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Predictions have been made by economists that the country can become the largest economy in the next five or so years due to the rapid growth. The country is however still not much developed as compared to United States.
The growth in the country has increased in commercial ties within the country and United States. From the data that was given out by the United States, the trade between the countries increased from estimate of 5 billion dollars to 562 billion between the year 1980 and 2013. China is presently the United States’ second-largest exchange partner, its third-largest export market, and its major basis of imports. Many U.S organizations have wide operations in China in order to market their products in the thriving Chinese market and to take advantage of lower-cost labor for export-based manufacturing. The operations that are involved between the operations of the two countries have made United States firms to be much competitive in international basis and the consumers in the country are always satisfied from the low cost products from china.
The emergence that the china economy has however raised many questions to the United States policy makers. The claim is that the country uses unfair practices in carrying out their trade. The tactics that the country is thought to use include use of currency that is undervalued and more subsidies that are given to the local companies for more production. This has made the united states market to be flooded with goods that are of low cost and the practices have also threatened the jobs that are available in U.S. this has led to decrease in the living standards in the country. Other policy makers also claim that China’s growing use of industrial policies to promote and protect certain domestic Chinese businesses or firms preferred by the government, and its failure to take actual act against widespread breach of United
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