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Beary: China is key for U.S. economy

BY HANNA BEARY | NOVEMBER 14, 2014 5:00 AM

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As I sat down in lecture the other day, I got out the same pen that I use along with that section’s notebook. I was able to read the little print on the side, “Made in China.”

According to the Office of the U.S. Trade Representative, the United States imported $439 billion worth of goods in 2012 making China our second-largest trading partner. U.S. exports totaled  $141 billion. These numbers show many things; for one, the United States imports way more than it exports, and that’s growing every day.

But this trade can bolster our economy, which strengthens our country. President Obama and President Xi Jinping of China decided to work together in 2013, a decision that has helped the economic recovery. According to the Rhodium Group, there have been more than 70,000 jobs created in the United States because of Chinese investments.

Economic growth is something that will benefit everyone. In all reality, if the two largest trading partners work together, change will in fact happen. A major agreement that will come from China and the United States working together would be the Free Trade Area of the Asia-Pacific.

The Rhodium Group estimates the free-trade zone would help create $202 billion by 2025 for the United States.

However, where the Asia-Pacific agreement is today and where officials would like it to be is significantly different. In order for agreement to be possible, an estimated $8 trillion would be needed for infrastructure development.

The old saying that “one must spend money to make money” plays a significant role here. The turnover value is impressive, but the startup is high. The solution China came up with would be an internationally funded bank: The Asian Infrastructure Investment Bank. This bank would be dedicated to financing needs for transportation, telecommunication, and energy projects. This would be the missing piece to the puzzle.

Ultimately, improving our economy is the goal. The Asian Pacific Economic Cooperation’s main goal is to have free and open trade throughout the Asian Pacific. This organization is very important because free trade among Asia and other nations in the Pacific region depends on the United States’ alliance with China.

Free trade will help boost our economy by bringing more revenue. This relationship with China is huge to the United States, not only to help support free trade, but for what China already does. The 70,000 plus jobs that China’s companies have created in 2013 helped our recovery on their own. It is time to not only worry about our economy but to focus on helping others out as well.

The ignorant sorts of comments such as “Gross, this was made in China” will probably never disappear, but China is becoming engrained into our everyday lives no matter what. The alliance is an important key in free trade. When it comes down to it, our economy is one of the first things to think about. And in order to do what is best for the economy, it means teaming up with the China.


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