There is no doubt the U.S. economy has greatly benefited from China’s economic growth. China’s ability to produce low priced goods has benefited the U.S. economy but at the same time, China’s economic growth has left the U.S. with fewer jobs. Although China’s economy has clearly helped the U.S. economy, in some ways they may also be hindering the U.S. economy.
China has a reputation for producing low priced goods. In the past, these “low priced goods” meant sacrificing quality but China has since been improving the quality of their goods. The availability of low priced goods has benefited U.S. economy because it enables consumers to enhance their standard of living while still keeping inflation down. China has produced more clothes, shoes and toys than any other nation. China has become the world’s largest producer of consumer electronics, pushing out more TV’s, DVD’s, and cell phones than any other country. Recently China has begun manufacturing computers, assembling cars and making parts for Boeing 757s.
China’s economic growth can be considered the greatest economic success story in modern times. China went from a stagnant, poor country to an economic power in only about 30 years. Since 1979, China’s GDP grew at an average annual rate of 9.7%. Springing them up from 27th to 3rd in the world rankings for total trade.
China’s emergence into an economic superpower has raised some concern for U.S. policy makers. Some believe that China’s remarkable economic growth will hinder the U.S. economy. Economist worry that China will surpass the U.S., as the world’s largest trade economy in a few years. U.S. manufacturers blame China for the loss of manufacturing jobs. Due to China’s ability to produce and manufacture goods at a low cost, many ...