It seems there is little distrust about it”. The illustration tell us that the China’s rise in not occurs but in reality China emergence of as a major economic superpower has higher anxiety of the United States toward the rise. According to Mankiw (2012), our world resources are scarce in which it need to be distributed through the combination of households and firms under the system of economic. This is become a main re... ... middle of paper ... ... legally noticeable China’s reform era (Bergsten et al., 2009). After the successful of their opening economics system, China concerning on international trade.
DRAFT SRP-1 Challenge the Challenge -The U.S. Strategy to Tackle Rising China “…without resource constraints, strategy would be unnecessary. Limited resources thus create the need for strategy. As resources become more constrained, strategy becomes more important.” — Todd Harrison, Defense Strategist 21st Century’s first decade has witnessed unperceivable transformations in the international relations in general and the United States - China relations in particular. China’s fast paced economic growth coupled with continued modernization of Chinese armed forces suggest that in mid to long term China is likely to acquire the potential of challenging the U.S. supremacy and interests in the Pacific region and beyond. China’s long-term goal to transform itself into a major world power presents a fundamental security challenge to the United States.
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.
To do this they must have military power as well as economic power. China still wants to be the ‘middle-kingdom’ and the top leaders know this will take giving up short-run concessions in order to gain long-run supremacy. China will be hurt in the short-run by increasing its economic interdependence. The removal of certain tariffs and regulations will open up the Chinese market to outside competition. Government owned companies that were losing money will not survive with out drastic changes.
The one major... ... middle of paper ... ...f the Yuan increases the risk for default on non-performing loans for the country’s banking sector. China’s banking system has a significant amount of non-performing loans and although there’s been a mobilization to solve this problem, with many of the non-performing loans being exported and bought by large US investors, it is still a problem that exists to some extent. An increase in the value of the Yuan will automatically increase the value of the non-performing loans. Also, the Chinese government has massive amounts of US dollar assets, which they used to peg the Yuan. These assets will lose value in proportion with the revaluation of the Yuan.
Using this logic, China buying increasingly large amount of United States debt creates a safety net between the two, de-escalating potential future conflict due to reliance on each other. This however has not held true historically. In the 20th century tension and conflict were extremely high between Britain and United States due to the new emergence of a great power, even th... ... middle of paper ... ...its own currency and rid itself of the dollar, creating a dominant multi-reserve system. Daniel McDowelly and Steven Liao show strong evidence to support the trade interdependence hypothesis ‘‘the probability that a country will negotiate a BSA with the PBC increases as both countries become increasingly dependent on the other in the area of international trade.’’ (9) (Mcdowelly et al. 2012) This has vast implications because china is a heavy importer of oil and a heavy exporter of goods.
The book, "China's Rise: Challenges and Opportunities provides a detailed look into China’s important role in the global arena. China’s growth in the past few decades has made it a economic superpower, however, with this growth, challenges regarding its internal and external policies, military modernizations and energy dependences have risen. China has been the fastest growing economy in the last thirty years. Its contributions to the global economic growth are substantial. China is the second largest exporter and holds the largest foreign currency reserve in hand.
Considering the Mixed re... ... middle of paper ... ...current trade deficit. Yes there will be benefits associated with increase global competitiveness of the US products. However, there are other factors not associated with Chinese currency affecting the US global trade competitiveness. A case in point is the fact that from 2005 to 2008 when China allowed it currency to appreciate by 21%, a 30.1% rise of US trade deficit with China was still experienced. In addition by further putting pressure on China to devalue its currency, US runs a major risk of losing on capital inflows coming particularly from Chinese investors.
If the United States were to get involved, it would face a nuclear-armed adversary capable of striking its American shores. That is not likely to happen, but it has to be kept in mind. China has greater military power today than it did a decade ago. If Beijing were willing to pay the price, the PLA could wreak great damage. In assessing China's future threat potential, it is essential to consider the economic, political, and strategic constraints on PLA modernization.
China is one of the main viable candidates as this century’s new world power. Today, it maintains a strong economic stance within the international market, and is expanding at a rapid pace. The United States cannot maintain its position as hegemon for the rest of humanity; just as how ... ... middle of paper ... ... 10 Mar 2014. Ng, Teddy. “Rise of China’s Military and Economic Power Leaves the Rest of the World Wary.” South China Morning Post.