Econ 5420 essay

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China’s Market Economy in the Long Run
For the majority of the last 2000 years Asia has been at the dominance of the world development in terms of GDP. China + Japan at the lead have accounted for roughly 25 to 35 percent of the world GDP until the late 1800s when US and UK combined for the lead in the share of GDP. China had become the worlds poorest country and Japan had been militarily governed while the rest of Asia was fighting amongst the Cold War. Until of late (peaking in 1950) the western societies have been at the lead, but important factors are changing things. Now they are equaling out in the share of world GDP. A reason may be for Europes favor of the clash of civilizations I sfound in their interstate systems during the centuries leading up to this eclipse like change for world dominance in GDP. Europe constantly competeted for the greatest military and geographic expansion leading to constant fighting and military preparation. This lead to technological advancement in arms and a new round of wars unparalleled in destructiveness. In retrospect East Asia was largely at peace with one another. For 300 years they were at peace and showed no tendency to build overseas empires leading to no competition and lack of military advancement. Also trade long distance trade was far more important source of wealth and power for European than for East Asian states. European rulers thus fought endless wars to establish exclusive control over trade with Asia. These controls established great amounts of wealth and political dominance among European countries. In the Qing rule the early Ming’s policy privileged domestic over foreign trade. Reduced protection costs throughout the empire and reduced the taxation throughout the kingdom. In other words the extroverted European developmental path was remaking the world through a process of creative destruction that would soon overshadow all the Asian achievements. The sea exploration ahd superseded the steppe frontier as the critical meeting point and the Asian people then began to fall. When Britain decided to force open the Chinese market to imports of Indian opium the chinese government had no answer to the steam-powered warship that in a single day Feb 1841 destroyed nine war junks, five forts two military stations and a shore battery. China became subordinate member of the global capitalist system with a loss of status and power. The Loss in the Opium wars revealed the power of the western military superiority, but awoke the powers of China and Japan into an armament race. Japan defeated China in the Sino-Japanese war and then went to defeat Russia in the war of 1904-05. Major acquisitions of Chinese territory and the annexation of Korea as a colony in 1910 provided Japan with valuable outposts from which to launch future attacks on China as well as with secure overseas supplies of food and materials. With the Japanese seiszure of Manchuria in 1931 and the full scale invasion of China in 1937 allowed Japan to eclipse Britain as the dominant power in the region. But in 1945 their fingers reached too far and after bombing the US the faced the juggernaut and was defeated. The U.S. Japanese phase of the east Asian renaissance.

After the second world war the united states turned the periphery of the former china cetered tribute trade system to the us centered tribute trade system. Freed from the burden of defense spending Japanese governments funneled all their resources into economic expansionism the brought businesses to the farthest reaches of the globe. The tripling of US imports from Japan between 1964 and 1970 transformed the previous US trade surplus with Japan into a 1.4 billion deficit. The Chinese ascent and the legacy of the east Asian Indestrious revolution The East Asian economic renaissance under US Japanese leadership was based on a snowballing process that mobilized on an ever expanding scale that regions lowcost labor resources to supply the wealthy...
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