The United States and China - Essay Example

The United s and China China is slowly overtaking the United s economically and technologically. It is a bit complicated for many given that the U.S. has been the leading country for many years. Just recently, reports by the International Monetary Fund (IMF), revealed that China is the leading economy in the world, followed by the United States. Never before had the U.S. been defeated, of course, since it took over after the Second World War, in the year 1945. The U.S. was doing so well, even in the event of the Cold War. Its economy was much better than any other. This pushed America to the top. Although Americas is a beneficiary of the British civilization, it managed to clinch the top positions. This is in terms of political power, economic stability, sufficient labor, sufficient and strong armed forces, among other things. The 21st century was then named the American century. This is because it had overtaken all the European countries including the Soviet Union and Japan. The United States has been in the lead for a long time. This is because of its strong currency, which has made it be the most preferred currency all around the world. Not many currencies have been able to be used as widely as the American dollar. The availability of machinery, technology, stable political leadership, and labor, also in a big way upheld the status of America because it led in all those areas (Jacques 64). Everything that was American was much more sophisticated. It went ahead to create some multi-national institutions and organizations. For example; the international monetary fund, the United Nations, NATO, among other organizations which showed how much authority and power the United States had. When the Soviet Union, which was a major threat to the United States of America, collapsed in the year 1991, America celebrated because there was no more threat of being overhauled. This is because many of the countries that now had their distinct boundaries broke off and could even ask for help from America. This made is obvious that there was no other power that could surpass America. The dollar became very strong, and its markets expanded greatly. This was when terms like unipolar and hyper power started to be used to describe it, just to show the might and power that the country enjoyed. Before the United States started enjoying the power and importance, major European countries were in the lead. These countries included Britain, Germany and France. These countries had enjoyed the Britain’s industrial revolution and were therefore in the lead. Smaller European countries, for example, the Netherlands, Portugal, and Spain, were also doing very well at the time. Europe had machinery and technology; they made many inventions that set them apart from the rest of the world. All this industrialization took place in the eighteenth century up until the twentieth century. This was also added by the fact that Europe had colonized so many countries, which gave it more power. Jacques (86) adds that they had weapons and sophisticated machinery. It was no surprise that Europe was in the lead. But it started to decline in the period of the world war two. This then set the way for America, which was learning fast and trying to catch up. For two decades, Europe and the United States have been the leaders, dominating the world. But the developing world is fast catching up. The Asian countries are recording very high economic growth. This is boosted by advancement in technology and sufficient labor. The developing countries are now posing a threat to the superiority of the western countries. The example of China is one that can never go unnoticed (Mandelbaum 135). China has been experiencing tremendous growth in the past few years that the whole world is left amazed. What helps China is the availability of cheap labor and the very high population. The population of China cannot be compared with the U.S. population. This therefore helps it increase the market size considerably. The improvement of Chinese technology, on the other hand, also set it apart. The developing countries are rapidly growing as a result of affordable education. Many children can now go to school and access education, this leads to an increased learned labor which majorly contributes to the economic growth and specialization. This means that the potential in these countries is being witnessed. Infrastructure is becoming more available and accessible, which contributes to the economy. The developing countries, though facing numerous challenges, for example, insecurity, are working hard to be like the western countries. More investment is being put toward income generating activities (Mandelbaum 128). The thing that boosts these countries is also the availability of raw materials, for example, oil, gold, and petroleum, among others. Even if the world order will not change any time soon, the developing world is slowly moving forward in the right direction. It may take time, but it will eventually reach there. The developing world can do very well; this is because of the high population possessed by these countries. Cumulatively, the number of people in the developing world outnumbers those from the west. This makes it more able to be productive, because of readily available labor. Mandelbaum (144) reveals that in the near future, probably thirty years from now, China will be the leading economy in the world, followed by the U.S. and India respectively. This shows that two Asian countries will be in the lead, followed by Brazil, which is growing very fast. There is no European country in the top three lists. Such revelations beg the question; why is China growing so fast? What is boosting the economy of Asia? There are quite some explanations to this. First, the Chinese economy is experiencing a major boost because of the high skilled population that the country has. This gives it a big advantage. Even if the number of unskilled labor is still high, they contribute so much to cheap labor, which does not require much schooling. This has helped make Chinese a very prominent economy. The Chinese have also made sure that all their products bear their name. They have the capability to produce goods for the western countries, as well as for the developing countries. This makes China very competitive. In fact, many American companies are subcontracting Chinese to make their products for them. This is because they not only have the skill and technology, but it is also because it is cheaper to produce things in China than in most of the other countries of the world. This has helped it to be more popular and more trusted, in production. China has the capability to produce high quality products. Although they are faced with the challenge of counterfeits, their reputation for quality products still stand. The working relationship between China and Japan has strengthened the Chinese economy. This is because it no longer has to depend on Western countries for exports and imports. China also does not see Japan as a threat anymore, because it has a bigger economy. Working closely with Japan, which is also a strong economy, is a great strategy employed by China, and it is very beneficial to the country. The growing economy of China, as well as that of the other Asian countries, is strengthening the ties among all the Asian countries. When the economy stabilizes, the differences between countries reduce significantly, and they start working together towards the achievement of success, and regional stability. This stability cannot even be projected because there is so much that is anticipated. Anything can happen. The world is not made of rational choices, but economic independence will surely dissolve the conflicts, and, as a result, there will be more cooperation in Asia. It indicates that the threat of nuclear power will be eliminated or rather it will be very low. This is because the Asian countries will work together with a sense of community and will agree to hold productive talks (Jacques 125). Although China is experiencing massive growth, if the country is not careful, a decline may occur. The situation in China has now greatly changed. It is a digitalized world, and this means that people are informed, and they have all the tools they require. With a record five hundred million middle class people, the economy is bound to be affected in different ways; the inequality gap is becoming too wide. The rich in the society will continue being richer while the poor will be poorer (Mandelbaum 102). This will at some point limit growth. An economy that is stable does need such huge gaps. The differences should be at the minimal. When there is a big difference between the social classes, then businesses will be impaired. There will be a lack of competition because there will be two different markets and different needs, and, in the long run, the economy at large will be affected. This situation is not only affecting China, but the rest of Asia as well. That is why it is said that Asia will turn into a middle class economy, impacted greatly by the downward pull by those in the lowest social ladder. The poor will pull down the whole economy. In a situation where the rich only can afford the basic amenities like proper schooling, proper medication, housing, and the important amenities, the situation becomes even worse. Mandelbaum (136) says that what is even more worrying is the fact that China imports almost all its raw materials, ranging from oil, alumina, cotton wool, and other materials needed for production. China is less fortunate when it comes to availability of the natural resource. Even worse is that the country’s tremendous population has to rely on the very little they can. That is why China has to rely on exports. China’s cultivated land is only 8 percent. Yet its economy is 22 percent of the entire world. This shows how much strain the country has to deal with. The U.S., on the other hand, does not have to heavily rely on imports. This is because the country can produce much more than it needs for sustainability. It even has surplus produce for export. This is what helps to set it apart. In addition, the development that is going on in China is depleting the resources. The forest cover is diminishing, in fact, it is one of the worst covered in the whole world. This has only seen an increase in pollution, and it is adding to the global warming being experienced the world over. With the advancement of the Chinese, India, and other Asian countries, it is clear that Asia as a whole is on the rise in economic standing. Which a huge labor force, technological growth and an increase in exports, economic growth in Asia is steadily on the rise. America will continue to maintain its state because it is well advanced and well developed. It may be hard for any other country to overtake the United States in the near future. The two will be at par, and more is expected to unveil in the long run. Although the future cannot be spelled right now, it is clear that this century will be dominated by the United States and Asia. Works Cited Jacques, Martin. When China Rules the World: The End of the Western World and the Birth of a New Global Order. New York: Penguin Press, 2009. Print. Mandelbaum, Michael. The Ideas That Conquered the World: Peace, Democracy, and Free Markets in the Twenty-First Century. New York: Public Affairs, 2003. Internet resource Read More