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The US and its Foreign Relations with China Essay

Custom Student Mr. Teacher ENG 1001-04 19 March 2017

The US and its Foreign Relations with China


The United States is one of the biggest nations when talking about the land density and also in terms of the number of people.  The US has risen and re-emerged. It remains one of the quickest progressing economies in the globe and is transforming into one of the busiest and most productive countries in the globe. Motivated by international needs and aided by the emergence of the WTO, the US industries consistently emerge to prominence. The US currently symbolizes the unbelievable marketing chances for other multinational organizations and companies with their huge and able workforces and growing markets.

The US and its Foreign Relations with China

Establishing and applying an integral marketing tactic in the economy of China necessitates a precise, thorough comprehension of the US regarding both the dangers and benefits. Hogan (1996) mentioned that China became a member of the WTO just recently and at present is undergoing procedures of finishing a multi-year duration of adjustment.

In a general perspective, the market of China has proven its dynamic economic progress over the recent years, intimately connected with the country’s improved merging with the world’s markets1. Most people in the US have felt the advantages of the continued progress of China’s economy, as proven by quick and controlled upsurge in American exportations to China. American exportations to China improved to about 25 % in the years prior to 2007. In 2005, China took over the place of the United Kingdom as one of the top countries in exportations.

            In the case of China, Dobson (2000) mentioned that the application of the US foreign policies, which included a lot more than the enhancement of exportations of goods, established a significantly pleasant business and market setting for American business organizations2. This enhancing setting led in important upsurge of international revenues for China and the US, business opportunities and modernization as well as development in exportations. Flexible forces released by the establishment of a setting that is very practical for global business functions have therefore played a significant responsibility in the procedures of quick economic progress and sustainability in China. Schulzinger (2003) states that there are three major ideas behind the US’ enthusiasm to let China’s businessmen to invest to their economy: cost-effective work, a progressive, fresh economy, and fair taxes3.

According to Houghton (2001), the market of China is driven significantly by the government and its institutions and limitations4.  And sue to the stable government leadership, the US must face the different polices that go with it. In majority of cases, the agreement between the Chinese and US government is essential prior to the start of an industry in China. Houghton (2001) noted that one important limitation on the US has been the monetary unit of China, the renminbe (RMB), also named as the yuan. It was hard to remove RMB out of China. A US organization controlling industries in China had to save its earnings within that nation. In the past years, limitations have been eased, and with various government agreements the RMB can be translated to other monetary units4.

            Normally, US organizations are not allowed to have transactions or have exchange of goods or services directly in China, unless these are goods that are also being produced in China. This has led in the US organizations having transactions through other multinational connections. Also, as China’s ever growing number of people rises in a consistent basis, so will the economy for the US goods and services. For US organizations, precious goods, modernized services and goods not accessible in China have excellent chances. It will be hard to fight on the grounds of prices; thus, US goods will have to set up their economy by other ways, which include modernized competence or by the un-accessibility in the markets of China through inner manufacturing. Based on societal aspects, Chinese organizations and laborers do not really like to reject anyone.

In China, the development of creative initiatives looks likely to be the result of the presence of modernization that is brought about by the US. Modernization in China has significantly altered the industry and distribution statuses, from being motivated by deficits to being purchasers and rivalry motivated. To become progressive and successful in China, the US companies need to emphasize on enhancing their quality of products and services. They are slowly recognizing that the truthful source of market rivalry at present is in the creative aspects and the quick modernization developments that are happening all over the globe.

Technology is now a major element of tactical developments in US organizations based in China. Industrial progress based on innovative technological improvements is still an unrealized objective, but the ‘procedures’ of technology possession and integration is now under consideration for implementation, connected with the US organizations’ necessity to become stable5. Modernization in China has resulted into the dynamic development of creativity-motivated markets which include information technology (IT) and medicinal markets.

This has resulted to a fresh kind of business named as the information business and a fresh group of the market named as the information market. This group is at present an important element of the local market of China and is responsible for a great part of financial progress. Modernization established rekindled desires in creative business management in China as a major motive for the quick integration of creativity in the Chinese markets and economies. Business management makes up the core in the profit generation procedures in the information market of China5.


The US and its Foreign Relations with Taiwan

According to Ryan (2000), the US formulated different foreign policies to enhance the volume of importations and exportations in Taiwan. International trade institutions were formed or restructured, trade organizations were reformed, and trade limitations cased by importations and exportations were demolished in Taiwan6. These results to a significantly prioritized agreements between the US and Taiwan particularly involving: clothing materials and food production; in the desire that the emergence of the US markets in Taiwan would establish a variety of chances for both the US and Taiwanese people.

Taiwan has experienced economic problems since gaining its freedom, facing stunted financial progress and obstacles because of unexpected circumstances or political instability. The nation has been slowly changing its financial foundations from agricultural to manufacturing and production. Under Chinese domination in the past centuries, Taiwan’s economies and growing trade were practically demolished to pave way for the US produced products, in exchange of exportations of agrarian goods which include herbal products.

At the start of the 19th century an industrialized group and significant improvements in the means of transportation were gradually seen. Nonetheless, Taiwan’s financial markets became stuck during the last periods of Chinese sovereignty. At its freedom Taiwan was simply impoverished, with markets that have gone cold because of the lack of consumers6.

Financial programs after its freedom prioritized on the importance of planning, with the government establishing objectives for and meticulously controlling privately-owned economies. Self-sustainability was enhanced in order to harness local markets and minimize the reliance on international exchange of goods. These initiatives relayed stable financial progress in the middle of the 20th century, but terrible outcomes in the two following years.

By the start of the 21st century Taiwan had attained its objective of self-sustainability in terms agrarian needs, although these foods were not fairly accessible to all Taiwanese because of the flawed dissemination and traditional shortcomings in the harvest. In the late 2005 the Chinese government started to minimize its monopoly of the markets, resulting to gradual development toward this objective. By 2006, however, the Chinese government still controlled or managed plenty of markets in Taiwan, which involve minerals, lending and financing, media and production (Cameron, 2002). Financial progress enhanced during this time, at least gradually caused by programs financed by Chinese and US funds 7.

Potential Threats

Lansford (2003) identified the obstacles that US businessmen may have to hurdle in having transactions in China. Primarily, China most of the time does not have stability in its markets and industries8. Its present management and control mechanism can be blurred, unstable, and most of the inconsistent. Their application of the legislations is not strict.  There is the loss of efficient government policies that will stop piracy and corruption which is a specifically a big problem for most US organizations.

Also, China possesses a leadership style that has the potential to oppose free trade.  China still has the capability to give security to its local companies, particularly those with connections with the government leaders, from importations. Also, China sustains most of the mechanism of a structured market.  The government controls the primary banking institutions and other funding organizations and gives financial assistance to government managed institutions.

Also, China and its communist organizations control the only law-based workforce organization and comprehension of liberal trade and rivalry is holistic.  Various markets are still subjective to over-prioritization.  Too much investment results to too much manufacturing of goods and services, lots of deficits and reduction of prices in the concerned markets. Lastly, US organizations tend to undervalue the obstacles of establishing functions in China. Motivated by a government that needs international revenues and modernization, and driven by the possibility of handling billions of customer, but without even conducting complete analysis on the economic status, have not accomplished the needed danger evaluation, and the inability to obtain the help of lawyers often stagger into terrible transactions, leading in inaccuracies and plenty of deficits8.

Taiwan’s inability to take care of its intellectual property right was one of the most had to solve elements in the foreign relations between the country and the US. Piracy brought down the Taiwanese economy and led to losses and deficits amounting to thousands of Taiwanese money and threatened to dismantle the good relations with the US, which involves the implementation of punishments on two separate instances. The American government eventually suggested the necessary amendments and peace talks before the year 2000 ended, and these led to the establishment of stronger ties with Taiwan and the gradual stoppage of piracy through the aid of the US government.

According to David Hanon, in Taiwan, “affirmative” does not imply “affirmative” all the time. Taiwanese organizations and distributors may function in dialogues like they comprehend and are always affirmative with regards to the topics being analyzed, but in reality they understand nothing, which can establish primary obstacles along the way. Bowing down of the head does not, in truth, imply that they can give the goods or products that the US consumers are craving for—only that they listen intently and know the clients better. Language is another obstacle when a U.S.-based organization is having transactions in Taiwan.

The US Foreign Policies and their effects on China and Taiwan

In the previous years, as have been observed, China and Taiwan has not been the top priorities of investment for the US companies. Even at the midst of the upsurge decades, US organizations were initially experiencing difficult times to comprehend the progress potentials in Taiwan and China, and later formulated weird assumptions. Their priority was on establishing a standard to maintain their competence with their rivals and implementing short-term earnings, rather than setting up an excellent batch of potential leaders with Chinese or Taiwanese knowledge who have the capabilities to manage the enterprise for long-term progress and stable development. Those leaders sent to Taiwan and China often became surprised by the number of foreigners from the center of operations needing a discovery of Taiwanese and Chinese desires.

In the midst of the monetary problems in the late 1990s, the perspective of most US companies was to back out until the problems are solved, ideally leaving a single leader tat will handle simple functions9. Others viewed the problems as giving unequal possession chances at discounted prices. But as plenty of them at present recognize, having read it all the time in the newspapers, doing a possession of property is only the start of the journey. If they are not to become failures in their bids to acquire assets, but attain significant revenues on these assets that their stockholders need, they will need to control their functions in Taiwan and China much more efficiently than have ever done in previous years 9.

The US is said to be on the cusp of transformation to become a financial monster in the year 2020 and it can have various impacts to Taiwan and China. Various impacts can be experienced by the Chinese and Taiwanese organizations. These involve more intense rivalries, limited chances for them to get involved in the US economy, the reduction of probable consumers, and the lack of capacity to gain profits. When the US gains a financial dominance over Taiwanese or Chinese markets this can lead to intense rivalries. The Taiwanese or Chinese organizations can experience a difficult time in handling the US foreign policies so they need to produce excellent goods and products.

 When the US garners financial dominance over Taiwan and China, these two countries can experience difficult times in entering the US economy. Not only the will Taiwan and China experience intense and possibly greater rivals but they also will have a hard time to enter even the Asian economies.  Instead of searching for mechanisms to attain their objectives in the Asian economies they have to initially think regarding the manner to enter their target country.

Another impact of the US foreign relations to China and Taiwan and the US’ expected financial dominance is the reduction of possible consumers. Taiwan and China will have a hard time persuading investors from the US because there can be industries in there that also produces their goods and products. Finally the US foreign policies provide Taiwan and China reduced opportunities to generate profits. Reduced consumers, intense rivalry and failure to manage the economy will lead to reduced opportunities for Taiwan and China to generate profits.

In the latter years of the 20th century, Taiwanese and Chinese companies immediately tried to make their way in the US economy, primarily because of the tremendous upsurge of the value of the US dollar and driven by the exciting possibility of reduced manpower expenses, with huge and quickly progressing industries. Companies based in Taiwan and China remain the biggest local source of international direct investment in the Asian region, a motivating mechanism under that of the continents quickly progressing exchange in products and goods and a major source there of modernization. By analyzing these scenarios, the exchange of goods and modernization is connected to inter-territorial channels, Taiwanese and Chinese companies have simply reformed manufacturing across Asia 9.

When the US foreign policies transforms into strict and stringent measures even financial powers Taiwan and China will experience the effects. The major impact to China is its gradual decline of the dominance it possesses over the Asian economies. As stated China is the biggest source of international direct investment. This is a source of advantage not only for China but the entire Asian continent included. China and Taiwan will then be the dominant countries in the continent and the power will be equally distributed between the two nations.

Meanwhile the primary impact to Taiwan is it possessing or inheriting an intense rivalry regarding the manufacturing of technologies that are extremely liked not only in Taiwan but in other areas of the globe. Taiwan’s profits on the modern gadgets can be reduced. It may have no option but to search for fresh modern equipments or ideas to be parallel with the rivalry. Technology is a primary element necessary and given high importance by the consumers in most countries of the globe and Taiwan is the one giving it to the Asian counties. This could all become very hard to attain when the US implements a tight and strict foreign relation policies to both of these countries.


The Impacts of the US Foreign Relations over China and Taiwan




What has developed alongside the progress of the US foreign relation policies to Taiwan and China is not just as simple as both countries are experiencing hard times against the strict and restrictive US foreign relation policies, forcing though it is. At present, the existing perspective is that the US foreign relation policies are based on the fact that they had known everything they had to learn regarding Taiwan and China, and that it is Taiwan and China that now have to make initiatives to understand their foreign relations policies. A significant aid to company efficacy and the entrepreneurial triumph of Taiwanese and Chinese organizations has been their fundamental emphasis in the manpower especially their man-like view to control.

When the US implements a stricter foreign relations policy to Taiwan and China their organizations and economies will definitely face the impacts.  The impacts involve a more traditional view on business management, enhance mechanism of human resource handling, and increased rivalries. When the US implements a stricter foreign relations policy to Taiwan and China their organizations will need a more extraordinary business management. They will have to incorporate a varied view in managing an organization because they have to establish the process the way that the US uses. Another impact is enhancing manners of human resource handling.

Taiwanese and Chinese organizations will then enhance their human resources based on the alterations that they must have and what the case is calling for.  Finally an impact on China and Taiwan on the strict US foreign relations policies is that Chinese and Taiwanese organizations will transform into tremendous rivalries for Western companies. The emphasis and vision of customers will then change to the US and more customers will be persuaded to buy goods coming from this area.


After the presence of the strict and restrictive US foreign relations over China and Taiwan, the transformation of the economies of these countries has gained a reversal in its progress. The aid and support being provided by the US is being enhanced by business-oriented progress, as industries pave the way for alternative investments.

The mechanism for the US foreign relations over China and Taiwan is altering from the government to the private groups. The government operates a holistic extreme responsibility, from manufacturing to managing the industries. Thus, the organizational and controlled amendments in the US foreign relations over China and Taiwan for development need to be immersed to the needed changes.

Sizing up to the occurrence of US foreign relations over China and Taiwan, a number of researches establish the fact that among the most integral elements that led to China and Taiwan’s improvements is the slow transformation measures and stable environment highlighted by the US government. Specifically, this identifies the role of the US government and its foreign relations policies in the growth of China and Taiwan’s economies, together with the US being a believer and preacher of financial growth. This is accomplished by formulating and implementing the appropriate foreign relations policies.

The paper has also proven that the US government is a facilitator of the markets of Taiwan and China. This is illustrated through the US government’s control of foreign relations policies. Aside from this, there is also the illustration of the US government as a provider of profits through its foreign relations policies. This implies that the government of US was able to allocate the assets including the various areas of China and Taiwan.  The US government is also identified here as a vigilant force over the economies of Taiwan and China. This control also puts emphasis to the financial situations of the two countries. And finally, this paper has also proved the US government as a protector of the welfare of Taiwan and China because of its foreign relations policies.


1Hogan, M, 1996. America in the World: The Historiography of US Foreign Relations since 1941. Cambridge University Press

2Dobson, A, 2000. US foreign Policy Since 1945 (The Making of the Contemporary World).  Routledge; 1st edition

3Schulzinger, R, 2003. A Companion to American Foreign Relations. Blackwell Publishing Limited

4Houghton, D, 2001. US Foreign Policy and the Iran Hostage Crisis. Cambridge University Press

5Pauly, R, 2004. Strategic Preemption: US Foreign Policy And The Second Iraq War.  Ashgate Pub Ltd

6Ryan, D, 2000. US Foreign Policy in World History. Routledge; 1st edition

7Cameron, F, 2002. US Foreign Policy After the Cold War. Routledge; 1st edition

8Lansford, T, 2003. A Bitter Harvest: Us Foreign Policy and Afghanistan. Ashgate Publishing

9Paterson, T, 1991. Explaining the History of American Foreign Relations. Cambridge University Press

Free The US and its Foreign Relations with China Essay Sample


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