China And China Case Study

1243 Words3 Pages
bulb-icon

Recommended: The relationship between China and the US

China is a large, vast country that compares with the size of its enormous population and has been influential on other countries in the world and continues to do so through business and trade. China has also been considered the United State’s top trading partners in both imports and exports. Business between the US and China have only increased since the 1990’s when the US acknowledged China as a “most favored nation” because of strong commercial ties. The question concerning US and China’s trading relations is, “how well is this partnership and has it become more of a give and take relationship?” due to the decline of the American economy with the increasing Chinese economy in recent years. To begin with, China has always had a big focus on labor since Mao Zedong’s Cultural Revolution. During the late 1950s, Chairman Mao ruled China under the Communist party and led the country to become agriculturally based. By this, labor was intensive and would make up much of the country’s society and economy. Because China’s population was so large, labor was not much of a concern and this trend has continued even today in China’s more developed and modernized economy. In fact, China’s labor force is what supplies many of the goods that are sold and used in the United States alone which has led to an outstanding 1.3 trillion dollars in debt to China as of 2013. Any American consumer is more than aware that just about every product they buy has a “Made in China” label either printed on it or shown by a sticker. However, while many Americans purchase these ‘Made in China’ products, they do not always realize how much more they are contributing to the debt that is currently owed to China. In addition to the vast amount of profit going into... ... middle of paper ... ... shoes for long hours with little pay. This may be a motivating factor that will urge some Americans to make the transition from China-made goods and turning to US-made goods, possibly even boycotting “made in China” products entirely. In conclusion, while the national debt is a major concern for the United States and how it will affect our country in the future, there are definitely some solutions that Americans can take to stop the contributions to China’s hold on our money. Currently, despite the US and China being close trade partners, the trade relationship appears to be more of a give and take with all of the benefits toward China’s economy. While trying to pay off the 1.3 trillion dollar debt to China may seem like doing the impossible, there are definitely ways Americans can support their economy and stop our money from going straight into China’s hands.

Show More
Related

  • Interdependence In China

    1222 Words  | 3 Pages

    Moreover, economic interdependence promotes peaceful trade between countries since it is beneficial and avoids war at all cost. For example, “China’s economy is thoroughly integrated in this complex interdependence global economy,” thus it would be suicidal for China to start war (Wong, The Rise of Great Powers, Nov.18). China free trades with the Association of Southeast Asian Nations (ASEAN) and has developed a profitable relationship that led to trade surplus (Kaplan, pg.3). As a result, starting conflicts with the ASEAN will threaten the Chinese economy because it will drastically impact free trade and will cause a downfall in profits. The possibility of war between China and United States is remote because China would rather benefit from resources such as, security, technology, and market that United States provides (Wong, The Rise of Great Powers, Nov.18). Although economic power shifts to China, United States provides security because it has always been the dominant hegemony; therefore, it has a better and powerful economy (Green, pg.34). It is evident that China’s economy is rapidly increasing, but it still has no interest in being the head hegemony and therefore does not challenge United States. That being said, countries choose to avoid conflicts with United States or their trading partners since it will negatively impact their markets and investments.

    Read More

  • The National Debt

    1565 Words  | 4 Pages

    Every day in New York City, hundreds of people walk past a huge digital billboard with giant numbers across its face. Each person who walks past this billboard sees a slightly different arrangement of numbers, growing larger every second. This board is the National Debt Clock, representing the over 14 trillion dollars currently owed by the United States. While some people claim that the national debt is caused by the falling economy, most maintain that the debt itself causes the poor economy (Budget Deficits 2007). Rising debt leads to higher interest and investment rates, and cuts into our national savings. Ignoring the national debt leaves the major burden of paying it off to later generations, while meanwhile allowing our country’s economy to further drop and our dependency on other nations to rise.

    Read More

  • The Negative Effects Of Chinese Trade In China

    684 Words  | 2 Pages

    China’s trade with the world grew substantially in the first three decades of the 20th century, marking a historic time for the country. In the 1840s, the Chinese economy was strongly closed; however, when Great Britain and other powerful countries pressured their economy, China was willing to open international trade within their own economy. Over the next 60 years, China experienced a small opening of trade amongst other foreign powers, allowing transactions amongst foreigners allowed. The funded railroad aroused industrialization, as well as publicity and overseas shipping (Yan, 2014). The main reason for moderation in China is because they are so much more focused on production rather than consumption. Last year, China’s consumption accounted for 35 percent of their economy; a little over 10 years ago, it was rated that 50 percent accounted for their overall consumption (Reich, 2010). Foreign exports and imports arose dramatically, increasing the yearly expansion rate of trade to about 7.4 percent. The Chinese economies share in world trade grew a little under 2 percent from the late 1800s to the mid 1900s. By the early 20th century, comparative advantage was presented all throughout their economy (Yan, 2014).

    Read More

  • Why Corporations Are Bad for America

    862 Words  | 2 Pages

    Corporations in the United States have proved time and time again that they are all about profit and not about what is good for America. One example of this is the fact that many corporations have factories in other countries, or buy from other corporations that do. Nike (an athletic shoe and clothing company) produces most of their shoes and apparel in factories in other countries, including Japan, South Korea, Indonesia, China, Vietnam and Malaysia. According to Nike’s factory disclosure list released May 2011, only 49 of it’s over 700 factories are located in the U.S. (Nike, Inc.) This means that thousands of jobs that could be filled by needy Americans are instead being filled by workers in other countries. This reason that Nike and other corporations outsource is very simple, it is very cheap to do so. In an excerpt from Jeffrey St. Clair's book “Born Under a Bad Sky” the author describes the vast differences between Nike’s production costs and retail prices. “In Vietnam, it costs Nike only $1.50 to manufactu...

    Read More

  • The Nonthreatening Rise of China

    1952 Words  | 4 Pages

    For the past twenty-five years, China has witnessed an overall increase in its domestic growth (Fischler 148). According to the article, “The Rise of China as a Global Power,” by Dr. Rosita Dellios, China “is the world's fourth largest trading nation, rising from 32nd in 1978 to 10th in 1997.” Similarly, China’s GDP is also second to the United States of America, generating 13 percent of the world’s output (Dellios). Since China’s introduction into the World Trade Organization in December 2001, its average tariff dropped from 41 percent in 1992 to 6 percent in 2001, becoming one of the most open economies in the world (Dellios). China is also the world’s fastest developing economy, obtaining an annual growth of 9.5 percent through foreign direct investment, low labor rates, emerging markets, and growth expansion. (Dellios). Therefore, the 21st century has been titled the “Chinese Century”, as China has become the second-largest international economy in the world (Ji-lin 15).

    Read More

  • The United States National Debt

    820 Words  | 2 Pages

    We hear about the debt almost every day: news talks about it, politicians argue about it, even President Obama gives speeches on it. So what is the significance behind it? In this article I am going to explain briefly what the national debt is, how big it is, and what it has to do with us.

    Read More

  • Government: Canada And China

    698 Words  | 2 Pages

    The two countries I have chosen to compare are China and Canada. Their systems of government are very different and have different powers and rolls in their country. Canada has a system of government very similar to our own. While china's government appears to be similar as well, but it is quite different. Canada's government democratic and is parliamentary in form but, very much like our own. Like all large governments it is representative democracy.

    Read More

  • The Rising China and the United States

    733 Words  | 2 Pages

    To sum up, the future trend of the Sino-US relation is to cooperate through competition, which is the “competitive coexistence”. China is growing, which is the reality that the U.S has to accept, and the interdependence between China and the U.S is stronger than ever before both politically and economically. Therefore, just as Robert (2013) pointed out in his article “the explore of a new type of great-power relationship would not only help the most two powerful countries to avoid the Thucydides trap, but also allow the world to become more vibrant and invigorated”. In other words, cooperate bring more benefits to the U.S. rather than compete with the rising China.

    Read More

  • Economic Effects Of The Walmart Effect

    1377 Words  | 3 Pages

    In china, for example, Wal-Mart’s importing operations have significantly affected the manufacturing sector in a manner that gradually unemployment has been stimulated (Holmes 1). The trade deficit between Wal-Mart and China have led to a loss of almost one hundred and thirty- three employment opportunities, especially with Wal-Mart importations. Despite China’s efforts of trying to purchase United States’ treasury bills along with federal securities in an effort to reduce the exportation costs to America, Wal-Mart’s entry into the Chinese market has propelled china’s labor abuse along with internal violations of recognized trade norms (Fishman 1). This is caused by the retail’s growing and vast conduit that allows the distribution of subsidized and cheap Chinese exports to the doorsteps of United States’ market (Neumark, Junfu, and Stephen

    Read More

  • Trade Deficit

    1479 Words  | 3 Pages

    A nation that possesses strong industry, a favorable trade balance, and a lack of dependency upon foreign states is optimum. This ideology is one that has been strongly advocated throughout America’s existence, by politicians from Alexander Hamilton to Pat Buchanan. When a nation faces a trade deficit, it means that competing states are producing more efficiently, and ultimately making profiting. Also, a deficit means that industry and jobs, which could exist domestically, are being “stolen” by foreign nations. According to mercantile policy, this is a zero-sum game; when a competitor is winning, we are losing. The United States faces this situation, having evolved from the world’s largest creditor nation during and following World War II to its current position as the world’s largest debtor. Because America imports much more than it exports, an additional 600 billion dollars is needed every year to balance the equation. This money is “borrowed” through the sale of government assets, sometimes to domestic investors, but increasingly to foreign ones. Many circumstances can be blamed for this situation: cheap foreign labor, foreign government subsidy, and closed foreign markets, among others. The question therefore arises: how to negate obstacle...

    Read More

  • The Relationship between the US and China

    1491 Words  | 3 Pages

    From the beginning of their establishment, the bilateral relations between the United States of America and China have changed throughout the time. The bilateral relations between the two countries emerged in the 1970’s with the ‘Ping-Pong’ diplomacy and there have been many pauses in their mutual relations. The US and China enjoyed cooperation in economic and military spheres and the mutual relations grew massively during until the end of 1990’s. The heads of the two states began visiting each other’s countries and the economic ties were tightening year by year. However, the issues of human rights and free speech declined mutual Sino-American relations.

    Read More

  • China's Development

    1177 Words  | 3 Pages

    China's development is praised by the whole world. Its developments are not only in the economic aspect, but as well in its foreign affairs. Compared with other developed countries, China is a relatively young country. It began constructing itself in 1949. After 30 years of growth, company ownership had experienced unprecedented changes. Entirely, non-state-owned companies can now be more involved in sectors that used to be monopolized by state-owned companies.

    Read More

  • Compare and Contrast: China and The USA

    926 Words  | 2 Pages

    Finally, the United States political system has a strong structural structure but in China their people always work together to be the best and stand out in the world. It is predicted that China will one day be the largest economy-growing country in the world. They continually grow and rebalance their world to be the best. The growth of the economy will depend on the Chinese government's comprehensive economic reforms that more quickly accelerate China's transition to a free market economy. Consumer demand, rather than exporting, is the main engine of economic growth; boost productivity and innovation; address growing income disparities; and enhance environmental protection.

    Read More

  • The Threat of China

    784 Words  | 2 Pages

    In the race to be the best, China is clearly outperforming the United States. China has strong economic fundamentals¬ such as “a high savings rate, huge labor pool, and powerful work ethic” (Rachman, Gideon. "Think Again: American Decline). Their economy has grown an astonishing 9-10% over the past thirty years; almost double of what it used to be decades ago. China is also the “world’s greatest manufacturer and its greatest market” (Rachman). The continuing growth of China's economy is a source of concern for not only the U.S. but surrounding nations as well. One could argue that the U.S. need not worry about China’s growth because of the spread of globalization and that western ideologies would influence China to turn to democracy. Yet China has still managed to “incorporate censorship and one party rule with continuing economic success” (Rachman) and remains a communist country. Hypothetically, even if China does resort to a democratic state, this does not gua...

    Read More

  • China: Rising to Be the Next Superpower?

    975 Words  | 2 Pages

    China has also expanded their trading industries with countries such as South Korea, Japan, Taiwan, ASEAN, India, Russia and Hong Kong. This has not satisfied the Chinese greed for income as they also export and import goods to American countries, name...

    Read More

More about China And China Case Study

Open Document