US-China Tensions

The United States (U.S.) and China have a relationship that I would describe as a sibling rivalry. The two economies are interdependent upon each other in many aspects; China relies on exporting to the U.S., which in turn makes China the foremost holder of U.S. bonds(debt). However while this economic interdependency binds the two countries together, they are constantly at odds over policy and legal issues. Similarly to siblings, no matter how much they quarrel they are still related.

The U.S. is constantly criticizing China over their human rights issues, fair trade violations, and currency policies. Next week when House of Representatives convene the concern with China and the issues previously stated are top is on the top of their topics. The article posted below discusses the topics that will be covered in greater detail.

China is often quick to respond to these harsh criticisms by liquidating the United States bonds and canceling orders from U.S. Corporations (i.e. Possible cancellation of Boeing 747s from one of China's largest airlines, posted below the first link).

Both countries have a duty to serve the interests of their private citizens, as well as, the interests of the country itself. To focus the issue at hand we will concentrate on the instance of intellectual property. On one hand the U.S. has major corporations that need to prevent piracy as to maintain the value of their company and the products that are produced (i.e. Apple). On the other hand, China is a different country with a different set of laws that do not parallel the U.S. government's patent or trademark laws.

This all appears to come down to a balancing act. In the NASDAQ article it addresses the issues that lawmakers have with the relations to China. To what extent is the United States allowed to exert its power and influence over China, especially in terms of all the Fortune 500 companies in the U.S. that are multinational corporations? How should policymakers proceed in its decisions and what interests are foremost?


http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201110181710dowjonesdjonline000429&title=us-lawmakers-to-continue-scrutiny-of-china-at-house-hearing

http://www.businessweek.com/news/2011-10-18/china-southern-may-scrap-787-orders-as-delivery-delayed.html