China’s economy is deeply intertwined in the global markets, holding great financial power to manipulate foreign states to bend to the communist nation’s will. The American public seems to be aware of China’s economic dominance, which is reflected in a survey conducted by Pew Research, 78% of American citizens are aware that America is neck deep in IOU’s to China. Fortunately, the current administration is also aware that action must be taken toward China’s aggressive economic strategy. However, the topic of China’s potential economic hegemony is not receiving any attention in the media, therefore, pushing the issue out of the public’s eye.
Debt is never an easy discussion to have, whether domestic, international, or personal. Yet, no matter how difficult the discussion may be, debt must be repaid. The United States Treasury Department released its’ financial foreign debt holdings, and the record shows that the United States is currently in debt $1.18 trillion dollars to China, which is down by almost $20 billion dollars from the 2016 fiscal year, under the Obama administration. What will happen when China demands repayment? Such a question must be asked and answered by the United States’ government. Thankfully, President Trump is hearing the alarm bells and addressing this problem. The process begins with the elimination of poor economic policy and trade deals. In the Obama administration, an attempt to construct and generate revenue in the southern Pacific economy was made through Trans-Pacific Partnership (TPP) deal. However, the numbers and ratios were skewed, and the trade deal, as noted by BBC, would be harmful to the workforces to every nation involved, and do little to promote a prosperous economy. President Trump recognized how damaging the details of the deal were and promised to eliminate it during his campaign. Once elected President, he did just that. However, such a move, without a replacement, could prove detrimental. According to Money CNN, through the abandonment of the TPP, China has an all access pass to increase its’ trade and intertwine its’ economy into the countries in the southern Pacific. China has already begun accomplishing such a mission. According to The New York Times, China has begun formulating and signing a treaty with 16 Asia-Pacific countries, which take some of the economic dominance away from the United States, and continue to provide more economic power to the Chinese.
In the past twenty years, the Chinese have garnered great economic dominance throughout Africa and Asia, which has increased its’ dominance and proximity to surpassing America as the economic hegemon. President Trump and his advisors see this aggressive economic action taking place, therefore, they are responding through the influx of jobs in the domestic economy. The administration has formulated and promoted a boom in the manufacturing and skilled labor industries, which will create a stronger domestic economy. Such a push would allow for jobs to return to the United States. According to a study conducted by Pew Research, the amount of manufacturing jobs have increased from around 11 million in 2010 to 12.4 million jobs by June 2017. A focus on the domestic economy would produce less reliance on the foreign nations to provide labor forces and would reduce the amount of money going to payments on tariffs for exports. As the United States handles matters of labor internally rather than export it out, the economy begins to generate more jobs and in turn, more money for each citizen. Additionally, the lack of reliance will allow the United States to use the money to pay off debt to foreign states and avoid being bound financially to other nations.
In President Trump’s trip to Asia, he made great effort to discuss new deals with Chinese leader, Xi Jinping. The Wall Street Journal noted that President Trump wanted to adjust the current trade deals to make them more favorable for the United States economy. The new deal that was signed will amount to approximately $9 billion. President Trump uses the tactics of negotiating diplomatically, as well as economically, which is of highest priority to China. A long-term relationship, which is closely monitored by the United States government, could potentially add another defense in efforts to stifle Chinese economic hegemony.
As the media has pushed the message of “shame President Trump through Russia allegations,” they forget the importance of what his actions have already brought to the country. President Trump has pushed for a stronger economy through his abandonment of the TPP and the implementation of generating manufacturing jobs that push money into the wallets of the average American citizen. As money circulates in the American economy, debts will be able to be paid back and financial freedom will be achieved for the United States removing any forced loyalty. Therefore, following the current path taken by President Trump, America is on a route to pay back debts and put a stop to China’s attempt for economic hegemony.