China dominates in the world as a trading country – can that actually be something good?
China, in recent years, has emerged as an important player in the world economy. But that new reality, owing to rapid industrialization efforts, is not a welcome thought for many countries around the world. There is a looming sense of danger that is not entirely confounded that China’s rising economy may, in the end, hurt America’s economy: China’s advances with technology-building is hurting Japan, which is known to be a giant in that particular industry, and the Communist state’s odd penchant for acquisitions in the EU now sees foreign investment over there greeted with stern procedures.
China has come a long way from meager manufacturing outputs of zips and cigarette lighters, to a time when the state supplies cheaper products for good value. All this comes at the heels of China’s export percentages chalking in at a staggering 14percent, and this is the first time that a country has gone so high with export rates, since America in the late sixties, which really challenges competition so much because these cheap products also come with a good reputation in the market. The only way to combat China’s might here is to be innovative with what markets around the world can provide that is a better alternative to what China already offers – this is easier said than done.
So far, the only way to curb China’s growing hegemony over trade is to force it to innovate, with a collective mind – one that is more concerned about sharing trade dominance (China became the top trading country in the world in 2013), with other trade giants, such as European countries, as well. There is no need to build enemies: China is a mammoth developing country and it could use common goodwill over trade dominance with developed countries.
As Xi Jinping, stated at Davos earlier this year – a trade war will declare no winners whatsoever, and it’s very true: China should not be looked upon as a a browbeating state, over the matter of trade. China should really avoid going down the same old path as previous trade giants who dominated on such a massive scale, like the United States, and focus more on being the new and fairer face of globalization.