Compare the Political Regime Type in China and the United States

A country’s regimes are imposed to protect the country’s interest, but these protections will create unavoidable conflict-of-interest where businesses are conducted. Likewise, the super power China and the United States, the perpetual political changes create a direct implication to the day-to-day business activities and the type business investment plan to enter the country.

Hence, conflict-of-interests are commonly tensions between the different in political ideologies, social issues, historical and culture background. As these interests are the catalysts to the type of regimes that the country will impose; moreover, these regimes will favour the different types of industries. For that reason, the organisations need to conduct analysis on the political system carefully, so that they can better prepare and outperform their business objectives.

Based on the four catalysts, this essay will examine and analysis the different regimes that Chinese government and United States government exercise which will have a lateral effect on the organisation’s business planning process; which focus on different perspective of the employment contract politics and human right regime as well as the transparency between the two government bodies.

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Political ideologies can be describe as the “field of conceptual meaning created by recurring patterns of conceptual terms and associated policies found in the discourse of politicians as they participate in formal political processes under real-time conditions. ” {text:bibliography-mark} . Hence, the major types of ideologies will go through reformation and adjustment, where by old and unsuitable policy is replaced by the new policy. These changes or reformation can be observed from the different perspective between the Democracy and communist ideology. United States believe neo-liberalism which is part of the Democracy ideology.

Currently, she is under the control by the two major political parties; the Republicans and the Democrats which they are constantly changeling the democracy ideology. Moreover, the present 44th presidency, Mr Obama is facing the changeling political reformation changes against the global financial crisis and job creation for his people. On the other hand, China functions base on the political ideology of Communism. The founder of Chinese Communist Party (CCP), Mao Tse-Tung unify the whole of China under one political party, and the late 1990’s, the party’s Premier Zhu Rongji open its economic.

Peking government functions much like the United States, but the decision making is control by the central government, which include ministries who are responsible for key areas, such as economic planning and production. The central government decision making process follow a bureaucrat system {text:bibliography-mark} , The origin of employment contract politics and human right regime could be trace back to historical records. Such policies were found during the early Roman Empire, whereby civilian workers and contractor were protected by law {text:bibliography-mark} .

Laws were regulated to protect the civilian workers and contractor against the market imperfection; for example the legally binding of the workers contract about the scoop of work and duties of work was agreed upon. As so, this is to prevent any discrepancy between them. The law ought to be passed down by the Roman magistrates, much like modern days law that are passed down by the United States department of labour; in which state The Contract Work Hours and Safety Standards Act (CWHSSA) that protect the interest of the employee {text:bibliography-mark} ; it will improve the general relationship between the organisation and the employee.

Although it can be argued that having too much regulation will increase the return of investment {text:bibliography-mark} , but; according to Federal Arbitration Act (FAA), there are a relationships that drawn between the employment contract politics and human right regime {text:bibliography-mark} . Of course, considering that the modern regulation are extremely well accounted.

Hence, employment in United State require a continue update of the new regime and employment contacts will have to come to common ground which are for the best interest of both side. Conversely, the Chinese Communist Party (CCP) do have regime to protect the employee interest and human right, but till date the Peking government are constantly having criticism over the labour law and the human right issues {text:bibliography-mark} . Much of the regimes have had been passed down, but the regime are poorly regulated {text:bibliography-mark} .

For these issues, organization found a perfect loophole to exercise the market imperfection; a topical example is to exercise the low wage labour cost factor and the extension of the working hours or the condition of the working environment. Moreover, it can draw consent to corporate social responsibility (CSR) for the types of working environment factor worker were subjected too {text:bibliography-mark} . These impose an image of ‘playing good in their country, but playing bad on the other’.

However, since the Peking government had entered the WTO in 2001, the Peking government is providing a perpetual change of their regime and improvement of enforcing the regime {text:bibliography-mark} ; hence the playground for market imperfection will not last long. Erstwhile, some of the modern political ideologies could be traced back to the Roman Empire, whereby historical evidence provides the foundation of the different types of political ideologies.

In additional to the argument, manufacturing industries are likely to venture into the different region of the developing cities of China to do their mass production process. In this grey area, the industries take advantages of the poorly regulated regime and the human right issues. But some company had forgotten about the imprecation to the prestige of their brand name; just like the case of Reebok {text:bibliography-mark} whereby unethical working conditions were practices.

Untimely, the ethical investments will ounce between the cost factor; manufacturing product in Unite State which will incur the cost of production, or manufacturing product in China will losing the prestige of the brand. Where, the company failure to consider the imprecation in employment contract politics and human right issues will obliterate the brand equity, however most company had out-weighted the cost benefit, and had move their manufacturing into China. Transparency of the government, play a part in the business planning process, in term of investment and financing management {text:bibliography-mark} .

For example, the Basel I was later replace by “Basel II capital accord framework” {text:bibliography-mark} had presented a challenge for the financial organisation operating in United States to please both the government bodies and the distribution of the shareholder wealth. This regime targets the financial institution to improve on their transparency and accountability as well as reducing the chances of another global financial crisis; which had swept through the whole business environment.

In this issue, it can be argue that the financial institution had too much deregulation, in term allow less transparency or accountability to be reported. Consequently, this new policy will have an implication on the business model. On the other hand, during election times political incentives seem to be different; which float between deregulation near election and regulation after election {text:bibliography-mark} . However, China has new government policy; moving toward transparency of government, that allows China to open its trading door.

Erstwhile, Peking government had major concerns in their early reformation, which were to resolve the food and agriculture shortage and follow by reformation of the country internal industrial department for its nation internal economy. This is done without the need of infecting with capitalism ideology, in fact, they were moving toward a self-sustainable nation, but due to the operate on a bureaucrat system, it take a longer than usual time for each regime to be pass through effectively and transparent throughout the entire nation.

Although, the Peking government bring into disrepute of capitalism, the early communism system did issue “more than 4,000 statutes and regulations by the Peking regime up to 1958” {text:bibliography-mark} . At that time, these regimes were issues to regulate the national economy. Most likely, the culture aspect and the style of governing the county have courses them to be less transparent. To a degree of consideration, private ownership entities were executed, if there were more than seven workers {text:bibliography-mark} .

However, the effectiveness and transparency of these regimes were yet to be measure or suggested that were carryout and regulated. Beside much of these regimes are mucky and often being questioned by international media. Till date, these processes are often close door discussion as regime will not be allowed to issues to the public until the central government pass the bill. It is agreeable that for foreign direct investment company, who require latest information about the regime, are moving out of the country because of poor understanding of the business political culture {text:bibliography-mark} .

However, China rapid GDP growth had force the “government bargaining to a degree of mutual dependence or interdependence” {text:bibliography-mark} . Moreover, the Peking government are working on new regime that will balance between the government and business investment. In return, this type of reformation will allow more foreign investor, as regime become more attractive to the investment. A conclusive agreement and analysis show that international business will continue to move into China, despite that contract politics and human right regime have impact on the prestige of the brand.

Perhaps, the reformation towards a transparent government intervention has favour business. Where comparing evidence suggests that, doing business in Unite State is having a higher cost factor, hence this issues have out-weighted businesses to shaft to other possible solution. Although the State transparency is excellent but can be dissimilar at time. Party, each regime that is implemented or adopted is directly affected by the four conditions. Moreover, these conflict-of-interests shell be address by the corporation before investing. Reference

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