Relationship Between Chinese And American Financial Markets

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Introduction The purpose of this paper is to outline the relationship between Chinese and American financial markets. The paper will outline the levels of debt for chines, the major drivers of that debt, and the future consequences of debt levels. The paper will also describe the the structure of Chinese banking system; it will not describe the U.S structure simply because we had a whole semester discussing that material. I believe this research is essential because of the sheer interconnectedness of the global banking system; and the rise of China specifically has implications that should not go misunderstood. The Rise of China The last forty years of development has weighed almost entirely toward the successful implementation of Eastern Asia into Western Culture. It was not until the 1980’s that China was able to fully transition from a closed economy to an open one. This transfigured the economy by spurring ramped inflows of trade from countries looking to take advantage of the large workforce and the low cost of manufacturing. In doing so, the Chinese government was able to quadruple their GDP since the 1970’s (Turner), and currently consumes 1/3 of the world’s steel, coal, and iron. While staking claim as the world’s next mono-super power, China remains neutral to any super power conflict. Following Post WWI President Franklin D. Roosevelt fought with former UK Prime Minister Winston Churchill on whether to include China in the security council of the United
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