China and the US: What is the middle way to continue the relationship?

Over the years China has become an economic super-power and the main reason has been its forte in production, and cheap production in particular. In the last one decade the country has snatched the production from the US and has provided the world with the same commodities on comparatively cheaper rates.

Due to the fact the US has failed to come out of economic ordeal that lurched in 2008 and is still on Achilles ’ heel, the country is facing the worst unemployment rate since the great depression. The current 25 percent unemployment rate in the country has forced the US public to push the political circles to make drastic changes to the import and export of commodities, from China especially.

However, the public fails to understand one thing in particular, the US labour still remains the most expensive in the world and products it manufactures are still the expensive ones in competition.

Instead of going into economic cold war with China, the US should find a middle way to join hands with biggest factory in the world. The US still remains the biggest consumer market and China reigns over the production sector, not because of cheap labour but because of a superior infrastructure in the country.

It goes with saying that the US has boosted capitalism and has brought the most innovative products in the last one century. Therefore, it can safely be said that the country is the thinker of the world. On the other hand, China has mastered the art of inexpensive production and is still cultivating the fruits of its the infrastructure it has developed in last one decade or so.

The middle way, mentioned earlier, could be the strategic partnership between the two countries. The US remains the think tank and China remains the maker. This way the factory of the world can provide the cheaply produced products to the biggest consumer market on the face of the earth.

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Posted by Usman Khalid on Feb 7 2012. Filed under Business. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.