From the statistic results, Amazon is the world’s 9th most-visited website, while TaoBao, an online shopping portal owned by Alibaba, is the world’s 10th most-visited website. Besides, in 2017, Amazon had earned almost ten times as much as Alibaba did, with $74.45 billion in revenue, while Alibaba had earned $7.95 billion in this year. However, Amazon ended the 4th quarter of 2017 with 0.94 percent margins, while Alibaba’s margin in that year were closer to 50 percent. Specifically, Amazon reached a same-day sales record on Cyber Monday 2017, when customers ordered at a rate of 426 items per second for a grand total of more than 36.8 million items, however, Amazon didn’t disclose its revenue figures. As for Alibaba, it also reached its same-day sales record in 2017 on November 11th. On that day, a student-created holiday known as “Single Day”, TaoBao vendors sold over $5.75 billion (￥32.019 billion) worth of product(Peterson).
Apart from that, Amazon went public in 1997 at a valuation of $438 million. Now it has a market cap of $157.52 billion. Alibaba Group went to IPO in New York in late 2017 at a valuation that put its market cap at $168 billion. Theses facts reflected the economic situations in China and America. China has a young and broad market, where increasingly filled with great power of consumption and many ambitious enterprises. In China, E-commerce activities are very frequent so that whole market is quiet lively. While in America, due to its E-business start earlier and already becomes a mature and stable market, its market activities may not as active as Chinese, and it need more stimulation to improve its development rate if America market want to maintain its leading position.
As for America, taxation system is a reflection of its advanced economic policy, since congress provided the original edition it has been modified a lot and it becomes a mature system. According some literature, the capital cost and the marginal effective tax rate in America are calculated with the estimates of substitution possibilities by enterprise and households in analyzing tax and spending programs. The economic impaction on America tax policies have taken two ways. The first one is that the cost of capital has been integrated into investment functions in macroeconomic models, which are used to assess the responses to tax policy changes in a short term. Secondly, the capital cost approach has been incorporated into applied general-equilibrium models used in evaluating the economic effects of tax reforms in a long term(Jorgenson 3).
Therefore, it would retain the income tax foundation of the existing America taxation system, but it could also equalize tax burdens on all forms of assets, mean and marginal tax rates on labor income. Besides, it would regard consumption for income as a basis taxation, while equating mean and marginal tax rates on the income of labor.
In China, things are different. China is a country where to the economic laws and institutions are still under developing, and the growth of economic activities are always influenced by them. In other words, although it has one of the fastest growing economies, neither its legal nor taxation system is well developed. Therefore, the typical economic policy problem in China is about the relationship between the State Section, Listed Sector, and the Private Section.
While the law–finance–growth nexus applies to the State Sector and the Listed Sector, with arguably poorer applicable legal and financial mechanisms, the Private Sector grows much faster than the others and provides most of the economy's growth. The imbalance among the three sectors suggests that alternative financing channels and governance mechanisms, such as those based on reputation and relationships, support the growth of the Private Sector (Allen 57-116).
As the result, although the Private Section like private company and foreign company may grows fast and earn more profits, it also shows that the Chinese government can control the market through modify the economic policies. Therefore, the Private Section believe that their business would be influenced a lot by government’s economic policy, and in most cases, the economic policy is used to protect the benefit of the State Sector and the Listed Sector. In other words, private company and foreign company can only get the development opportunities when the government gives chance to them.
There are many cultural difference between China and America. These differences do not means any culture better or worse than the other one. It just shows the cultural differences which has been created by their own centuries of history and development during a quite long time. China can trace its traditions and histories for thousands of years. America is still a young nation comparatively and has had very few traditions which owned by itself, but it has become such a melting pot of cultures. Although there is almost no specific American culture, America can accept so many cultures from other countries and integrate them very well, so that these cultures can be applied across the board. All these things make China and America cultures unique and worthy of study and respect.
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