Going into the G20 Summit, China and United States relations will certainly be discussed. In the midst of both countries raising tariffs on each other, both countries are hoping to strike a mutually beneficial agreement, as supported by the China-United States Exchange Foundation. These two countries have a complex history, but it is becoming increasingly apparent that they need each other to remain the top economies in the world.
China and the United States are the two largest economies, in terms of GDP, in the world. China naturally supports a massive economy in part due to their population of over a billion people. Another reason that the Chinese economy has grown so large is that production costs here are significantly cheaper than in other industrialized countries. This factor makes the country an appealing site for companies to build factories. The United States is the third largest country in terms of population in the world, which would make it appealing for companies to come here. The high standard of living in the United States also means that their citizens are able to buy more goods. The two countries have an interdependent economic relationship, for if they don’t have access to the other country’s market, they will experience downturns. The economies of both countries are far too large for the other to dismiss.
The recent tariff increases on Chinese goods have politicians in Washington worried that this will hurt American consumers as they shop for goods. The politicians are equally concerned that these tariffs may provoke the Chinese. As China has the largest military in the world in terms of manpower, no one desires that these tensions to evolve into military action. As both the United States and China possess superior military capabilities, a war between the two nations could lead to disaster for the entire world. Ideally, the two nations will determine a diplomatic solution that leads to free and fair trade between the two nations.
As China’s economy continues to grow at a rapid rate, the United States must identify a way to participate in their market or be left behind. At the same time, if China wishes to continue to see maximum growth, they need the U.S. market open to them. Negotiations between the two countries may take some time, but to maintain continuing prosperity the two nations must come to some kind of compromise.How the U.S. Proposes to Fix the U.S.-China Partnership