As we all know China's economic and political power in the world has grown almost as fast as its population in the past decade. Since economic and trading constraints with countries outside China have been loosened the country has held more and more influence. America today is in an interesting position with China. We have a colossal debit to this asian nation and depend greatly on its citizens to produce our goods. This week though trade relations were strained as China reacted negatively to a US sale of arms to Taiwan. Although seen as an independent nation to the U.S., Taiwan is viewed in the eyes of the Chinese to be part of China. In selling arms to Taiwan the U.S. was undermining the sovereignty of China over Taiwan. China responded by suspending any military exchanges with the U.S. As one article put it this issues comes at a time when the world powers need to be cooperating on major issues.
The warning comes as the U.S. seeks Beijing's help on issues including the global financial crisis and nuclear standoffs in North Korea and Iran. Tensions were already high after recent U.S. comments on Internet freedom and a dispute between Google and China, as well as President Obama's plan to meet with Tibetan spiritual leader the Dalai Lama this year.
http://www.npr.org/templates/story/story.php?storyId=123153875
How do you think that trade relations will change between the US and China in years to come? Who do you see holding more sway? What could be a possible fate for Taiwan if America grows more and more dependent upon China?
I think the trade relations will remain mostly the same as the have been over the past years. Although the two countries have had our differences we will resolve and continue to trade the same as always. It's like brothers fighting; you fight then everything is cool. I feel as though no changes will be seen in the trading of the two countries. A, E
ReplyDeleteI feel that this will have somewhat of an impact on our trade relations. We already had tension with China over internet restrictions and now this is just another issue that we've come across. As of right now, the two countries are not seeing eye to eye. However, there is no reason that they shouldn't be able to work things out and develop a healthy trade relationship once again. A,E
ReplyDeleteI think this is more of a political play than anything else. If the US had backed down to China, the obama administration would be perceived as weak to the growing chinese and also would question our influence in the region. So although it may affect our trade relations, China needs us to buy the things they produce so in the end I feel there is only a complicated problem on either side of the coin.
ReplyDeleteI think that this is more political then ecconomical. However it does show that the invisible hand is not the only thing guiding markets. E
ReplyDeleteSince the United States has such a large amount of debt to China the implications of failing political relations could be severe. If they made us repay our debt at some point in the near future we would have serious problems considering that we owed China 798.9 Billion a few years ago, and im sure we owe even more now. A,F
ReplyDeleteAlthough I do not believe this will turn out to be a big deal, I think China may have trust issues from now on because of this. This was not a good move on the United States part, but because we owe China so much, I believe they will not cut ties with us, because if that happens, getting the money they are owed will probably be harder to get back if they stop communicating with us. America is under China's thumb nevertheless, because with out them, we may not be able to pull through this recession. So if we want to have China on our side, a decision to trade with Taiwan is going to have to be okayed by them first. Yes, we aren't in first command anymore. (A)
ReplyDeleteWell...what I think about this article, is kind of interesting, many countries have the trade war because the cooporation between all the nations are rely on the profit. Or in the other words, depend on how much benifits we could get from each other.
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