The US has been well established in terms of being the strongest economies in the world. Other countries have set their standards to the Americans by having dollar conversions to check how one’s economy is fairing. On the other hand, China still considers their own as a developing country even after the government has imposed policies. Whether established or developing as a nation, one common thing about China and the US is the power that they possess. Further, there is economic stability despite other factors that may be encountered by either the two.
However, economists look into the facts and figures of China only to find out that it has slowed growth. Despite different strategies to develop the country, its pace has reached the slowest in the recent years. The financial crisis that is challenging China also does not help in the expected growth. China’s economy has basically revolved around exports and investment. This has been a concern for different investors, executives and banks all over the world since China has contributed growth for quite a while. There is also a risk that the debt of China will increase simultaneously with the stimulus that is injected towards achieving growth targets to comply with the evolving global economy. Other factors affect the changes in the global economy with a hand from different countries all over; such including the administration shift in the US and Brexit in Europe among others. China has a good foundation in manufacturing industry exports but the slow pace in trade can be felt in the country.
Consequently, the US is experiencing a somehow similar situation. The result financial crisis that shaken the States has affected its economy. Though the slowed pace is not concluded, the present numbers don’t show desirable percentages most particularly in consumption and inflation. The US is also performing at its weakest after three years. Further, consumer spending and cost cutting of businesses are being blamed for the decline in growth. President Trump has implemented policies that would suggestively boost the economic activity but this has yet to progress. It may not be as alarming because of the transition that the US is still going through but possible effects may cause permanent damage to the economy. Economic growth is essential and when not achieved, it follows a negative trail to rate hikes, interest rates, and the market. Also, these may cause companies to cut jobs since businesses are not well when it comes to sales and revenue, even the possibility of increasing wages is becoming minimal. Adding to that are other industries that also become crucial with the standing of the market such as technology, agriculture and on top of this, trade.
China and the US have been the most powerful economies. China worked for decades to achieve the spot after economic reforms were implemented. It was not an easy task for the country due to the Sino-Japanese War and violent Rape of Nanking that shaken China’s history and economy. While the US has faced all their battles and recovered from all the crisis that came their way. It so happens that the current market situation has acted on even the strongest economies. From here, these two must strive to keep their status at bay and secure whether having a new political approach or introducing new means to make sure that their economies remain growing. There are a lot of uncertainties for the economy of China and the US individually but a possibility of the downfall of their progress is the ongoing trade war between the two. Nevertheless, having short and long-term plans must reduce the impact of the current economic situation and expect more developments in the future.