China and Globalization - Essay Example

Midterm Assignment: China and Globalization What role did Deng Xiaoping play inmodernizing China? In what ways did he draft the modernization of China? To what extent, do you agree with his views on state role and market role in the state capitalism of China? The Third Plenum, which signaled the rise of Deng Xiaoping’s rule, resulted in the ultimate abolition of the Maoist economic policy approach to the economic modernization problems of China. Moreover, it kicked off the implementation of experimental economic changes that in time led to major reforms in China’s economic strategies, development approaches, economic structures, even tendencies and ideals (Waters 1). Hence, regardless of the final outcome, the Third Plenum and its aftermath represent a defining moment in the history of the economic modernization of China. At first, Deng supported modernization with negligible central involvement so as to eliminate the barriers created by centralization, which had pushed China to its 1978 crisis. Eventually, the emphasis remained on modernization, yet with centralized macro-control. Deng had successfully loosened the grip of central planners, who had attempted to diminish, disrupt, and unsettle his Western-based market socialism (Zhang 38). Deng’s approaches to economic modernization were rooted in the idea that the inflexibility of Mao Tse Tsung’s economic policy should be abandoned. Mao Tse Tung enforced balancing socialist ideals in a state of China’s historical economic retardation. Thus, the emerging status of China as a global leader started with the vision of Deng Xiaoping when he became the Communist Party’s frontrunner in 1978 (Waters 2). With Deng’s rise to power, China started its journey toward global leadership. On the 10th of October 1978, Deng tersely discussed one facet of his agenda for China. To progress, he thought, China had to attain what he referred to as the four ‘modernization’—modernization of science and technology, national defense, agriculture, and industry (Waters 2). He believed that China should gain knowledge of other countries’ best practices and acquire massive foreign support. As a point of departure for progress, he supported the launching of latest technology and facilities as created by other countries. Deng’s recommendation, especially with regard to gaining knowledge from other countries and launching cutting-edge technology, is still considered by incumbent Chinese leaders (Zhang 44). On the 23rd of October 1985, Deng stressed to his government officials that nothing separates a market economy and socialist economy (Waters 2). He believed that a valuable compromise or fusion was achievable. Merging a market economy with a planned economy would unshackle efficiency and productivity and accelerate economic progress. He thus supported using some of the inherent features of both types of economy (Zhang 13). This idea opened China to numerous Western thoughts and allowed it to advance toward economic supremacy in Asia and in time in the world. A large number of China’s economic achievements have been realized during Deng’s leadership. The success of China is evidence that the government is following the correct path and should attain its economic objective of becoming a global hegemon in the near future. Deng perfectly understood that to attain his economic objective for China its political system had to be reformed. He said that in order to raise the quality of life of the Chinese people, the reform agenda had to start with changes in the country’s political domain, especially in its government headship and party politics. He argued that the absence of political reform will hinder greater productivity and economic growth (Waters 2). Deng suggested that political restructuring involve a split-up of the government and party, and that China’s leaders must seek ways for the party to fulfill its obligation more successfully. Particularly, Deng suggested that some authorities of the central leaders be handed over to the local level, and simultaneously he tried to modernize the administrative organization (Waters 2). Most of Deng’s commentaries and proposals have resulted in modifications within the government sector of China. Deng disclosed to the Chinese Communist party in 1988 that three major reforms had occurred over a single decade (Waters 2-3): (1) the concept of a class struggle had been replaced with a new goal, which is developing productivity as China’s guiding light; (2) China’s foreign policy had shifted from one of isolation to one of opening up to the outside world; and (3) China’s numerous economic roadblocks had been replaced by all-around reform. Specific major reforms that occurred in 1993 was the approval to speed up reform, putting into action a movement toward socialist modernization, and opening China the outside world. The latest realization of Deng’s vision happened in 1995 when the National People’s Congress (NPC) reconfirmed its dedication to the socialist market economy. Here, the NPC endorsed the government’s paper ‘The Proposal for Formulating the Ninth Five-Year Plan for National Economic and Social Development and the Long-Term Target for the Year 2010’ (Waters 2). This Ninth Five-Year Plan, consequently, will speed up China’s progress as a regional and global economic power in the 21st century. Several of the economic and political reforms that the China has engaged in throughout the 1990’s are pushing the country toward its objective of becoming a world hegemon in the 21st century. Particularly, China readjusted its political structure for the 21st century pushing the party toward free markets; it advanced to reconsolidation with Taiwan, Macau, and Hong Kong; mainland China has turned into a launch pad to the Asia-Pacific; and China will ultimately move toward becoming a global economic hegemon in the 21st century (Li & Tian 110). I agree with Deng’s argument about the role of the state and the market in China’s state capitalism. Historically, both Western bourgeois economy and Marxism viewed a market economy as the fundamental aspect of capitalism and a planned economy to be the core of socialism. This idea fettered economic development. Deng strongly rejected this belief. He constantly argued that, “there is no fundamental contradiction between socialism and a market economy” (Li & Tian 110) and that “planning and regulation by the market are both means of controlling economic activity, and the market can also serve socialism” (Zhang 145). This is what Maynard Keynes is talking about. An economy is run by both the market and the state. The core of economic reform is market restructuring. A specific disadvantage of the long-established planned economy was its constraints and disregard for market processes. Economic revitalization requires exploitation of the market and state support. Deng empirically and logically explained the harmony between market economy and socialism, and thus formed the strong theoretical basis for building China’s socialist market economy. (2) What Roles have both the USA and China played in the globalization of world economy? Is the mutual dependent model of the economic relationship between the two countries sustainable? Why? The United States and China are the two countries which played the major role in the globalization of the world economy. Economic interdependence and involvement with other countries has served a vital function in the restoration of the U.S. economy. The country’s open borders, which allow the entrance of foreign products and/or services with low or no tariff, have contributed to the regulation of inflation. The U.S. and China hold the future of the world economy (Garrett 389). Both countries confront numerous issues in an era of evolving strategic mutual dependence and accelerated globalization. Effective collaboration on a broad array of certain global and bilateral concerns of strategic value to both countries, like non-proliferation and war against terrorism, may contribute to the reduction of hanging doubts about the strategic motives of each other (Baylis, Smith, & Owens 151). This Sino-American relationship, in particular, plays a major role in the development of the world economy. Several developing countries have shifted from being sheer raw material providers to exporters of advanced technologies—for example, India’s software. However, China is unsurpassed in terms of trade of technological products. This ability of China to trade across a broad array of the technological continuum than other economies forms its growing power in global trade (Baylis e al. 151). However, many view this fact as a threat to the global dominance of the U.S. The core nature of the interdependence between the U.S. and China in an increasingly globalized world creates serious conflict. China is still very dependent on the export markets of the U.S. The U.S. gets massive quantities of cheap imports from China and acquires assistance from China in subsidizing a substantial portion of its national budget and existing account debit. China desires to leave the U.S. Treasury market but confronts the risk of a huge capital loss on its sizeable stocked holdings if the U.S. Treasury bond rates were to escalate (Garrett 390). The U.S. is becoming less reliant on China’s financial assistance, especially as the country’s level of private saving has soared and the existing account debit has went down. The bargaining power of the United States and China are superbly stable. However, this creates a perilous condition that could go berserk if the urge to go along with local spectators undermines rational legislation or policymaking in either or both nations (Garrett 390). It is becoming increasingly obvious that the relationship between the United States and China is tightening, with regard to human and financial capital, and global trade. The Sino-American relationship is crucial not only for the two countries but also for the greater global economy as the collaborative or antagonistic aspect of such relationship will launch advancement on several multilateral concerns, such as climate change and the global monetary system. The mutual dependent model of the economic relationship between the U.S. and China is definitely sustainable. Globalization has resulted in the coming together of—although never the same—national interests in numerous major issues and a shared interest in sustaining international relations and global security, political, and economic relations to the advantage of the U.S. and China (Garrett 391). Such intense and vast shared interest does not prevent marked dissimilarities over particular problems, but it tends to generate demand on the U.S. and China to collaborate in numerous issues so as to protect, sustain, and reinforce the global system and to discourage them from moving toward aggressive or hostile relationship with each other. Globalization has resulted in five aspects that further glued the U.S to China and vice versa. These five aspects make the mutual dependence between the two countries highly sustainable (Garrett 391): (1) increasing constraints on US and Chinese strategic options vis-à-vis each other created by growing strategic interdependence; (2) expanding common interests on an increasingly wide array of international and global issues; (3) increasing need for bilateral and multilateral strategic cooperation to meet the twin challenges presented by the globalizing and non-globalized worlds and transnational threats; (4) inherent contradictions in globalization leading to conflicts over a myriad of issues that are often created by or exacerbated by globalization and the growing integration, interdependence and mutual vulnerability of globalizing states; and (5) on-going competition for political and economic advantage between nation-states in the global arena, although not zero-sum strategic competition for overall dominance. The political and economic emergence of China in Asia has been one of the most important developments in the history of the region, and perhaps the entire world. The continuous progress of China is still a complicated and perplexing challenge for U.S. officials, intellectuals, and the people. Deciphering the Chinese enigma and the effective ways to deal with the continuous progress of China will remain crucial to American interests and international success, security, and stability. This is specifically real for American leaders, who will wield a substantial impact on the way China adjust and assimilate into the global strategic setting and economy. Just like before, U.S. policy will significantly determine whether the issues of an emerging China are dealt with in a manner that enables the further nonviolent assimilation of China into the regional and global strategic and economic context. The U.S. is still the major entity in this complicated context of growing economic and political integration with continuous and at times rising conflicts among major economies (Baylis et al. 154). And although U.S. associations will keep on providing the foundation of American foreign policy in Asia, the association between the continuously growing U.S. and the growing China will be a very important determinant in the fate of the Asia-Pacific region and certainly of global politics. The main question for the U.S. is if it is eager to welcome a growing hegemon which involves giving up a global room for that power and giving respect to its core objectives—or is dedicated to sustaining long-term global supremacy and hence is resolute to thwart the growth of China’s economic and political status in Asia and the world (Garrett 413-414), even if the country acts in accordance to the laws and policies of the international community. Works Cited Baylis, John, Steve Smith, & Patricia Owens. The Globalization of World Politics: An Introduction to International Relations. Oxford, OX: Oxford University Press, 2013. Print. Garrett, Banning. ‘US-China Relations in the Era of Globalization and Terror: A Framework for Analysis’, Journal of Contemporary China 15.48 (2006): 389-415. Print. Li, Xiaobing & Xiansheng Tian. Evolution of Power: China’s Struggle, Survival, and Success. New York: Lexington Books, 2013. Print. Waters, Harry. China’s Economic Development Strategies for the 21st Century. Westport, CT: Greenwood Publishing Group, 1997. Print. Zhang, Wei-Wei. Ideology and Economic Reform under Deng Xiaoping, 1978-1993. London: Routledge, 1996. Print. Read More