U.S. Status as World's Superpower Challenged by Rise of China

Table of Contents

Abstract3

Introduction4

Background4

Current thinking5

Fear of U.S from rising China5

China' economy surpassing the economy of USA5

Rise of China in mass intellectual6

Political implications of rise of China to U.S7

Peaceful Rising of China8

Difficult and conflicting relationships between China and U.S9

Difficult coexistence between two giants9

Long-term trends and the strengths, weaknesses, opportunities, and threats…………….….10

Analysis10

Conclusion14

Executive Summary……………………………………………………………………… ......…15

References17

Supplemental materials18

Abstract

This research paper deals with the study which covers all the aspects of rise of China due to which the U.S status of superpower is challenged. The study further covers the background, current thinking, analysis and conclusion of the most debatable topic i.e. U.S status as World's superpower challenged by rise of China.

U.S. Status as World's Superpower Challenged by Rise of China

Introduction

The main reason of choosing this topic is that this can be considered to be one of the most important issues in the global politics. Rise of China is one of the most debatable topics in the political scenario of the world. The most substantial part which is connected with the rise of China is the challenged U.S status of superpower. Another main notable point is the increasing economic status of China which is making the China near to the position in which she can snatch the title of super power from United States of America.

Background

Assessment of the current organization

This relationship is causing psychological sparks in the economy, the current front line. Wealth is still much higher in the U.S. While China's GDP in 2011 "only" exceeded 5 billion Euros, the U.S. amounted to over 11 billion. But the growth rate favors the Asian giant. Between 1981 and 2010, U.S. GDP increased fivefold; Chinese for thirty. The debt crisis and uncertainty in Europe hovering U.S. have slowed this trend. In the second quarter of 2012, growth of the Chinese economy fell to 7.6%.Versus 8.1% in the first quarter and 9.2% in 2011. Still, the high liquidity of Chinese coffers has allowed becoming the first U.S. debt creditor after the Federal Reserve. The Asian dragon owns 7.6% of U.S. debt: about 1164 billion in June. And the trade balance also favors (Pye, 2005).

In recent decades, China has often been portrayed as the enemy number one economic the United States. Its entry into the WTO in 2001 coincided with a collapse of the global market share of U.S. products, the falling dollar has failed to mitigate. By undeniable comparative advantage in labor costs, China has not only destroyed the local manufacturing unsophisticated but also led to a massive wave of relocations. Finally, the exchange rate policy fixed resulted in an accumulation of reserves in the form of U.S. Treasuries. By this fact, China held financially United States is now, just ahead of Japan, the first foreign holder of Treasuries.

Current Strategy

Fear of U.S from rising China

The rise of China has cast doubt on U.S. should fear his progression. China is emerging as the leading economic power. One of the most competent economists of the world Goldman Sachs warned before the outbreak of the 2008 crisis. It has been predicted by many global political scientists that China's economy would surpass the ...