China has the world’s second largest economy and the United States is the world’s premiere economic nation. Both of these countries wield considerable influence across the globe. China’s primary trade partners are Hong Kong, Japan, South Korea, Germany, Vietnam and of course the United States.
The United States has trade partners as well. The nations they primarily do business with include Canada, Japan, Mexico, the European Union and China. Both of these nations are the top two economic powers in the world. However, they do not agree on a lot of economic and business policies and issues in general.
China has a growing national debt that is threatening its stability. The U.S. is struggling with slow economic growth and productivity. Both nations have to trade with each other and they both have to establish policies that will help each other and other nations around the world.
America has to proceed with caution with how it deals with China. They do not want to make trade difficult with this nation, otherwise they could inadvertently cause China import prices to rise. This in turn would force the average American person to pay more money for the products they consume. Don’t forget that China makes a lot of the products that American people use.
Chinese people have to be mindful about cutting out the prosperity that the U.S. brings to their nation. With at least 300 million people living on less than $3.10 a day, China needs to keep creating products for the U.S. so that more jobs will become available for their population.
The two governments are set to discuss their economic policies and difference at a conference in July of 2017. They will try to figure out what will be the best policies to use regarding trade, economic stability and growth. This gathering between both nations is extremely important because they will in fact be creating policies that will impact the rest of the world. More information about China’s and America meeting is available in Fortune.