Question

Some see China as an aggressive, authoritarian country that is a threat to the interests of the Chinese people, other Asian nations and the United States.  Proponents of this view argue that the United States should pursue diplomatic, military and trade policies that seek to contain and oppose the growth of China’s economic, political and military power.  Others argue that China is already a great power and that the United States should pursue realistic policies which recognize China’s new capabilities by seeking a working relationship with that country in order to avoid conflict and promote mutual interests. with an emphasis on trade and economics, which of the above approaches to China would inform your policy recommendations?  What policies would you recommend that the United States pursue toward China?

Answer 1

Answer:

I would like to go with the second approach as China is already a great power and the United State should pursue realistic policies which recognize China's new capability by seeking a working relationship with the country in order to avoid conflict and promote mutual interests.

What policies would you recommend that the United States pursue China?

Trade is a key factor in the economy of China. The changes resulted in the decentralization and expansion of domestic and foreign trade institutions, as well as a greatly enlarged role for free markets in the distribution of goods, and a prominent role for foreign trade and investment in economic development.

China has become the manufacturing hub of the world. A substantial part of the economy of China depends on international trade. The advantages it gives for other countries to set up manufacturing plants in China is its strong government support for FDIs, Infrastructure development, cheap labor, weak environment, and labor laws, new strong market reach which includes China, India, Japan, Russia, Korea, Thailand, Vietnam, Indonesia, Malaysia, etc, access to cheap Chinese supplier base, thus larger sales, and profits, seasonality of product supply and demand can be managed (one can always sell the product in China and the markets close to it if the demand is lower in North America or Europe). The US has profited considerably through trade with China. Sales of products from the US have grown in popularity in China boosting US multinationals (Expanded trade with China has, in fact, been a blessing for large U.S. multinationals like Boeing, Caterpillar, and Cargill, which had trumpeted the prospect of a massive Chinese market for American products and services. China is the world’s fastest-growing market for commercial aviation and needs billions of dollars worth of airplanes from Boeing. Its growing infrastructure has been a boon for companies like Caterpillar, which produces tractors and other heavy equipment. And it is importing billions of dollars worth of farm products, a boon to companies like Cargill. Last year, China bought $2.9 billion worth of soybeans – the top U.S. export crop to China. China also has proven to be a growing market for U.S.-made fertilizer and chemicals.). China’s benefits were as follows: its economy has been growing at a very rapid rate (for instance, China’s economy grew at an average rate of 10% per year during the period 1990-2004, the highest growth rate in the world.), the resulting increase in business activity drastically reduced poverty (China has been credited for greatly lowering the percentage of East Asian population living in poverty in a recent World Bank report – from 80% to 18% in a span of 20 years), created employment, foreign investment remains a strong element in China’s rapid expansion in world trade and has been an important factor in the growth of urban jobs.