China: Taming the Dragon

China is an interesting spot. It has had very robust economic growth in past few years. However, there are arising problems in the seemingly strong country. This will hinder their ability to surpass the United States economically and potential supplant the U.S. as the primary superpower of the world. Among the problems, the largest is the housing boom in China

Similarly to the United States, there was a housing boom. However,there will be a bust. That has yet to come in China. But we have already seen the effects of a widespread housing bust in the United States. Forbes and Time Magazine other are envisioning a future Chinese housing bust. This could bode horribly for the Chinese economy. Others have stated that the inflation in China will become a major problem, squeezing the poor. On the issue of competitiveness, the Chinese worker is seeking for a salary increase. This has the potential to hinder Chinese growth. Factory workers in places such as Vietnam and Bangladesh are paid less on average than their Chinese counterparts. Companies such as H&M, a clothing retailer are in the process of moving operations. The ubiquitous Made in China label may not be so ubiquitous in the coming years. This means that the Chinese must grow other fields of their economy. This should not necessarily be a major problem but could present an obstacle for the Chinese.

In the meantime, the Chinese must tame the dragon before it is too late. They many advantages including a surplus of revenue, they own large amounts of assets, and China is a rising intellectual power. These are things that other governments would be yearning for. However, there are issues in China that must be addressed for success of their nation. 

    -S. Martin 

Japan, No Longer America’s Most Important Partner in Asia

            In the late 1980s, the United States saw Japan as a future economic threat. However, after 20 years of Japan’s economic stagnation this is no longer true. China and India has risen up and they are contesting for power in the region. There is a rivalry between the two nations but it could become chilly very soon. Both are also looking to have the world’s largest economy in the coming decades.

            As both China and India vie for supremacy in Asia, the United States must partner with both nations. This is significantly easier in India than it is in China. This stemmed from the ownership of India by Great Britain and the fact that India is a commonwealth nation with the world’s largest Democracy, over 1.1 billion and growing. India is poised to become the most populous country in the next 30 years with the world’s largest Gross Domestic Product (GDP). There are also challenges to America’s reliance with India. The United States, acting in its own best interest, is set to pursue policies that would stymie outsourcing. The outsourcing of American jobs has been a factor in India’s recent economic success. This point will be contested in the future. There are other important issues, which include India’s ability to defend themselves and aid the United States in a war on Terror.

            China is another nation that is pivotal. Obviously, there is room for economic partnership. However, this has been marred by America’s passage of tariffs and the rare earths disputes. These are ongoing and must be addressed. America’s debt is also pivotal as we continue to rely on China for money. China has signs of a superpower. The dispute with their captain and Japan clearly displayed an emerging Chinese dominance in the East. This is one that the United Stats must respect. On the other hand, America must support India. Even though both nations are in a rivalry now, we can benefit from an alliance with both. This is necessary to the United States just as much as it is for India. 

     -S. Martin