China U.S Economic War

          China-U.S Economy War Name Institutional Affiliation
China-U.S Economy War Introduction The United States is ranked as the world’s largest economy. However, over the recent years, China’s constant economic growth has threatened to overtake the USA. After the implementation of market reforms in 1978, China has seen an average growth of 10% per year (World Bank, 2018). This growth has enabled the country to better the lives of approximately half of its 1.3 billion citizens by improving living standards. China’s GDP has grown at a fast pace and is soon expected to surpass that of the United States by the end of 2030 (PricewaterhouseCoopers, 2017). However, since the population in the United States is significantly less compared to that of China, aspects such as income levels in the United States are bound to be on the higher side compared to China, regardless of the economic position. The United States is also bound to lead on other factors such as living standards and quality of life, regardless of whether Chinas economy is larger or not. This paper aims at comparing the two economies and discussing the impact of the war on the two countries. China’s Economic Growth Since the implementation of market reforms in 1978, China’s economy has transitioned from a centrally planned setting to a market-planned economy (World Bank, 2018). This shift has enabled the country to experience exponential growth of 10% per annum in their Gross Domestic Product (GDP). Aside from the GDP, the country has also managed to improve the living standards of approximately 800 million citizens. Despite the fact that China managed to achieve its Millennial Development Goals by 2015, and largely contributed to world growth after the 2008 financial crisis, the country is still labelled as a developing nation. Reason being, China still has incomplete market reforms and close to 55 million citizens residing in rural areas live in poverty. Similarly, the rapid economic growth has resulted in several challenges. These challenges include external imbalance, poor environmental sustainability, rapid urbanization and high inequality levels. More so, a large number of citizens have opted to look for jobs in foreign countries, which has led to demographic pressures. At this stage, China would face more setbacks in their transition from middle-income, which is their current position, to high-income. Nonetheless, the country has opted to adjust their policies and forcefully tackle the challenges by implementing a five-year plan set to run from 2016-2020. The plan aims at solving issues of health care, improving education, reducing pollution, adopting proper methods of environmental sustainability and tackling social imbalance. The plan is meant to be implemented parallel to a different plan of doubling their GDP, which means that the country needs to rebalance their economy while improving it at the same time. In the last quarter of 2017, China experienced a growth of 6.9%, hugely due to the property and export markets, which had shown resilience throughout the year (Trading Economics, 2018). The primary sectors that significantly contribute to Chin...