International Negotiation

Casiano, Mariella P. Novermber 25, 2017

AB Foreign Service - FS401 Mr. Jumel G. Estraero

A. The Possible effects of China as a superpower in the United States economy

B. Chapters

I. Introduction
Most of us know that China is one of the oldest civilizations in the world and it has
been the largest and advanced in the history. China preserves policies that held their
economy poor, stagnant, centrally-controlled, super incapable, Furthermore moderately
separated from the global economy (Morrison, 2015).1 At presently china surpassed the
Germany Likewise the worlds biggest producer and also it remains to produce and
export products throughout the world. And now many economists and organizations
projects that the China is a potential superpower. Two centuries ago, Napoleon
Bonaparte famously remarked that China was a sleeping giant. And now China has
awakened and arguably no other country is watching the continuous rise of the once
sleeping giant with greater interest and apprehension than the United States, with which
the former is competing for political and economic supremacy. Martin Jacques and
author, broadcaster, and speaker said in an interview that China as a superpower will
be a benign power, but many argued that as it continue to rise, a war is inevitable too.
At the beginning of the 19th century, the United States was an extremely rural and
agricultural nation. 90 percent of the population in the Northeast and 95 percent of the
people of the South lived on farms or in villages with fewer than 2,500 inhabitants. The
nations population was small and scattered over a huge geographical area - just 5.3
million in 1800, compared to Britains 15 million and Frances 27 million. Alexander
Hamilton, one of the nations Founding Fathers and its first secretary of the treasury,
promoted an economic development strategy in which the federal government would
cultivate infants industries by providing overt finances and distinguished protective
tariffs on imports. Hamilton believed the United States should pursue economic growth
through diversified shipping, manufacturing, and banking. When Cold war ended in
1989 and the resulting breakdown of the Soviet Union two years later, the United States
emerged as the most powerful state on the planet.
The rapid growth of the Chinese economy has led many analysts to speculate if and
when China will overtake the United States as the worlds largest economic power.
The actual size of Chinas economy has been a subject of extensive debate among
economists (Morisson, 2015). China is considered the decisive factor in the process of

1Morrison, W.M (2015). Chinas Economic Rise: History, Trends, Challenges, and Implications for the
United States. Retrieved from https://www.fas.org/sgp/crs/row/RL33534.pdf
deterioration of global production which in the other countries such as US caused a loss
of 15 million jobs in industrial sector. "If China continues its impressive economic growth
over the next few decades," the realist scholar John Mearsheimer has written, "the
United States and China are likely to engage in an intense security competition with
considerable potential for war." Particular case inevitable Decision may be that each
single superpower of the previous achieved its status through wars. The wars for the
most part incorporated plunder, massacre, slavery, assault and also pillaging of sacred
sites (Lehmann, 2015). 2

Figure 1. United states GDP Annual Growth Rate

Source : https://tradingeconomics.com/united-states/gdp-growth-annual

From the graph above we can see that in the year 2015 January, United States
GDP declined with 2.7 and it increased with 3.8. Then in the same year month of July
United States GDP declined with 3.3 but then it declined again with 2.4 then earlier this
year US GDP is 2.2 then it increased to 2.9 as of the month of July 2017.3

2 Lehmann, J.P (2015). China: Peaceful Rise to Great Power Status Wont Be Easy! Retrieved from
http://www.theglobalist.com
3 US GDP Annual Growth Rate (n.d) Retrieved from https://tradingeconomics.com/united-states/gdp-

growth-annual
 Figure 2. China GDP Annual Growth Rate

Source: https://tradingeconomics.com/china/gdp-growth-annual

From the graph above we can see that in the year 2015 January, Chinas GDP
increased with 7.2 and declined with 7. Then in the same year month of July Chinas
GDP declined with 6.9 but then it declined again with 6.8 in the year 2016 then again
declined with 6.7 in the same year. Then earlier this year Chinas GDP is 6.8 then it
increased to 6.9 as of the month of January and July 2017 but then again declined with
6.8.4
Based in the World Bank group 2015 since starting business changes in 1978,
China has moved from a halfway wanted to a business based economy and
experienced fast monetary and social improvement. Gross domestic product
development averaging around 10 percent a year has lifted more than 500 million
individuals out of poverty. All Millennium Development Goals have been come to or are
inside of compass. Based on International Monetary Fund with a population of 1.3
billion, measured in U.S. dollars using nominal exchange rates China has a GDP of
$17.6 trillion dollars while U.S. has a $17.4 trillion dollars.
The continuous rise of China appears to be changing this situation because this
development has the potential to fundamentally change the architecture of the
international system. If the Chinese economy continues growing at a brisk clip in the
next few decades, the United States will once again face a potential peer competitor,
and great-power politics will return in full force (Mersheirmer, 2014) it is still an open
question as to whether Chinas economy will continue growing at a more modest, but
still impressive rate. Chinas growing and rising economy is alarming some countries
and some people who are interested about their economy. 5

4 China GDP Annual Growth Rate (n.d) Retrieved from https://tradingeconomics.com/china/gdp-growth-

annual
5 Mearsheimer, J. (2014). Can China rise peacefully? Retrieved from

http://nationalinterest.org/commentary/can-china-rise-peacefully-10204
 II. A. Statement of the problem
Primarily, this study will reveal the possible effects of China as a superpower to the
United States Economy. Specifically the following were inquiries that the study will
answer:
1. Will Chinas continuous rise trigger a wrenching hegemonic transition?

2. Will it affect the Economic growth of United States?

3. What will China do with its power?

B. Methodology
This study utilized the Comparative research as an approach, which uses
comparisons across species that have evolved independently; it is an effective means
for studying historical and physical constraints. Comparisons have served as a tool for
developing classifications of social phenomena and for establishing whether shared
phenomena can be explained by the same causes (Hantrais (n.d).6
In relation o the study, Comparative research allows the researcher to see the
difference of United States and Chinas economy and its changes through the years. It
will allow to see what would the effects of the rise of China as a superpower to the
United States Economy, does it have a big impact or not.
The study aims to compare the differences and changes with the economy of United
States and China through the years. It aims to seek explanations for similarities and
differences, to generalise from them or to gain a greater awareness and a deeper
understanding of social reality in different national contexts. It also Attempts to find
solutions to the problems involve negotiation and compromise and a sound knowledge
of different national contexts.

III. Review of Related literature

Foreign Studies
The Arguments regarding the strong Chinese economy growth in the expense of
the problems plaguing the Unites States, Experts says that there is no relation between
Chinas success due to cheap labour and devalued currency that caused United States
difficulty, while America benefited to Chinese economy practices. China having
advantage over United States by flooded bond market shrunk the dollars value. Neither
negative nor positive impact can affect the United States economy, though currency war

6 Hantrais L. (n.d) Comparative Research Method. Retrieved form http://sru.soc.surrey.ac.uk/SRU13.html

could create big problems on both nations (Francis, 2012).7 The continuous growth of
Chinas economy became a big issue this year, 2015. But looking back at the past, the
economy of China is far from their economy today. Back then China products were not
well known, United States and Japan got the most influential economy in the 1980s.
Years had passed, Chinas economy had risen from its bed and now their economy
became second to the largest. By being one of the largest economies, China became a
threat to the United States.
In the forthcoming years, endowing a new type of great power relationship will
only have definite progress. Washington is aware of the perceptive sight for
international connection; Washington says that the time has not yet come. But doesnt
mean China came up empty handed, this will serve as indication in a steady and to
familiarize Sino-Us relations for peace and cooperation. Obamas visit is the only
chance China needs to secure Sino-Us relationship, where in China is cooperating in
many fields though Washington isnt convinced in some work in Asia-Pacific Region
(Fangyin, 2014).8 Bilateral trade, tourism promotion, sports, cultural exchange and
business are the factors that show the relationship between China and United State.
Also the United States helps China to provide their funds to strengthen their nation. It is
said that United States was the fastest growing national power than the other nations,
due to its power and alliances. Sino-Us relationship had been one of the most important
bilateral relationships in the world.

To be considered a true global power, a country must not only dominate in

economy and military, but also in culture, norms, values, education, technology, and
standard of living as well. Most studies said that only the economic and military
expansions were taken into consideration in Chinas growth. China was the second
largest economy in the world and was planning to expand its foothold to further Asia,
Middle East, Africa and Australia. But China might find that they werent able to pursue
that expansion if their local economy is not stable. Until the time Chinese president Xi
Jinping stabilize the economy and liberalize domestic policy, China will not become a
true global power (Kaplowitz, 2015).9 China is not yet a true global superpower for its
only a superpower in terms of economy. China was also taking focus to their military
growth but economy and military powers werent enough to be considered a global
superpower. China also couldnt expand its power in economy more in the world
because even their local economy was not yet stabilized. China now was in process of
growing continuously. They were obviously strengthening their dominance in the world.
But, as said in the article, China is not yet a global power until it stabilizes its local
economy and makes their local rules less strict.
In spite of the fact that China's thorough abilities have been becoming quickly for
as long as three decades, all examiners inside and outside of China agree that there is

7 Francis, D. (2012) Understanding Chinas Impact on American Consumers. Retrieved from

http://money.usnews.com
8 Fangyin, Z. (2014). Chinas confidence gives it more scope to act. Global Times Retrieved from

http://www.chinausfocus.com/
9 Kaplowitz S. (2015). Why China is not a global superpower yet. Retrieved from

http://fortune.com/2015/07/30/china-stock-market-superpower/
still a tremendous hole in the middle of China and the United States regarding all-out
capacities. China's economy may have officially passed the United States economy as
the biggest one in 2014, yet the nature of China's economy still remains a noteworthy
soft spot for Beijing. In this way, it would be a genuine slip-up for China to challenge the
United States straightforwardly given the wide crack of capacities between the two.
Regardless of the fact that one day China's extensive capacities get up to speed with
the United States, it would even now be a tremendous mix-up for China to challenge the
United States since by then the two economies would be a great deal all the more firmly
interconnected, making a circumstance of common dependence profiting both nations
(Chen, 2015).10 China has compelled goals which have not been properly understood
by various United States specialists. Without a doubt China's legendary system is to
comprehend the "China dream" a dream that will bring wealth, prominence, and impact
to China again. By no means, prescribes that China needs to transform into a hegemon
in Asia, or to make a Sino-driven tributary structure around which each and every little
state must agree to China's solicitations. In any case, the structure of worldwide
legislative issues has in a general sense changed after the end of the Cold War, in this
manner rendering any honest to goodness believability of world domain unable or even
inconceivable. In a general sense, the costs of power surpass the upsides of
organization in this new time of worldwide legislative issues, in view of rising patriotism,
nuclear weapons, and growing monetary relationship.
China may succeed on its second centennial goal in 2049, still they have
unstable national strength, and China is incomparable to United State when it comes to
military power. Chinese century may not lead to Cold war, due to multipolarization.
United State has the faster growing national power than Russia, France, Germany,
Japan and Brazil. Indias national strength is below 1/8 of the United States. On the
other hand China ensures to widen the gap being ranked second in national strength
(Xuetong, 2015).11 China did their best to prove that they can be the powerful country
and also to take the United States position. Having the largest economic growth rate
and highest in terms of imports and exports still, its not enough to replace the United
States. The difference between China to United States military power is that United
States had the most weapons and aircrafts; also it had the experience in many wars.
But China is making their national strength stronger than before.
Local Literature

Over and again at Party Congresses and Central Committee parties, pioneers
have cautioned of the dangers of self-destruction by the Communist Party of China
which is the absolute power center in Chinese politics, on the rocks of corruption. High
people make use of ones position and power to seek private gains. Because of the
boundlessness of China, its weak legitimate establishments, and its persisting cultural
traditions, the Central Committee just can't stamp out corruption. Additionally, serious
issues have risen on water deficiencies. 70% of the water in North China is viewed as

10 Chen, D. (2015). Relax, China Won't Challenge US Hegemony. The Diplomat Retrieved from
http://thediplomat.com
11 Xuetong, Y. (2015). A Bipolar World Is More Likely than A Unipolar or Multipolar One. China-US
focuses Digest. Retrieved from http://www.chinausfocus.com
unfit for human utilization. It is also observed that a third of the water is unfit for
agriculture (Ramos, 2015).12 This information showed some bad sides of China
recently, in contrary to the fact that it could possibly surpass USAs economy. Even in
these times rising success of China, its undeniable that their country also has problems
like what an ordinary country has which includes corruption, problems in governance
and scarce resources. The corrupt people in the government were a risk for China
because if theyll keep on caring only for their private gains, development may lessen.
These problems might affect their economy especially the problem in scarce resources.
It can be a basis on determining if their economy would have great impact on USAs.

It should be noted that the hegemonic stability theory has been used thus far in
analyzing processes in the international system. However, it is assumed that the same
theory can be applicable to understand the political process in a national context. The
main argument of the hegemonic stability theory is that the international system is more
likely to remain stable when there is a single state that is the dominant world power or
hegemon (Hernandez, 2014).13 Having two states dominant in the world would surely
cause rivalry, a cold rivalry to be specific. In China and USs case, China was
continuously rising which is a threat to US, of course US wouldnt stay calm knowing
that China might replace them as the superpower. To make international system stable,
there should only be one state who dominates. This time its US, but because China
was continuously rising, the possibility for it to dominate was also increasing.
China, the worlds second-biggest Economy tends to decrease due to currency
drop and global stock market hang by a thread resulting to more bad news says
International Monetary Fund. Chinese economys snail-paced growth was foretold by
International Monetary Fund from 7.4 percent last year, 6.8 percent today and 6.3
percent by 2016. China sought to increase profitability by cheaper products through
reduction in the exchange value of Yuan by 1.9 percent making it the biggest drop in a
decade thus earning praise from International Monetary Fund because this gives
investors more options in its foreign exchange rate. This precludes China from
excessive reliance on export and repeatedly uneconomical investment in real estate
and factories for steady but slow increase by consumer spending. Thus expecting fund
growth from 7.6 percent to 5.8 percent by 2014 and for consumer-spending growth by
7.1 percent this year to 6.9 percent in 2014 (AP, 2015).14 China hopes to prevent their
economy from slowing further by making their exports less expensive. And because of
that other countries like United States will be exporting less to China, widening the trade
gap, and employing more Chinese and fewer Americans to make their goods. The
devaluation is a direct result of Chinas public recognition of decreasing growth. A
slowdown in China will have a major effect on world markets.
The economy has yet to fully recover from the most devastating crisis since the

12 Ramos, F (2015). Problems of Corruption and Scarce Resources (China). Manila Bulletin. Retrieved
from http://www.mb.com.ph
13 Hernandez, A. (2014). Nation-building and Identity Conflicts: Facilitating the Mediation Process in

Southern Philippines. Springer. [Online]. Available: http://books.google.com.ph

14 AP (2015). IMF: China is managing transition to more stable growth. Manila Bulletin Retrieved from

http://www.mb.com.ph
Great Depression of the 1930s. But its getting closer a point President Barack Obama
was expected to highlight in his State of the Union address. The world economy
remains fragile. Many economic forecasters say the economy should grow 3 percent or
more this 2014. That would be its best performance since 2005 (Manila Bulletin,
2014).15 The U.S. economy has experienced a good and strong development as well as
decline. There still a lot of doubt wherein the United States economy would be able to
recover this time, but it seems like that one United States has fallen from the top of
economic influence. Some economies appeared to be stable, although growth remains
fragile and uneven. Below the damaged global recovery lies increasingly differs the
trends with important possible future effect for global growth.
Despite Chinas status as an economic giant, its neighbors rely on external
security guarantor, like the United States to ensure peace and stability in the region.
With its system of alliances, and its economic and political network in East Asia, the US
has had a continuing presence in the region event if at some point it has not been as
active as it should have been. With its rebalance to Asia, the US has recognized that it
needs to be more active in engaging its allies if it truly wants to take a leading role in the
continuing rise of the region (Gimeno, 2015).16 USA definitely has a strong military,
thats probably the reason why it has many alliances. Weak countries hold onto strong
ones for benefits of protection. This is relevant to the study, because it talks about
China and US. China may have problems because of USAs alliances that can greatly
affect their rapid rise. On alliances, US are above China knowing that even Chinas
neighbors rely on US for peace and stability.

IV. Presentation, Analysis and Interpretation of Data or PAID

The United States needs generally recuperated starting with the great Recession,
which authoritatively off clinched alongside December 2007 and finished over June
2009 and might have been the deepest United States investment downturn since the
extraordinary wretchedness. However, the country still countenances challenges,
especially in guaranteeing that monetary additions scope at parts from claiming
particular social order. In relation to that, an aging population might make a longer-term
delay aggregate growth, and the United States plan viewpoint will be feeble. In spite of
the fact that this report card keeps tabs for united states methodology in regards to
those universal economy, united states capacity on do whatever methodology that
includes worldwide engagement will a chance to be more troublesome without general
population help Furthermore budgetary quality at home. Strategy inquiries for shoring
up provincial quality ought to concentrate on work market policy, including the
advancement for human money and moving forward migration approach; swaying profit

15 Manila Bulletin (2014). State of the US economy: Strongest since recession. Manila Bulletin Retrieved
from http://www.mb.com.ph
16 Gimeno, M.I.B et al. (2015). Enhance Defense Cooperation Agreement: Implication to the External
Defense of the Philippines. Unpublished manuscript, College of Arts and Sciences, Lyceum of the
Philippines University Cavite, General Trias, Cavite
through private What's more open investment; also enhancing financial arrangement
(Shatz, 2016).17
The United States has needed the worlds biggest economy for about 140 years,
and it harshly accounts for 22% of worldwide GDP. However, as of late china need
overtaken the United States by no less than particular case measure of downright
budgetary strength, which is GDP In view of obtaining power parity. Either way, the
economies are the two strongest comprehensively clinched alongside outright terms
(Desjardins, 2015).18 United States at present is to creation turned & a war economy.
China need sufficient measure about mass number On each section from claiming
economy - agriculture, defense, manufacturing segment, development and a lot of
people more. China has long moved away starting with socialist policies, now it may be
also capitalist society order, yet strongly supported by the administration.

The United States has been the worlds biggest economy since 1871, but that top
ranking is now under threat from China. The Asian giant has achieved economic
growth averaging 10% since it initiated market reforms in 1978 and, in the process,
lifting almost half of its 1.3 billion populations out of poverty (Investopedia (n.d).19 The
socialist market economy is the monetary model utilized by the Peoples Republic of
China. It is in light of the predominance of the state-possessed area and an open-
market economy, and has its starting points in the Chinese financial changes presented
under Deng Xiaoping. The ideological justification is that China is in the essential phase
of communism, an early stage inside of the communist method of creation, and in this
way needs to adjust industrialist procedures to flourish. In spite of this, the framework
has broadly been referred to as a type of state capitalism. The United States is the
worlds best national economy, speaking to 22% of nominal worldwide GDP and 17% of
worldwide GDP. The U.S. dollar is the cash most utilized as a part of universal
exchanges and is the worlds principal store currency.

Several nations use it as their official money, and in numerous others it is the true
currency. The United States has a blended economy and has kept up a steady general
GDP development rate, a moderate unemployment rate, and abnormal amounts of
exploration and capital investment. Its seven biggest exchanging accomplices are
China, Canada, Japan, South Korea, Mexico, the United Kingdom and Germany (Jin,
2015).20 The Chinese economy is driven by sate owned companies and a handful of
private enterprises. The American economy is driven mostly by private entities that are
usually independent from government interference. The Strength of the Chinese
economy is manufacturing, infrastructure and low labour cost. The strength of US
economy is a strong financial sector, high technology with research and innovation. The
17 Shatz, Howard J. "The U.S. Economy Today." In U.S. International Economic Strategy in a Turbulent
World: Strategic Rethink, 9-26. Santa Monica, Calif.: RAND Corporation, 2016. Retrieved from
http://www.jstor.org/stable/10.7249/j.ctt1d4txf0.9.
18 Desjardins, Jeff (2015). China vs. United States: A tale of two economies. Retrieved from

http://www.visualcapitalist.com/china-vs-united-states-a-tale-of-two-economies/
19 Investopedia (n.d) U.S. vs. China: Battle to Be The Largest Economy In The World. Retrieved from
https://www.investopedia.com/articles/investing/032013/us-vs-china-battle-be-largest-economy-world.asp
20 Jin (2015). Difference between China Economy and America Economy. Retrieved from

http://researchpedia.info/difference-between-china-economy-and-american-economy/
main differences is that the United States economy is freer, it is less regulated, there is
less government involvement in the economy, there are almost no state owned
companies, a lot more diverse and dynamic, bigger labour pool of jobs, and very
developed, very productive, market driven economy, the private sector is still in control
of the economy, the public sector is small.

United States and China both guarantee that foreign companies operating in their
particular nations should not make immense benefits. Settle them through a few court
situations of this and that, China also does it in distinctive approach - violates copyrights
& acquires in accurate duplicates of the original and also offers them In exceptionally
affordable price. United States dollar will be falsely holding high position, in as much as
China will be keeping Yuan On low deteriorating position deliberately. The primary
contrasts may be that the united states economy will be freer, it may be less regulated,
there will be less government contribution in the economy, there would Practically no
state owned companies, a considerable measure that is more dynamic and diverse,
greater work pool from claiming jobs, and extremely developed, precise productive,
showcase driven economy, those private segment is still done control of the economy,
general society part is little. In comparison the Chinese economy may be a greater
amount centralized, less productive, very nearly half of the GDP is generated by state
owned companies, the private sector is a lot smaller, there will be more diminutive work
poor of jobs, less opportunities, less dynamic, more state and shabby manufacturing
driven, in spite of the fact that this is evolving now, recall that china still a very much
developing country, it can't make compared for the United States today, they are not In
the same level for development, you are better comparing china today with the United
States clinched alongside 1930 or 1940s.

China's rise" could be seen Likewise as a quintessentially political processthrough

which those controlling comrade party has sought to shore up its authenticity then
afterward the social transformation irreversibly changed the country and initiated three
crises about ideological belief and certainty later on. As the party realized that the
performance-based authenticity might have been the only hope for prolonging its rule,
economic improvement become the most noteworthy governmental issues.
Consequentially, the victory of economic improvement might need to cause political
implicationsthe outside ones need aid deliberately monitored Also assessed by
China's neighbours and the only superpower of the worldthe united states (Xia (n.
D).21

Financial outcomes would not determined by history. Assuming that they were,
Chinese reform might neglect and the pre-1978 suffering might have proceeded.
Assuming that they were, the United States would remain the world's largest economy
simply because it has been so for more than a decade. Whether 30 years of fast

21 Xia, Ming (n.d). China a treat or a Peaceful Rise of China Retrieved from
http://www.nytimes.com/ref/college/coll-china-politics-007.html
development guaranteed 30 more, Japan might presently make the worlds biggest
economy.

Outcomes are instead determined by a nation's resources and policies. Resources

involve yet would not restrict to natural resources; there are also critical human and also
monetary assets. Beijing specifically need to determinedly pushed financing ahead for a
decade. Previously, 2001, altered investment might have been the equal of 38 percent
of GDP. For 2010, since its development effectively outpaced GDP every year since
2001, altered speculation might have been the proportional of 70 percent about GDP. It
is not possible to surpass 100 percent of GDP. The approach about boosting Growth
basically through the pure amount of money spent cannot extend through the current
decadeChina must change course or face pointedly smaller GDP gains (Scissors,
2011).22

Sharp arrangement transforms are more attainable in China than in the vast majority
nations because of incorporated choice making. Still, a Sharp conclusion on state
financing for investment might reason a few quite some time for moderate Growth
alternately indeed contraction. A gradual alter of course will be much more likely, yet it
might extend the time about economic inefficiency and environmental destruction. Such
a development Might expense China beyond a reasonable doubt likewise the work
circumstances deteriorates by the end of this decade.

Chinas auto industry is flourishing and ought to give acceptable firm rivalry for
United States auto manufacturers in the years ahead. Unless the United Stated
Administration levies high tariffs ahead imports to equalize prize the middle of Chinese
autos Furthermore the individuals aggravated on United States. It is paramount will
keep in mind that the expense for preparation may be a significant part easier
previously, china (Patton, 2016).23 The worlds economy will be evolving Also
globalization is alive and well. There will be a chance to an extensive amount of new
trade agreements in the months ahead and in addition an increment clinched alongside
United States based companies inferring income abroad. In the current global climate,
we must perceive how foreign companies will contend for United States corporations.
Climbing globalization should outcome in greater competition. If the central government
doesn't demand new and increased tariffs on foreign goods, the included rivalry will
bring about lower prices for the purchaser.

The United States pursue to build a positive comprehensive and cooperative

relationship with China by expanding areas of cooperation and addressing areas of
disagreement such as human rights and cyber security. The United States welcomes a
strong, peaceful and prosperous China playing a greater role in world affairs and seeks
to advance practical cooperation with China. The United States has emphasized the

22 Scissors, Derek (2011). The United States vs. China-Which economy is bigger. Which is Better.
Retrieved from http://www.heritage.org/report/the-united-states-vs-china-which-economy-bigger-which-
better
23 Patton, Mike (2016). Chinas economy will overtake the U.S in 2018. Retrieved from

https://www.forbes.com/sites/mikepatton/2016/04/29/global-economic-news-china-will-surpass-the-u-s-in-
2018/#141fc773224a
need to enhance bilateral trust through increased high level exchanges, formal
dialogues and expanded people to people ties.

V. Summary, Conclusion, and Recommendation

Summary

To summarize the whole study, China is an authoritarian nation, illiberal, run by the
Communist Party. China, over the last decade or so, has been prioritizing bilateral and
multilateral relations, rather than alliances. The United States is a far more natural
partner for most of the worlds countries. Its a stable, multiparty democracy with a
healthy, developed system of alliances, decades of experience in global intervention,
and a proud tradition of defending both human rights and free trade. China is none of
these things. China, over the last decade or so, has been prioritizing bilateral and
multilateral relations, rather than alliances. Rather, it sees relationships, including with
the United States, in bilateral terms. China now has legitimate political and economic
interests and entanglements in almost every country in the world (Fish, 2017).24

By many measures, after all, Chinas economy is on track to become the worlds
biggest, and even if its growth slows, it will still outpace that of the United States for
many years. Its overflowing, Beijing has used its new wealth to attract friends, deter
enemies, modernize its military, and aggressively assert sovereignty claims in its
periphery. For many, therefore, the question is not whether China will become a
superpower but just how soon. China, the only country with the raw potential to become
a true global companion of the United States also faces a more daunting challenge than
previous rising states because of how far it lags behind technologically (Brooks and
Wohlforth, 2016).25 Even though the United States economic dominance has failed
from its peak, the countrys military superiority is not going anywhere, nor is the globe-
spanning alliance structure that constitutes the core of the existing liberal international
order. Rather than expecting a power transition in international politics, everyone should
start getting used to a world in which the United States remains the sole superpower for
decades to come.

Chinas global ascendance appears on fit great for the predictions of neorealist
researchers similar to john Mearsheimer. Again On 1974, Deng Xiaoping announced
toward the united countries that China is not, and will never get to be a superpower.
However, todays Chinese authority may discover the thing that he said not well timed
and not recommended. Eventually by the end of 2015, china saw its GDP arrive at
$11.2 trillion dollars, representing 15% of the global economy. Whether china supports

24 Fish, Isaac Stone (2017). Is China becoming the Worlds most likeable superpower? Retrieved from
https://www.theatlantic.com/international/archive/2017/06/china-jinping-trump-america-first-
keqiang/529014/
25 Brooks, Stephen G. and Wohlforth, William C. (2016). The once and Future superpower: why China

Wont overtake the United States. Retrieved from https://www.foreignaffairs.com/articles/united-

states/2016-04-13/once-and-future-superpower
its stated growth rate, eventually by 2024, its economy is anticipated on a chance to be
as large as the United States. Some leading Chinese researchers are utilizing the term
superpower will portray Chinas power status.

Conclusion

In spite of this, glaring capacity gaps exist, keeping china starting with turning into a
true worldwide leader. First of all, being a leader to manage the liberal international
order obliges china to submit an enormous amount of resources. China is now a net
giver of foreign aid; it may be a wide margin from accomplishing the giver status of a
large number OECD nations. China so far doesn't have foreign aid laws alternately a
particular advancement support office practically equivalent to of the United States
agency for International Development (USAID) to coordinate improvement assistance.
Second, china needs to deliver the delicate power discrepancy in clinched in exercising
worldwide leadership (Huang, 2017).26 Finally, Chinas domestic political economy may
be additionally upsetting its efforts to venture global leadership. Preoccupied by
mounting domestic challenges, from air contamination to a possibility middle-income
trap, Chinese leaders will have battle a tough fight to activate the resources and internal
support for playing the worldwide leadership role.

In spite of the fact that China has been the main talk of many countries for years,
first as the factor of the world and also as the bridge builder of the world its capacity
for financial sector and economic reform are still in questioned. It signifies that China
lacks the king of global support that the United States received after World War II. It is
provided implied agreement for the United States to become the worlds anchor of
economic stability (Hsu, 2017).27 To sum up, China has still a long way path to go to
become a superpower and as an attainable alternative to United States global
leadership.

As a leading political scientists find that when a new superpower rises and the old
hegemon does not make some significant concessions to the rising power, war will
ensue. China is also charged with threatening the freedom of navigation and with
bullying its small neighbours like owning their properties, including US allies especially
Philippines, Vietnam and many more small countries near China (Etzioni, 2017).28

26 Huang, Yanzhong (2017). China's Superpower Status Not Enough To Replace United States as Global
Leader. Retrieved from https://www.forbes.com/sites/yanzhonghuang/2017/08/29/chinas-superpower-
status-not-enough-to-replace-u-s-as-global-leader-yet/#5bb02883f1b0
27 Hsu, Sara (2017). Why is China wont replace the United States as the Worlds superpower. Retrieved

from https://www.forbes.com/sites/sarahsu/2017/02/02/why-china-wont-replace-the-u-s-as-the-worlds-
superpower/#2beff104234d
28 Etzioni, Amitai (2017). Avoiding war with China: two nations, one world. Retrieved from

https://www.jstor.org/stable/j.ctt1nxqq1q?Search=yes&resultItemClick=true&searchText=china&searchUri
=%2Faction%2FdoBasicSearch%3FQuery%3Dchina
Recommendation

According to James Conca, a contributor at forbes.com, for China to become the

next superpower they should just repeat what United States did in the decades after
World War II:29

1. Install a terawatt of electricity-generating capacity

2. Construct a manufacturing base that can support the worlds largest
economy
3. Develop a robust space program
4. Develop an exceptional intelligence network and community
5. Gain overwhelming economic and political influence over your neighbors,
by hook or by crook
6. Build schools, bridges, hospitals, roads and other infrastructure to cover at
least 80% of your population,
7. Assemble a high-tech conventional military that exceeds all others in size
and capability, and
8. Build a nuclear arsenal that has adequate first-strike capability against
your primary opponents to deter not only an attack, but even just
interference in your regional affairs.

China already had achieved the four goals on the list. The differences between the
United States and China after the World War II and in present goes well beyond
weapons, China utilize what resources they have.

VI. References:

AP (2015). IMF: China is managing transition to more stable growth. Manila Bulletin
Retrieved from http://www.mb.com.ph

Brooks, Stephen G. and Wohlforth, William C. (2016). The once and Future
superpower: why China Wont overtake the United States. Retrieved from
https://www.foreignaffairs.com/articles/united-states/2016-04-13/once-and-future-
superpower

Chen, D. (2015). Relax, China Won't Challenge US Hegemony. The Diplomat Retrieved
from http://thediplomat.com

Conca, James (2015). What does China have to do to become the World power.
Retrieved from https://www.forbes.com/sites/jamesconca/2015/04/30/what-do-you-
have-to-do-to-become-the-world-power/#186506bd1a03

29
Conca, James (2015). What does China have to do to become the World power. Retrieved from
https://www.forbes.com/sites/jamesconca/2015/04/30/what-do-you-have-to-do-to-become-the-world-
power/#186506bd1a03
Desjardins, Jeff (2015). China vs. United States: A tale of two economies. Retrieved
from http://www.visualcapitalist.com/china-vs-united-states-a-tale-of-two-economies/

Etzioni, Amitai (2017). Avoiding war with China: two nations, one world. Retrieved from
https://www.jstor.org/stable/j.ctt1nxqq1q?Search=yes&resultItemClick=true&searchText
=china&searchUri=%2Faction%2FdoBasicSearch%3FQuery%3Dchina

Fangyin, Z. (2014). Chinas confidence gives it more scope to act. Global Times
Retrieved from http://www.chinausfocus.com/

Fish, Isaac Stone (2017). Is China becoming the Worlds most likeable superpower?
Retrieved from https://www.theatlantic.com/international/archive/2017/06/china-jinping-
trump-america-first-keqiang/529014/

Francis, D. (2012) Understanding Chinas Impact on American Consumers. Retrieved

from http://money.usnews.com

Gimeno, M.I.B et al. (2015). Enhance Defense Cooperation Agreement: Implication to

the External Defense of the Philippines. Unpublished manuscript, College of Arts and
Sciences, Lyceum of the Philippines University Cavite, General Trias, Cavite

Hantrais L. (n.d) Comparative Research Method. Retrieved form

http://sru.soc.surrey.ac.uk/SRU13.html

Hernandez, A. (2014). Nation-building and Identity Conflicts: Facilitating the Mediation

Process in Southern Philippines. Springer. [Online]. Available:
http://books.google.com.ph

Hsu, Sara (2017). Why is China wont replace the United States as the Worlds
superpower. Retrieved from https://www.forbes.com/sites/sarahsu/2017/02/02/why-
china-wont-replace-the-u-s-as-the-worlds-superpower/#2beff104234d

Huang, Yanzhong (2017). China's Superpower Status Not Enough To Replace United
States as Global Leader. Retrieved from
https://www.forbes.com/sites/yanzhonghuang/2017/08/29/chinas-superpower-status-
not-enough-to-replace-u-s-as-global-leader-yet/#5bb02883f1b0

Investopedia (n.d) U.S. vs. China: Battle to Be The Largest Economy In The World.
Retrieved from https://www.investopedia.com/articles/investing/032013/us-vs-china-
battle-be-largest-economy-world.asp

Jin (2015). Difference between China Economy and America Economy. Retrieved from
http://researchpedia.info/difference-between-china-economy-and-american-economy/
Kaplowitz S. (2015). Why China is not a global superpower yet. Retrieved from
http://fortune.com/2015/07/30/china-stock-market-superpower/

Lehmann, J.P (2015). China: Peaceful Rise to Great Power Status Wont Be Easy!
Retrieved from http://www.theglobalist.com

Manila Bulletin (2014). State of the US economy: Strongest since recession. Manila
Bulletin Retrieved from http://www.mb.com.ph

Mearsheimer, J. (2014). Can China rise peacefully? Retrieved from

http://nationalinterest.org/commentary/can-china-rise-peacefully-10204

Morrison, W.M (2015). Chinas Economic Rise: History, Trends, Challenges, and
Implications for the United States. Retrieved from
https://www.fas.org/sgp/crs/row/RL33534.pdf

Patton, Mike (2016). Chinas economy will overtake the U.S in 2018. Retrieved from
https://www.forbes.com/sites/mikepatton/2016/04/29/global-economic-news-china-will-
surpass-the-u-s-in-2018/#141fc773224a

Ramos, F (2015). Problems of Corruption and Scarce Resources (China). Manila

Bulletin. Retrieved from http://www.mb.com.ph

Scissors, Derek (2011). The United States vs. China-Which economy is bigger. Which
is Better. Retrieved from http://www.heritage.org/report/the-united-states-vs-china-
which-economy-bigger-which-better

Shatz, Howard J. "The U.S. Economy Today." In U.S. International Economic Strategy
in a Turbulent World: Strategic Rethink, 9-26. Santa Monica, Calif.: RAND Corporation,
2016. Retrieved from http://www.jstor.org/stable/10.7249/j.ctt1d4txf0.9.

Xia, Ming (n.d). China a treat or a Peaceful Rise of China Retrieved from
http://www.nytimes.com/ref/college/coll-china-politics-007.html

Xuetong, Y. (2015). A Bipolar World Is More Likely than A Unipolar or Multipolar One.
China-US focuses Digest. Retrieved from http://www.chinausfocus.com