Is China the next United States? What becomes of the US then?

Question

if yes, what do you think will happen to the US? US economy if going worst from worse right now.. On the contrary China is really getting rich.
The truth is, I will not be surprised if Chineses Yuan will replace the US dollar someday as the world trading currency.

Answer 1

I think, and this is just speculation, that China will, under the pressure of international business, become a capitalist state. The foundaions for this are taking place already. Economic growth will take place there, their economy will eventually become prosperous, like how the US was in the 1950s.

Consequently the United States will become very simular to the way Europe is right now, secondary in world power, but still pretty power and wealthy. Chinese people will probably vacation to California in the summer, and the Americans there will HATE them, just like people in France hate Americans tourists. Trade between China and the European Union will increase and the US will have no choice to become more globalised by the year. Consequently borders and nations will come to mean less and less, as is happening in Europe already, only geographic areas will matter.

Answer 2

Well we should all hope that they don't become a 'United States' type of country. One was and is enough!
The economy in China is based on exports. NOT all exports carry a Made in China label and many items exported are used in the manufacture of other products elsewhere, e.g. Car parts, Chips for electronics etc. Plus some items you buy are only assembled in China, some iPods as an example.
USA has little history as a country but China has over 3000 years of it. Many inventions we all in the West enjoy today were, in fact, invented in China but they made no money from them.
Even the original Pasta 'spaghetti' came from China with a guy called Marco Polo.
There is also a very strong case to show that the Chinese actually 'found' America long before anyone else including Columbus. They actually had a number of colonies. So I guess you could say that the USA is actually Chinese in origin.
China growth (economically) is certainly not country wide, but then USA cannot pride itself either with a good economy all over the country.
Shanghai, Beijing, Guangzhou, Shenzhen, Dalian, Tianjin and many other major cites and provinces are booming. Certainly there are the rich and poor but with growth at high rates the population has built and own more housing than ever before, Build, sell and own more cars than ever before, and the list goes on.
Unfortunately, for the Chinese, feeding the country is a major logistical nightmare.
It is unlikely that the Yuan (or Reminbi) will take over from the benchmark US Dollar for a good long time if ever, since the financial infrastructure is not fully functioning yet.
Some, in fact quite a few, US companies and other Western corporations are actually making loads of money in China and because if that more money in the USA and elsewhere.
Perhaps if Western economies are worried about Chinese growth then they should stop moaning and start manufacturing more cheaply and paying less for for products.

Answer 3

Yes i agree with China is getting rich but will never replace US, Never again will the Chinese currency replace the US dollar why do i say so? Several factors determine strength of the currency as well worldwide acceptance of currency US trade with all the nations in a range of products from war equipments up to agric products that more than strengthens the dollar and because of factors like depletion of cheap resources which will too happen soon in China also can lead to those backsliding of the dollar. Remember there is more room for development and improvement in a country like China which in 2000 was still a Newly Industrialized Economy than on US which was declared a developed economy years ago. Let me remind you that the development China is showing any other country can be doing that soon. Check Malaysia, North Korea etc

Answer 4

There is no reason for the US to decline in absolute terms because of China's growth. If our economy flounders it will be due to our own failings and faulty management, not the actions of other countries. Also the effects of growth in China is mis-characterized in the popular media. To become a economic power a country not only needs a large GDP but a large GDP per capita. Countries where the people are poor must spend most of its income on just keeping everyone with the basics of life, ( food, shelter and clothing) and can not afford to be a market for the worlds products. They will not be a real economic power until their GDP exceeds the US by a factor of two or more.
They will not grow exponentially as implied buy compounding their current grow rate. The rate will become smaller overtime, because If you keep the absolute growth constant the percentage increase, decreased as the base increases.
The Euro is already becoming competitive as a trading currency, and by the time China become an economic power there will probably be a system where multiple currencies are used.

Answer 5

The numbers for the Chinese economy can be deceiving. Although China as a whole is making more money than ever before, most of that profit is going into the hands of very few people. In this case, if very few people control a large percentage of the wealth, the economy can never sustain itself. If China corrects some problems with the wage paid to its laborers, it can correct some of the problems with its economy, but on the other hand production would move out of China because it would be more expensive to produce there. If you own a business and you can pay Chinese workers 70% less to produce your product than you can American workers, then in your self interest you would move your production to China. However, the workers there are not making barely enough to get themselves the basic products that you and I become used to, so the demand in China is very low. This causes suppliers to supply less products to China, and when you have low supply and demand, the economy is not doing very well. So even though more production than ever is going to China and it is making more dollars than ever, most of this benefit is going to very few people, and therefore the economy of China as a whole is not really increasing all that much.

Answer 6

Yes, China could become the world power. As for greed, I think that has always been a problem in all countries. Times change, and political systems change too. Some day China may adopt a state religion. See how it was once isolationist, and now is encouraging relations. China is changing, at its own pace.

Answer 7

America has never been the richest country around. This is how economy works. Sometimes the US $ will be up, sometimes down, just like every other countries currency

Answer 8

No not unless they become a "free" country. Then they could become wealthy. But right now their not even close to what the United States is in tearms of wealth. Read a book or two.

Answer 9

Insead of worring about the Chinesse you should worry about the Euro. Many trading post would rather take Euros than American currency.

Answer 10

Yes, which means we become the next Canada and Canada becomes the next UK and the UK become the snooty French, mostly because of being bumped to third and France becomes, well remains French and snooty, at least Paris anyway.