Does China Threaten U.S. Global Economic Dominance Research Paper

Does China Threaten U.S. Global Economic Dominance - Research Paper ExampleIn the fresh worldwideeconomiccrisis of 2008-2009, China also managed to recover faster than coupled States which is still in the process of recovering from high unemployment rate, national debt and widening fiscal deficit. Thisdisparityin economic performance led many toconsiderthat perhaps the balance of power has already shifted from United States to China. To assess whether China threatens U.S. global economic dominance, it would be necessary to examine the factors that could threaten the US position as a global economic superpower and make a resemblance between the two countries. That way, we would know if China is already threat to USs global economic dominance. Economic dominance is a critical barometer of organism a superpower because economics drives everything including a countrys ability to influence the world. Economic power includesabsolutegross domestic product (Gross Domestic Product) or a cou ntrys total output that willtranslateto resources that can be used for defense purposes, projection of power and ability to influence the world. In totality, what really would matter if a certain country already threatens the economic dominance of United States is if its economy is already near as large as that of the economy of United States. In this regard, US economy is still about eight times bigger than China and has massive industrial and technological coordination compound to support and sustain the growth of its economy. Its currency is still used as the worldsreserve currency and it is not likely that the US dollar will be replaced by other currency soon or specifically by the Chinese Yuanii. Chinas economy in contrast is eight times smaller than United States. Further,China is burdened with its huge population of 1.3 billion. Such that when its GDP is divided among its 1.3 billion population, its GDP will translate to a very low per capita income. In 2007 pre-economic cri sis, Chinas per capita income was solo $2,000 compared to US per capita income of $42,000. China is not yet considered developed because there are still400 million Chinese who lives in its rural area who survive on less than $2 per day and another 200 million lives on less than a dollar a dayiii. Chinasweaknessincludes its lack of multinational corporations.China does notevenhave its own industrial complex and its economy is heavily certified on Western enterprise. If US pulls out of China, China will be on its knees because it is heavily dependent on US industries and market. United States economic capability translates to its overwhelming military superiority over China. Military superiority is a critical dimension of power because it enables a country to assert itself when it needs to interpret its interest in the global arena and that includes economic interest. The gauge of military superiority is not limited to the number of troops but also includes the sophistry of its m ilitary hardware. The hugesize of US economy enables it to allocate a military budget that is not equaled by China. It only allocates 4% of its total GDP on defense but due to the sheer size of its economy, this translates to a $600 billion military budget. Compared to US budget of $600 billion for military expenditure, China has only a military budget of $50 to $70 billion (although Pentagon doubt that such figure is understated) which only comprises one eight