Predicted to be the world's largest economy in the 21st century, China has captured attentions from around the globe because of its size, growth potential, and impact on the global market. China's population, consisting of a quarter of the world’s population, makes up unarguably the most important target market of many of the U.S., European, and Asian multinational corporations. Not only is it a huge market, it is also a fast growing market. China's economy has been growing at an exception rate, more than 10% annually since 1992, whereas, the U.S., 2.3% (CIA, 1997). In addition, China's impact on other countries is unprecedented. For example, the trading deficit between the US and China has been consistently increasing for the past ten years; it has grown from $ 0.3 billion in 1985 to 42 billion in 1996 (CIA, 1997). This demonstrates the growing dependency of the U.S. on China.
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