Funny, I must be imagining our billion dollar trade deficit, the massive stockpiles of American dollars, and reliance on cheap products from China.
The mainland Chinese economy is greatly dependant on foreign trade (exports) and investments. Investment and export sectors collectively account for about 80% of mainland Chinese GDP and are still growing at close to a 30% annual rate. This is an unsustainable outcome for mainland China. Further sharp increases in investment are a recipe for capacity overhangs and deflation. Continued sharp gains in exports are a recipe for trade frictions and possibly even protectionism
Mainland China's overall trade surplus has increased dramatically in recent years creating an imbalance in the world economy. For example, mainland China keeps a trade surplus of US$200 billion with the United States. However, products that are labelled Made in China are not necessarily developed or designed in mainland China. In fact, 60% of mainland Chinese goods that are exported come from overseas-invested factories, according to PRC customs data. Mainland China has become a focal point for assemblies, where final products are assembled and/or tested, but not manufactured there. The main components are still imported from other countries.
Thus, despite mainland China's huge trade surplus with the West, it has a trade deficit of US$137 billion with Asian countries
The US economy:
The U.S. has the world's largest national economy with over $12 trillion.
It has nearly 30% of the global market exchange-rate GDP.
It is characterized by moderate to high economic growth.
U.S. has a per-capita GDP much greater than any emerging superpower and higher than that of most industrialized countries, at USD $41,800.
The U.S. has the third largest per-capita GDP in the world, following Luxemburg and Norway.
The average American does, however, spend considerably more of his or her life working than does the average European.(see the controversies about GDP).
The U.S. is headquarters for many global corporations and financial institutions.
American companies are leading players in in many fields, such as new materials, electronics and telecommunications, information technology, aerospace, energy, nanotechnology, biotechnology, medicine, bioinformatics, chemical engineering, and software.
The country is a key agricultural and commodities producer, although it is dependent on petroleum imports.
It has a decisive influence on international financial bodies, such as the International Monetary Fund and the World Bank;
the American dollar is the most important reserve and convertible currency in the world.
Economically it should be obvious. Japan, South Korea, Taiwan, and North Korea all have a great amount of dependence on China, moreso than China has on any one of them. In the case of Taiwan and North Korea this is essentially complete control.
It is the other way around, it is the Foreign Direct Investments of Japan, South Korea, and Taiwan that is fueling the Chinese Economy. Without their investments, the Chinese Economy will slow down.
Also, despite China's impressive economic development during the past two decades, reforming the state enterprise sector and modernizing the banking system remain major hurdles. Over half of mainland China's large state-owned enterprises are inefficient and reporting losses.