Economic Challenges Faced by China and the United States

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