Economic Ties with China Greer Howard

The Background China has the third largest economy Growing more that 10% each year for the past 30 years Still relatively poor country Can afford cheap labor Imports materials from Latin America and Africa, makes them cheaply, then exports them to US, Europe etc.

Results US has 4.5 trillion dollars in bills and bonds China owns 1.16 trillion, 26% of that Wants to keep its yuan value low China is US’s largest banker, giving it leverage

Current State Henry Paulson, US Treasury Secretary under Bush Initiated “Strategic Economic Dialogue” in 2006 – Trying to raise value of yuan – US and China meet twice a year to discuss economics – Trying to lower the deficit – Encouraging China to open capitalist, democratic markets Updated in 2009 by Obama, US-China Strategic and Economic Dialogue

US-China Strategic and Economic Dialogue Created by Obama, Clinton, Geithner, Hu, Qishan, Bingguo, and other officials from both sides Most recent meeting in May To “discuss a broad range of bilateral, regional, and global issues between the two nations.” Hope to tackle issues together – Global warming, nuclear weapons in Iran, military build up in North Korea, War in Afghanistan, genocide in Sudan

“Some people suggest that China is a threat that must be countered or contained. Others argue that its growth is an opportunity for the U.S. economy and that Washington should manage this rising power through engagement. I believe that engagement is the only path to success.”

Opposing Viewpoints In Favor: -Most people want something to be done with the trade deficit -People from both parties agree it is an unhealthy relationship -Do no believe that we should support a country with so many human rights violations -US manufacturers cannot compete with cheap Chinese goods -Sending jobs overseas Against: -a minority of people want the relationship to evolve naturally -argue that it is better for Americans to be able to buy cheaper products -If regulations were implemented, the prices of Chinese goods would go up

Barack Obama: - Mentioned how China has started to get ahead of us in terms of infrastructure -Cannot let all manufacturing go to China -Started the US-China Strategic and Economic Dialogue

Republican Candidates Newt Gingrich: -Thinks the Chinese government is suppressive and controlling -Wants to form relations with the Chinese people and encourage them to demand more rights from their government Herman Cain: - Wants to pay China back before we spend money on anything else -Afraid of rising interest levels

Jon Huntsman: -Former ambassador to China -Thinks we need to fix our “core” in order to fix the relationship Rick Perry: -Had business of his own in China -Expanded Chinese companies in Texas

Ron Paul: -United States should have no influence on China’s human rights violations Mitt Romney: -Believes the United States should make sure our goods are welcomed in China -Wants to label them a “currency manipulator” -Wants to clamp down on regulations -Had business of his own in China

Rick Santorum: - The United States is handling the relationship very poorly-acting too timid -Wants a “battle” against their socialist economic and social policies Michelle Bachman: - Does not trust most foreign countries with trade

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