Interdependence of the United States and China - Research Paper Example

HOW UNITED AND CHINA ARE INTERDEPENDENT al Affiliation LEVEL AND HOW UNITED AND CHINA ARE INTERDEPENDENT Introduction United States and China are the two largest economies in the world in the current times. The two nations have been embroiled in the struggle of either to become the most promising trade destinations. However, due to the diversity in ideologies and possession of different items, the two countries decided to become interdependent with globalization being the front motivating factor to their mutual relationships. Hence, the exchange of idea and goods moving either way has led to increasing bilateral agreements. The interdependence is such that both countries try to maximize their gains while preserving their interests at whatever levels. Hence, globalization has just made it simple. It is the change of thinking of the locals to open up their borders with a wider outlook of interconnections and interdependence to the rest of the world. (Baylis, Smith and Owens, 2013) They can exchange their capital goods at will while on the other hand; movement of labor is not prohibited. The measurements nonetheless, if not controlled can hurt the less developed economies. Thus, these seem not to bother the two countries as their economies are at par and have nothing to lose but just to maintain their superiority. The census from both countries shows that trade is the significant mutual benefits that the two countries enjoy. In fact, approximately 21% of the United States imports are from China making them the biggest trade partner in the early 21st century. A survey done by Yingyi, Qingguo,Chong’en, and Jisi, in (2014),in China on international politics and economy shows that both nations have enormous amount of capital goods and will be willing to exchange at their free will. China, on the other hand, has its primary essential from America that comprise of about 9% of their total imports, such is indeed a mutual relationship between the two countries. Baylis, Smith, and Owens, (2013) an educational study indicates that these ties will be long term benefits and is unlikely to end soon. It observes China has the largest population in the world providing the ready market for goods and services for the America economy. The population in China can help in the labor production that is required in the America. Hence, Chinese are more than willing to partner the Americans since it provides for job destination to its millions of citizens reducing unemployment. Thus, the interdependence is just but the beginning of what mutual happenings are bound to happen between the two world economic giants. However, the interdependence between the two countries has also come into question as revealed by the literature review. The Chinese exports are much higher than the imports that have created the deficit in the balance of trade to the Americans. Thus, (Cashore and Stone, 2014), questions the sudden interest of the China towards to the United States. They view it as a mere power struggle and not necessary trade. But nonetheless, the interdependence seems to be a real factor to motivate and encourage world peace and development. Baylis, Smith and Owens, (2013), observe that when countries work together, they share a lot of idealism that reduces tensions among them in the global world. Therefore, they can concentrate more on development agendas rather than conflicting opinions. Hence, the local institutions can be strengthened through borrowing of either side. Literature review The level of interdependence is usually not controlled hence there is no limit to its application to the nations. For a clear view of the relationship between China and United States, let’s start by examining two international theories of globalization of realism and liberalism. These are two principles that represent two opposing ends towards the global interdependence. Realism theory observes that countries act in the benefits of their state interests and not necessarily for mutual benefits. Hence, they conform to hidden agenda among themselves in the view of interdependence. Researches such as those by Hanson in (2012) have revealed interests between China and United States more so in their activities in the geopolitical world. Thus, the study prompts the question of if the interdependence between the two states is genuine or they are just to accommodate each other. However, the dependence theory of liberalism tends to have a divergent view from the classical realists. The theory states that interactions between countries across the world are for mutual benefits and not to oversee their personal objectives. Cesa-Bianchi Pesaran., Rebucci, Xu, & Chang, (2012) survey shows that, they will interact in sharing ideas, exchange of goods, pursuing similar political and economic ideology. The theory, therefore, postulates two ways of analysis of the mutual interdependence of nations. They include complex and economic interdependence. In a complex relationship, countries interact through interdependence so that issues are solved without military actions in case of tensions. Thus, they view war as irrelevant and destructive and should not be a means of conflict resolutions. Interdependent between countries who commonly share ideas most of the times are less likely to resort to war as a way of conflict resolutions (Hanson, 2012). They would dialog and find best solutions among themselves. The theory nonetheless views economic interdependence as means of gaining political controls over others and only uses a different means to insert their authorities. Hence, world powers will majorly protect their dominance by all means. (Baylis, Smith,& Owens,2013), observes that, if nations are in bilateral agreements trust and confidence is high. Thus, one can take the advantage and analyze its partner both politically and economically and determine their positional power. Thus, the two theories provided above provides a clear view as to any circumstance that interdependence occurs among countries. Since we cannot determine the actual or level of relationship between United States and China, several studies help to explain the research for the researcher to formulate its questions. A case study by Morrison,(2011), establishes that, during the world economic crisis of 2008, China had inflated its currency yuan. As they exported more goods to the United States, the America deficits rose. The researcher further argues that, China had taken advantage due to economic situations and proper interrelations with the America to overtake the dollar that is the standard American currency used worldwide. However, other studies are of a different opinion. For example, (Yingyi, Qingguo, Chong’en, & Jisi, 2014), observes that interdependence will increase since both countries want to take care oft their interests and due to the fact that they have differentiation in goods and service. America is strong in technology, education while China is a recent power in the light industry and cheap labor. And due to their energy aspirations, they have a universal concern that binds together. However, researchers find barriers to interdependence on various fronts. Studies done by Chen, and Chen in (2013), shows that, difference in culture and history between the countries limits their interdependence as both will act in fear especially if the past was characteristics by activities such as war and different ideologies. It further argues that China had always been characterized by capitalism that quiet contradicts the American opinion on economic issues hence the level of interdependence will be very interesting as at the present and to the future. The paper also examine on what might motivate China to increase their level of relationship. One such answer as founded by (Chen, and Chen, 2013), who argued that security was a major concern for either state. China faces opposition from countries such as Russia and Japan whom they have different ideologist towards geopolitics. Hence, by forming a real alliance with the United States, they have an ally to whom they fight. Other researchers like (Cesa, Pesaran, Rebucci, Xu, & Chang, 2012), explains the interdependence is majorly due to the two countries having a common interest. For instance, energy has become one of the primary sources of economic growth in the foremost parts of the world. However, the availability of oil is limited making it a scarcity. Thus, since both United States and China are in desire demand of the resource, they will increase their bilateral ties to achieve their needs. Furthermore, other studies such as (Hanson, 2012). Suggest that interdependence between United States and America is major to trade due to the existence of different products between them. It concludes that technology has become a vital tool for major countries, and American is the leading giant in the sector. They can use their development to produce more agricultural products that they can supply to the Chinese. But there is the extreme population in China that can provide labor to Americans. Therefore, there is a higher chance that bilateral trade will exist that will increase interdependence between the two countries. The study, however, identifies various variables in their researches’. (Cesa, Pesaran, Rebucci, Xu, & Chang, 2012), uses the level of interdependence, reasons for relationships whether it is mutual or to achieve personal experience. The researcher states to what motivate interdependence to occur. Thus, with the studies analyzed, research question can be formed. R1 – what is the level of interdependence between United States and China? R2 – what factors are likely to increase interrelationships between the two countries? R3 – What are the major economic and political interdependence of the Americans and China? R4- what are the major hindrance to the relationship? Analysis Methods of research Methodology in a research is the most important part of any study, and it provides information inform of data that is used for analysis to derive the answers to the research. Our study comprised of both the qualitative and quantitative research. The qualitative research enabled us to obtain first-hand data from the population while, by the use quantitative, we were able to survey pattern of data exchange between the two countries. A sample of 100 citizens within America were selected and provided with questionnaires and interviews. Sampling and survey were simple and fitted in the study. The selected sample is easy to analyze and enabled the researcher to spend more time with the respondent so that data collected was more accurate. The questions were simple, open and direct so that the participants could answer them with ease. The interview involved both the structured and non-structured since it was a way to get more detailed data. For the extensive analysis of the data, it was coded so that we could establish the reliability and validity of the data. Through the previous research and applying the predictive methodology, we were able to establish the causal relationship between our data. At least there were patterns that they conformed to which made the data collected to be more accurate. The study also performed test-pretest with the participants. It enabled us to determine the consistency of the information collected from the field making our analysis to be almost exact. The data then was then calculated to generate percentages that were used in the study. We also employed tables, charts, pie charts so that we could establish various patterns. And for the discourse analysis, various statistical tools such as z-score with the secondary data was used. It enabled us to construct our hypothesis that was in two parts null and alternative hypothesis. The null hypothesis illustrates that there was no interdependence between the two countries and was denoted by H0. Alternative hypothesis established that there is the relationship between the two countries and was indicated by H1. Results After the data had been collected, we used pie charts to show the respondents outcome as represented above. From the study, the majority of the population believes that there is mutual coexistence between China and United States. At least 60% of the participant believes that interdependence exists between them. 30% of the participants, however, showed no interrelations between United States and China while the remaining 10% had no idea. The questionnaire also tended to derive the factor that increases interdependence between the two countries. Trade seems to be the major factor that enhances the relationship between United States and China as from the research, 40% of the respondent believes so. Another 30% of the participants believes otherwise that China and America are interested in each so that they can acquire common interest bonds energy especially oil hence. On the other hand, 10% of the respondent sees security as a major issue between the two countries majorly perpetuated by the increasing world tensions. Thus, countries like China would always are in an attempt to find an ally in case they confirm their worst fears. Other questions generated by the review was to what reasons mind hinder countries from working together in the modern world where mutual coexistence is majorly encouraged. Therefore, to this question, 30% of the participants identify the difference in ideology and political ambitions to a major factor that curtails the relations. It is majorly due to the difference in geopolitics since countries forms diverse policies to achieve their objectives. Nonetheless, 25% of the participants views cultural diversity to deter nations from being interdependent since they will always conform to different norms and values as per their societies, while 5% of the remaining respondent were clueless. From the major question, 60% of the respondent agrees that the level of interdependence between United States and China is high. The value, however, can be translated as 0.6 against the average z-score value of 0.5. We will reject the hypothesis if the null hypothesis is greater than z-core and accept the alternative hypothesis. Conclusions Thus, from the study, the expected calculated value is greater than the average z-score value of 0.5. Hence, we will reject the null hypothesis that there is no interdependence between United States and China and accept the alternative hypothesis that the there is a high relationship between United States and China. Therefore, I can state with authoritatively that dependence exists between America and China, and the level of mutual existence will only become better due to increased new opportunities between the two countries. The research, however, can be generalized and since the primary factors that are identified in the study tends to correlate with another variable in different countries. For instance, different nations have diversified potentials either through the agricultural or industrial sector leading to comparative advantage among them. Thus, they will always depend on one another leading to mutual benefits. Furthermore, same reasons that affect interdependence in between United States and China presumably affects other regions around the globe. Hence, due to globalization we can reduce these barriers and become more cohesive to take the world to the next level. The study provided for extensive research in interdependence between America and China. But interdependence should only exist for mutual purposes and not as skeptical measures for other countries. Thus, the paper provides for more room for research if the relation that exists between the two countries is genuine or mere tensions that lead to one state monitoring the other. Previous research shows that economic rivalry has been the key while the ideology of the two nations is neither the same. Hence, other studies are encouraged to shade light on these arising concerns. References Baylis, J., Smith, S., & Owens, P. (Eds.). (2013). The globalization of world politics: an introduction to international relations. Oxford University Press. Cashore, B., & Stone, M. W. (2014). Does California need Delaware? Explaining Indonesian, Chinese, and United States support for legality compliance of internationally traded products. Regulation & Governance, 8(1), 49-73. Cesa-Bianchi, A., Pesaran, M. H., Rebucci, A., Xu, T., & Chang, R. (2012). Chinas Emergence in the World Economy and Business Cycles in Latin America [with Comment]. Economía, 1-75. Chen, K., & Chen, X. (2013). China and Latin America: Connected and Competing. Hanson, G. H. (2012). The rise of middle kingdoms: Emerging economies in global trade (No. w17961). National Bureau of Economic Research. Morrison, W. M. (2011). China-US trade issues. Yingyi, Q., Qingguo, J., Chong’en, B., & Jisi, W. (2014). Building Mutual Trust between China and the US. China in the World: A Survey of Chinese Perspectives on International Politics and Economics, 2, 279. Read More