We have heard the news headlines recently. America and China trade war. America is accusing China that it is selling more products to the US than it is buying products from them.
Why is the US concerned about this? You see the new war is not anymore the military war but the economic war. The country that can get the most resources and money from another country such as selling products to that country will be the winner.
In the past, the country with the most military might is the stronger country but this is not anymore the case in today’s world where globalization has allowed other nations to comment on what other nations are doing. It would hurt your country’s image to be seen as a bully flexing your military powers without any valid reason.
On the other hand, you can actually do a silent attack on a country by taking their financial resources through a trade deficit. A trade deficit occurs when the country is giving more money or resources to another country than it is receiving money or resources from that country.
In the case of China and US, if China becomes stronger than the US economically, it can now be able to leverage it’s position as a key economic player in the global stage. And if you have more money as a country, there are many things you can do with it.
The power and influence of an economic super power should not be taken for granted. In the past the US has always been the economic super power. And economic superiority usually translates to political influence as well as military power.
In the past the US has been able to amass great economic power by being able to nurture and create companies that become global brands. This in turn allows the US to rake up resources and money from the countries who are buying their brands.
With the growing influence and economy of China, the US will be tempered. In the past the US has always been the largest voice and power in the global setting. But having a country that can also match the economic and military power of the US may also be a good thing to balance things out.
I just hope someday that the Philippines will be able to create companies that can be global brands. And I also hope that someday the Filipinos will learn to prioritize and support local companies. This will allow us to lessen the trade deficit that is happening. Our country is giving out resources to other countries than it is receiving resources from other countries. And this is not good in the long run.
I image a day where the Philippines will be like South Korea. I image a day where Filipinos like the South Koreans will love and support their local brands. And maybe, just maybe the Philippines will also be a progressive nation just like South Korea.
by Proudly Pinoy