How the rise of China has hurt the US economy Research Paper

How the rise of mainland mainland mainland China has evil the US economy - Research Paper ExampleHowever, there are fears for the US economy that Chinas economic growth may beset Americas economy.Over time, China has accumulated trillions of Ameri keep dollars of currency reserves. Out of these reserves, about 800 billion US dollars are treasury bonds. This development is a culmination of escalating balance of trade surpluses that China has had with America, since China sells to the US much more than America can sell to China. In the course of this development, China has played the instrumental role of elbowing many American manufacturers out of business (Clark and Monk, 99-100)According to Liang, with the large stockpile of money mentioned above and the leverage this stockpile gives China, China is now threatening to dump the US treasury bonds and the American dollar on the market. The crux of the numerate herein is that in the event that China executes this move, Americas curre ncy will have been significantly devalued and the price of goods will skyrocket. This means that Americas economy will have been crippled. Although China has never made good this threat, yet the fact that it made this threat reveals its possibility. This situation has been gradually structure up and it therefore continues to place America in a precarious position. This is because America has been producing less and has continue to increasingly survive on imports (Liang, 54).Mundell contends that a very strong way in which Chinas growing economy continues to undermine Americas economy is by blocking US exports. What informs this conclusiveness by China is the fact that the Peoples Republic of China reserves the largest part of its market strictly for state-owned businesses. The Beijing Administration demands that state-owned organizations have dominance domestic markets in railways, coal, telecom and other areas of attain strategic interests. This means that these firms are immun e from