The US have enjoyed the status as economic power for many decades. This year, its long-term sovereign credit rating was downgraded to ‘AA+’ from ‘AAA’. This unfortunate development was accepted by Americans with much skepticism, anxiety and fear. Fingers have been pointed to the main culprit as America’s poor governance resulting in unpredictable and less stable policymaking. America’s economy suffered a blow with the collapse of Bear Stearn and Lehman Brothers Holdings.
Economists around the world or those friendly to the US have said that it is of importance to build stronger ties between the two countries. Although bilateral relations have been established, animosity is still very much evident. Recent developments have seen China slapping higher taxes on automobiles exported to China. The insult lies in America being singled-out from many countries exporting automobiles to China. Other nations pay much lower taxes compared to the US. This, of course is a direct retaliation of the taxes imposed on Chinese exports entering the US a year ago.
These are the 2 areas in which we can make comparisons between the two countries:
Real Estate Market
The recession which affected many states resulted with the fall of home purchases particularly California, seeing many Americans refusing to buy used or new houses at this time. Many have said that timing is of the essence to embark on major buying across the nation. On the other hand, China is experiencing rapid growth in real estate in the metropolis. Many foreign construction companies have joined the boom since it started many years back.
Manufacturing
China manufacturing continue to be the only viable solution to any company experiencing high labor costs. The average salary of an employee working in a manufacturing company is equivalent to just $4-5 a month. How can anybody beat that? China’s manufacturing industry attracts companies from around the world, giving more jobs to the Chinese people. To entice anybody who wants to do business in China, a manufacturing company enjoys excellent lease agreement, if not for free, in Free Trade Manufacturing Zones scattered all over the nation.
Compared with the US, the unemployment rate is still high. Many are still out of work.
We know for a fact that the US will not take this sitting down. Plans of revival to prolong its hold of being the world’s economic power are in the making. But for how long can they sustain that hold? America needs to move fast. Something has to be done soon.
I would argue that it already is! I actually think that China will become the savior of the United States; they need investment, the Chinese are beginning to invest overseas. One of the most undervalued real estate markets in the world is now America – money moves in circles, but yes – China will become a superpower (if it isn’t already).
Got some Chinese friends who say that they will control the economy of the world given enough time. Surely, they have all the potential of becoming one. If only China would adopt democracy – the one America is telling the world, then, people of all nations would be more than happy to see them achieve their dream. It is common knowledge that outsmarting the US has always been included in the agenda of the Chinese people. So far, it is the only country in the world that has made progress in terms of achievements and long-term plans. Recently, Europe is plagued with financial woes which would see its problems in the rising.