America is a dominant country in the world’s Economy; it has been the main source of power to fuel the world socially, politically, economically and culturally. However, in the past decade there has been a growing threat to the United States; China. Since the communist regime has been lax it has allowed its Economy to boost up to tremendous numbers that is leading China to the top and America is steadily heading towards the bottom. There is no secret of the current state that the U.S is suffering and it’s mostly from outsourcing, this issue is causing the great debt that the country is currently in. My discussion is based upon the influence China has begun to bring over the world and how it affects Americans by its growing economy and what it has done in the past 3-5 years to our current Economic status. The main system in which Economists can measure this topic is by the Political Economy that is presented in the country. Political Economy is the study and use of economic theories that are influenced by political ideology. [A1] There are three different ways in which we can identify the type of economy that is presiding in each country; there is Capitalism (free-market economy), Socialism (mix of free/command economies), and Communism (Command Economy). [A1] A free-market economy is one that is based upon free will, meaning that the citizens of that country have the right to pursue anything they are interested in, may it be investments, new business, or buying and trading stocks or products. [A2] A command economy is that of a centrally planned government meaning they allocate all the resources, spending, distribution of spending, and dictate prices for goods and services. [A3] The final concept is Socialism which is a combined mixture of a command and a free-market economy, meaning they do not fully control the economy of the government but merely only