|
CHINA VS AMERICA
ECONOMY
Two world powers, with two distinctly different political
philosophies, proceed in world affairs on strikingly different
courses. China has chosen to flex its economic muscle while
America's strategy is based on using military might in pursuing its
agenda.
In economic terms, the prices of Chinese exports will probably
fall, as overextended businesses compete to justify their capital
investments and recoup their losses. American businesses will find
it harder to compete with Chinese companies, and there will be
deflationary pressures in both countries. And even if the Chinese
are selling more at lower prices, they may be taking in less money
over all, so they may have less to lend to the United States
government.
China's growth rate, even in these dire economic times is robust,
about 9% at the end of 2008. The U.S. at that time was 1.1% but
currently is running a negative 2.3%. While China is the third
largest economy in the world. Assuming that China and the U.S.
continue to follow their current strategies and directions, and
there is no reason to think that they won't, China seems to be
heading into the position of dominance. Right now China is making
domestic and foreign policy moves that are based on growth and
solidifying its economic foundation. On the other hand, the U.S. is
pursuing strategies that have no clear formulas designed to spur
growth, but, rather, strategies that are severely eroding our
economic base.
China has no great unemployment problems; the U.S. has lost
millions of jobs. China manufactures and exports products all over
the world while the U.S. is outsourcing more and more manufacturing
jobs to other nations. America now faces dire economic issues.
Consider current massive rate of borrowing from other nations,
together with a $1 trillion annual defense budget, and a GDP
plunging due to our continuing economic crisis. Could it be that at
some point in the future the U.S. may be forced to default on its
debts? This is not a doomsday prediction or scare tactic, but it
could very well happen if U.S continue on our present course;
on-going wars, outsourcing more manufacturing and growing deficits.
China currently posses an economic challenge to the US, for these
reasons they are engaged in a number of trade disputes. China’s
development model shows that it is possible for any nation to
develop with some direction which large portions of any nation take
as their view towards the world.. In this way the solutions to such
issues come from the same basis (world view) and each sector moves
in the same direction creating progress.
RAFIA ZUBAIR
KARACHI UNIVERSITY
KARACHI
|
::
Front Page
