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US-China Relations

US-China Relations. Globalization Unit Lesson 4. Objectives. Review China’s economic transformation & growth. Identify & describe key issues in US-Chinese relations. Deconstruct the “currency war” Evaluate speeches to determine how perspective influences policy. Warm Up.

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US-China Relations

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  1. US-China Relations Globalization Unit Lesson 4

  2. Objectives Review China’s economic transformation & growth. Identify & describe key issues in US-Chinese relations. Deconstruct the “currency war” Evaluate speeches to determine how perspective influences policy.

  3. Warm Up How did a subprime mortgage crisis lead to a downturn in the global economy? Lending houses bundled mortgage-backed securities & lost $ with high foreclosures Credit-default swaps by AIG insurers threatened massive losses Collapse of Bear Sterns & Lehman Bros led to global market panic & credit crunch Decrease international trade & GDP

  4. China’s Economic Rise • Mao Zedong • Command econ • Great Leap Forward • Collective farming • Deng Xiaoping (1978) • Decollectivization farms • Lifted price controls • Allowed private enterprise • Opened foreign investment • Privatized industry • Socialist or free-market? FAIL! SUCCESS!

  5. China’s Economic Rise • Impact Rapid Growth • Unemployment issues • Environmental impact • Pollution • Population growth • Govt corruption • Free thought • Rural-Urban divide • Rise crime • Inflation

  6. China on World Stage Presidents Xi Jinping & Obama shake hands June 2013 • Trade, Aid, Influence • Ex: Africa (Economic investment vs. Political might) • UN Security Council • Sovereignty • Modernized Military • Nuclear Force

  7. US-China Relations

  8. BRICS 2001 Goldman Sachs Paper Economic & Political Reforms Fast growing economies (investment potential)! Significant influence regional affairs? BRICS Forum 2011 • Brazil • Raw materials • Russia • Raw materials (oil & n.gas) • India • Cheap services • China • Cheap manufactured goods • South Africa/South Korea?

  9. Closure Can you think of other areas over which the US & China disagree? Taiwan Tibet Human Rights Military modernization (nuclear) & arms markets North Korea Role of UN Security Council (diplomatic vs. economic/military sanctions & intervention)

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