But this should come with no surprise; after all we are no longer the strongest country in the world… China is. As of this moment the U.S.A. possesses the strongest economy in the world. On the other hand with its ever expanding debt and its endless money-printing, China with the flick of a finger, could overthrow the U.S in economical prowess. There are also numerous other factors that facilitate China’s ascent to the World’s superpower spot. So while many may believe the U.S.A. will forever hold the world’s reins, the truth is that all throughout history empires have risen and fallen; The time for the U.S.A. to step back and hand its power to a country like China is imminent-because of its gold backed up currency, growing education, strong independent economy and enormous wealth-this may just be for the best …or for the worst.
Globalization is not a new concept – trade, migration, market integration and capital flows have been practiced in various forms dating back centuries. China is at the epicenter of our globalized world and their success is attributed to the tenets of Adam Smith’s Wealth of Nations. However, opponents of the globalization believe if Smith were alive today, he would be repulsed by our modern day international business strategies. The general consensus among dissenters of globalization is the misguided belief that capitalism at any level is missing the moral sentiment espoused by Smith’s philosophical viewpoints. Even though Adam Smith would acknowledge that some Chinese citizens are casualties of globalization, he would conclude the economic development of China’s poverty stricken society unequivocally raised their standard of living.
It may seem ironic that the country that has a replica of our “42nd st” would also be in growing competition with our economy and it may also seem like China is the “little brother” of the US, but how long will this go on for? Will the US be able to keep up soon enough? This is the direction China seems to be headed for. But what makes China the greatest exporter of goods in the world? Bartlett, a businessman Peter Katel refers to in his article, states that “the unbeatable china price is due not only to low labor costs but also to unethical trade practice.” According to the 2005 article, Congress has yet to approve more than a dozen pieces of legislation that would allow the yuan ¥ to “float” in world currency markets, allowing for free-market forces to establish its value.
So why does China come out on top in the comparison of these two nations? The answer lies in China’s unrelenting ambition to be the most successful, prominent, and wealthy country in the world. Whereas India ultimately relies on the cumbersome system of popular agreement, as all democracies must, China’s single party state allows its leaders to unilaterally decide the trajectory of the country. It is not easy to keep a nation of over a billion people satisfied with a government that restricts many basic rights that Americans would consider fundamental. However, the party leaders are incredibly ambitious, and these aspirations have lead to massive projects, huge investment, and modernization at a remarkable rate that have, at least for now, kept the people placated.
InNei Chio Kenneth Fraunce ISEM May 14, 2014 Is China Becoming a Dangerous Superpower? There are many facts showing that United States of America has been the leading world superpower since the end of World War II. However, recently, the rate of development experienced in China has been frightening; there are statistics showing that China’s Gross Domestic Product (GDP) is so high that it could exceed USA in a few years. The concern, however, has been that China is underdeveloped and not mature enough to handle the responsibility of becoming a superpower. Some policymakers in the USA stated that China is increasingly assertive have perpetuated this assertion (Acemoglu and James 34).
Most US Senators feel that the revaluation move was too small and that China needs to allow the currency to increase in value, especially since 2.5% pales in comparison to the RMB’s predicted undervaluation of 30-40%. China is keeping its 0.3% percent daily trading band against the dollar, which means that even with this move there will not be a lot of volatility in the currency pair. China has many reasons to want to revalue their currency. The revaluation also makes imports cheaper for China. This comes at a critical time when commodity prices are rising.
And China has foreign exchange reserves of about U.S.$140.6 billion, primarily from foreign direct investment. For China's leaders, the economy is the most important factor determining future military power. The director of the political department of the People's Liberation Army's (PLA) Guangzhou Military Region described national power as a combination of economic strength and the "level of defense modernization." Chinese leaders believe that economic growth will stagnate if resources are poured into military modernization at the expense of broader economic development. There are many serious problems for China's leaders to confront if they are to maintain healthy economic growth.
National economics are often adversarial in nature, a global contest where countries seek to gain advantage over their neighbors, all in the name of wealth and gain. America is no stranger to the game; the U.S. has been the world’s economic leader for the better part of a century. China, however, is the leading contender for the economic top-spot (), and America continues playing directly into China’s hand. America’s current trading posture with China is drastically skewed in China’s favor; if America is going to preserve its position as the leading economic power, existing U.S.-Chinese trading agreements will need to be revised, and additional regulations must be introduced to promote balanced dealing. The consequences of losing the global economic contest are very real.
This hybrid social-capitalist or social-communist model (Sigley, 2006; Wu, 2005) is unlike traditional communism whereby all economic and social activities are controlled by a centralized state dominated by a single political party. It is also a unique capitalist model that has yet to be fully developed. Several studies have revealed that China’s complicated political structure will be able to continue experiencing high economic growth (Degen, 2011; Malkiel, et al., 2008) while others mention how it is obstructing China’s potential future economic growth (Brink, 2013; Group, 2011; Heytens & Zebregs, 2003; Kroeber, 2009). They contradict that while China has enjoyed high economic growth so far, its political structure has also prevented further growth as it restricts private firms’ interaction with the national economy. Empirical data analyses reveal that China’s hybrid social-capitalist system has been highly successful, evident from its continuously high GDP growth (Chen, Quan, & Liu, 2013), despite the contrasting qualities of the socialist and capitalist model.
Introduction There have been numerous calls by the US policy makers for China to allow its currency to float freely. Critics have pointed out that China policy of manipulating its currency preventing it from appreciating has given its manufacturers undue advantage. Both goods sold domestically and those exported by Chinese Manufacturer are relatively cheaper than those of manufacturers from economies whose Chinese currency is undervalued against; especially the US. This aspect has been accused of contributing majorly to the annual large US trade deficits. Probably due to pressure, China has been allowing its currency to appreciate.