CHINA’S BID FOR MARKET ECONOMY: JUSTIFICATION FOR REJECTION BY UNITED STATES

CHINA’S BID FOR MARKET ECONOMY: JUSTIFICATION FOR REJECTION BY UNITED STATES

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The decision to reject China’s request concerning its treatment as a market economy is a justifiable action implemented by the United States. Foremost, it is imperative to note that allowing China to operate in the same manner as other countries under international trading rules required the implementation of market liberalization approaches by the nation in question. However, this has not been the case as illustrated by China’s consistent reliance on restrictive measures despite an increase in its economic growth since 1978. The policy reforms that China has implemented since the conclusion of the Cold War have always been based on state-informed planning, specifically socialist policies. The economic policies implemented by the United States in respect to the country in question has been based on the presumption that the expansion of trade as well as investment may actually pose beneficial implications on its external behaviors and the evolution of its local political and economic institutions.

As an outcome, China has placed considerable reliance on mercantilist measures, which have given way to an increased level of economic growth followed by rapid emergence of a novel middle class. On the other hand, the country has implemented more oppressive and nationalistic approaches further limiting the liberalization of market and economic reforms across its society.

The net effect is that the country has enhanced its assertive power by focusing on the elimination of the aspects that dominate the present regional framework and the broad international framework, with the World Trade Organization as an illustration. Rather than rely on market forces, China has continued to embrace its bureaucratic measures as far as political reforms are concerned by focusing on the implementation of state-based economic policies that do not necessarily act in the best interests of the global free-market economies. Hence, the United States’ action towards China is justifiable.