Globalization of China and Asia - Outline Example

? China and India in the new global economy Introduction Under current conditions of globalization, China and Asia are believed to be the most successful competitors on the international arena. Consequently, the primary role of USA on the international arena is supposed to be diminished in coming decades. Power of China and India is supported by their interrelation in ‘multi-polar’ great power balance. Asia-Pacific region may become a successful competitor with regard to America. What is the background of China and India fast development? There is an increase of demand for and elimination of hydrocarbons supply next to the growth of water scarcity. Consequently, there is a panic in Middle East on this basis and it is possible that global consequences may follow (Cetron et al, 2006). "Looking across the Pacific and to Asia, the emerging powers of the previous decade are now key players and global economic powers. Asia, led by a dynamic China and India, has emerged to lead the global economic recovery; it will be essential for America to engage with Asia in all areas­–economic, security, and energy” (India, China new global powers, 2010). This idea expressed by a representative of American government means that America is on the way of establishment a strong partnership though diplomatic and political complexities may occur. China China impacts global economy by its incredible growth. China is a well-known producer of 13% of world economic output and is the largest consumer of nickel, copper and oil in the world. This country exports cement and is the leader in this niche. Investments of China are wide-spread in the world. Import and export has been growing for the last 25 years to the greatest extent. China entered WTO in 2001 and thus China’s trade has increased. Every year China’s export grows per 29%. China has shifted accents of its export from textile to electronics (A New World Economy, 2005). Moreover, China intends to produce and export cars and airplanes in the nearest future. China invests in its own economy as well as foreign investments are attracted to this country. International society is greatly concerned about investments in China. If to compare China’s development on this stage with Korea’s development, it would be clearly seen that China is more open for foreign investments and is able to create many labor places in different industries, and not only low-paid jobs in agriculture (Chen et al, 2001). China proves that it is a favorable country for skilled professionals, their training and education. Thus this country has a great potential and doesn’t intend to take place of a competitive employer, exporter and importer. Nevertheless it is necessary to mention that development of China is a well-weight policy. For example, China has very quickly managed firstly to transform Beijing boulevards and then modernize Shanghai by numerous skyscrapers. China’s manufacturing resides in the Pearl River Delta Region and its virtuous financial services reside in Hong Kong. Investments inside of the country are also evident in infrastructure of the country (Chen et al, 2001). Transportation infrastructure is well-developed and impresses by its large-scale innovations developed. China is able to deal with millions of new cars joining country’s traffic every month. Thus transportation infrastructure is of high interest for China’s investments. Thus economic growth of China, its overall investments make it a powerful participant of modern globalization process. India India is another challenger for a global power. There is an interesting expression about role of China and India in the international arena: “China is the ?workshop of the world, then India has become the laboratory of the world” (India, China new global powers, 2010). India’s services make this country an outstanding competitor (e.g. Tata Consultancy Services, Infosystems and Wipro Technologies). Moreover, India’s intention to develop its manufacturing sector makes this country as competitive in this area as China is. Information and communications are other two spheres of interest for India. There is a prognosis that India would become global leader very soon. GDP growth in India is 8% every year (Winters et al, 2007). From a global perspective, India’s development is grounded on information technology and service industry. Pharmaceutical is another progressive sphere in India. Textiles and auto components are two industries which are developing in India as well. India is a great exporter and importer. Foreign investments are attracted to this country also. Nevertheless there is a claim that China would leave India behind in the struggle for globalization power. Transportation infrastructure is better developed in China than in India; China is more open to foreign investments and is focused on intelligent training of their labor. China and India: partners or rivalries? Moreover, competition between these two countries in the global arena is complicated by cultural peculiarities between China and India. Culture of India has always existed at the crossroads of different cultures. Therefore potential business partners would feel a cultural zest of India. Concerning China, it is relevant to notice that potential business partners are more focused on investments in China, because it is more open for foreign investments. India is preferred by foreign business partners because of ‘international awareness’ (Saran, 2010) of Indian local executives and managers. Nevertheless these two countries are interested in cultures of each other. For example, there are Indian restaurants in China as well as there are Chinese restaurants in India. In spite of cultural interaction, both China and India are striving for holding reliable and strong position of a global leader. China has more chances to be a global power, because this country is of greater interest for investors and more industrial areas are developed in this country than in India. Moreover, in the context of economic and political international cooperation China has more reliable reputation than India. Ambitions of China help this country to lay claim for global leadership with a strong economic, technical and political potential. Conclusion Economic splash of China and India is a striking issue for the modern global world. Asian countries are on their way to global competitiveness (Waheguru, 2003). China and India are on their stages of development which America experienced in the 19th century. At that time America was agricultural and technological leader with technological innovations. China and India currently claim that they are not mere producers of cheap labor force, but they are strong competitive countries with economic and technical power. China steadily holds a place of a mass manufacturer in the international niche and, what is more important, this country builds multibillion-dollar electronics and powerful industrial plants. India is famous as software and services producer with perspective developments in precision industry. It would be better if these two countries could be united in one giant "Chindia" (Frankel et al, 2004). Nevertheless, both of these countries are very interested in their own leader’s positions and are striving not for unification, but for an international competition. It goes without saying that their political and economic ambitions inspire this countries and their desire to become global leaders is justified. Works cited 1. A New World Economy. 22 August 2005. [online]. Available at:   [Accessed 21 January 2011] 2. Cetron, M. J., and Owen, D. The Dragon vs. the Tiger: China and India Reshape the Global Economy; India and China Will Vie for Economic and Political Dominance on the World Stage. Here's an Assessment of the Two Nations' Short-Term and Long-Term Prospects. The Futurist, July-Aug. 2006: p. 38+. Questia. Web. 22 Jan. 2011. 3. Chen, S. and Wolf, C., eds., 2001. China, the United States, and the Global Economy. Santa Monica, CA: Rand, 2001. Questia. Web. 22 Jan. 2011. 4. Frankel, F. R., and Harding, H., eds., 2004. The India-China Relationship: What the United States Needs to Know. New York: Columbia University Press. Questia. Web. 22 Jan. 2011. 5. India, China new global powers in this multi-polar world. 4 August 2010. [online] Available at: [Accessed 21 January 2011] 6. Saran, S., 2010. India and China Take Different Roads to World Leadership – Part I. [online] YaleGlobal. Available at: [Accessed 21 January 2011] 7. Waheguru, Sidhu, P.S. and Yuan, Jing-Dong, 2003. China and India: Cooperation or Conflict? Lynne Rienner Publishers. 8. Winters, L. A., and Yusuf, S., eds., 2007. Dancing with Giants: China, India, and the Global Economy. Washington, DC: World Bank, 2007. Questia. Web. 22 Jan. 2011. Read More