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China And The United States Early Relations

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China And The United States Early Relations

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Americans built a special relationship with the Chinese. Among that relationship, American missionaries also tried to Christianize many of their population. American also became major supporters of the leader Kuomintang and party during the twentieth century. But Chinese and American relations were affected when the forces of Mao defeated the government of Chiang Kai-Shek. China's transformation into a communist dictatorship was a major trauma to their relationship. Despite their differences over the years, America and China have become great economic partners.

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China is one of the largest and populous countries similar to the United States. However, compared to the United States who only has two borders ( Mexico and Canada) and in which they are not an enemy; China shares borders with fourteen nations. Some of them he has fought with, and some they still have ongoing disputes. But China also lacks some necessary resources.  One of them is the energy source. They produce 4 millions of barrels per day but use 8.2 million barrels a day. The gap is filled with importations from other countries.

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There is no doubt that China will continue to grow economically and part of that has to do with its citizen's consumption. Chinese annual consumption is way lower than in other countries around the world. Chinese annual savings is one of the greatest in the world. But their growth has been uneven due to some of the undeveloped eastern regions compared to the western areas which are more developed. Despite these differences, China continues to grow more and more.

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Both countries have a strong economic relationship. However, there is an imbalance trade between the two due to the United States being the greater consumer of its products. China has developed a large surplus in American dollars. One of China's investment is that they have been subsidizing loans to finance its deficit spending. If China quits buying American loans, it can start an economic crisis for the United States. But America's consumption and Chinese personal saving are highly linked to each other. These do no good for any of them making it hard to mend relations.

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I notice that there is a greater reason for them to maintain a good relationship. It all comes down to both of their economies. China needs from America to buy its goods, and America needs from its goods as a consumer. It would be tough for them to end this relation since it does not benefit them in any way. They both need each other.