The USA and China are two countries that not just influence global politics but global economics as well. The basic ideological foundation of both countries is contrasting with each other yet both of them are the most powerful country in the world. Their economic ideologies and policies have immense impact and that is how the world is caught into it.
China is a smart player. Even though China is the country of the communist ideology its economy is more or less based on capitalist ideas with severe surveillance on it. China’s economic policy reform under Deng Xiaoping’s rule lifted more human beings out of poverty than anyone else in world history. It has a “State Capitalism” with the framework of Communist Party ideas.
Today China has come a long way and has become a market capitalist economy by opening its doors to foreign investment. Chinese firms have a huge presence in international markets. One of the best examples is an entrepreneur like Jack Ma has got global recognition. Moreover, maximum large and successful Chinese companies are state-owned and are strictly under government’s surveillance.
On the other hand, we have a free-market economic model of the USA, and maximizing profit is at the core of its concept. USA practices progressive capitalism. However, now they are emphasizing on manufacturing in America and mitigating their reliance on China. And the world is aware of the relationship between these two powerful countries- Co-operation and Conflict and currently at the brink of the cold war-like situation.
Both of them are in a way interdependent. The weakness from the USA’s point of view is its trade deficit with China and vis a vis China fears USA’s potential protectionism. As per the data from the office of the United States Trade Representative, total trade in goods and services between the US and China is an estimated $737.1 billion in 2018. Exports comprising $179.3 billion whereas imports were $557.9 billion. The U.S. goods and services trade deficit with China was $378.6 billion in 2018.
USA and China always look for absolute gains. Though they try to create a win-win situation it eventually turns out to be personal gains. The two countries not just face co-operation and conflict situations in economic policies but also in other factors like foreign policies, human rights issues, and treatment of religious and ethnic minorities. In the China-US economy, we see incremental reforms and the democratization of international relations.