The Economic relation between China and USA

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The commercial relation between the U.S.A and the P.R.C

By:

Juan Carlos Luján González.

It would be ironic to say that the only two global superpowers aside from being the top on the competition for the most powerful economy in the world. And specifically referring to China for having an historical record of growth and development (10.1% GDP in the last 10 years). It seems almost like a joke the fact that this two high profile competitors are at the same time basically a Siamese twins ; and it is Siamese twins an appropriated name according for they extremely close relation now days. Today they are totally dependent one from each other. For showing some figures it seems important to note that back in the 1972 , the amount of trade between this two nations use to be around 100 million U.S. annually, while compared with the present figures, it rounds around a billion dollars a day ; It practically means that only in the last 42 years, the economical relation has growth about 365,000 times larger. (CHINA BUSINESS REVIEW 2013).

The growth between the first world power and the Asian giant has been rapid but gradual. The real root of this relationship emerged in 1973 in an arrangement between the exPresident Richard Nixon and Premier of the Popular Republic of China Zhou Enlai

(Assigned

by the great Mao to consolidate political and economic relations of the

country) .
The enigmatic trip to China from President of the United States was undoubtedly the watershed to strengthen the relationship, creating the so called USCBC (US- China Business Consul).
With his renowned phrase: "There is no place on this small planet for a billion of its Potentially Most people able to live in angry isolation. " (WITHE THE HOUSE, 2011). And that's how everything started. The thing is that the development of China was impressive; actually way above of what the Americans ever imagined. Just to give a figure, here is a table showing the growth of the Chinese steel on a worldwide market.

This kind of figures is what led China to an unprecedented growth, and so to become a powerful prospect to assume the charge of the new first world economy. Another very important factor was the massive investment in military technology; a factor that started to worry the Americans, showing that by 2028 the Chinese military budget will eventually

overcome

the

American

one.

And this changed the order of the game; relocating China from being the factory of the world to a huge economic power; a country now arm with enough technology of

production, to be even capable of defeating the U.S.A´ exports, beating them again in s
the international trade sector.

According to statistics, China should become the world's largest economy by 2016, finally over passing the U.S.A as actual bigger player and most influential country in the world.

In conclusion, the prospects of the Chinese economic growth are more than promising; however it cannot be put aside the fact that China still has major challenges. Such as a population larger than 1.3 billion people and the risk of economical sustainability, even the smallest economic fracture could defiantly change the course of the nation; some other problems could also be related with the huge number of college graduates (7 million annually), and certainly a social backwardness . While United States faces another kind of challenges, such as the constants economic bubbles ; which a clear example could be the one of bank housing loans in 2008 , a slowdown on its consumer culture and the global competition. Attached their stoning economic gaps , with a more volatile capitalist government; highlighting the fact that only 1 % of the population owns about a 20% of the economy. In actual times many things can happen, as well as the growth of the well-known and so called emerging economies; always appealing to the famous quote from the Dr. Thomas L. Friedman, "the world is flat"

References:...
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