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R:A#4: The Economic Relationship Between the U.S and China

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Dustin Beene

 

China and the United States have shared a long and not always pretty history with one another. It was only until recently that the the countries have agreed to lift trade sanctions and to become trading partners. This decision has benefitted both countries massively and has especially helped China to become an economic powerhouse in Asia, but the future of this relationship seems uncertain. “Historically, dominant powers have not readily given up their position of number one to rising challengers.”[1]. The U.S’s economic domination seems to have finally met it’s match.

 

To first understand the competitive nature between the two countries we need to look into the complex relationship they have shared over the past years. We will first look into the years before the two countries even began to trade with each other. We can trace this back to the 1800’s when China almost a third of the total world manufacturing output, ahead of the West by a tenth of the world total [2]. We can then look at China all the way up past the second world war. Because China was a communist regime for many years after the second world war, the United States refused to have any trade with them. In fact the two countries hardly had any diplomatic relations at all. Then we can look at their relationship from after the Chinese revolution to modern day and find out why these two economic powerhouses have been mutually helping out their economies even before they started trading.

 

In the 1800’s China was the leading nation in the worlds manufacturing output. They owned almost a third of the worlds manufacturing output up until about 1830 when the west finally surpassed them by a small margin of 1.3% [2]. After that the Chinese economy went into decline while the U.S economy slowly started to rise. Both countries during this time, along with many other countries, still relied heavily on agriculture to sustain their economies, but both countries were starting to feel the effects of the industrial revolution. With both countries industrializing they started looking to trade from other countries to help boost their economies.

 

At the beginning of the twentieth century the U.S had massive success in trading with foreign countries. For example in 1903 their total of exports and imports was just under 2.5 billion dollars [3]. This was about four times the amount of imports and exports the U.S had in 1850. Post World War era trade became very important to the U.S and it’s value to the global economy was highlighted in word war one. During the time period of world war one the U.S made a good name for themselves. They established military dominance and proved be an economic powerhouse in the early stages of the global economy. However after world war one the U.S was struck by the great depression. The depression crippled the U.S economy causing mass unemployment. The U.S was also hurt during this time through trade. In 1930 U.S exports dropped 25% due to the jacked up prices on agricultural products [4]. However the U.S economy was saved by World War two and mass projects set up by the American government to get people back to work.

 

During this time period China was starting to grow as a superpower. Because of the attack on the Americans by the Japanese during World War two they actually received economic aid from the U.S and it allies to help attack Japanese owned territories. This was vital in developing China as a major role in the world economy and it also led them to become a communist country.

 

After world war two ended China and the U.S became rivals. China was emerging as an economic superpower however they did so in a much different form than their western counterparts [5]. China’s resourcefulness and philosophies helped Chinese businesspeople gain a competitive advantage and avoid pitfalls [5]. During the cold war era the communist run China and the U.S had trade sanctions between the two countries, but they still helped each other grow through competition. Both countries were trying to gain the upper hand on each other creating an intense rivalry for economic and military power.

 

Post cold war era created a new alliance between China and the U.S. Trade sanctions were finally raised and the two countries now benefited not from competition, but through cooperation. “Although our relations with China are still in an early formative stage, we have already seen the fruits of the new policy; U.S-China trade last year was just under $100 million and can be expected to substantially exceed that figure this year.”[6].

 

Conclusion:

 

[1]: Deng, Gang. Premodern Chinese Economy. Routledge Explorations in Economic History. Hoboken: Taylor and Francis, 2002.

[2]: Special to The New,York Times. (1903, Jul 20). BANNER YEAR FOR AMERICAN FOREIGN TRADE. New York Times (1857-1922) Retrieved from https://search.proquest.com/docview/96283050?accountid=14902

[3]: Botti, Timothy J.. Envy of the World : An Illustrated History of the US Economy and Big Business. New York, US: Algora Publishing, 2007. ProQuest ebrary. Web. 22 March 2017.

[4]: Muller, Sean. “WHAT CHINESE WANT – CULTURE, COMMUNISM AND CHINA’S MODERN CONSUMER.” Charter 83, no. 11 (2012): 67.

[5]: Dorn, J. A. (2003). Integrating China into the Global Economy (Book). CATO Journal, 22(3), 559.

[6]: ART, R. J. (2010). The United States and the Rise of China: Implications for the Long Haul. Political Science Quarterly (Academy Of Political Science), 125(3), 359-391.

[7]: Baldwin, R., & Krueger, A. (1984). The structure and evolution of recent U.S. trade policy.

Re-do RA#1: The Economic Relationship Between China and The U.S

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Dustin Beene

The relationship between the U.S and China has had a rich history. After the Cold War era China lifted most trading sanctions and the U.S and China began a trading partnership that was mutually beneficial to its peoples. The relationship as of recently hasn’t been as stable as it has been. Due to China’s rise in economic power, China no longer feels like it needs the U.S anymore and many Chinese people feel that they are going to surpass the U.S in the global economy. This sudden surge in economic gain has created tension between the two countries. With China on the rise the relationships future seems as unsteady as ever.

PERLEZ, J. (2012, Apr 03). Chinese insider offers rare and candid glimpse of U.S.-china friction. New York Times (1923-Current File) Retrieved from https://search.proquest.com/docview/1705842352?accountid=14902

Other search terms: trade, histor*.

Geographic focus: China and the U.S

This topic connects to diverse ways of thinking because I will explain the history of this trading relationship and both sides didn’t always see eye to eye.

RA#3: The Economic Relationship Between the U.S and China

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Hook: China and the United States have shared a long and not always pretty history with one another. It was only until recently that the the countries have agreed to lift trade sanctions and to become trading partners. This decision has benefitted both countries massively and has especially helped China to become an economic powerhouse in Asia, but the future of this relationship seems uncertain. “Historically, dominant powers have not readily given up their position of number one to rising challengers.”[1]. The U.S’s economic domination seems to have finally met it’s match.

Thesis: China and the U.S share a stable economic relationship now, but looking into the future the two economic powerhouses will have tension.

Paragraph 3: China and the United States economies before and during the Cold War.

Paragraph 4: The mending process of the two countries and the obstacles they faced.

Paragraph 5: Current relations and the dependence on each other

Paragraph 6: The economic rise of China and how it will affect their relationship.

Conclusion:

 

[1]Art, Robert J. “The United States and the Rise of China: Implications for the Long Haul.(Essay).” Political Science Quarterly 125, no. 3 (2010): 359.

[2]Charles Riley. “4 Things about China’s Delicate Relationship with the U.S..” CNN Wire, November 10, 2014.N

[3]Hills, Carla Anderson, Blair, Dennis C, Jannuzi, Frank Sampson, and Council on Foreign Relations. U.S.-China Relations : An Affirmative Agenda, a Responsible Course : Report of an Independent Task Force. Independent Task Force Report ; No. 59. New York: Council on Foreign Relations, 2007.

[4]Lardy, Nicholas R. Integrating China into the Global Economy. Washington, D.C.: Brookings Institution Press, 2002.B

[5]May, E., Fairbank, John King, & Harvard University. Department of History. American East-Asian Relations Committee. (1986). America’s China trade in historical perspective : The Chinese and American performance (Harvard studies in American-East Asian relations ; 11). Cambridge, Mass.: Committee on American-East Asian Relations of the Dept. of History in collaboration with the Council on East Asian Studies, Harvard University : Distributed by Harvard University Press.

[6]Womack, Brantly. “Beyond Win–win: Rethinking China’s International Relationships in an Era of Economic Uncertainty.” International Affairs 89, no. 4 (2013): 911-28.

 

 

RA2: The Economic Relationship Between the U.S and China

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Dustin Beene

The Trade Conference Before the National Council between the United States and China talks about the current economic relations between the two countries and plans for economic interdependence. In the time it was written China was still a communist regime and had little trust in the U.S and did very little trade. However this document talks about them  putting their differences aside and start lifting economic sanctions. As the document states, “Although our relations with China are still in an early formative stage, we have already seen the fruits of the new policy; U.S-China trade last year was just under $100 million and can be expected to substantially exceed that figure this year.”[1] The person who wrote this document was Frederick B. Dent of the United States secretary of Commerce and he was writing to a council who was attending the trade conference. He talks about other successes of economic relations that the U.S have created in the recent past and suggests that if China were to partner up with the U.S, that they too will enjoy the same success.

[1] Frederick B. Dent “Address Before the National Council for United States-China Trade Conference,” June 1, 1973 http://web.b.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=0ff931ff-29f0-4523-a512-c1fa78cee4db%40sessionmgr104&vid=20&hid=128 accessed February 6, 2017.

Question A: When were sanctions finally removed and how long was the process?

Question B: Are there any remaining sanctions?

RA1: Economic Relationship Between the U.S and China

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The U.S and China’s relationship over the years hasn’t always been the best. However during the economic globalization era China and the U.S have benefited from a mutualistic trade partnership that has helped both economies flourish. China’s inexpensive exports have saved American consumers billions of dollars while China has become Americas fourth largest export market. Not only does this relationship benefit us with cheaper goods it also helps create jobs for both nations. Our relationship is one that both sides benefit from and it is a relationship that both sides plan on maintaining for many years to come.

Wu Yi, The Win-Win of China U.S Trade, The Wall Street Journal Asia, May 17 2007, http://search.proquest.com/newsstand/docview/315319083/abstract/AF9D0CAE32E74774PQ/1?accountid=14902, January 19, 2017.

Other search terms: trade, histor*.

Geographic focus: China and the U.S

This topic connects to diverse ways of thinking because I will explain the history of this trading relationship and both sides didn’t always see eye to eye.