Introduction
Open Door policy is a set of principles that was introduced by the US in the year 1899. This was presented in efforts to protect and ensure equality regarding privileges which were being provided to its trade partners such as China. It was also meant to support Chinese integrity in its administration. The introduction of this policy was also intended to ensure that the countries were in a position of engaging in trade with one another without any barrier. This term was approved, and it has served as a significant cornerstone of the US foreign policy. There have been impacts which have been experienced as a result of this policy which has influenced the relations among the two countries. This paper will discuss the way in which the open door policy relations have changed and their effects in the United States and China.
How the Relations With the United States and China Have Changed
The introduction of this principle that the two countries should have access to any region under their jurisdiction in an equal manner strengthened the relationship between them. This ensured that there was the development of treaties which facilitated free trade between them. For example, the countries were able to access ports without any hindrance: this policy provided that each state should access any port freely or any other area of interest within the sphere. It was also agreed that it is only the government of China which was allowed to collect the taxes as a result of trade. There was the elimination of monopoly power among the two states, and this ensured that business was being carried out in an equal manner. This policy also assured that there was the elimination of conflict which existed or which could have emerged later in future since, through it, the market was made open for the two countries (Mead, 2013). Through the implantation of this policy, it kept china open whereby the US was able to strengthen its trade relationship with this country. This ensured that no force was taking control over China and as a result of this; more power was vested upon china where it was made to take control of their ports. This also ensured that it was not favoring any nations since this policy was equality oriented.
With the need for endeavoring in the markets from China by the US, with the help of this strategy, it was able to establish more exchanges in, and as a result of this, it was able to increase the level of its investment. However, it was feared that with the introduction of this strategy, it would result in ruining of the segments which were dominating in China's economy. This would, in turn, lead to the dividing of the state into various colonies. The interest of US towards China was achieved as a result of the introduction of this strategy whereby the country was able to access market where it could buy cotton at lower prices which were to be used in its textile industries. The war which existed among the states was also eliminated since through introduction of this strategy; they embraced peace after mediations. There were also secret treaties which were passed, and they signified the good terms between the two countries (Ho & Ho, 1984). The war which was existing among China and Japan, the US and other states committed themselves towards condemning this action, and it prompted the United States to provide its support to China in ending this war.
Effects Which the Open Door Policy Have Brought Out in the United States and China
Despite the developments which were being experienced by other states as a result of globalization, China was still lagging, and its economy had considerably declined. Introduction of this policy led to benefits which were experienced by both states. The introduction of this policy in China is described as the turning point of its economy. This ensured that there are developments which were introduced as a result of globalization, its economy was modernized, and it also encouraged it from taking part in foreign trade with other countries. The United States also made several investments in China and through this; the state was able to generate revenue from this foreign investment. It was also able to market its agricultural products such as cotton which was highly demanded by the US. Its cities were also developed and this improved its competitive advantage leading to an attractive market. This also opened an opportunity for the multinational companies from the US which were able to make their investment in China. With the increase in the level of trade and investment in China, this increased its Gross Domestic Product, and this has continued to grow. Its ports were also developed since the level of trading activities increased, and this has made China modernize its ports to enhance the shipment of its products (Boisot & Meyer, 2008). However, there were negative impacts associated with the introduction of this strategy whereby China lost its culture due to the introduction of culture from a stable state. Countries such as Japan took advantage over China as a result of the opening of this policy.
On the other hand, US were able to derive some benefit after the introduction of this policy whereby it was able to engage in free trade with China. This contributed to the growth of its economy. It also opened more opportunities for the exportation and importation of products, for example, it was able to import cotton from China. Peace between it and China was developed, and this contributed towards good relations between them. This policy was also necessary for it since some of the countries that were interested in trading with it gained an opportunity. It was also able to enjoy the benefit of equal opportunities while trading with China. The state was able to make several investments in China which were generating higher returns, and it was able to access the ports of China without any restrictions (Yongnian, 2009). As a result of globalization, the country has also benefited from the new technologies from China which are contributing to the growth of its industrial sector.
Conclusion
The above discussion proves that the introduction of this policy led to a doorway of many developments and benefits which were achieved by the two states. Among the significant benefits which have been experienced is the growth of the state economy whereby both countries have had an increase in their marketplace. The level of trade has been improved too among the two states since there has been the elimination of barriers. However, there has been an adverse outcome through the introduction of this policy where China lost its culture due to the introduction of a foreign culture by a compelling state.
References
Boisot, M., & Meyer, M. W. (2008). Which way through the open door? Reflections on the internationalization of Chinese firms. Management and Organization Review, 4(3), 349-365.
Ho, S. P., & Ho, S. P. (1984). China's open door policy: the quest for foreign technology and capital: a study of China's particular trade (Vol. 5). UBC Press.
Mead, W. R. (2013). Special Providence: The American foreign policy and how it changed the world. Routledge.
Yongnian, Z. (2009). The Chinese Communist Party as organizational emperor: Culture, reproduction, and transformation. Routledge.
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