How is trade with China affecting life in America?
Over the last decade China has transformed itself from the world's greatest opponent of globalization into a committed advocate. The USA rightly perhaps, sees this as a foreign policy triumph. However, there are growning numbers of voices warning of the inevitable consequence of having such a massivly populous country as the new China directly competing in global markets against the USA.
China’s economy has grown at the impressive rate of
almost 10 percent per year for the past decade and is currently the world's third largest economy.
The realities of global commerce are that the biggest player will get invariably the best deals. The undeniable truth is that barring unforseen circumstances of horrific magnitude, China will be the worlds biggest economy within a decade and will have an economy double the size of the USA's within a generation. In such a scenario the USA will loose its economic hegenomy and the political muscule that attends it.
The USA trades heavily with China. Any attempt to slow or halt the growth of the Chinese economy is already beyond the capacity of the USA. China has locked into emerging markets (Africa and South America) and to a great extent Western Europe too. America no longer has the clout (particularly post Iraq) to force the Europeans to toe a Washington lead line on trade limitations with China.
America could stop trading with china but the effect on China would be none too painful, whereas the American economy would find such an action difficult to defend morally and difficult to deal with economically.
Therefore, trade with China is inevitable and loss of number one status is also inevitable. The 20th Century may have belonged to the USA, but the 21st Century will belong to China.
So, now that we have the facts, we can once again ask How trade with China is affecting life in America?
China will soon own more than a trillion dollars of US currency, bought over the last 2 decades. They now have the economic clout to affect the stock market.
In 2004 the The World Tourism Organization predicted that 180 million Chinese will become international tourists over the next three years. China is expected to become the main tourist source nation by the middle of the 21st Century.
China's internal development is causing world wide shorages of raw materials (noteably metals) leading to price rises, affecting the USA's ability to continue its own growth.