Sunday, 1 April 2012

America's Relationship with China

I have chosen an article that was published recently in February for CNNMoney which goes in to detail on the love hate relationship between the United States and China. The article was posted just before Valentine’s Day as the Vice President of China – Xi Jinping, was due to make a scheduled meeting with President Barack Obama. It goes into detail about their relationship and referring to them as the two largest economies in the world with China being America’s largest trading partner after Canada but then describing that America is taking rather than giving as it imports more goods that it does export.
This however is good for China as this then has created a job market in China which is giving it sustainable growth but then leaves America struggling as these jobs have moved to another country due to cheaper wages. It then goes on to describe that even though this is the case, American’s in general do not mind as this means cheaper products on the shelves of Walmart and other convenience stores.
There is also an element of jealousy as well due to the fact that the economy in China is growing at an enviable rate of 8.9% in the fourth quarter of last year and America trailing behind with a pace measured at 2.8% per year and therefore economists are predicting that China will soon be the largest economy in the world and this should be by 2016.
Another sore point is the argument between the two countries that the yuan is under valuing the dollar as China is the next largest holder of U.S Treasury securities after the Federal Reserve as China is funding a large part of America’s Social Security and Medicare owning about 7% of the government debt which is approximately $1.1 trillion.

 To go along with this article I also found a funny picture that was drawn by Chinese cartoonist Fan Jianping for the Chinese Media Project which depicts the hypocrisy of the American attitude towards the Chinese manufacturing industry that churn out the cheap goods that the Americans require but then blame the Chinese for polluting the environment. In the picture there is an American sitting on top of a pile of goods that say ‘Made in China’ but then pointing his finger at the Chinese manufacturing industry.

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