Economy of US and China: Strengths and Weaknesses

Running head: ECONOMICS
Economics
Name of the student
Name of the university
Author note

ECONOMICS
Answer 1
Economy of US and China
Both the markets of USA and China are performing well in the recent years. The
economy of US is a highly developed economy and is the world’s largest economy by
nominal gross domestic product. On the other hand, china is also the world’s second largest
economy in terms of nominal GDP. China is also one of the world’s fastest growing major
economy in the world. China had been one of the few countries to escape from the global
financial crisis. It have experienced only a mild slowdown in the economic activity on the
other hand the America economy was highly hit. There was a credit crisis in USA and they
have also experienced severe recession
Strength and weakness of Chinese economy
One of the biggest strength of china is that its huge population offers a cheap labour
and this acts as a huge potential market for the employment. Another strength of china is the
huge growth of the gross domestic product. The export growth have increased by 25 percent,
the growth rate of gross domestic product was around 7 percent. Favourable government
policies for investment also acts as a strength for china.
One of the weakness of china is that it have restricted itself largely to the domestic
market (Chin ET AL., 2017). Also, the education level of china is not very advanced
compared to the other countries. The biggest weakness of china is that the government is
known to be restrictive since it does not allow social media and have put restrictions on them.

ECONOMICS
Strength and weakness of USA
The economy of the United States of America is that it is largest and the most
important market in the world and have highest value of investment in education and R&D.
The highly educated workforce acts as the biggest strength for America (Liu and Li, 2015).
The well established infrastructural facilities including railways and ports also acts as
strength
The low amount of investment into customer oriented services acts as a weakness for
USA. The credit market have turned weak after the attack of the global financial crisis. There
are also large number of number living in poverty. The fiscal deficit and the external debt is
also increasing in the percent years.
US china trade war
Both china and United States and China are engaged in trade war where each of the
country placed tariffs on goods traded between them. The president of USA known to have
complained about the trading practices since 2016 and imposed tariffs on billions of dollars’
worth of Chinese products worth of $250 billion (BBC News. 2019). Beijing also hits back
with tariff of around $110 billion on the US goods resulting in global trade war.
Present situation
Presently, US and china have agreed for establishment of enforcement offices for
monitoring the enforcement of the trade deal that needs to be finalized