Effect of China’s Growth in Other Countries in Asia and the United States

Effect of China’s Growth in Other Countries in Asia and the United States
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Effect of China’s Growth in Other Countries in Asia and the United States
Korea
By 2005, Korea had accomplished its target trade volume of more than $100 billion with China, an objective they had set in 2003 during the swearing in of President Roh Moo-hyun (Korea Economic Institute, 2007). Subsequently, Korea had established the People’s Republic of China as its prime recipient outflow of investment. Besides, China became the destination for the greatest number of Korean students taking studies overseas. The elite regarded China as quite important in that they sent their children to study there. Instead, Kangnam, Korean Beverly Hills, resorted to employing ethnic Koreans who had returned from China as their house workers.
In regards to the Korean economy and China, some consider the latter as an extension of the robust Asian economies. However, there is concern that China could provide stiff competition for Korean companies and consequently, undermining Korea’s exporting industries and thus, its growth. Others consider that China’s growth is more of an intrinsic activity borne out of improved resource allocation and a relatively new and working economic model. In this case, Koreans hope that this creates them a room for quick economic interactions that would propel its further growth. The hope is aligned with the same economic interactions that existed with the United States (U.S.) in the past six decades.
Real economic interactions indicate that there is a likelihood for both winners and losers. In this regard, the winners would change their production operations to China with the intent of exploiting their export platform. On the other hand, there is an underlying worry that the Korean economic base would sink with time. China is becoming a giant economic power and in the process could soak the Korean industrial base. Eventually, China could raise prices for important resources such as cement, steel, and petroleum.
Thailand
China’s influence on Thailand lies along the Mekong River. Thailand is in the extensive Greater Mekogn Sub-region (GMS) along with the other five countries, which include the Yunnan Province of China, Vietnam, Laos, Myanmar, and Cambodia (Krongkaew, 2004). China produces cheaper products from where a Thai small businesswoman can purchase them at relatively cheaper prices and sell them at higher prices thereby making a substantial profit. This transaction implies that Thai companies face stiff competition to the extent that they may close.
Chinese people are flowing to Thailand at a significant rate with some being long-term tourists and others as students. The former category comprises individuals are keen to start businesses in the hope that they can advance Thai-China connections and in the process, helping the Thailand economy grow. Thailand's business people are learning the Chinese language in the hope to serve the Chines individuals more effectively. In essence, Thailand is experiencing a major impact on Chinese growth.
A great defining factor for the Thailand and China’s growth in economy is the ...