Globalization is the factor behind rising in 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 increase on a worldwide level. It is because of the advancements taking place 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 help in increasing the standard of living for poor people. It acts as a great benefit for small businesses to grow and have new prospects of development.
USA and China are large economies of the world, and they are regarded as the biggest traders of the world. These economies are now interdependent because of the trade agreements they have pursued. However, the policies and operating mechanism of these countries are different. China has made its place in the global world with the help of making low-cost technologies. When a company makes cheap products, this has a positive impact on the trade because of globalization. China has a trade surplus, and as the largest importer of the world, US has maintained good trade relations with China. By the help of their mutual agreements, both these countries have built important free trade zones in global bilateral terms.
If globalization is seen regarding US and China relationship, these economies have a big contribution in boosting globalization. Especially in the era of 2010 to 2017, these economies shared mutual interest because of having 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 the economic integration. China has emerged in the international market in past few years with great speed, and this has provided it a competitive edge in many terms. Now the USA has to make strategies for mutual interest because their economies are interdependent. These countries are involved in multiple mega trade deals. The trade among industries is also affected because of the globalization and its impact on these large economies. It shows that economies have less control over their industries because now globalization determines changing factors.
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 in 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.
- 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. ↑