Political Regime in China and the United States

In the world, there are many countries that they adopt a distinctive political perspective which affects their political regime in many parts including economy, society, business system, and culture. The political regime type is greatly significant in each country when they decide the overall regulation or structure of legislation. Generally, the political rules can be changed by the internal factors or the external factors such as global finance crisis so the organisations should analyse entire political regime well when they do business in other country such as the United States and China. Both countries have visibly different political regime type by following ideology and political basis. The United States has adopted liberalism and neoliberalism which well-known as the equality and liberty society (Macdonald & Ruckert, 2009), and they strongly follows free market, free government, and free business so it effects on the highest economic performance in terms of economy growth and variety fields in business(Kotz, 2002). In contrast, China began to adopt socialism and communism as their political base (Tsai, 2007) so their political structure aims to make communist welfare society, however, they recognized that need to reform some political areas due to rapid economic growth rate. In other words, the political regime is based on their own value and ideology therefore the organisations need to recognize each countries feature. At this point, the scope of this paper will be treating how each government can effects on business depends on a political regime. Next the comparison between both country, it will discuss that how the government affects on business part of each situation which would be more effective when the organisation decide to do a new business in each country. Particularly, on the basis of various data and conditions, it will take strength of business in the U.S by suggesting certain reasons.

Before start to discuss the issue, it is necessary to compare the political regime type. It is important that analysing differences between the both countries should compare political structure and its influence on several areas (Pitta, D. A, 1999) First of all, in terms of China, they followed Maoism which created by Mao Zedong who was a constructor of china (Li, 2004). He had raise up China’s revolution so most of policies focused on famers’ condition because its history was not stable in their life (Robcis, C, 2012). In addition to revolution, the old civil and education systems were renewed so lots of student started to studying abroad such as the United States, and Japan. These kinds of students learned revolutionary ideas and innovative academic knowledge. After that, China started to accept socialism and communism as their political basis and through those ideologies, China acquires enormous power since 1949, by political party named Chinese Community Party (CCP) (Martin, 2010). As the world change to globalization and China