Economic Challenges Faced by China and the United States

The assignment highlights the main global and economic concern of the countries of china and that of United States and projects a thorough explanation and comparison together with the extent the countries are initiating in solving the issues. The context of both the countries and the measures they are taking for coping in the global economy are illustrated.

Running head: ECONOMICS
Economics
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction................................................................................................................................3
Context of China........................................................................................................................3
Context of US.............................................................................................................................5
Comparison towards copying with the global economy............................................................7
Conclusion..................................................................................................................................9

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Introduction
The beginning of the decade offers the picture of the global economy with the trends,
the new opportunities and global economy. As per the current researches, the world is
meeting with a series of global concerns like the higher tendency of natural disasters, the
geopolitical tensions, the deep political divisions in various countries. The assignment
highlights the main global and economic concern of the countries of china and that of United
States and projects a thorough explanation and comparison together with the extent the
countries are initiating in solving the issues (Denzin & Giardina, 2018). The assignment
furthermore illustrates the context of both the countries and the measures they are taking for
coping in the global economy.
Context of China
The Chinese economy is the second largest economy in the globe after the United
States. It also stands third in the importer at the global context after United States and
Eurozone. The economy of china plays a pivotal role in the commerce and global trade. The
property market in china is expected to be in a bubble and seems to get crumbled soon. Some
of the major issues that are plaguing the economy of china are as follows.
The falling rate of growth is the top factor in the country. With the growth rate of 10% per
annual fuelled by the ambitious infrastructures and projects, the current negative sentiment of
the market has affected the economy largely (Bayne, 2017). The growth rate has been
crumbling and no more debt can be furthermore added. Some of the recent statistics showed
the rate to be 6.5%.
Manufacturing and the banking viability - the government of china has led towards a lot of
mal investments. The government of china is currently managing the non performing assets
that could furthermore cause mayhem in the Chinese bank sector. This is one of the major

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issues since the spill over effect of the downturn could furthermore hamper the stock markets
across the globe.
Export Driven economy to consumption driven economy – The Chinese economic miracle
had been long fuelled by the consumption debacle by the United States consumption. After
the 8 years of the zero policy of the interest rate, the Chinese rate are now set towards rise
(Chauvin et al. 2017). This has enabled to cause some of the drastic drop towards the demand
of the United States. This would furthermore led the Chinese export to suffer and result in
deflationary scenario through out.
Source: (Lo, 2016)
The Chinese economy has enjoyed more than 30 years of explosive growth. Measured by the
gross domestic product it was around $23.12 trillion. But the growth in the country has
slowed down recently due to the governmental moves of the strategically important

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companies that tend to dominate the industries. The country aims to increase its growth rate
to fix the rate of unemployment and poverty. The leaders have taken steps towards boosting
up the domestic demand from the billion people. China plans to initiate action from
innovative companies and encourage investment in the china’s stock market.
Source: (Denzin & Giardina, 2018)
Context of US
The economy of United States has been enjoying faster growth, lower unemployment
and the record number of the job openings. As per the past reports, and the current Federal
Reserve Survey more than 12,200 Americans had been struggling with the financial
hardships (Shen et al., 2017). Providing enormous stake in a resilient and strong economy,
some of the economic challenges faced by the country towards the global context and the
opportunity of the country are as follows.

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Restoring of the financial stability – The financial troubles of the United States is the centre
of the current vortex of the globe (Ross, 2016). The country has important obligations
towards strengthening the financial systems of the globe that furthermore includes the
enhancement of the financial regulation and the diminishing of the reliance on the foreign
credit.
Exercising the smart power – Investments in the health, education, the livelihoods and the
security of the poorest of the globe not only develop the good feeling among the Americans
about themselves and their country’s current economic position but also makes the entire
world feel and think good about the country of United States (Lo, 2016). It is thus critical
towards increasing not only the resources but also the effect or pact of each of the dollar
spent.
Navigation of the rise of the china – One of the current and ongoing economical challenges is
the enforcement of the rules and the exchange of the trade rate of the adjustments in the case
where the stakes are too high for ignorance. It is thus important for the country of the United
States to look for the co-operative mechanisms towards the advancement of its goals. The
country should continue to press bilaterally with the country of china and deploy the
international and regional mechanisms where applicable or necessary.

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Stagnation -

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Source: (Thalassinos & Dafnos, 2015)
The figure above states how the income of the various segments of the income has grown
since the year of 1970. The American economy has not seen any growth since many of years.
The economic growth has slowed down in the upcoming years as per the above figure.
Source: (Burke, Hsiang & Miguel, 2015)
Comparison towards copying with the global economy
The United States has the world’s largest economy for more than 140 years and
accounts more than 23 percentage of the gross world product. The United States thus
remains at the top in terms and the statistics of the nominal GDP. China on the other hand is
top in the International Monetary Funds and purchasing power parity declaring itself as the
wrld largest economy in the present date.

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Source: (Tran et al., 2017)

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Source: (Chauvin et al. 2017)
From the above figure it is depicted that the economy of U.S has currently surrendered in
terms of copying up with the economic challenges of the global context while china has been
copying with innovative actions for fighting the world economic challenges threatening the
country.
Conclusion
Thus it can be concluded that the world is meeting with a series of global concerns
like the higher tendency of natural disasters, the geopolitical tensions, the deep political
divisions in various countries. Though the economy of the United States has been growing in
a rapid pace, the Chinese economy tops the list of the economic diversity and towards facing
the economic challenges in the global context.
References

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Bayne, N. (2017). Current Challenges to Economic Diplomacy. In The New Economic
Diplomacy: Decision Making and Negotiation in International Economic
Relations (pp. 97-116). Routledge.
Burke, M., Hsiang, S. M., & Miguel, E. (2015). Global non-linear effect of temperature on
economic production. Nature, 527(7577), 235.
Chauvin, J. P., Glaeser, E., Ma, Y., & Tobio, K. (2017). What is different about urbanization
in rich and poor countries? Cities in Brazil, China, India and the United
States. Journal of Urban Economics, 98, 17-49.
Denzin, N. K., & Giardina, M. D. (2018). Introduction. In Qualitative Inquiry in the Public
Sphere (pp. 9-22). Routledge.
Lo, A. Y. (2016). Challenges to the development of carbon markets in China. Climate
Policy, 16(1), 109-124.
Ross, R. S. (2016). China, the United States and the Soviet Union: Tripolarity and Policy
Making in the Cold War: Tripolarity and Policy Making in the Cold War. Routledge.
Shen, B., Han, Y., Price, L., Lu, H., & Liu, M. (2017). Techno-economic evaluation of
strategies for addressing energy and environmental challenges of industrial boilers in
China. Energy, 118, 526-533.
Thalassinos, E., & Dafnos, G. (2015). EMU and the process of European integration:
Southern Europe’s economic challenges and the need for revisiting EMU’s
institutional framework. In Societies in Transition (pp. 15-37). Springer, Cham.
Tran, O., Rodriguez, E., de Haan, A., Dong, X. Y., & Zhao, Y. (2017). Caring across
generations: policy challenges for China.