One Response to “ Is The Growing Economy Of China, Help Or Hindering The American Encomy? ”

1. 8^3relea on August 16th, 2009 5:32 pm

   Growing economy has been and is actually helping the US economy. I will give you some general reasons below.
   1. China produces very cheap consumer goods like children toys, easy-to-assemble furniture, garments, shoes, various human and pet foods. These cheap goods imported from China saves resources for the US for use in high technology production in which the US specializes.
   2. Cheap imports from China has kept US inflation rates low despite large US spending on military engagements in Iraq, Afghanistan and elsewhere.
   3. China’s growth has also led to greater demand for US goods in China.
   4. By keeping Chinese Yuan undervalued in the face of large trade surplus with the US, China is in fact giving the US cheap credit to buy Chinese goods.
   5. As China grows faster and her citizens per capita income doubles from the low level of about $8000 now to $16000 in 8 years, China will be importing larger volumes of high technology goods and services from the US and other Europen countries that import from the US. This would boost the US economy. China would need thousands of civilian aircrafts, management training services, super-computers, bio-technology products, health and sanitation products, medical equipment, etc from the US as the Chinese become rich.

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