China US alliance

China’s Importance to the United States

THESIS

The United States and China are two of the worlds greatest superpowers in every category, but they are mostly there because of each other. Even though some people dislike the alliance, it is vital to both their economies and to to the world’s.

The Chinese have a much lower standard of living, as a direct or indirect result of over population, over a billion people in their country. If they had the same standard of living as us, they would be in a much deep whole than our economy. But, with their low standard of living, their population is willing to do the dirty work for a minimal amount of pay, just enough to get them by. This makes it a lot cheaper to make products, do to the low pay, so many companies go to not just China, but many Asian countries, because of the low pay and cheap manufacturing.

Chinese workers can make up to an astounding $3 to $7 dollars a day. I’m of course being sarcastic, and this may seem terrible compared to an American worker who has to at least make $7.50 not a day, but hour, according to national law. Less pay equals cheaper made products, and even though we have to ship them over seas, the products sometimes dip down to half the price (varies on item) compared to if they were made in the United States. For example, something that may cost $20 dollars in the United States, costs $10 in China. So, if you were the CEO of a company, what would you buy, the same book for $20 or $10? If you weren’t dumb, you would choose the $10 one. This is why so many different companies choose to base their companies in China,  their low standard of living which causes low salaries.

Let’s pretend the US and China go to war, and that they now no longer trade with each other. The US would have to either start producing products in their own country, which would cost up to twice as much as it would in China, or find another country to built company manufacturing plants, and relocate to, which would equal just as much. While if they produced their own products, it would create jobs and help their economy out, it would end up costing more to produce in the US. China on the other hand would not have anyone to sell all their products to. China would be hit harder by the war, no one to sell their products to means they don’t have the money to build more products, if you can’t build more products then your companies lose money, if your companies lose money then jobs get lost, if jobs get lost the billion Chinese people would be in total chaos. All of this proves how China and US, even though some people do not think it’s a good idea, have to keep their alliance and keep trading with each other to keep not only their own economies stable, but the world’s.