered to provide active public input to the foundation of the democratic system. Mostly, the political parties link the civil society to the government policies, where they enhance the rule of law through activism and serve as public input to the existing political system (Juviler, 2011). Absence of an active civil society in China denies the business community an essential ambassador of fairness and equality in policymaking. Further isolation of the two political regimes arises from the scope occupied by policies striving for gender equality. [...]
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