In 2013 United States remains the world’s economic superpower, and China’s rapidly growing economy sits in second. While China’s nominal GDP is still only about half of the United States’, its rapid growth sparks competition between the two nations for future economic dominance. Both countries have comparative advantages in different categories . Both labor and capital are key components to a country’s macro economy. China has a far greater supply of labor(around four times as much) , and more financial capital, while the United States has more productive labor and more intellectual capital.
In recent months accusations have surfaced that China is using cyber attacks on American companies. These cyber attacks are of a much grander and more significant scale than domestic cyber attacks that we are use to. Their are widespread accusations that the Chinese government is supporting cyber attacks with the intention of stealing intellectual property, in order to close the gap between American and Chinese companies.
House Democrats, Sander Levin of Michigan and Charles Rangel of New York, are pushing Obama to look closely into the issue and determine if the accustations are true, and further impose trade restrictions on China as a punishment if found guilty.
While it is beneficial to the entire world for China to develop into a first world nation, the United States government cannot allow China to do so at the expense of American companies. Trade restrictions are a start but if the government does not give more attention to the issue it could devastate the future of the American Economy.