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The Rise (or impending fall) of China…the powerful house of cards

“Let China sleep,” warned Napoleon, “for when she wakes, she will shake the world.” Napoleon’s prediction is now coming true, as China’s economic growth has helped aid in its climb to power.

However, much of that economic growth is a result of trade with the United States. In fact, it is a direct result of unfair trade with the United States that allows China to sell its products in the United States without much penalty, while charging tariffs on US goods coming into China. This has created a huge trade imbalance between the two countries that has enriched many in the Chinese leadership and financed its military, while simultaneously causing the US manufacturing industry to leave the US for cheaper production in China.

China has been allowed to do this for almost half a century, with no US administration or any country for that matter actually saying or doing anything about this imbalance that favors China over their own countries.

With the new US administration, this appears to be changing. As explained in this week’s Instructor Insights, the US has taken a different position on China, a position that uses this trade imbalance to force the Chinese government to the negotiating table.

Consider the following:

  • While China appears to be growing economically, it is really a fragile house of cards that has the appearance of economic strength. What does this mean?
  • How do you think the trade negotiations between China and the United States will turn out? Feel free to ask questions if you need more information…
  • What positives or negatives do we have around the world with a rise in Chinese military power?
  • How does this power affect other countries in the region or even around the world?

Review the posts of your classmates and respond to at least one other post. Remember, you do not need to respond to each of the items above. They are only there to give you ideas.

Please remember to support your opinion with well thought out fact. Do not just state your opinion and leave it without giving the reasons why you think that way.

 
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