America's Competition With China

1036 Words5 Pages

China has three main tactics of their economy and how they handle China’s competition for trade. With the new president of America, Donald Trump, he made promises to cut off exports from China in order to create more jobs for Americans. In fact, Trump has not kept his promise and that is an economically good thing because he would've started a trade war with China and scarcity in the United States. The incentives China uses are illegality trading, legal but intense, and unfair competition to export their goods. For America, the opportunity cost is greater if they exchange capital with China rather than having America produce their own products. For example, China’s prices of televisions are 90% cheaper than they could be produced in America. …show more content…

Their corporate side of the country would be considered unfair. They have the goods and resources that are cheaper and better quality than America. China has a comparative advantage and absolute advantage. Absolute, like explained before, China can produce television sets at a much lower cost, with fewer materials needed because of the increase of technology. China also has comparative advantage over the United States because everything they produce on low credit, the opportunity cost is not as …show more content…

Intense but legal competition happens everywhere around the globe, not just in the country of China. And lastly the hardest competition for the United States to deal with causes a global problem. This is called unfair, a sharp practice that somehow doesn't break any global rules. Even though China is not playing a fair game due to their many advantages, including resources and human capital, they succeed far ahead of other countries. Some could call China even more advanced than the rest of the economic and technological world. To help calibrate the response to the illegal side of corporate China, it is the government chose to prosecute criminals and seek redress for the actions. United States would benefit from protecting themselves from Chinese computer spies who steal information as well as ideas. Firms and businesses would also benefit from incorporating some kind of system into their software as a shield for their work. The computer hackers are not only Chinese, but from around the world for various reasons.Reasons for stealing information from America would be unfair war play, business proposals, and any quick-rich ideas they may