Can China Overtake the United States of America?

Can China Overtake the United States of America?

Abstract

The history of China's relations with the world is of a closed door type policy. In the past 20 years however, China has begun to open their doors. This has led to a booming Chinese economy. The following paper deals with reasons for China's recent surge, differences between China and the United States, and if China can overtake the United States as the world's top economy. It is a valid point to say that China could overtake America in the next 20 years. The United States needs to rethink their education system, whether too much outsourcing is good for America, and how to expand their market in China without losing jobs at home.

Introduction

The history of relations and of each country's past is rich and diverse. Relations between the two began in the 1700's when traders traveled to each other's land seeking to trade for each one's goods. In other words, this was the beginning of China and the United States exporting and importing goods to one another.

When the gold rush hit the United States, thousands of Chinese came to America in search of gold. When many of them failed in their quest to strike it rich with gold, they got work building the railroads that would link the east to the west. They were hard workers who worked for low wages, something the railroad companies didn't mind. In the early 1880's however, hard times hit America. When Americans were competing now with the Chinese and other immigrants for jobs, hostility between the two began to grow. In 1882, the United States Congress passed the Chinese Exclusion Act, which banned Chinese immigrations. This ban was not lifted until 1965.

A civil war in China that ended in 1949 led to the Communist Party overtaking the mainland China and they set up the People's Republic of China. The communist party believed in not individual rights but what was best for the country. Hence the government controlled and owned most of the businesses, farms, and factories. Workers were to work hard for the country and not personal motives. This type of thinking led to little innovativeness and it also probably led to workers not trying their hardest since no personal gain was to be rewarded. Also, since the United States firmly opposed communism, they broke off all relations with China.

In the 1970's, the United States and China began to have relations with one another again. The new generations of leaders in China made reforms that permitted the existence of some private businesses and also encouraged people to work for profits and for themselves. The new leaders began to look out for people in the private sector. In other words, China began the shift from doing things their way to doing things in their economy the American way. This change has slowly brought China to where they are now. China is a threat to overtake America's economy as the global leader.

Fuyuan Shen is a professor in the United States who was born in China. He recently returned to his homeland and had this to say. "I noticed a lot of changes, in the...during the years that I was gone from China, um, primarily in economic terms. For example, people's living standards have been substantially improved and there is more freedom to move around in the country, to work and live, uh, where you want to. Uh, these are the two areas where I've notice a lot of changes." This shows how much China is beginning to become a powerful force that will rival America in the global business landscape. (http://witn.psu.edu/articles/article.phtml?article_id=50&show_id=9)

The brief history described above is given with the purpose of giving you the reader a better, if quick, understanding of how the United States and China have interacted with each other in the past. Its purpose is to help you have a better feel for why China is where it is now. During the course of this paper, I will go into further detail explaining the reasons why China's economy is surging at a very fast rate. A rate that some believe will propel past the United States. I will also talk about the differences in marketing efforts between the two countries and how each country markets and opens them up to the world in different ways. Which country is doing a better job can only be decided by the future. Hopefully after reading this paper, you will have a better understanding and will be able to draw your own conclusion of to the question of will China overtake the United States of America.

American problems of succeeding in China due to managerial issues

A concern for America regarding China is managers from America going to China and not being able to succeed. Americans have difficulties understanding Chinese culture and their business practices. Also hindering the situation is the Chinese reluctance to do things the American way. These factors hurt the chance of success of American companies entering the Chinese market. If American cannot successfully take advantage of the numerous opportunities that the Chinese market presents, then how can America keep up with the roaring Chinese economy?

A study of American managers can shed more light on why they are having trouble in China. One group of members had very pessimistic expectations of succeeding in China. These managers believed they were ill prepared in a few ways. The first one was that they did not have competent employees, sufficient financial resources, or the support of senior management back home. The feeling of not being supported and the idea that Chinese workers were not well trained or prepared sets up an environment for failure in the business world. The managers also said that they did not understand the Chinese culture, language, history, or politics. This led to a cross-cultural problem where neither side understands where each other is coming from. They were unable to communicate effectively. The managers also felt that they were using technology in China that was inferior and hence they could not be competitive. They also in turn believed that their prices and distribution channels might not be competitive, and that the Chinese did not even want their products or services. This in turn led to the managers believing there is little or poor opening for opportunities to make a profit in China. These preconceived beliefs from managers running the show in China has led to companies trying to implement the Chinese market to fail. Companies with managers with positive expectations however had a significant higher amount of success.

Some recommendations for managers to market more effectively to the Chinese to have a better