China and the US Come To Deal on Rice

China and the United States were negotiating some recent economic policies this week, but those talks mostly appeared to have fallen through without much progress in Sino-American relations.

However, a new announcement indicated that the rice market in China is being opened up to American companies for the first time. China first opened up twenty years ago, namely for Asian suppliers. China is the largest consumer of rice in the world and opening up these markets to American producers should allow them to increase revenues.

China imports about five million tons of rice per year, spending up to $1 billion when doing so. This is more than the United States exports which is approximately three to four million tons per year. Still, the deal with the United States will allow the country to diversify away from Asian producers and have several options for importing the stable food in China.

China was previously able to feed itself with rice, but has experienced challenges in doing so, namely in relation to their rapidly aging population which is not able to produce the rice needed by the population. Further, the quality of the soil is depleted and pollution problems contribute to the inability to feed the population with internally produced rice.

The U.S. President, Donald Trump, and his administration, has made a point of attempting to reduce the trade deficit that exists with China by opening up several different industries that China restricts foreign investment with, as well as manipulating their currency. China’s economy is rapidly expanding and growing and is the second largest economy in the world and is poised to become the largest in the next century, namely as a result to their large population.

Chinese officials will inspect U.S. rice supplies before allowing U.S. exporters to import to their country. This may be the first step to opening up a potentially large market.

Latest News Concerning the World Economics and Economic Policy

World economics is the global trade of goods and services in the form of cash. At times, some people refer global economy as the global or international financial system. The rise or fall of the economy is the determining factor for the expansion of international businesses. Consistent stock exchange results in the quick development of the world economy.

Economic policy is the steps taken by various governments in the world to venture into the trade and industrial fields. Additionally, it involves setting heights of interest rates, labor markets, national budgets, tax variations and supply of money. Economic policy is majorly for the thriving of the world economics. Hence, a well set economic policy results in a tremendous growth of the global economy.

Top World Economies

Currently, United States has the best economy in the world. However, its position is lately in a threat by the China’s fast growing economy. The advanced technology, plentiful natural resources, and outstanding infrastructure are the factors that have made U.S feature out as the superpower of the world economy since the beginning of ranking in 1871.

According to the 2017 estimates by the International Monetary Fund’s World Economic Outlook Database, the top ten world economies include United States, China, Japan, Germany, United Kingdom, India, Brazil, Italy, and Canada simultaneously. The nominal rates of the ten economies contribute more than half of the world economy.

China’s Rise and Threat to the World economic Superpower

For the last 30years, the economic development performance of China has been impressive. According to the World financial analysis, China posted the highest gross domestic product surpassing the U.S economy in 2014. Since then, it has been a significant threat to the United States.

United States Financial Plan to Raise Their Economy

The stiff competition from various nations like China makes the U.S economists come up with new unique economic ideas. Currently, they have come up with a strategic plan to improve their economy. The method includes inoculation of capital for the banks to absorb unpredictable losses and to open out Fed’s program to sustain lending of services to the consumers. U.S focuses on maintaining their pace as the economic giants in the globe.

Economic Talks Between US and China Fall Apart

Talks with China appear to have broken down over revising the economic policy and opening up China to more trade with the United States. In scheduled talks, Wilbur Ross and Steve Mnuchin broached the topic of opening up China to more United States competition which the Chinese government has balked at.

China is currently protecting many facets of their economy, thereby protecting jobs in their country. The United States currently does not have any tariffs or restrictions on Chinse companies operating in the United States which many individuals have indicated lead to unfair treatment on the part of China.

The United States has been attempting to ease these regulations as well as confront China about currency manipulation that places United States exporters at a disadvantage to the United States. Many are indicating that the United States should implement new tariffs to combat these forms of governmental support.

President Donald Trump has indicated his intention to place a 55% tariff on Chinese goods, though many are attributing this to bluster and think a course of action such as this unlikely. China would likely reply with a tariff of their own which could have a major impact on the world economy. A trade war between the United States and China could potentially push the world economy into a recession and threaten many notable industries that the U.S. has significant exports to China including soybeans, technology, and a wide range of food products.

Wilbur Ross and Steve Mnuchin announced that the talks with China will continue and believe that their differences will be ironed out to the mutual satisfaction and benefit of both China and the United States. While talks will continue, they will do so absence of any concrete results from these discussion, along with much uncertainty about the future of Chinese and American economic relations.

China’s and the U.S. Economic Policy: The World’s Strongest Nations are Planning Ahead

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.