Chinas Threat to the Us Economy - 1054 Words

China’s Threat to the United States Economy For the last twenty eight years, China has been quickly growing into one of the largest economies in the world. China has accomplished this feat, in part, by radically changing their policies on trade and free market interactions with other countries. During this process, China has bought approximately one hundred trillion dollars of United States debt in the form of Treasury bills, notes, bonds, and Inflation Protected Securities (Amadeo). This debt has given China leverage against the United States which has enabled China to keep the value of the United States dollar high, while keeping the value of the Chinese yuan low. As the inflation of the dollar continues to negatively affect the†¦show more content†¦Instead, China could use their debt leverage to impact foreign trade policies and more importantly domestic political policies that budget how the United States spends its tax dollars (Elwell 22). China has become a perceived threat to the U.S. economy because of the in creasing trade deficit between the two countries, their ability to undercut production costs of similar products produced in the United States, and the amount of leverage that China has over the United States due to amount of money that has been lent by China. Although the United States has taken steps to close the trade deficit, such as convincing China to raise prices on their exports, there is still a considerable gap (Prasad). The United States government continues to print money that they simply can’t afford, therefore, relying even more heavily on China sustaining the value of their currency. Unless the United States is able to close the trade deficit and regain control of our economic flexibility, the problems caused by foreign countries owning our debt will remain eminent. Works Cited Amadeo, Kimberly. US China Trade Deficit - Why the US Trade Deficit with China Is Important. US Economy and Business - US Economic Indicators - US Economic News. 19 Mar. 2009. Web. 19 Mar. 2011. lt;http://useconomy.about.com/od/tradepolicy/p/us-china-trade.htmgt;. CIA - The World Factbook. Welcome to the CIA Web Site — CentralShow MoreRelatedIs the Rise of the East Viewed as a Threat or an Opportunity?1477 Words   |  6 PagesChina’s ascension to superpower status has caused many Westerners to worry. They worry that China’s sustained growth will hurt their livelihood and economic status. Others, however, see this as an opportunity to exploit new markets and to further world unity. This is an increasingly relevant debate as many have predicted China’s growth to continue at a steady rate in both the short and medium terms. This paper will examine the reality of the potential threats and the extent of the opportunitiesRead MoreChinas Threat To America Case Study1296 Words   |  6 Pagessays it must prepare to deal with traditional threats coming from Russia, China, North Korea and Iran, and at same time to contain the spread of extremist terror groups like the self-proclaimed Islamic State. Four to five threats t hat US faces right now comes from the Asia Pacific. Therefore, it is one of the most important regions for the US and its partners. In comparison among those America’s threats, while North Korea and IS are just sort term threats, Russia or Iran will stay behind China becauseRead MoreChina Rising Of China And China1505 Words   |  7 Pagesâ€Å"China Rising† is a non-arguable fact and the one of the most important subjects in the twenty-first century. The rise of China is a relative threat to the neighboring regions or other great powers. Further, some scholars also comment that China either will replace or has already superseded the United State as the world’s only superpower. China’s growth is too rapid and massive that other nations have limited or no opportunity to compete with. In the other hand, others argue that confits betweenRead MoreChin Facing The 21st Century1511 Words   |  7 PagesDynasty, it began its evolution into a flourishing econom y. During this period where different regimes came into power, three fundamental pillars were used to sustain the imperial system of government. These components contributed to China’s reputation in technological innovations as wells as its economic growth in the earlier centuries (Bergsten, 2008). When the Qing dynasty collapsed as a result of several contributing factors, the Chinese economy was derailed. The government, therefore, found itRead MoreChina’s evolving geopolitical role and its participation in the WTO.1419 Words   |  6 Pagesï » ¿Critically analyze China’s evolving geopolitical role and its participation in the WTO. China’s evolving Geopolitical Role: Introduction: In terms of geopolitics, it was been observed that China is among the three great powers, beside the United States and the European Union. According to O. Tuathail, 1996; Agnew, 2009, critical geopolitics intends to understand world politics in terms of the ways in which elites and publics actively construct the spaces of political action that areRead MoreThe Rise Of Chin China1562 Words   |  7 Pagesof its people out of extreme poverty and we can say that China attained a major economic power within the span of three decades. It became the world’s largest holder of foreign exchange reserves, manufacturer, and the largest merchandise exporter. China’s remarkable economic growth for the last two decades can even go beyond the United States’ size of gross domestic product (GDP) as well as inflict significant political influence in East Asia. Furthermore, China hold the largest and strongest armedRead MoreThe Rise Of China Is Destroying The United States1417 Word s   |  6 PagesThe debate on whether the rise of China is displacing the United States (US) as hegemon is a contentious debate. While scholars on the one hand argue that this is the case, others refute this by arguing that despite the increase of Chinese influence in the South-Pacific, it is still far away from becoming a global superpower. Using the theoretical lenses of Hegemonic Stability, Balance of Power, and Realism, this paper will argue that the rise of China as global hegemon lacks theoretical support;Read MoreThe Future Of Us China Relations Essay1654 Words   |  7 Pagessubject in the twenty-first century. The rise of China is a relative threat to the neighbor regions or other great powers. Further, some scholars also comment that China either will replace or has already superseded the United State as the world’s only superpower. China’s growth is too rapid and massive that other nations have limited or no opportunity to compete with it. By using intern ational relations theories to analyze US-China relations, there are three main stream theories commonly using toRead MoreChina s Foreign Policy Record967 Words   |  4 PagesThrough examination of China’s foreign policy record, particularly post-Cold War, a better understanding of the distinct approaches a realist theorist and a liberal theorist may have to the same event or policy, can be further explored through the lens of China. In his book, International Politics of the Asia Pacific, Yahuda states, â€Å"It is only since the end of the Cold War that China’s leaders have developed policies that recognize that the future security and prosperity of their country requiresRead MoreEssay China1364 Words   |  6 Pagesdevalued was not the only reason which affected the world markets, as during the recession, weak buying power of the customers forced them to buy cheap stuff made in China. Elimination of the textile quota in January 2009 also caused the increase in China’s share of the market (The Econoomist, 2010). In contrast with this, EU governments in December 2009, voted to extend the anti-dumping duty on shoes imported from china to protect their local industries (The Econoomist, 2010). On one hand China is seeking