Analytically, china is seen as being very aggressive for the outside world but regionally they start becoming oppressive. This combination tact is to enable it to wedge forward for further prosperity while they are suppressing any regional power that can topple them from the helm. This is the oppressiveness that is being felt with the change in foreign policies that China has been busy changing. To this effect, it can be seen that the impounding implication of China rise to power is not to the best
Economical Factors China is seen as one of the most energetic countries in the world when it comes to economic development. The new reforms in 1978 stimulated the Chinese GDP growth from 364 billion RMB to 63.6 trillion RMB within 30 years (chinability.com, 2015). China has persisted to be a primary beneficiary of the world’s destination of Foreign Direct Investment in the latest period. FDI reports 27% of the value added production, 4.1% of national tax revenue, and 58% of foreign trade (usi.edu, 2010). China was facing an economic growth and a huge development, even though the international financial crisis of 2008 left some marks on several aspects of China, above all the export-oriented light industry in southern China (chinapolitik.de, 2009).
For China itself, the investment is more likely a business decision. China’s foreign investment – especially in the production of strategic goods, will continue to attract the attention of foreign governments. This may led to protectionist measures in trade policy from the Western countries in addition to the restrictive investment policies. This would certainly hurt China’s economy, which relies on its export markets. Despite all these factors, there are no serious financial obstacles for China to realize its economic ambitions regardless of the current defence spending.
The primary American goal was to keep the Chinese actively in the Allied war camp. Chiang Kai-Shek’s army received $250 million worth of tanks, trucks, and aircraft from the Soviet Union in 1938, plus some British and French military supplies, and President Roosevelt approved $25 million in military aid to China on 19 December 1940 and later also earmarked over $145 million in lend-lease funds for China to acquire both ground and air equipment. 6. Conclusion. In conclusion, it is evident that the economic relations between USA and China have a long standing ground even though historical studies at some point show that the two countries had their differences.
The total American GDP increased 5.26 times, the British grew by only 2.24 times so America has become the undisputed world economic powers. In 1977, China was ranked 13th in the world, but 2nd in 2015. The population of the poor people of China decreased from 2.5 billion to 20 million. The foreign exchange reserves of China changed from $1.67 billion to $10.663 billion. The total import and export volume of China increased from $206 billion to $17607 billion.
Globalization has undoubtedly brought China more wealth and power, but it has also generated a host of other effects, both positive and negative. First and foremost, one must acknowledge the plainly visible fact that the Chinese economy has grown exponentially since the process of integration into the global economic system began. China 's comparative advantages, particularly in the labor sector, has transformed it into the second largest recipient of FDI in the world.1 Over the course of the last 20 years, exports have grown approximately 17.1 percent per year.2 This ultimate result of this investment and trade has been an overall growth rate 8 percent per annum,3 which would have been completely unattainable without the country 's engagement in globalization. Foreign investments have
In previous years, the development trend of the Chinese economy provided immense development space for foreign investments. Labor force was at a low cost and the government encouraged foreign investments through the developments of Economic zones. Such framework authorized foreigners to take advantage of Chinese labor, while the income is sufficient. Foreign investors also saw a broad potential as economic growth was escalating. However, the economic growth has grew at a slower pace of 7.3% since 2014 compared to 9.91% in 2008 (Shao, Spring, “China’s Growth Slowest Since Global Crisis, Annual Target at Risk”).
The increasing number of foreign investors in China will have negative impact on the economy without government’s intervention. Without government intervention infant industries will not benefit from low taxes and incentive for exports and will fail to compete in the free trade causing unemployment in the country. Secondly with resource allocation, Chinese government controls the resources based on comparative advantage helping domestic firms to specialize based on cheapest resource available. The availability of the resources increases the output of domestic firms; this will improves the balance of payment of a country because of the increase in value of export compared to the import. Lastly the dynamic mechanism states that growth can be sustained by introduction of new technologies, foreign investments and from imports.
One of the western culture influence China’s culture by foreign direct investment helps the economy grow. The reason investors’ fascinated with the investment opportunities and the development of domestic market has been driving by the foreign direct investment (FDI). According to the Ministry of Commerce he state that China is a country playing vital role in export and import in the Worldwide by increasing 4.9 percent from the previous year to $8.8 billion, in September 2013. Investment from the United States and the European Union carry on rising with an 18 percent and 4 percent barrier, correspondingly, beyond the eight-month period whereas U.S. direct investment computed $2.5 billion in place of August 2013 and EU ranks achieve $5.4 billion. Another point is food and beverage scene and changing diets.
For example, sources of China’s soft power include sports, music, art, film, literature, rapid economic growth , foreign policy, humanitarian aid, exchange programs, diplomacy, and participation in multilateral institutions - to name a few (Cho & Jeong, 2008; Zheng, 2009; Kurlantzick, 2007; Kurlantzick, 2006). Taken in the Chinese context, however, the discussion of soft power sometimes assumes different meanings from the one originally proposed by Nye. Over the years, Chinese experts and politicians have debated and redefined the term so much that some commentators even argue it is possible to talk about a “Chinese soft power” (Mingjiang, 2008). Even though Chinese soft power has different interpretations and theories, “the cultural school” - also known as the “Shanghai school”, has gained particular prominence in China’s foreign policies. As implied by its name, “the cultural school” emphasizes culture and its central creed can be summarized in the words of director emeritus of the Shanghai Institute of International Studies, Yu