The Economy of China vs Us

Comparison between the US and China economy

Comparing the US economy with China’s economy is an interesting topic that is not raised without controversy, due to the fact that the US economy is a much more open economy than the Chinese due to differences in political regimes. However, in this paper we will show the growth from 2000 to 2008 and analyze the recent economic trends, changes, highlight the similarities and dissimilarities when possible in both countries. Before discussing economic topics and since the economy of any country is mainly driven by consumer behavior and spending (despite that China does not support this theory and the Chinese government would like to keep control of economy), let us introduce both countries briefly, and then outline its economy data.

China Introduction & Economy Data:

For centuries, China stood as a leading civilization, outpacing the rest of the world in the arts and sciences, but in the 19th and early 20th centuries, the country was beset by civil unrest, major famines, military defeats, and foreign occupation. After World War II, the Communists under Mao Zedong established an autocratic socialist system that, while ensuring China's sovereignty, imposed strict controls over everyday life and cost the lives of tens of millions of people. After 1978, Mao's successor Deng Xiaoping and other leaders focused on market-oriented economic development and by 2000, output had quadrupled. For much of the population, living standards have improved dramatically and the room for personal choice has expanded, yet political controls remain tight. China's economy during the past 30 years has changed from a centrally planned system to a more market-oriented economy that has a rapidly growing private sector and is a major player in the global economy. The restructuring of the economy and resulting efficiency gains have contributed to a more than tenfold increase in GDP since 1978. China’s GDP in 2008, measured on purchasing power...