The Economic Structure Of The United States Vs. China

Submitted By xExquisite
Words: 415
Pages: 2

When it comes to the economic structure of the United States VS China there are several key differences in the economy of these two countries. Some economic challenges that China faces include corruption and crime, low income levels, and “low domestic consumption”. China per capita is below the world’s average. Due to environment deterioration china is considered one of the fastest aging countries in the world. The United States “has the largest and most technologically powerful economy in the world, with a per capita GDP of $49,800”. However, due to technological advances a “two-tier labor market” exists. This basically states that the people who are at the bottom lack the required skills than those at the top. This increases unemployment rate because more and more people find themselves out of a job. Due to China becoming the world’s largest exporter in 2010 trade would be considered a main source of China economic growth. China has, “increased autonomy for state enterprises, growth of the private sector, development of stock markets and a modern banking system, and opening to foreign trade and investment”. In the United States our diverse financial system is our main source of economic growth. Our financial system is interconnected, there is diversity in our financing sources, businesses are able to decide the “capital structure”, and there are limit to debt financing. Since 2009 China economic growth rate has dropped from a 9.2 to a 7.7. Due to China slowly deteriorating country the economic growth rate has slowed down. According to Bob Davis “costs from that rapid growth, including pollution,