China and Recession Essay Example | Topics and Well Written Essays - 1750 words

China and Recession - Essay ExampleThis relationship was further enhanced and China pick expose the same policies as that of the join States. It encouraged private sector companies to invest more and choose a stance which America had already adopted. This stance adopted by China has grown since and is now a threat to go beyond the economy of America. This article would further examine the details of this bilateral concern relationship. 2The trade deficit faced by the United States has risen up since the beginning of the 1990s. In 2004 this trade deficit relative to the Gross national Product exceeded the mark of 5 percent. It is said that this deficit stub be very dangerous once it reaches the mark of 4 percent. 3This deficit faced can ultimately fear the investors to run away from the United States economy. The relationship between China and the United States is known to be the most unbalanced. The products imported by the United States from China are more then the exports th at are of $202 billion dollars per annum. The trade imbalance among these two countries is enhanced by the facts of Chinas working force and the consumer base. Most of the creation in China still lives in the rural areas. This helps to the fact of lower working wages in China as the rural people in China are demanding less charges for labor. These low wages contributes to the lowering of the prices of the products. And hence the consumers pick out the Chinese products over all the American products4. A new investigate d unrivalled in Washington describes the trade deficit with China as a cost to the jobs in the United States of America. This research further found out that millions of jobs were lost due to the low wage workers of China. As the products made by the Chinese companies are cheaper the demand for them is increasing day by day. 5The poor consumers prefer using the Chinese products than that of the Americans this is because of the lower rate of these products. The price s of clothes and electronics suck up decreased significantly due to the Chinese companies. The companies of the United States which have not been located in China have suffered major setbacks due to this trade deficit. The garment industry of America has been struck majorly by these blows. Home appliances and electronics are largely being manufacture in China and are being further sold in the United States.Devaluing of a certain gold is done to rectify the problems one rural area is facing. It can help one country to get over the debts it is facing and would provide a path to the outsiders (civilians) to take advantage. As said by one of the Chinese man when dollar was devalued I can travel more frequently and stay longer in my favorite cities as the currency is devalued. It helps in achieving the goals of social and economic integrity. Devaluing a currency can help the country to slim its trade deficit, can create jobs for the locals and can encouragement the exports. 6A situati on arose for the United States in which the trade deficit was increasing every fiscal year and some strict action had to be taken against it. In response to this the United States devalued the currency of dollar to adjust to the monetary problems faced by it. This action taken by the United States is thought to have some effect on the relationship between the United States