China's Vanishing Trade Imbalance

I agree with the author, because China’s economy has been closely integrated with the world economy, including the United States. On the one hand, it is impossible to destroy the Chinese economy while protecting the American economy and consumers. If a trade

While the wester hemisphere was experiencing drastic changes like colonies attaining their independence and turning into more modern nations, many adversities were taking place throughout nations in the eastern hemisphere. China was one of those nations. China was a nation known for isolating itself from outside influence, especially from the Europeans. Soon the Europeans began to grow jealous of China 's bounty of enticing goods and resources such as porcelain, tea and silk. China on the other hand did not have any need for European goods. In pursuit to put a halt to the trade imbalance between the two nations, Britain started to smuggle opium into China. The reason behind this was because the Chinese had no need for Britain 's goods but

The rise in China from a poor, stagnant country to a major economic power within a time span of twenty-eight years is often described by analysts as one of the greatest success stories in these present times. With China receiving an increase in the amount of trade business from many countries around the world, they may soon be a major competitor to surpass the U.S. China became the second largest economy, last year, overtaking Japan which had held that position since 1968 (Gallup). China could become the world’s largest economy in decades.

The following examines the nation of China and its trade relations with the world, particularly the United States. The focus is primarily on China’s culture and how it impacts business dealings with other countries. Areas examined include: Religion, Management Philosophy, and Business Etiquette. Also discussed is China’s growing status as a world super power and how that has impacted the global business landscape. Likewise, various trading partners are examined and the effects of doing business with China, specifically for the United States. Points of concern for the United States are things such as the

Doing business in China may require more patience and understanding the culture before adventuring in taking a foreign assignment. There are several factors that need to be looked at before taking the assignment, knowledge, skills, and culture understanding, knowing how to negotiate and knowing when to except the idea. There are traditions and customs that China has that have to be known before anyone conducting business in China needs to know. China is based on an old system of proper manners and etiquette when doing business. Doing business in China you need to know their customs and know how to communicate effectively but there are more things that need to be looked at such as political differences, building trust and respecting Chinese culture. As part of this paper I will answer several questions about my assumptions about China, adjusting my behavior on a business trip to China, Chinese managers running a business in the United States and if I would be less interested in taking a foreign assignment.

In our quickly expanding global economy, how states execute trade is more important than ever. Global organizations like the International Monetary Fund are established to help the states trade and regulate trade currencies. These global organizations are not always efficient, and can lead to imbalances in trade currency. “For more than a decade, the U.S. and other countries castigated China for its currency policy, saying the yuan’s level gave the country’s exporters an unfair advantage at the expense of its trading partners (Talley 1).” Since free trade always seems to result in trade deficits that are detrimental to the United States, the discussion should center on correcting the trade imbalance in an effort to have these free trade treaties fairer for all sides by imposing tariffs on China.

By granting China most-favored-nation trade status the United States has started that long and difficult process of bringing China out of its international dark ages. In order to live up to the terms of most-favored-nation trade status China has had to become more open to social and economic changes. These reforms included more economic freedom, easier access for foreign direct investments. The economic developments these reforms have been to a main cause for China’s newly increased gross nation product. Over a ten-year period from 1978 to 1988 most-favored-nation trade status was directly responsible for an annual ten percent growth in China’s gross national product.

The People's Republic of China is the second-largest country in the world by land area, with a unique style of doing business. People from other countries would also look at America and think they have a unique style of doing business as well while we would see it as the norm. By the same token, China’s take on the business world, economy, and general way of shopping vastly differs from the American’s because Chinese business value personal relationships in comparison to American’s more impersonal style.

Liu's (2012) article for Time magazine, entitled, "Why China's Rise is Great for America" was triggered by his having encountered a book called Becoming China's Bitch. Liu (2012) expected a "xenophobic rant" about the "sinister, relentless yellow horde" but instead read "a squishy pile or moderate policy recommendations," (p. 1). The topic of China's economic power and its relationship to America's dwindling political and economic clout is one of the most topically relevant. Liu (2012) talks about America's "profound problems" including a "faltering educational and physical infrastructure," (p. 1). China has its own problems, notes Liu (2012). Both countries are now enmeshed in a codependent or mutually interdependent, to put a positive spin on it relationship. The author notes that whereas once the discourse included fearful references to the Communist threat; that now the literature is filled with talk about the decline of the USA.

China, a country large in size, population, economy, is a really important asset globally. America’s second-largest trading partner, China is the producer of most of America’s items including clothes, consumer electronics, and manufacturing goods. The codependency of America and China is a very fragile and with recent debate of penalization, a potentially, volatile situation. It is the world’s second-largest economy after the United States, currently “accounting for about 12 percent of the world economy and about a quarter of global growth in recent years” (Swanson). China’s ability to produce large quantities of goods and at very low costs is what makes the country’s importance to global trade, especially America. 1.2 Trillion dollars of our debt is to China, which helps to keep our interest rates low by “allowing firms to make investments that would be unattractive at a higher cost of borrowing” (Kaneene). With investments like that, there is an increase in the capital available, an increase in the

Through dissecting how any economic advantage China has over America is negligible, as it comes at a price for it as well, Nye makes the argument that interdependence constrains China into working with America in maintaining the international order, rather than working against it. As the United States derives power from the dollar, much has been said about China’s massive holding of dollars, and how it could potentially use it as a bargaining chip in its relationship with the United States. However, Nye claims that in the interdependent relationship between the nations, power depends on asymmetries in interdependence (54). Thus, if China were to dump its dollars on world financial markets, it could bring America to its knees, but it would also bring

Continual economic growth for the past 30 years has allowed China to rise as an economic power. As the Chinese manufacturing industry continued to grow many of the people moved from rural areas into urban centers. The continued economic growth has taken China from a poor country to the 2nd largest economy in the world. Using many of the principals of capitalism China has overcome obscurity and increased exports to the point of drawing a large trade surplus with Europe and the United States. The growing wealth of China has drawn much criticism form the global leaders as trade deficits rise. China has continued on policies of currency fixing and implementation of subsidies that are consistently controversial with the

Decades has passed since U.S. and China established formal diplomatic relations. The two countries have faced the pressures of economic transformation, social and political standoffs, and now have moved to a new stage of complex mix of diplomatic issues, differences in values, and increasingly intertwined economy. If the U.S. and China to improve their achievements made in the past, then the U.S. – China relation is likely to surpass the contradictions in cultural, political, economic and social differences, and seek to maximize the mutual benefit for both and work together to shift the focus to making greater

The purpose of this essay is to show how the economy of China has, and is changing, becoming the second largest economy in the world today. Although China is currently under the leadership of Xi Jinping, this essay will concentrate primarily on the actions undertaken by then President Mao Zedong, followed by then President Deng Xiaoping, (sans mention of Hua Guofeng). Given the relative infancy of Xi’s assumption of power, economic policies still remain largely rhetorical in form. Likewise, the majority of literature concerning economic policies under Xi are largely speculative, often citing strategies and ambitions as opposed to thereby, lacking a solid basis for rational induction In addition to China’s lack of transparency, In addition, it will be shown that the methodology behind the Chinese economy demonstrates the implementation of varying levels of the characteristics associated with the schools of Realism, Marxism and Liberalism. Thus, China’s approach to global trade in the 21st Century is pluralistic, testamentary to the failed economic

China exports its excess capacity because its domestic consumption has been falling. “The problem is exacerbated when China devalues its currency to make its low-priced exports even more attractive” (Das, K.,