What We Save in Manufactured Goods, We Lose in Oil Costs

While America and other first world countries have political restrictions in place when it comes to doing business with certain countries, the Chinese are simply searching for the cheapest oil. This search brings them to places like Sudan and Venezuela. While China's dependence on these countries is not a problem right now, it may hinder political relationships between the U.S. and China in the future. While the rest of the world attempts to stop business with countries that disregard human rights, China's willingness to do business with Sudan and Venezuela will surely put the world's commitments to the test.

Quality Control

In the United States, quality control is everywhere. Inspections occur regularly and goods produced in the U.S. must live up to high standards, but what about in China? The media has recently brought to our attention that children's toys containing lead have been produced in China and shipped to the U.S. for sale. This is especially disturbing because children have a lower tolerance for lead than adults, but even more disturbing is the discrepancy, explained by the Chicago Tribune in its issue on February 16th, between American and Chinese standards for medicine. Unfortunately, Chinese law only requires inspections for factories that sell their goods in the Chinese market. That means that any factories producing medicine solely for foreigners are left unchecked. Tainted Chinese drugs have caused deaths across the globe, so what can be done to prevent Americans from being harmed? This is where political relationships come into play. Currently the Chinese don't allow the U.S. to make surprise inspections of Chinese factories -- it is Chinese policy to warn a factory before making an inspection. This policy undermines any U.S. efforts to ensure quality products, so the U.S. government must now negotiate new terms for inspection in China. Right now the Chinese are embarrassed that their products are not up to foreign standards, so they should be willing to cooperate with the U.S. government in order to establish new inspection regulations.

This issue raises several recurring questions: Are Chinese-made goods a liability for the U.S. government and its citizens? Will China be able to maintain its low-priced goods and simultaneously improve its standards for quality? How do issues like this create political tension between China and the U.S.? How could this issue serve to further the political bond between China and the U.S.?

Tariffs are Futile!

The international complexity and scale of China's growing influence means that imposing tariffs on goods "Made in China" would probably hurt the U.S. more than it hurt China. The fact is that as the United States has established factories and businesses in China, China has established factories and businesses in places like Africa. By outsourcing the final process of production for an item, the Chinese can make money off of something even without the "Made in China" label. On top of that, the "Chinese price" creates competition that drives prices down across the world, leading to cheaper goods for American consumers. If the Chinese goods were taken out of American stores, prices would rise for consumers. Additionally, through everyday trade the Chinese have amassed a wealth of U.S. dollars . Once the government obtains this cash, they turn around and invest in U.S. bonds. By investing huge sums of money in U.S. bonds, the Chinese keep American interest rates low and encourage more spending. Essentially, the Chinese are allowing U.S. citizens and their government to borrow money at a low interest rate. United States consumers fuel Chinese economic growth and Chinese economic growth keeps interest rates low, which fuels U.S. consumer spending.

Will this cycle end? Is there any way to modify the cycle? How can the U.S. government maintain its independence from a country with such strong economic ties to America?

With the upcoming election in the U.S., voters should remember that the war on terror is not the only international issue facing politicians. Voters should be asking candidates: What is your stance on China?

Political Implications of Private Business

The evolving political implications of Chinese – American business relations are of paramount importance in the world today. As the business relationship between China and America deepens, China will trend towards democracy, and the U.S., in order to maintain its economy, will be forced to avoid political conflict with China. First of all, Chinese politics and Chinese business are linked in countless ways, so Chinese politics have various effects on the business relationship between China and the U.S. Furthermore, as the business relationship develops, the U.S. government will have to respond to economic dependency on a country whose political values are different than its own. The changing perspectives of American businessmen and politicians on Chinese businessmen and politicians are also an imperative piece of this growing trade. Additionally, trade between the U.S. and China implicates the political status of regions such as Taiwan, Macau, and Hong Kong.

* Is the United States economically dependent on China?
* How does this economic relationship affect the political ties between China and the U.S.?
* How does business affect government in China? How is this different in the United States?
* How does government affect business in China? How is this different in the United States?