The World Economy: "Made In China"
Start writing a post
Politics and Activism

The World Economy: "Made In China"

Although the communist nation has been excluded from the Trans-Pacific Partnership, the People's Republic of China has had other plans to fortify China’s place in the international economy.

38
The World Economy: "Made In China"
http://21c-learning.com/sh-teachmeet/

China is the championing mercantilist in the international community. The nation has a population of over 1.3 billion and is also in close proximity to seven of the fifteen most-populated nations in the world.

China is – and always has been – a “global” nation; however, it comes as no surprise that it has been excluded from the Trans-Pacific Partnership. The proposed free trade agreement – drafted in 2005 – has been well a major catalyst for increased development in the People’s Republic (PROC) over the past decade.

For almost everyone around the world, the TPP seems to have sprung up out of nowhere. In fact, the agreement was drafted in 2005 by only four countries, the US wasn't included until 2008.

In addition to maintaining trade with the West, China has also been bolstering its economic presence throughout Eastern Asia. Just in the past decade the PROC has made extraordinary changes,most notably the ushering of over 250 million citizens into major cities.

Since 2000, state infrastructure construction has required the demolition traditional two-floor siheyuan courtyard-houses to make way for cost-efficient high rises. The government usually gives residents a monetary incentive to move into the city.

The PROC’s relationship with neighboring nations such as Russia, Kazakhstan, and Mongolia has recently improved with the implementation of the Silk Road Economic Belt in the northwest Xinjiang province. The region is home to a minority Muslim population of Uighurs, an ethnic group historically rooted in the area.

Xinjiang officials hope to strengthen China’s oil and gas imports through the Silk Road, where trade has been booming since the early 2000s. China produces little to no oil and is still reliant on coal.

Like the US, China exports (and keeps for itself) a plethora of stuff that developed nations “need” to make a living. In conjunction with Russia, the PROC stabilizes the entire East-Asian economy – all while balancing a trading partnership to mass-supply “everyday” products to the West.

For the U.S. and, to a lesser degree, the rest of the Americas, the products of Chinese manufacturing are at our fingers - they light our homes, ease our communication, clothe our bodies, and occupy our time into the night.

Global iPhone and Android sales totaled to over 1.2 billion last year, with China overtaking the US as the biggest buyer of the product it manufactures, as of Q2 this year. Relative to what Americans pay for the devices, Chinese consumers are actually paying more. In fact, this financial strategy keeps the Chinese economy internationally attractive.

In the U.S, private banks are struggling to cover the billions owed to them by nations around the world. This isn’t a problem for China, which holds over 1.3 trillion dollars of US debt, and still owes the US roughly the same amount.

As a large holder of US debt – specifically in Treasury bonds, notes, and bills – the PROC is able to manipulate its own currency, the Yuan, if the Dollar's value drops. When this happens, China just buys more US bonds – thereby increasing the US demand for the dollar.

The U.S’s dependence on the Chinese economy has become a point of leverage for the PROC, and the West has noticed. Recent military developments on disputed islands in the South China Sea and a strengthened tie with Russia have been seen as a threat to the US.

President Obama’s historic visit to Vietnam, also a TPP member, last month included talk of China – without specifically mentioning it. Obama and Vietnamese President Nguyen Phu Trong discussed China’s military activity, referring to it as "East Sea developments."

The TPP has only further aggravated a growing economic tension between China and the US. The problem has become so severe, that it's incorporated military aspect as well. The TPP has a similar air to the North Atlantic Free Trade Agreement, which was responsible for the exploitation of Mexico’s workforce and the crippling of the value of the peso.

China knows that it can handle itself without the TPP, and so does the rest of the world.

Report this Content
This article has not been reviewed by Odyssey HQ and solely reflects the ideas and opinions of the creator.
the beatles
Wikipedia Commons

For as long as I can remember, I have been listening to The Beatles. Every year, my mom would appropriately blast “Birthday” on anyone’s birthday. I knew all of the words to “Back In The U.S.S.R” by the time I was 5 (Even though I had no idea what or where the U.S.S.R was). I grew up with John, Paul, George, and Ringo instead Justin, JC, Joey, Chris and Lance (I had to google N*SYNC to remember their names). The highlight of my short life was Paul McCartney in concert twice. I’m not someone to “fangirl” but those days I fangirled hard. The music of The Beatles has gotten me through everything. Their songs have brought me more joy, peace, and comfort. I can listen to them in any situation and find what I need. Here are the best lyrics from The Beatles for every and any occasion.

Keep Reading...Show less
Being Invisible The Best Super Power

The best superpower ever? Being invisible of course. Imagine just being able to go from seen to unseen on a dime. Who wouldn't want to have the opportunity to be invisible? Superman and Batman have nothing on being invisible with their superhero abilities. Here are some things that you could do while being invisible, because being invisible can benefit your social life too.

Keep Reading...Show less
houses under green sky
Photo by Alev Takil on Unsplash

Small towns certainly have their pros and cons. Many people who grow up in small towns find themselves counting the days until they get to escape their roots and plant new ones in bigger, "better" places. And that's fine. I'd be lying if I said I hadn't thought those same thoughts before too. We all have, but they say it's important to remember where you came from. When I think about where I come from, I can't help having an overwhelming feeling of gratitude for my roots. Being from a small town has taught me so many important lessons that I will carry with me for the rest of my life.

Keep Reading...Show less
​a woman sitting at a table having a coffee
nappy.co

I can't say "thank you" enough to express how grateful I am for you coming into my life. You have made such a huge impact on my life. I would not be the person I am today without you and I know that you will keep inspiring me to become an even better version of myself.

Keep Reading...Show less
Student Life

Waitlisted for a College Class? Here's What to Do!

Dealing with the inevitable realities of college life.

95744
college students waiting in a long line in the hallway
StableDiffusion

Course registration at college can be a big hassle and is almost never talked about. Classes you want to take fill up before you get a chance to register. You might change your mind about a class you want to take and must struggle to find another class to fit in the same time period. You also have to make sure no classes clash by time. Like I said, it's a big hassle.

This semester, I was waitlisted for two classes. Most people in this situation, especially first years, freak out because they don't know what to do. Here is what you should do when this happens.

Keep Reading...Show less

Subscribe to Our Newsletter

Facebook Comments