Economic Crisis 2005-2015

2021-05-13 09:54:29
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Japan, the United States, and China have been the largest participants in the international trade. They have been trading partners for a long time. China as a military and economic state is among the principal motivating factors driving the United States strategic and economic re-balancing towards Asia. It plays an essential role in the economic relation between the United States and Japan. China was able to win Japans position being the largest source of foreign finance to the United States National debts. Japan provided both financial and material support to the United States.

As they are debating on future roles in the required security, both Japan, and the United States were at risk of facing a rising challenge from China (Cooper, 2014). Before creating the partnership, the countries were experiencing economic fights. Japan and the United States fought over agricultural products, especially in beef and pork production. Due to this partnership, the countries have been able to make the appropriate decisions regarding the market for products. They came together and settled their differences by obtaining the solutions that favored both sides.

In their determination to factor out issues having greater effects on maintaining the cooperation of the three countries, the group addressed recent developments on the Korean Peninsula. The relationship between Japan, China, and the United States was strengthened over Strategic Goals in the United States, Japan and China relations. The economic relations between China and Japan were so strong that Chinas imports from Japan had increased to 57.04 in 2005 and Japans investment from China had increased from 630 million to 6.58 billion in the same year (Morrison, 2015).

In 2005, deaths in the United States increased to a rate of three persons per day. Due to the resistance in Iraq and foreign fighters, there were continued bombing, small arms, and suicide attacks, hence, military deaths in 2005 increased by 0.24% (Calder, 2006).

China has experienced a two-year slowdown in its economic activity. However, the government pushes 10% of the gross domestic product (GDP) into its economy as a boost and as a result, net domestic product (NDP) of 7% GDP growth instead of 3% GDP contraction. Provided China will continue pushing this amount to the economy; the country will appear to be performing well for a while, but if the government does not fix it up, the country may be at a risk of the economic crisis (Morrison, 2015). Conversely, about 230% of Japans GDP was in debt by 2006. The prime minister doubled it, and now they are spending 10% of their GDP on stimulus and still no changes. Persistently Japan has been depending on borrowings about 10% of their GDP is borrowings and they are still lagging behind in terms of debt of about 10%.

In 2013, the United States experienced an overflow of its currency to the foreign markets. This indicated that the imports were higher than what they exported. Despite the rapid growth in exports, the value of imports was still greater than the exports. On the other hand, China made its economy be an export based on a foundation of illegal financial, trade and industrial policies. These trade-distorting practices have endangered the consumers from the United States by polluting the air and the oceans thus increasing global warming.

The United States shared exploration towards greater understanding; connection and possibility, with Japan, remain economically undeveloped. Despite the two countries, the United States, and Japan, creating objectives to make their economic strategy succeed in 2005 and 2011, plans to restore Japanese and the United States forces to their former position remains unfinished because of political tensions around Futenma Marine air station in Okinawa (Cooper, 2014). In 2011, the United States and Japanese military were utilized together to face the earthquake and tsunami disasters.

In 2005, a law was passed in Japan refining the normal citizens and standardizing roles in the control of ballistic missile defense (BMD) operations. The Japanese defense also illuminated the division of labor among the maritime security missions (Calder, 2006). The United States and Japan should understand the maritime activities in China and the efficiency of alliance defense cooperation. China's maritime capabilities could deny the United States access to the water used by Tokyo and Beijing therefore, influence Washingtons capabilities of helping Japan in their defense.

By 2014, the trade relationship between Japan and China was the third largest in the world. China was the largest trading partner of Japan taking about one-fifth of its trade. China has moved towards higher values in manufacturing and services, thus, Japan cannot continue to invest in China. There is a need for Japan to take part in Chinas technological conversions and it is recommended they take the necessary part. Japan will eventually have to choose if it will remain dependent on the United States and resist Chinas rise to the authority of the regional. China will also have to decide where to fit Japan in its vision of regional authority and has to find a fruitful way to relate Japan.

Back in 2013, the prolonged disputes between China and Japan over dividing of small islands in the east of China Sea rapidly increased. This caused fear of the sensitive tensions leading to a real war. In this same year, the countries had experienced a 10.8% drop in the total trade owing to the Chinas slow growth while rising anti-Japanese outlook from the islands row has not helped (Scott, 2016). In the last few years, Japan and the United States have been through a misunderstanding and anxieties, which resulted from insufficiency of prior consultation mainly in Chinas policy.

These countries have been through political tensions up to 2006. At this period of about six years when Koizumi was the prime minister of Japan, leadership visits were suspended. Later in 2010, the tensions raised following the arrest of Chinese trawler captain in Japan. Nevertheless, these political tensions had no effects on the economic relations between China and Japan (Scott, 2016). There is still the animosity, and the two countries lack trust to each other over past happenings. Only two-thirds of the Americans have confidence in Japan while three-quarters of the Japanese have built their trust in the United States. China faces distrust both from the United States and Japan. About a quarter of the Americans and a half of the Japanese do not trust China. Japan has been calling for the establishment of a stable relationship severally with the intention of promoting mutual understanding with China. This is probably because the economic trade relationship between Japan and China has been of great help to the growth of the Japanese economy. It has enabled it to upgrade the industrial technology and move from a low to a higher income country through access provided to its industrial technology and investment.

There evolved a war over infrastructure project in Indonesian capital between Japan and China. Approximately 3% of Indonesias GDP has been spent on infrastructure (Scott, 2016). Being unable to meet the infrastructure needs of its own, Indonesian has called upon Japan and China for help, and both countries are much willing to help. Estimations made by the Asian Development Bank (ADB) of how much the infrastructure will cost found to be 8 trillion. The amount offered by Indonesia has escalated the relationship gap between China and Japan as they compete for the largest share of the project.

The United State and Japan relationship became more strengthened in 2015 when the US and Japan revised defense guidelines were released (Scott, 2016). It provided new and expanded ways of security cooperation. The guidelines stated that attacking Japan is like attacking the U.S. They both agreed and signed an environmental framework governing environmental stewardship in the United States.

References

Calder, K. E.. (2006). China and Japan's Simmering Rivalry. Foreign Affairs, 85(2), 129139. http://doi.org/10.2307/20031916

BIBLIOGRAPHY \l 1033 Cooper, W. H. (2014). U.S.-Japan Economic Relations:Significance, Prospects, and Policy Options.

Morrison, W. M. (2015). China-U.S. Trade Issues; Congressional Research Services.

Scott, R. (2016). Hearing on U.S.China Economic Challenges: The impact of U.S.China trade. Economic Policy Institute. Retrieved 14 April 2016, from http://www.epi.org/publication/hearing-us-china-economic-challenges-trade/

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