The president of China, Hu, arrive in Chicago today for his only U.S. stop outside Washington. Instead of places with more Chinese residents and businesses in the East and West coasts in the US, Hu chose Chicago, because it is more friendly to China.
Nowadays, China is the world’s second- largest economy. As the economic power rising, US is much softer to China than before. For a lot of US companies, they get the most profits from Chinese consumption. Chinese consumption provides jobs and revenues for US market. As a result, even China and US treats each other as potential enemy, economic profits for each other now seem more important to both sides.
3 comments:
The rising economic power of China has created quite a bit of controversy between them and the U.S. While it does appear nice that the U.S. companies profit greatly from the Chinese consumers, the Chinese companies profit a tremendous amount more in proportion because of American consumers. Also, the Chinese economy as a whole has increased their Exports due to American companies outsourcing to China as a way to avoid high production costs. This directly relates to the fact that China keeps their currency at a low value in order to promote this outsourcing and in order for people to continue purchasing Chinese made products, which are very cheap. Therefore, many in the U.S. are adamant about China raising the value of its currency in order to create equally competitive markets.
Not a day goes by in which a person exposed to the media doesn't hear about the rising economic power of China and the negative way in which it affects the United States. The only country that can decrease the trade deficit between China and the United States in the United States. American companies outsource to China because of the high production costs in the Unites States and unless this stops the trade deficit will never seize to exist.
I read a similar article about this. I think everybody knows that China will eventually become number one. The trade balance between China and the United States is way out of proportion and should even up. But China is deliberately keeping its currency value down. But trading with China is proven to be quite incentive to the American consumers as well as companies/corporations. It's our greed that drives this trade imbalance.
This article did not include China funding some of these programs in the United States. I find this news quite fascinating.
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