Globalization is the factor behind the rise in the Chinese economy and trade. China has emerged as a new power in the global market because it has many trade agreements with large economies worldwide, especially the United States of America. Globalization is the concept where the integration of people and economies increases on a worldwide level. This is because of the advancements in communication and transportation technologies. The integration of investments, trade, culture, and information technology takes place in globalization. It gives way to developing countries for development and helps in increasing the standard of living for poor people[1]. It acts as a great benefit for small businesses to grow and have new prospects for development.
The USA and China are large economies of the world, and they are regarded as the biggest traders in the world. These economies are now interdependent because of the trade agreements they have pursued. However, the policies and operating mechanisms of these countries are different. China has made its place in the global world with the help of low-cost technologies. When a company makes cheap products, it has a positive impact on trade because of globalization. China has a trade surplus, and as the largest importer in the world, the US has maintained good trade relations with China. With the help of their mutual agreements, both these countries have built important free trade zones in global bilateral terms[2].
If globalization is seen in the relationship between the US and China, these economies will make a big contribution to boosting globalization. Especially in the era from 2010 to 2017, these economies shared mutual interest because of their mutual industrial development. China is making its place larger in the world global market by selling low-cost products to developing as well as developed countries while the US is still focusing on producing high-quality products with more cost. China is the biggest trader, while America is a superpower, and jointly, these countries make trade agreements for mutual benefits. It provides a great deal of political and economic gain for economic integration[3]. China has emerged in the international market in the past few years with great speed, and this has provided it a competitive edge in many terms. Now, the USA has to develop strategies for mutual interest because its economies are interdependent. These countries are involved in multiple mega-trade deals. Trade among industries is also affected by globalization and its impact on these large economies. It shows that economies have less control over their industries because now globalization determines changing factors[4].
All these facts are evident that China is on the rise in trade level because of its effective policies. Globalization plays a positive role by integrating various economies and producing valuable results for people and economies as well. This interdependence of economies serves the best interest of all by making products accessible for all and according to desired circumstances. China is emerging as a prominent power in the global economy with its efficient system, especially in this era of industrialization.
End Notes
- López A., Jorge Alberto, Óscar Rodil M., and Saúl Valdez G. 2014. “The impact of China’s incursion into the North American Free Trade Agreement (NAFTA) on intra-industry trade.” Cepal review.
- Petri, Peter A., Michael G. Plummer, and Fan Zhai. 2014. “The Effects Of A China-US Free Trade And Investment Agreement.” Papers.Ssrn.Com. Accessed April 8, 2018. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2513839.
- Rodrik, Dani. 1997. “Sense and Nonsense in the Globalization Debate.” JSTOR 99-37.
- Songfeng, Cai, Zhang Yaxiong, and Yuan Jianqin. 2015. “The Effects of China-US Free Trade Agreement (CHUSFTA).” Conference paper.
- Rodrik, Dani. 1997. “Sense and Nonsense in the Globalization Debate.” JSTOR 99-37. ↑
- Songfeng, Cai, Zhang Yaxiong, and Yuan Jianqin. 2015. “The Effects of China-US Free Trade Agreement (CHUSFTA).” Conference paper. ↑
- Petri, Peter A., Michael G. Plummer, and Fan Zhai. 2014. “The Effects Of A China-US Free Trade And Investment Agreement”. Papers.Ssrn.Com. Accessed April 8 2018. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2513839. ↑
- López A., Jorge Alberto, Óscar Rodil M., and Saúl Valdez G. 2014. “The impact of China’s incursion into the North American Free Trade Agreement (NAFTA) on intra-industry trade.” Cepal review. ↑
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