Trade Dispute between China and the U.S Research Proposal

Trade Dispute between China and the U.S - Research Proposal Example According to Morrison, the U.S. has employed protection of its energy manufacturing firms so that they can spearhead the production of energy (15). This has been executed by the use of subsidies to all firms producing energy in the country. For instance, U.S. President Obama favors the initiation of tax treatment for wind power and solar power as well as an increase in the expenditure of the federal government on the energy sources. The U.S. government has also set aside $50 billion as loans to firms producing nuclear power.  According to Morrison, the U.S. has employed protection of its energy manufacturing firms so that they can spearhead the production of energy (15). This has been executed by the use of subsidies to all firms producing energy in the country. For instance, U.S. President Obama favors the initiation of tax treatment for wind power and solar power as well as an increase in the expenditure of the federal government on the energy sources. The U.S. government has als o set aside $50 billion as loans to firms producing nuclear power.  The U.S. president also seeks to increase the electricity produced from cleaner sources twice by 2035. Such a policy would manipulate the energy markets. Therefore, the U.S. has clear cut goals regarding an increase of clean energy while letting utilities achieve them.  On its part, China has also undertaken various measures toward the manufacture of clean energy. China’s rapid economic growth was fueled by the decision made by the leadership of the country to embrace a capitalist approach to the growth of the economy. This leadership also adapted economic policies that opened up China to foreign investments and implemented free-market reforms in 1979 thereby making it a major global economic and trade power (Morrison 1). Despite its growth, China enforced methods and policies on its people to bolster and maintain the economic growth bordered on dictatorship. Changes in policy and property ownership right s made the Chinese people lose their properties and investments. Economic reforms made much Chinese change their jobs and habitual lifestyles. Redistribution of land to poor peasants and prioritization of agriculture stabilized the agricultural production making it possible for the country to feed its whole population (Thomas 23). The Chinese government owns and controls major industrial and economic sectors in areas such as transport, communication, energy and financial services (Thomas 26). The government regulates the economy by gearing its reforms towards higher productivity, better living standards and exemplary technological quality without aggravating joblessness or inflation.