Is China An Economic Threat To The Us?

Is China an Economic Threat to the United States?
Would you dare to go knock on your landlord’s door without having the money of rent with you? And even if you knocked once, would you do it again? This is exactly what the United States is doing with its landlord, China. Last year, the congress passed a bill to counteract China’s manipulation of its currency, the renminbi, which equals 0.152dollars at the moment. Two days later, China’s effective response towards poultry exports from United States uncovered the real power and reluctance of the Chinese government to obey what the United States commanded. China has grown to be second largest economy of the world, after the United States. It is obvious that China is an economic threat to the U.S. for three main reasons: It is constructinghis way to become the Asian hegemonic economic power, it holds the largest part of the U.S. public debt – 895 billion of dollars, and it has started to aim at high technology goods and high quality education.
The rapid economic growth that China is experiencing should be taken into account. As of last year, Japan used to be the second largest economy in the world. Moreover, it was the mostpowerful economy in Asia. However, China has taken Japan’s place not only in Asia but in the world’s economy as well. At the moment, China is the largest economy in Asia and ranks second, after the U.S., in the world. People are just starting to realize how this can affect the country. As revealed by a survey recently conducted by the Pew Research Center, 47% of Americans think of Asia as the mostimportant region for the United States, edging out long lasting Europe. Furthermore, the research showed that the same percentage of the population regards China as the leading economy while just 31% entitled the United States. About 60% recognize this economic expansion as a threat whereas 27% are more concerned about its military strength. Public opinion could not be more right. Asia, which hasbecome the most important region for economic expansion, is going to play a key role in the world economy for the next years (Strengthen Ties 2011)
China’s economic power in Asia, enabled by its rapid growth, represents a threat for the United States. Now that Japan, a strong ally of the United States, is relegated to a second role, China has come to be the leader of the Asian economy. Additionally,in search for sustainable growth, China has turned to trade blocs in Asia. With its eyes focused on nothing but free trade agreements, China is making full use of its diplomats. So far, the agreement by which 10 Asian nations compromised to drop duties on manufactured and farm goods showed the exceptional job performed by Chinese diplomats. China’s intentions for growing are serious enough thatthere are strong chances of an agreement with Taiwan. On the other hand, the United States has not succeeded when striving for the same purposes. China, with purposes of an independent economy, is making treaties with Africa, Australia and New Zealand. Only in Africa, China has spent approximately 5 billion dollars in loans and export credits. This represents a clear threat for the economy of theUnited States as China has proved not only to understand the importance of Asia in the world economy but also it has had more success in forming trading blocs (Roberts 2009).
While, congressmen are worried about the exchange rate manipulation, China is already a step ahead; they are now investing in what should be of every American concern: education. For a long time, China has been experiencingthe benefits of trade with the United States not only because of beneficial exchange rate with respect of the dollar, but also because of cheap labor, infrastructure and warm welcome to business. An appreciation of the renminbi, even though congressmen think otherwise, will not help American business. If anything, it will only benefit low wage economies and discourage American competitiveness,...