China: Friend or Foe

China’s economy is growing at a remarkable rate. It is the world’s fastest growing major economy, the largest exporter, the second largest and the world's top manufacturer in 2011, surpassing the United States. In order to achieve this economic success the Chinese government encouraged the formation of rural enterprises and private businesses, liberalized foreign trade and investment, relaxed state control over some prices, and invested in industrial production and the education of its workforce. Another way in which this nation grew so quickly is through the manipulation of their currency, the Yuan. The intention of the Chinese government is to ensure that the American dollar is worth more than the Yuan. As their economy grew, they did not raise the value of the Yuan. The result is more cost efficient manufacturing in China. Many believe that this has cost Americans jobs, harmed small business and destroyed US manufacturing.

Evidently, the rise of this superpower is in close ties with the United States. So far things have been positive between these two powerful nations. However, there is an undermining fear that the relationship between China and America will deteriorate just as the friendship between Germany and Britain had in the decades before the First World War. China has been modernizing its missiles, submarines, radar, cyber-warfare and anti-satelline weapons in response to feeling threatened by American naval power. The US Navy had begun to deploy more forces to the Pacific. Both countries see each other as a growing threat.

However it is possible for two superpowers to coexist. In order for this to happen, mutual trust and openness in regards to their military powers is essential.