China and Globalization - Essay Example

?China and Globalization INTRODUCTION Similar to other developing nations, China has been affected vastly by the advent of globalization which is often argued to be comparatively more rigorous than in the context of other countries. Globalization has helped China in achieving various economic opportunities such as resource accumulation, capital inflow and labor outflow to contribute to its socio-economic growth prospects (Hangzhou and Hong Kong. “Could A Chinese Internet Business Become the World’s Most Valuable Company”). The country had also witnessed various challenges in terms of sovereignty and ideological diversity when developing with the advent of rapid globalization. Critics often argue in this regard that China has learnt to turn its economic lacunas into advantages with the help of the globalization. According to the survey report of the World Bank on global development, China’s accelerated growth has ‘helped to drive the recovery in the East Asia’ by a large extent (Keith, “Buying up the World, The Coming Wave of Chinese Take Over”). Thesis Statement: This thesis reflects the relationship between China’s development and globalization in the recent era addressing the impression created by globalization on China and vice-versa. The thesis will also reflect on the future of China with regard to globalization. EFFECTS OF GLOBALIZATION OVER CHINA Focusing on the recent economic developments in China, it can be affirmed that globalization effects have imposed its vital impressions over China’s economy. The Gross Domestic Product (GDP) of China is increasing continuously on a year-on-year basis. China entails the 32nd largest power with respect to its trade prospects (Shenzen. “The Company That Spooked the World”). For instance, China’s economy, as compared to the Japanese context and other similar nations is much more open and advanced facilitating global traders to operate with the nation and thus facilitate national income substantially. As the records depict, the national income of China, earned from international trade accounts around 70% of its total GDP. In this context, it has been further revealed that the globalization of China does not confine to the opening of economy rather it confines to the globalization of the institutions trading within China. In accordance with the advent of globalization, China has adopted the foreign technologies as well as the techniques of the corporate management related to the foreign terms. China has also adapted the various foreign institutions as well as the international accounting standards aptly in accordance with its economic limitations and growth needs. The important and the advanced change that globalization brought within China relates to the western concept of the rules related to the law which in turn, with the blend of Chinese traditional ideologies have widened the nation’s development prospects largely (Shenzen. “The Company That Spooked the World”). As reported in The Economist, China has adopted three basic steps to merge smoothly with the globalization imposing inevitable impacts over the world economy and the market scenario. The frank pro-globalization stand, the reformist approach and the attitude of fight back globalization have further accumulated with the rise of China as a world power in global politics. The need for this attitude by the Chinese economy was basically to sustain within the competitive scenario where globalization effects were observed to be posing a fast and advanced impact over the country’s economy. It is in this context that globalization has provided long-term benefits to China with respect to various aspects. In the aftermath, with the enhanced resource availability as facilitated with the globalization effects, the domestic industry in China became more efficient and effective which ultimately helped the nation to ensure competitiveness towards the foreign industries by accepting the legal as well as the regulatory framework with regard to the modern management in an open and more competitive manner (The Economist. “A Giant Cage”). Globalization has also affected the Chinese economy raising various disadvantages for the nation simultaneous to the aforementioned advantages. For instance, the advent of globalization has aggravated the problem related to the unemployment in China with massive labor inflow required to balance the technology advancements and other corporate governance related alterations. In this context, it has been further revealed that the initiation of globalization has resulted in the income disparities among the general public. This has further resulted in the aggravation of the existing social conflicts between the different levels of the social hierarchy. Globalization has also increased the competitive pressure among the various firms that operates within the automobile, agriculture as well as other capital intensive sectors. However, from an overall perspective, it can be stated that globalization had its adverse as well as the beneficial effects over China in this recent era. It is worth mentioning in this context that the growth and the prosperity of China have been mainly resulted by the advent of the globalization (The Economist. “The Man Who Must Change China”). EFFECTS OF CHINA OVER THE GLOBALIZATION It shall be bias to state that only globalization had an effect on China, wherein researchers have often critically evaluated that the nation has also imposed significant impacts over the globalization strategies. The framing of the policies and the regulations related to the Chinese economy has further created certain standards for the World economic scenario (The Economist. “The Man Who Must Change China”). In the modern day scenario China has become the pivotal point in accordance with the questioning and the insecurity that has been produced by globalization. As assessed in a report by The Economist, it has been further revealed that for the past decades China has qualified a quick-tempered growth that has in turn fascinated the employment scenario as well as the capital from the World’s economy. In the modern day financial market scenario, China has set the comprehensive norm for occupied standards round the world. China hence devours the position of one of the world’s economic power houses (Zha, “Battling for China’s Soul- Servant of the State”). To provide evidence to the statement it must be revealed that between the year 2000 and 2003, China has acquired the share of global GDP growth and the world wide imports for more than 30%. In accordance with the growth of China, the investment point in the global periphery had been facing the problem of the low capital output that stemmed from the allocation of the geared capital within the preserving structures rather than the rapid change in the industrial context. Notably, China’s most vital trading partner includes the Asian neighbors. In the modern economic context, China has been introducing enormous quantities of the investment in goods and the raw materials in partnership with the global trading institutions which has further driven a change in the industrial practices of various multinational companies making China a power centre in the realm of globalization (Zha, “Battling for China’s Soul- Servant of the State”). China’s global trade has enhanced the country’s global welfare prospects as well to a substantial extent that has in turn helped in raising the productivity as well as the global demand of the nation’s production attracting majority of multinational trade institutions to focus on its governance system and thus obtain the benefits rewarded by the economy. This in turn has also played a pivotal role in altering the flow of world trade shifting the institutional focus from the Western world towards China and other Eastern nations. Consequently, the high accelerated productivity within China results in the elevated factor income and lower prices or the lower input factor. Contextually, China entails the labor supply from its national periphery which results in the driving up of the wages and thus leading to the appreciated currency and thereby causing a vital impact on the world politics and international trade relations. Thus, it can be concluded that China has imposed a vital affect over globalization processes in the 21st century context (Zha, “Battling for China’s Soul- Servant of the State”). RELATIONSHIP BETWEEN THE GLOBALIZATION AND CHINA The advent of globalization has accelerated the growth prospects of China to a great extent and has also been influencing the globalization process substantially in the modern phenomenon. For instance, the growth within the Chinese market has apparently transformed American companies’ innovative market to a substantial extent thus positioning itself as a major power in the world politics. China’s development is apparently one of the most important and the vital part within the context of the modern history. China’s abrupt and competitive participation in the globalization process has apparently affected as well as influenced the other countries’ trading policies as well as point of view towards global positioning to a great extent. In this context, China has often been assessed and accredited to be able to efficiently balance the debt with the equity that elevates its economic performances sustainably in the long run. Taking the advantages of globalization, China has led a vital impact over the US economy which in turn has again influenced the globalization process in the modern era. Globalization has helped China to emerge as a capital exporter by recycling the domestic savings and the foreign currency reserves. Thus, it can be affirmed that China and Globalization both has accelerated greatly in the modern economy (Zha, “Battling for China’s Soul- Servant of the State”). CONCLUSION As can be witnessed from the above discussion, China and globalization are interrelated to each other. China has faced many difficulties in the way of adapting globalization wherein, its successful accomplishment of the targeted position has apparently influenced the global welfare tactics and trade related prospects of the nations in world politics. Correspondingly, the rise in the productivity and the demand with regard to the global context has been availed competitively by the Chinese economy with respect to the globalization. In this context, it can be affirmed that China has been experiencing a substantial growth in the GDP with a major contribution from its international trade affairs that reflects the impression created by globalization on the Chinese Economy. However, such an effect also imposes the limitation of global risks such as that witnessed during the recent financial crisis of the year 2008 when China was influenced much strongly as compared to any other East Asian country. Hence from a critical perspective, it can be stated that both China and globalization causes certain inevitable impacts on each other. Works Cited Hangzhou and Hong Kong. “Could A Chinese Internet Business Become the World’s Most Valuable Company.” The Economist (2013):1-30. Print. Keith, Richard. “Buying up the World, The Coming Wave of Chinese Take Over.” The Economist (2010):11-83. Print Shenzen. “The Company That Spooked the World.” The Economist (2012): 1-23. Print. The Economist. “A Giant Cage.” China and the Internet (2013): 1-16. Print. The Economist. “The Man Who Must Change China.” Report on Technology and Geography (2012): 1-24. Print. Zha, Jianying. “Battling for China’s Soul- Servant of the State.” The New Yorker (2010): 1-69. Print. Read More