China and the U.S.: Trade Wars or Mutual Advantage

China undervalues its currency and pursues an export-led growth model. Both lead to the loss of U.S. jobs, an imbalanced trading system, and an American disadvantage. How would you respond to China's growing wealth, power, and authority?

This Global Ethics Corner slideshow is part of a weekly series from the Carnegie Council. For more information, go to: http://www.cceia.org

Category:

News & Politics

Tags:

• Global Ethics Corner
• Ethics slideshow
• international trade
• international economics
• Chinese economics
• balance of power
• Chinese currency
• u.s.-china relations
• us-china relations
• u.s. foreign policy
• American foreign policy

[Chingonazo1]

We dag our own grave by pushing other countries towards neo liberal capitalism not knowing that it would back fire. China took a few capitalist moves to be able to lure the US investors with out changing any core social structure as communist country.

Either we socialize our key structures and learn to do some basic math when it comes to using money, or just continue the same path so far.

[theone1087]

@lextasy88 China will destroy its own economy if it attempted to sell US securities. China is based off the cheap currency-export model. They need a strong dollar to make their exports cheaper, if China sold off its US assets it would therefore have to inflate its own currency which would destroy it and it couldn't boost exports. The US holds the cards, as China relies on them for 70% their exports and China only has 0.5% of US debt.

[lextasy88]

china holds all the debt for the US so they're basically caught in a net. it is obvious after the global recession who will be the superpower in the next 10-15 years