Unveiling the importance of the USA’s Economic Model amidst the Rise of China

The insightful framework of Graham-Allison’s thesis and the ominous Thucydides Trap shed light on the contrasting paradigms of two nations and two different systems aligned to get global dominance. The thesis has the historical backgrounds that drove the conflicts as inevitable results between the rising global power and existing power, the conflicts of the city-states of Athens and Sparta as a historical example that drives the importance of Thucydides’ ancient philosophy. The thesis holds its relevance in the economic domains in current scenarios. China is very important position as a global powerhouse in the economic domains while the United States is looking forward to getting its position in sustainable stands. There is no denying the fact that multipolarity has its value and importance in the development globe but in the context of the current scenario the viability seems to be irreflective, especially in the context of the USA and China. The rise of former Soviets under the banner of communism failed heavily and the winning of modern capitalism, the rise of China under a prescribed state-owned functioning economy, and the antagonistic approach of China in the region and inside China getting west in trembling thoughts about the future behavior of China if Chinese system is accomplished in the global economic order.

Goldman Sachs economist predicted the outlook for the global economy which shows the greatest growth worldwide and changing dynamics of the global political-economic orders, most importantly the rising China is one of the major threats to the USA in this regard. According to the reports, the Chinese Gross Domestic Product will surpass the United States by 2035 while the Purchasing Power Parity has already taken by China. According to World Bank data, the US has an economic volume of $23 trillion by 2022 while the Chinese economy has a volume of $18 trillion. By the mid of 1900s, the US remained on the top of the borders of economic superiority in the global stages, while 12% of the Chinese GDP grew with the comparison to the United States of America.

There is no denying the fact that there is immense rise of China as an economic powerhouse but at the same time the world needs a Western economic model due to several reasons, first, united states’ Western economic model is based upon the liberal and secular approach in the economy which is automatically linked with the society, politics and religions, and the global affairs. China opened its economy over the last some decades but with the exceptionally intervening roles of the state apparatus to control the market mechanism. This created a feasible approach toward the economic outlook of China in comparison to the USA. In the industrial sector, for example, the state-owned nearly all the firms producing China’s manufacturing output.in the urban sector. The government set the prices for the key commodities, determined the level and general distribution of investment funds, prescribed outlooks targets, allocates energy resources, set wages, and controlled financial policy and banking system and the foreign trade system with a monopoly of the government. This makes an impact on the social tiers inside China, for example, there is no social site in China like Facebook Twitter, and Instagram which are being used globally, then there are control mechanisms to monitor the society in this regard.

On the contrary, the economic system of ours is different in the context of China. By making a comparative analysis between China and the USA, there is freedom of the market from the state-owned policies for the market. But there is a mixed economic system in the USA that looks at both socialism and capitalism. Such as the US government controls the economy for the goods of the people well on the other hand there is complete freedom of the market in the context of capitalism and the principalities of capitalism. For example, the US government controls part of the economy with restriction and licensing requirements in the areas like education, roads, hospital care, and postal delivery. The federal government provides limited welfare services to avoid extreme poverty in the country. Similarly, the government also intervenes in the financial reserves by adjusting the costs for the businesses to borrow the money for them. From a global perspective, the outlook of the economic machinery of the USA and also is the leading economic model of the western hemispheres countries including t of the far southern states like Australia, New Zealand, and the far eastern states like Japan following around whole the globe that freedom of trade, the role of international organizations like World Trade Organizations, World Bank and International Monetary Funds in the development of the countries and flow of the trade in the best interests of the capitalism and ease of the global business.

Several arguments can be taken in favor of the US economic model in comparison with the Chinese economic model. There is no denying the fact that every model remains in the constant positioning of the improvisation but despite this fact, there is an altogether strong position of the USA economic model for the betterment of the global economic improvisations. First, there is freedom of the businesses in the US economy, for example, there is the largest number of billionaires in the United States on the other hand there are coercive policies of China even against its citizens last time Jack Ma News of disappearance by the government agencies circulates at international media. Similarly, there are soft and computable positions in the United States with its neighboring states for example united states’ approach to dealing with Mexico is the same as that of the Canadian relationships. While. There is openness in the society of the United States, the openness of information about the state like even a murder in New York been circulated on international media platforms on the other hand, there are comprehensive kinds of state surveillance in China, strict regulations on the state-owned media and the strong look on the privacy of the citizens under constant monitoring system. The global position of China seems ambiguous while the policies of the United States are clear and cut in this regard. By making a comprehensive analysis, there is a noted position that proves that though there pole apart differences between China and the US economic outlook, the United States has a far better position in the economic outlook of the globe.

Putting the entirety of the discussion at the long-standing conclusion., there is an imperative analysis made by the whole of the article that the system of the USA in the economic outlook in comparison with the Chinese system, the system of the USA stands stills in the imperative and distinctive position for the better flow of the economic order. Even the Chinese government adopted the model of the West after the 1979s onward for the openness of the economy of China. There would be positive hope for the betterment of the whole of humanity. It is better to understand that the world needs a suitable and people-centric economy, especially for the betterment of the developing states.

Burree Sultan
Burree Sultan
BA Gold Medalist English. M.A( English), M .A ( IR) Brown Medalist M.A ( Political science and Pak Study ,South Asian Study ) Scholar ( Mphil /MS) and Researcher at National Defense University ( ISB ) Works at International Relationship/ Defense/ Strategic Studies / Sociology/ feminism /Islam/ Environment and Current Issues.