China - the Economic Dragon

China-The Economic Dragon

Robert Kidney

B6601 A01:  International Business Practice

Instructor: Dr. Voyt

02 June 2016

ABSTRACT

In the 1970’s the United States watched from afar as China began to grow into an economic power house in Asia, it began to engage diplomatically to develop a mutual relationship via economic trade.  The hopes of the United States were to build strong economic ties that would lead to potential political change within China itself.  When a country grows economically, there is a tendency for democracy to take root as its GDP increases, and the nation’s quality of life improves due to its wealth.  Although China has become one of the biggest producers of low cost goods worldwide, the political change within China has been thwarted.  This is primarily due to repression of its people and the heavy handed approach by the government of handling protests, voices of opposition and humanitarian concerns by its government.  China as of late has become adversarial towards the United States in regard to political bickering in regard to the South China Sea.  My hope is that thru this research paper one may educate himself in regard to the economic structure and policies that direct the Chinese economic machine.  

China-The Economic Dragon            

Executive summary

       China, the Asian Dragon is a nation in a state transition from a 3rd world economy to one of the top economic powerhouses in the world.  It began this economic transition back in the 1970’s, as the United States (US) sought to develop stronger ties given its geographical position to the then Soviet Union.  Recently the US and Chinese relationship has experienced some changes, even souring regarding the navigation of international waters of the coast of china in the disputed water of the South China Sea.  What will be the end result of this bickering, no one knows for certain.  What will China’s provocative behavior in the South China Sea mean to the stability of the global economy is anyone’s guess moving forward.  No one can dispute the power of China’s economic engine is having on the stagnant global economy and more the impact than ever on the developing global trading marketplace.        

China is a nation that can boast a history that spans thousands of years.  It is located in Eastern Asia, bordering the East China Sea, Korea Bay, Yellow Sea, and South China Sea, between Democratic People's Republic of Korea and Vietnam. China has been recording consistent trade surpluses over the past two decades and is considered the world’s largest exporter and importer of foreign goods.  Consistently strong growth with exports has been a major contributing factor in China's rapid economic expansion.  It is a major supplier of electromechanical products and manual labor-intensive products such as clothing, textiles, footwear, furniture, plastic products, bags and toys. China’s main trading partners are the United States, the European Union, member countries of the Association of Southeast Asian Nations (ASEAN) Japan and the Republic of Korea. China’s main imports are Electronic equipment, Mineral fuels, oil, Machinery, iron ore, copper aluminum and soybeans. China’s main importing partners are EU, ASEAN, Japan, South Korea, Taiwan, Australia, South Africa and Brazil. China has been a member of World Trade Organization (WTO) since 2001.