A New Great Depression

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In 2008, the Global Financial Crisis broke out; both the American economy and the economy in the West suffered a hard blow. However, a big economy system in the East emerged unexpectedly. China is now able to challenge the America’s decades-long dominant position in economic area. Started during the middle of 1990s, China’s manufacturing industry developed rapidly that billions of exports were floating out, and China was given the title of “the world’s factory”(BBC). By the end of 2010, China with a GDP of $5.8 trillion, surpassed Japan’s GDP of $5.48 trillion, became the world’s second largest economy system (BBC). China also exceeded Japan became America’s largest foreign securities holder. Since then, China has been seen as the US’s biggest opponent in economic field. Some economists even say that in 10 years, China will be the same size as the US economy. No matter whether China is going to reach the US’s economy size in 10 years or not, after forty years since the US first opened trade with China in 1972, America’s economy gradually relies on China’s economy and will collapse without the strength of China’s market. In 1972, President Nixon visited China, and declared the open trade between America and China, a country that has been isolated from the West since 1949. Although most people remember President Nixon with his Watergate Scandal, he also opened a new trading era with People’s Republic of China. Nixon was in fact known as an anti-communist, and his presidency was during the Cold War, a political and military tension era between the US and the Soviet Union. In 1949, Chairman Mao Zedong established the People’s Republic of China. Known as a communist, Mao at that time was Stalin’s biggest supporter. China’s alliance ... ... middle of paper ... ...Susan V. "U.S.-China Relations: An Overview of Policy Issues." Federation of American Scientists. Federation of American Scientists, n.d. Web. 20 Jan. 2014. Morrison, Wayne M. "China's Economic Rise: History, Trends, Challenges, and Implications for the United States." Federation of American Scientists. Federation of American Scientists, n.d. Web. 20 Jan. 2014. Morrison, Wayne M., and Marc Labonte. "China's Holdings of U.S. Securities: Implications for the U.S. Economy." Federation of American Scientists. Federation of American Scientists, n.d. Web. 13 Jan. 2014. PBS. "General Article: Foreign Affairs." Public Broadcasting Service. PBS, n.d. Web. 15 Jan. 2014. Rawski, Thomas G. "The Rise of China's Economy." Foreign Policy Research Institute. FPRI, n.d. Web. 26 Jan. 2014. World Economic Outlook database. N.p.: IMF, n.d. International Monetary Fund. Web. 2 Feb. 2014.

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