Compare and Contrast Essay
ESL 1068 001
In recent years, the relationship between the Chinese economy and the U.S. economy has become closer. “The two countries have a common purpose of establishing a trend of secure, high-quality sustainable growth and increased employment opportunities for their citizens, this has led to the creation of initiatives such as China-US relations” (Wolf, 2001). The study finds Changes in the U.S. economy are self-evident and have had an impact on China's economy. The changes in China’s economic development also impact the U.S. economy and the economy is growing. However, even though these two countries are interdependent in economy, there are still some differences between them.
First, the government policies and regulations are different. China has a transitional economy. In late 1990s / early 2000s most companies were privatized while the government controls the strongest companies. In the Chinese financial section, it is national holding and national adjustment. As banks in China, all of the banks belongs to the government; they control and support it. This is the reason Chinese economy was not affected in the financial crisis. “One of the most surprising developments resulting from the financial crisis is the belief among ordinary Americans that China has become the world’s leading economy” (Rodriguez, 2006). While, America’s economy is private and public ownership, which means the main characteristics of the American economic system is capitalism and mixed economy. Enterprises and the private organization to do the major micro-economic policy-making, the role of government in the economics of the country is relatively minor. Second of all, the consumer goods markets are different. “With a population that exceeds 1.3 billion people and a land mass larger than the United States, China's sheer size and scale presents challenges uniquely distinctly from any other market” (Møller, 2013). The demand of China is huge, so their imports are much more than exportAmerica is a developed while being smaller country has more exports than imports. America has low supply of labor; therefore they import labor from china to produce goods that they export to other countries.
Technology levels in the two countries are different, the US technology level is higher than that of China. “Economic leadership cannot be separated from technology. There are many technology indicators, and they change over time” (Møller, 2013). Since America is a developed country, the level of American technology is high. They have superb technology to produce products, they have a good economic environment which enhances growth of its industries.. For example, American automobile industry is better than Chinese automobile industry. There are some famous brands in America, such as Chevrolet, Buick and Ford. Americans are their first customers to their big car brands because their economic status are good. Due to the low state of china's economy and technology, they do not have great vehicle manufacturing companies. The quality of good produced in Chinese companies is of low quality. Most of their products are counterfeits of US original products. For example, comparing the Chinese "Hiphone” to the US iPhone, the two are totally different in features and functionality. The Chinese model does not have all the features, but it just looks like the iPhone.
Anyway, even though the economic system of these two countries is different, but that does not affect the cooperation between two countries. They still help each other. From my opinion, I hope China and America will become more and more friendly, more and better in economics.
Chen, S., Wolf, C., Rand Corporation., & Rand-CRF Conference. (2001). China, the United States, and the global economy. Santa Monica, CA: Rand.
Blázquez-Lidoy, J., Rodríguez, J., & Santiso, J. (2006). Angel or Devil?: China's Trade Impact on Latin American Emerging Markets. Paris: OECD.
Møller, J. Ø. (2013). The global economy in transition: Debt and resource scarcities. New Jersey: World Scientific.