Cooperation between Canada and China - Essay Example

Cooperation between Canada and China Measured in US dollars, Canada has one of the largest economies in the world. Being a member of the Organization for Economic Co-operation and Development, the country has been engaged with other developed countries with an aim of improving its production capacity as well as creating more job opportunities for its citizens. One of the countries that Canada has for a long time associated with is China. The relationship of the two countries can be traced back during the construction of Canadian Pacific Railway. The railway, which was constructed by the Chinese people, was one of the major revenue through which the Chinese entered Canada. After the completion of the railway, majority of Chinese left Canada after the passing of The Chinese Immigration Act of 1885. The act was followed by other acts that were focused at increasing the fees that was levied on the Chinese residents found in Canada. The period between 1923 -1947 was referred to as exclusion era. This was the time during which China were restricted from visiting or residing in Canada (Canadian Census of population 46). However, after 1947, the two countries were engaged in business activities and economic development that resulted to a remarkable economic growth of the two countries. This paper seeks to discuss how globalization influences the patterns of development in Canadian and Chinese history. Since 1940s, Canada and China have been involved in a number of partnerships that have been growing tremendously resulting to strong economic ties between the two countries. For example, leaders from the two countries have been meeting regularly to discuss about the rich oil fields in the two countries since oil has made both countries to have a stronger relationship. When the energy ministry is not conducting it mandate well, both countries have to raise the issue and make sure that the issue is finally settled. China and Canada have been signing agreements concerning energy distributions and this provides for exchange of experience in economic matters. One of the agreements that they signed was that Canada had to supply carbon captures and storage projects since China didn’t have the technological knowhow about carbon. This agreement gave china confidence and groundwork for further industrial cooperation between the two countries. Influence of globalization on the developments in Canadian and Chinese history China and Canada are two developed countries that have a significant impact on the global economy. The two countries have been involved in trading activities since 1945. Based on the tremendous economic growth of China in the last 50 years, majority of countries have taken initiative to form economic ties with china and Canada. Through recognizing its growth potential, the Canadian government has taken initiative to widen its relationship with China. Precisely, the aim of the Canadian government is to ensure that China’s growth in economy benefits Canada. This is done by making China the most preferred destination for residents of Canada. Due to high influence and emergence of china as a major player in economic sector for the last two decades it has made more countries world wide to seek the attention from china, and strong economic ties has been established so that they can trade with china and that why Canada was no exception but rather to carry on with trade (China Index of Economic Freedom 33). The aim of Canada to trade with china was to make a strong relationship in business matters and ensure that the Canadian economy would increase with a twelve percent. The aim of the Canadian government was to make sure that they would benefit from the china foreign policy and increase the trade between the two countries and of all was to make sure that investments in goods and services were carried on. The aim of Canadian government seeking trade affairs was to position it to its desired destination of achieving its goals in economic matters. Due to the strong relationship of the two countries in trade, it has made the movement of people, capital and services to be experienced by the two countries. Of rate, Canada and china have been witnessed to be growing at fast rate this is due to Canada providing services on credit to china. This is was encouraged by the two government when they signed a trade agreement in 1945 know as memorandums of understanding in trade (MOUs).This was signed to make sure that the two countries are going to invest in trade ,matters about insurance, tax, environment, and the last one was the security. The two countries have been trading together for decades and this shows that economic relationship between the two countries is high. The media is mostly used to focus between the two on matters relating to human rights, sovereignty and relations with other countries who are willing to trade with the two countries. Policy makers in the two countries have been involved to make decisions relating to trade and this is done in public to make sure that the citizens of the two countries are going to benefit from it. This means that no fear would be experienced when the movements of people and service is moving from one country to the next. Trade in services in the two countries have been low for the last year ,but the policy makers have noticed that its moving up as times goes on and its being strengthen by the signing of the agreements on foreign investments between the two countries. Tourism is being used as booster in their economic matters and this makes them to encourage different countries to come and see their traditions and other types of natural resources. This boosts the countries economic growth for the two countries. The two counties have shown increased co-operation in matters relating to health and they have been working together to address issues relating to food, drugs, and other products (DeWeaver 37). Open trade and investment policies in the two countries have been used by the governments to raise the living standards of the citizens. Economists have been using open trade and investment policies to prove that the living standards of individuals can be raised for example, Organization for Economic Co-Operation and Development (OECD) growth study showed that 15 percentage of trade on openness market translates to 6 percentage of per capita income in the OCD area. China and Canada have shown effort by raising income and reducing levels in the developing countries. The trade raises the income of the country and the welfare of the individuals but some of the traders or workers may lose from globalization. This is experienced incase workers are displaced from sectors that they used to trade on. China has successfully shown high economic growth in the past years and this is dated back to its status as one of world economic power and it has been manufacturing its goods and exporting to other countries to its technology and innovation of new ideas. In the era of the Second World War china was faced with challenges and competition from other emerging economies like Canada. This was a major problem since due its ruined state and damage of infrastructures china was unable to trade with other countries and economic growth was poor. China came with an idea on how they can be able to tackle the issue of competition, cooperation and the challenges that were being experienced at that time, with other economic states China up to now has been one of the leading economies in the world (Raaj and Lu 36). Canada on the other hand trades with china and benefits from imports and exports that make Canada to remain stable and able to handle the challenges that emanate from internal and external forces. The forces that shaped Canada to its globalization in the economy back in 1780s were the transportation, communication and information technologies, this was boosted by free market economic policies that were introduced in the same year. This was mainly done to make sure that the Canadian had to expand its global economic growth, which showed a great benefit to the countries economy. Millions of people in Canada have benefited from this approach and poverty status has been uplifted. Globalization in Canada made the country to benefit economically, and even per now they have witnessed the international integration as the second longest in the countries history. They have benefited from high incomes from trade with china; unemployment is not a big problem in Canada as in the other countries. The most impact that is still enjoyed by the Canadian citizens is low or stable and predictable inflation in the country. This makes life stable for the ordinary citizen, despite the economy of Canada being stable there are challenges that they still experience and so they have to respond effectively to its challenges. The current wave of the globalization in the developed countries like Canada shows how technological innovations have reduced the economic distance of the country for example; the improvement of roads, the telegraph, and of more recently is the internet. The most important of all was how the government supported the economic policies that would make the country to have a high economic growth. The government recognized the long term benefit of encouraging economic integrations to the nation and till to date they have been able to internalize the costs in both political and in economic situations. The government promoted public goods, common standard for trade, products, services and trade being revived made the country to be more economically stable, they were seen as not beneficial to the country but today they have been a help to the Canadian government. The population of Canada is does not affect the economic growth of the country. For the example when china and Canada are compared in terms of population, china has high population but does not mean that the country would have a high economic growth rate. This depends on how the country is technologically advanced and the government measures taken to improve the living standards of its citizens. The gross domestic product (GDP) of Canada is high since they are producing goods and services with a short span of life. The gross domestic product per capita is normally considered as the countries standard of living, and this means that Canada will have to make sure that there is manufacture of new products in the market to ensure that the living standard of individual is bearable. The gross domestic products per capita in Canada are not a measure of personal income, but it is the capita that is equal to the gross domestic income (GDI). The emerging of markets and their policy matters have made the economic policies of emerging market countries to improve the living standard of the citizens that is got from the trade. The advanced technology that is specialized in the production process and the reduction of communication and transportation cost to the Canadian government have led to goods and services becoming tradable. Due to this policy in the past 40 years the imports of good and services have been tripled. On the other hand china has benefited from globalization and this is true according to the gross domestic product growth. The Chinese companies are getting bigger and bigger and this makes China to be listed among the superpowers. The cheap labor as well as the new innovations as the result of the advanced technology makes china to have the advantage of stable economic growth. The introduction of world trade organization (WTO) has made china to venture in business related areas for example, before introduction of world trade organization China was very weak economically but when they signed the world trade organization they have improved globally. China believes in the competition, for it to be globalized and this makes them technologically advanced and that why they like stiff competition with other countries, the main aim is the rationale they use that economic growth is the only reliable source of placing China to its mission and goals in its growth. Canada and China believe in trade and investments and that why they have to sign documents of trade and that of security. China came up with the introduction of industrial policies that have been used up to date and they have been implemented to the most part of East Asia in 1950s and 1990s China and Canada goods and services they compete for The economy of China has been fluctuating now and then for the last five years. China have been manufacturing its commodities and making sure that they would be sold to the locals or the residents while others would be exported to the Canadian for trade. Chinese have been relying on services like freight, insurance, transport, license fee and other services. They have been trading using the U.S dollars. China has high growth rate of people and the more the number of the people the high the demand of commodities (Dhara 36).Chinese people trade with small groups of people in there mother country but the most of the commodities are exported to Canada. For example, the Canadian government or the traders will have to move to china and buy commodities like Steel Copper Corn Wheat The commodities forms are key export products in the China and they have made country to be a superpower in terms of production of goods and services. Due to improved technology, China is still engaged on research to get more minerals to export and be the leading country with the highest number of export commodities. Due to the high population of China, it has been producing and consuming its commodities and still making sure that the country is looking for Future markets like in Canada (Canada Immigration and citizenship 15). On the other hand, Canada which is classified as the 7th largest economy world wide and the second largest based on its population. The stiff competition between the Canada and China is due to large energy and mineral exports since the two countries produce the minerals in large number. Canada is known for exporting the products below. Crude oil Natural gas Gold Coal The two countries are known for high production and investment in market and they have been trading together for decades up to date. Canada is known for its high production of energy products and it produces more than china, this makes Canada to be relayed on by china and United States when it comes to oil production. Conclusion Canada and China countries have been trading together but stiff competition is high between them. Good communication between the two countries and technology plays a major role of ensuring that the two countries maintain a strong social relations as well as economic stability of the two countries. China and Canada have been relying on each other for trade and this makes them to stabilize in terms of economic matters. Positive relationship between the two countries has also made business owners and other investors to engage on trading activities thus empowering each other economically. Works Cited Canada Immigration and citizenship. (2007). http://www12.statcan.ca/census-recensement/2006/rt-td/immcit-eng.cfm China Index of Economic Freedom. (2013). Available from http://www.heritage.org/index/country/china DeWeaver, M. Animal Spirits with Chinese Characteristics: Investment Booms and Busts in the World’s Emerging Economic Giant. Palgrave Macmillan. ISBN 978-0230115699, 2012. Print. Dhara, R. . China’s economic reforms: What you need to know. Available from http://www.cnbc.com/id/101205322, 2013. Raaj, T. and Lu, Z. Canada's Economic Relations with China. Available from http://www.canadainternational.gc.ca/china-chine/bilateral_relations_bilaterales/index.aspx, . 2006 Canadian Census of population. Immigration from China. Available from http://unstats.un.org/unsd/demographic/sources/census/canadapdf.pdf Read More