A comparison between China and the USA is increasingly becoming tougher. Earlier, the major distinction used to be the fact that the US was the leading capitalist country, whereas China was a major communist bloc country. After the bringing down of the iron curtain and the fast progress under globalization, this distinction has been reduced to that of degrees, with China all set to assume the role of leading economic power of the world. Hannon (2005) says that most discussions about the impact of globalization on Asian countries essentially center around one country, i.e., China. Despite the fact that China had a difficult ideological history and its entrenched structures to stave off, it comfortably overtook other Asian countries in recording economic growth in the past decade and a half. In fact, most of the transition countries (erstwhile communist countries that are making a transition from communist politico-economic system to free-market economies), including communist giants such as Russia, look forward to emulating the transition model adopted by China. “While strategies followed in much of the rest of the world paid little attention to institutions, to what I have called the organizational/social capital, China embarked on an evolutionary transition, which transformed much of the existing institutional structure”(Stiglitz,1998). As Hawkins (Centralization) says,” In recent publications, some Western scholars have used the term “decentralization” to describe the nature of evolutionary reform in different sectors of the country.” In the US, the society is much more of a melting pot concept where international communities and cultures arrive, exit, and work on the basis of competitive skills. Chinese society, on the other hand, has always been a polarized society. There have been distinctions of class and caste which have been ingrained pretty deep in Chinese society for a long and since the Mongol Yuan Dynasty devised the discriminatory society in China, which divided people in China into four groups, in a caste-like system. It hardly needs stating that what China is and how it will develop is of major importance for all of us. China is not only a culture that has contributed in different ways over a long period to world cultures but is today one of the most populous and potentially powerful countries in the world (Price, 1997). It was in present-day China that a brand new discriminating caste society was consciously built with an intended objective to ensure political control in human flows as well as economic exploitation. The tool for economic exploitation was the so-called agri-industrial price scissor differential, namely, the peasants would surrender their grains to the government at a pre-fixed price. This caste society was crueler than the Indian caste system or South Africa’s apartheid in that babies, at birth, were predestined to be in the same caste of the mother and had no prospects of marrying outside of the caste (i.e., peasants) and therefore were locked in the consummative manner in the vicious circle. Since peasants don’t have the means of changing their status quo, they are destined to live in their caste not only for their lives but for generations. The employment opportunities and the work