Trade relations between USA and China Essay Example | Topics and Well Written Essays - 1000 words

Trade relations between USA and China - Essay Example Ranging from the ongoing currency war to accusations of immoral trade policies, factors which have led towards this destabilization of trade relations are not only economical but, perhaps, have a political milieu too. Firstly, one of the major challenges faced by the USA-China trade is the prominent USA accusation of ‘manipulating’ the Chinese currency. Over the past few years, the official currency of China, Yuan, has been held in a floating exchange rate system; though it has only been allowed a narrow margin to fluctuate. Many analysts and economists in the USA however urge for a more flexible exchange rate which pivots around the market equilibrium determined by the market forces of currency demand and supply. Despite of the fact that Yuan has been allowed to fluctuate more liberally and has even risen by 20% in value against the USA Dollar since 2005, Japan, European Union and USA yet accuse China that it manipulates its currency by deliberately keeping it at a low exchange rate in relation to the USA Dollar with a view to make the USA products less competitive and, simultaneously, the Chinese goods and services more competitive and relatively cheaper than the USA goods. This lowered currency rate leads to a rise in Chinese exports whereas USA exports decline. A large amount of trade deficit suffered by the USA in trade with China adds to the gravity of the accusation. Concerns for China regarding this issue are that the USA, World Trade Organization or APEC might impose trade sanctions on China for its ‘problematic’ currency exchange rate. These sanctions may prove very costly for the growing Chinese economy as the world’s second largest economy is principally led by mass amount of exports to its trading partners. Restrictions over free trade for China may cause the deceleration of its growth or may even put it to a halt. The trade balance between USA and China in 2011 exceeded $295 billion and any probable sanctions may d rastically affect this huge amount of traded commodities between the two giants. Moreover, China’s Current Account surplus has also been declining during the past few years and the consequences of USA pleas regarding the unfair trade advantage China has may turn the ‘already withering’ surplus into a trade deficit, whereas China may also lose its most important trade partner (Davis). The list of allegations upon China is elongated and does not restrict itself to the currency devaluation. China is also accused by the USA for adopting an unfair exchange rate regime. Yuan’s rate of exchange has been, contrarily to the US allegations, in conformity with the international monetary system which is operating at the time. Observing the variations from a fixed to a floating and then from the fixed peg to a basket peg, China’s exchange rate valuation has always been repudiated by USA. This might lead to a further withering of trade relations between the two n ations in the near future. (Moosa viii) Also, on the accusation list is the allegation upon China of piling up its foreign reserves. Again, the charge seems to be lacking ample rationality as any nation is allowed to purchase foreign currency reserves and to accumulate those reserves in order to minimize its risk of a speculative economic slump in the future. Similarly, China has done the same and has acquired pretty huge amounts of US Dollars in the

Thesis Essay Example | Topics and Well Written Essays - 1000 words - 1

Thesis - Essay Example GOD created human being as a reflection of him. There are some scholars according to Toulmin who believe that god created us so that we can rule his creation, therefore human beings should use his creations for livelihood (Mead, 2008).Bottom of Form When god created the universe, he tasked the Christians to care for the environment but some of them still don’t show the care thinking that it is not their responsibility to care for the environment (Nachtigall, 2008). Some believe that when Christ come back he will change the world the way it is so caring is not necessary. Many of them are concerned with the behavior of the environmentalist that places them above that of the creator. Some think that everything in the universe should be explained with respect to God or Christian values. They believe that Christians should only be focused on the things that will guarantee them the kingdom of heaven while paying no attention to earthly things. This people also think that if non Chri stians see them paying attention to earthly things they will think that they have nothing to focus on other than these earthly things. They will think that earthly things are of more importance to then Christians. Though this Christians arguments are prevalent God actually wants us to care of the universe and even the moral grounds dictates so. It is the responsibility for the Christians to take care of the environment (Mead, 2008). In these modern days the environmental challenges are threatening the existence of humanity that firstly supports its existence. Environmental problems are monster facing us and it can’t be wished away. Some of these challenges will have dire consequences if not sorted out early enough. There are many reasons why Christians should restore the environment. First, Christians should support God’s work by protecting gods’ creations (Nachtigall, 2008). God created the earth and human beings and placed them on earth to take care of it. Hen ce, Christians should not neglect the responsibility of working with God to protect and preserve all the creations. This will in turn ensure Christians preserve the environment and restore it. In addition, it will help Christians serve the Lord through the environment by preserving and conserving it. Second, Christians should start programs that focus on conserving the environment (Nachtigall, 2008). In religion, the only basic concept is to serve God and Holy Son; there is no concept of worldly concerns in the religion. This concept is what is driving Christians away from the topic of environmental conservations. All the holy people are always involved in the service of mankind so there is no point in staying away from the world. God has sent us all in this world for a purpose and we have to fulfill it. It is our own mistake if we do not understand it, and harm other people and this world. This is why there is need to understand the basic concept and relation between the nature and Christianity. One of the greatest challenges is the global warming. This is the trap of gases near the earth surface raising the temperatures just like in the green house. This effect is rising at an alarming rate and scientists are developing different models to explain and try to understand it. This increase in temperatures will cause