Why China can Help U.S. Economy?
China- from a slumbering second world country is now clearing its way in becoming a first world country. Overwhelmingly, China’s economy is rapidly growing. Its “Tiger Economy” went berserk. Considerably, having one-fifth of the world’s population, or doubled the United States, Europe, Japan and other high earning nations (Perkins 1). In 2004, the official exchanged rate of China reached 1,300 USD Gross Domestic Product per capita and 1,690 Billion USD as the Total Gross Domestic Product (Perkins 1).
Since the trend follow a seven percent increase, it is said to rise in an exponential manner by 2015 and the per capita GDP will be doubled. In 2025, it will double that of the increase in 2015 (Perkins 2). Being a powerhouse exporter, China’s emergence in the world economy is considered important. China now currently has $1. 3 Trillion in foreign exchange reserves and is considered to be the largest in the world (Metcalf 1). China has been greatly influential than any other economy in the world (Roach 1).
The effort of China to achieve high production with low resource consumption is not only their way for sustainable development but also to serve the global economy. With this line of thinking, other countries would like to follow the trend that China did follow which earned them their success now. The growth of China has become a threat to most of the powerhouse nations of the world economy such as the United States of America and the European Union but regardless of their domination the uprising of China is unstoppable.
With the rise of China, the other nations who are dependent among them would likely to be more dependent than ever since the free trade market is open. China’s monetary unit will strengthen due to this and would entail a larger Gross Domestic Product. Nation like the United States wants to keep up with China since most of its reserves belong to China now hence they were the first to proliferate rather than China. If China rises the other countries would be falling since there is the depletion of resources and the quick transactions of import and exports due to large scale economy China could offer.
Largely, the one would be of great concern with China’s uprising is America because of the large surplus building up as time passes by. If China would dominate the United States, US Dollars will depreciate which will affect the global financial markets and also would sustain trade imbalances due to protectionism (Call. en 1). China having a large population does not have any problems of shortage in man power since their future workers are not trained today and the these are not just workers, these are college titled workers which means that the skills and knowledge that they have are not in mediocrity.
A growth of a country depends on its physical capital, human capital, and labor force (Perkins 3). With the good quality of future that they will have, the maintenance of their economic growth will not be denied. The depletion of their human resources is said be in more than twenty years (Perkins 1). As long as China sustains it seven percent economic growth rate and its potential workers, there would be a great future for China for the incoming twenty years.
The world economy would be astonished to what they have achieved without exploitative conditions. In 2006, China has become the world’s largest holder of foreign exchange reserves (Zheng 1). China’s strength in the world economy has grown but had created both external and internal pressure (Zheng 1). The external pressures stated earlier are the alignment of other nations to China since their presence in the world economy is being felt, the effort for sustainable development and the reoccurring effects of globalization.
The internal pressures that arose are greater corruption, the government is more likely to engage in protectionism since they will benefit more from it, the cultural imbalance that will happen since China is more involved with the Western civilization, and lastly the unstable launch of piracy among the Chinese region since it would be a subject for more profitable consumption. These are the implications of the China’s growth hence it does not matter if it is positive or negative, the fact that, many of the nations are involved shows how alarming the changes must have been.