Recent tensions on trade disputes, intellectual property rights, hacking, and of course currency revaluation have seriously strained U.S. China relations. Both sides are being showered with plenty of support from leaders, friends, media, and of course big time investors arbitrarily taking sides. Now this is prime time drama!
After speaking with associates in the media on both sides I saw the disparity between both sides on the fundamental principles of establishing "relationships". I wondered if either country has really taken a step back to re-evaluate the concept of "mutually beneficial" from the other's perspective. In the Chinese media, this relationship is established and the word "恋 (lian-4) " comes up quite often. It would seem the Chinese people view this relationship as a marriage, where quarrels are frequent and sometimes deadly, but the couple stays together regardless for better harmony. Media has established the two countries as inseparable. They produce the goods that our voracious consumers desperately need at affordable prices. We supply them with much needed revenue to continue their recording breaking development. Neither side can abandon the other. This is truly a symbiotic relationship that can only benefit global economies in the 21st century. Or is it?
I seriously doubt that is the position the U.S is taking. Hopefully someone will clarify this difference of opinion during one of these "envoys" both sides have been dispatching to the other country like passing notes during a fight.
So just how does the U.S view this relationship? Let us retrace our steps into history. The first "manufacturing hub" established was Japan. This was long before top of the line products like Sony, and Toshiba were anything but top of the line. This was a time when Japanese made goods were cheap and the instruction manuals were incomprehensible and riddled with errors. The title was then passed throughout Asia to Hong Kong, Taiwan, Korea, and etc. Each time, higher standards from improved economic conditions diverted foreign direct investments (FDI) to search for greener pastures in a new region. Manufacturing stars rose and fell at a pace like a season of American Idol. China is just the latest star in a long line of stars that have claimed the title of "manufacturing hub". Of course, China's amazing market capacity only enhances its appeal for investments.
So are the two nations inseparable in American sentiment? Unfortunately the answer is no. Not long after U.S officials began its stand-off against Chinese goods did President Obama initiate good will contacts with India's prime minister Manmohan Singh. Looks like we are searching for greener pastures again. India definitely sees its opportunity as a rising star amongst developing nations. The country is quickly establishing fundamental environments friendly for foreign direct investments. A portion of services in developed nations is already outsourced to India. With a market capacity rivaled to China, as long as India's ruling government doesn't tighten their policies like their opponents in China, we may begin to see a gradual transition from everything "Made in China" to "Made in India" soon.
Friday, March 19, 2010
Relationship Views From Both Sides
Labels:
China,
Economics,
European Union,
Politics,
United States,
World
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