Paper Example on Global Trade: China's Dominance in 21st Century Economy

The global economic market is the most significant economic tool in recent international trade links. All the countries with the most powerful economies consider global trade as one of the major driving forces of a buoyant economy. Among all the countries capitalizing on international trade, China has proved to be unique with its dominancy tactics. During the 21st century, through the total reorganization of internal affairs from the 1980-1990s, China survived economic tailspin by becoming of the most powerful country with a bulging economy. According to U.S President Donald Trump's fierce twitter attack of China, he outrageously blamed China for participating in crazy trade deals, making the United States lose billions into such crook trade means with China for many years (Yang, 35). The pronouncement created a tensed debate between the two powerful countries and inflamed the people of the United States to think that China has extremely improved economically by dominating international trade over the United States. Having been a citizen of China, I'm going to hypothetically analyze the history behind China's success in the world market. China's success economically should not be linked to the world trade only but majorly in reorganizing its initial quack system, identifying the existing loopholes, and adopting the necessary ploys to curb such problems and again revamping the export technology methods. The aftermath of the cultural revolution in China was worse, and this posted many mayhems to China's economy in the 1980s. In the book of "The Dangers of Cultural Revolution,'' the author Wang cited "over the ten years of economic unrest made the country to suffer a national income estimated at 500 billion yuan, which approximately equals to 80% of the total capital invested in the national construction sector since the birth of China.''(Wang, 2) The author argued that in such economic unrest, it is the ordinary citizen that suffers the most. The people were living in the threshold of poverty and hunger. Here is where the economy of China started to pick up when there was no food for people to feed on.

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Following these acute problems, the incumbent leader of China by the name Deng Xiaoping brought perfect policy measures such as the "Family Responsibility Contract System''. The aims contained in the document were to ensure state-owned land is contracted to a farmer, who was to sign the contract with the government of the state to offer them a specified amount of grain produce while the surpluses are kept and saved for their marketing or consumption. The move led to an increment percentage of 25 of the firm production from 1975-1985, according to Treasury Report. This policy measure is the significant overhaul or reorganization scheme, stating that people must have surplus food to feed on first, and that only when people are fully contented in terms of food production can the labor provision be offered efficiently. Deng then revamps the economy structure by ensuring a stable labor force. He then came up with the ploy of the double-track price system, which was finally adopted by the government after fixation of market prices and ensured prices are freely adjusted by stable economic indicators. This eventually salvaged the economic shortage that was ravaged by the cultural revolution (Guanzhong, 20). Having rehabilitated the economy and fixing the problem of the labor force, Deng came up with the chief plan in the reorganization, which was to establish special economic zones (SEZs). The main aim of this policy was for "expansion of outward domestic investment and attracted foreign enterprises''. It was put forward to promote the development of the economy in marked regions or towns using special policies to attract foreign enterprise to them join the SEZs investment and analyze the economic development trend in the future. These policy measures heavily contributed to China' s economic improvement and dominancy in the modern market (Jianing, 24). These policy adjustments positively contributed to China's success as per the status quo. At the nascent stages of China's developing economy, she did put a little effort into export strategies, which has made her learn and introduce new export schemes immediately.

The internal reorganization or reforms often are associated with frequent conflict escalating from the internal rebellion. Immediately after reorganization, China embraced a quick track economic development plan, though its advantages were not successful for a long time. At the preliminary stages of implementing a dual-track pricing system, due to a shortage of goods and services in the long-term and high-rise prices of commodities in the market by then, some vendors purchased goods at lower prices and in turn, sold them in the market at skyrocketing prices. Moreover, China's tremendous money supply increment has caused inflation. The "prices recorded in Beijing shot to 30% in the year 1987-1988''. This led to a massive protest in Tiananmen Square, Beijing, in the year 1989. The significant number of people gathered, marching and protesting fiercely against the government. Following this strike, after 51 days, the government made an official order of clearance that certain rebel individuals made gunfire, and many casualties were reported according to BBC news. Immediately after the outbreak, the western media bloggers strongly started scorning the government of China.

In June 1989, the United States of America begun threatening to cut off its diplomatic relations or associations with the Chinese government even though president Nixon's visit to China to ease the growing tension between the two nations and foster good relations a few months ago. The westerner countries continued to limit China's economy. They include China's failure to join the World Trade Organization because of its failure to understand the operations of the market economy and also extreme political interference the western countries are subjecting it to. The question is, how did China win this battle? China is a sovereign state that has got the power to control its resources and manpower towards achieving a given objective. Labor, capital, and technology are the three fundamental indicators of economic development. First of all, China has one of the largest populations, with a stable labor force contributing to its tremendous steps towards economic growth. Through some of the reforms, they adopted china was able to achieve the largest labor force in world history; actually, it has one of the cheapest labor forces admirable world-wide. Secondly, they did scale up their GDP through building roads, infrastructures, railways, etc. Thirdly, SEZs has helped to establish a digital technology in market operation. The government of China capitalizes on its stable labor force to enhance effective technology and capital to create stability in the economy.

China's economic development has had a huge impact on the global market. China's dominance and serious influence are highly increasing at an increasing rate in global economic integration. In the year 1997, when the Asian were in a financial crunch, China adopted the formidable policy of not lowering the RM., which had a crucial role in the process. During the year 2008 financial crunch, China again became an epitome of the world economic savior or recovery. These steps show China's unbelievable force to command the international market operations with a stable economy, which is ever-growing. According to the recent report, China is said to be the world's second-largest stable economy. To ensure its performance on economic development is always at the peak, it has started exporting resources and technologies of different types to the whole world. "One Belt and One Road'' is a scheme that was adopted recently, which promotes "the leading transnational economic belt and initiative''. Again, the production of 5G technology which is one of the best examples of development schemes. On the ground that 5G is promoting a lead in the globe, the Chinese government has not only dominated the crucial information but also tried to export technology to globalize the adoption of 5G.

The Chinese government is highly motivated to export the technology, even their rivals, and the United States are unhappy with the move. President Donald Trump considers it to be a technological invasion. The article "Trump Is Beijing's Asset'' by Paul Haenle, and Sam Bresnick postulates that the Chinese government is interested in seeing the reelection of United States president because of his incompetence and weakness. It is apparent, for instance, at a time when China's political influence and military capabilities are growing, they argue that in spite of his anti-China bluster, Trump has afforded Beijing the space to expand its influence across Asia and, more importantly, comprehensively weakened Washington's global leadership. From a zero-sum standpoint, many Chinese have concluded that Trump's policies are strategically very good for China in the long run. In fact, China believes that President Trump's reelection is a curse to them and may see many damages caused in their economy, which may stifle much of their development plans since Trump believes that their export technology plan is a technological invasion. A close look at the escalating news points that Trump has been at the forefront in engaging the Chinese government I unending trade wars, frequently releasing news of threats by consistently hiking trade tariffs on China. This continues to weaken the relationship between the two countries (Haenle, Paul, and Sam Bresnick, 19). China believes Trump should up game his credibility in leadership.

In my opinion, in the real sense, the fact that a boom in China's economy may cause a downfall in the U.S economy is an inflated idea that deserves contempt. Competition is allowed in the global world trade, and the notion that one country's success is going to cause a failure in the other country's economy is a rotten idea. The U.S has been on blame for countries with the booming economy before. For example, Japan industrialization, which was a big blow to them. The point is the right economic policies for both U.S and China would lead to lead to equitable economic development for both two countries. Just like any other country, China has the freedom to rise to the top tier of success in terms of prosperity. I, therefore, don't see why the United States should look down upon China's development. Both countries will prosper in case of an agreement on open trade rules and terms (Holland, 2018).

In the article, according to NATO's own estimate, China had the second-largest global defense budget in 2018 and has added 80 ships and submarines to its navy in just five years even though it has one of the world's best economies. China is supposed to be the one with the largest economy in the world, considering its population factor. The author in the article also does not understand the economic cost of China's vast territory and maritime defense area.

Conclusion

Chinese government believes an agreement can be reached to stop the rising trade wars with the United States after a deal was agreed upon with Washington to remove the hefty tariffs imposed by U.S. The result of the agreement made the stock market to skyrocket and made the IMF proclaim a deal to ease the growing trade tensions between the two countries. The report shows that total amount of tariffs the U.S charge exclusively on Chinese goods accumulates to US$550 billion while the total tariffs Chinese charges exclusively on U.S goods was estimated at US$185 billion (Holland, 2018)...