Comparison of U.S. Business Partnerships: India and China
The United States has often initiated and complied with potential business partnerships with countries throughout the world. In fact, the United States has been in a business partnership with two of the largest countries in the world, China and India. Hence, the aim of this paper is to assess the possible roles and potential similarities and differences between the two given their business partnership with the United States.
The business partnership between China and the United States has continuously grown in terms of exports and imports since 1999, in addition to the fact that China has become a member of the World Trade Organization (The US-China Business Council [USCBC]). Between the two countries, various kinds of consumer goods and materials are being exchanged. Commodities such as electronic equipment and power generation equipment are among the top imports and exports of both countries (USCBC). Even though they have the same top commodities being exchanged, there is a noticeable difference between the countries. In this scenario, the volume of products that China exports to the United States far exceed the number or volume imported from the United States into China (USCBC).
India is also a part of the World Trade Organization and has been a member years before the inclusion of China (World Trade Organization [WTO]). The United States is considered as one of the topmost destinations for the export products of India; in fact, India exports products, including items such as jewelry, fuel, and clothing, to the United States, and it also imports items from the United States at a lower quantity (Bhuyan). In addition, there is also an increase in terms of income for India as the business partnership has continued over the years (U.S. Census Bureau [USCB]).
It is apparent that there are more similarities between India and China in terms of their business relationship with the United States. For one, both countries are considered as exporters rather than importers. Another point of similarity is that both have experienced an increase in terms of exports through the decade. In relation to this, due to the problems being faced by the United States from the economic downturn, both countries have experienced a decrease in growth as the demand for imports have decreased (Bhuyan).
As for the differences, it is rather obvious that the topmost products being exported by China and India are of different types. While China mainly exports electronic and power generation equipment, the export economy of India mainly involves providing jewelry, fuel, and clothing as previously discussed. Apart from these differences, there is also a significant gap in terms of the export and import rankings between the two countries, with China clearly above India. In fact, China is considered as one of the top import partners of the United States (Central Intelligence Agency [CIA]).
Therefore, even though both provide the United States with needed products and thus act both mainly as producers and exporters. It is evident that China and India are not of equal potential and possibly not of equal importance to the economy of the United States.
Bhuyan, Rituparna. “Merchandise Exports to US grow 2.65%.” Rediff News India Limited. 23 Mar. 2009. 19 May 2009. <http://www.rediff.com/money/2009/mar/23bcrisis- merchandise-exports-to-us-grow-2-point-65-pc.htm>.
Central Intelligence Agency. “United States.” The World Factbook. 14 May 2009. 19 May 2009. <https://www.cia.gov/library/publications/the-world- factbook/geos/us.html#Econ>.
The US-China Business Council. (2009). “US-China Trade Statistics and China’s World Trade Statistics.” USCBC – Reports, Analysis, and Statistics. 2009. 19 May 2009 ;http://www.uschina.org/statistics/tradetable.html;.
U.S. Census Bureau. “Trade in Goods (Imports, Exports, and Trade Balance) with India.” Foreign Trade Statistics – Country Data – US Trade Balance with India. 12 May 2009. 19 May 2009 ;http://www.census.gov/foreign- trade/balance/c5330.html#2008;.
World Trade Organization. “Members and Observers.” Understanding the WTO: The Organization. 23 Jul. 2008. 19 May 2009. ;http://www.wto.org/english/theWTO_e/whatis_e/tif_e/org6_e.htm;.