China Vs India

China vs. India: Who is the Next Superpower in the East?
Kevin Sanford and Dr. Balasundram Maniam, Professor Sam Houston State University, Huntsville, TX ABSTRACT This report is going to compare and contrast some of the political, economic, and socio-cultural variables that have shaped the current direction of China and India. A basis for predicting future trends can be constructed through asummary of historical and current information about each country. India’s sustained internal capabilities and traditional political approach continue to focus on Gross Domestic Product. India will also be able to differentiate itself from the limited long term sustainability of the Chinese economic structure. India’s sustained internal production system and a shift towards combining their focus onForeign Direct Investments will contribute to the process of determining India’s position of the next superpower in the east. INTRODUCTION In an increasingly competitive expanding global market, China and India are both two of the developing giants in the Asian countries. In determining which of these two countries will be the next superpower in the east, we will have to take into consideration longterm effects on the rest of the economies of the world. Both China and India have had economical improvements over the past few years. To properly decide or determine which country will become the dominant superpower, we must consider many different factors and issues beyond that of just economics. Additionally, the purpose of this study will be to review these two major transitional countriesthat have different internal procedures and economies. It is necessary to take into consideration such areas as demographics, political procedures, and cultural influences. Additionally, the contribution of foreign assets in different domestic areas, Foreign Direct Investment (FDI) and the sum of a country’s production of services and goods within a specific year, Gross Domestic Product (GDP) willhave an effect on the future position of these two superpowers. China’s economy evolved from a country that was closed to trade, to a country who thrives in exports which has made China a leading civilization. Their high export rate is partly due to their coveted skills in arts and science which are world renowned. China’s rich history includes civil wars, famines, and military defeats. After WorldWar II, communists established a system that caused havoc amongst the civilization. Around 1978 successors of earlier communist leaders focused on developing an economy that was market oriented. These reforms pushed China into an advanced economy and created the foundation for a successful trading market. These reforms also improved living standards and increased production output. Due to thesereforms China became the second largest economy in the world, following The United States of America in 2008. However, this rapid economic growth has caused numerous problems such as health care challenges, environmental pollution, corruption, and unemployment issues for the increasing population. China’s economy took a hard hit when the world economy crashed in 2008 because their ability to makelarge profits lie in the fact that they are mass producers with cheaper and more available labor. They now have several manufacturing plants and facilities that cannot work at full capacity because products are not selling which is leading to oversupply. With Chinese products not being at high demand, China is losing money quickly and the economy is declining with the rest of the world. UnlikeChina, India did not develop into an industry powerhouse as quickly. India was inhabited by Aryan tribes around 1500 B.C. The Golden Age was a key time in India. During this age India explored art, science, and culture. Other countries inhabited India between the 8th and 12th centuries which created a diversity of cultures including Arab, Turkic, and European. Britain assumed political control of...