The Chinese Economy in the Conditions of Globalization - Research Paper Example

Does globalization Undermine Chinese Authority? Introduction Globalization has paved way for the economic and socio-cultural growth the world as a whole for the past decade with many new economies emerging as world leaders at their respective fields of excellence. There has been a major assumption that globalization of trade and finance would slow down the progress of a rigidly communist Chinese economy, but the consistency of the policies and administrative strategies have helped China to reach an envious position amidst several challenges from the western business giants. It all proves that globalization cannot undermine the Chinese economic authority even as it manages to meet the needs of the world’s largest population. More clearly, China’s achievements are the results of a collective action on its people's interest over decades of political stability exhibited by the communist party through various plans and reforms with a definite autocratic style of leadership of its administrators. A collective view can establish that Chinese economy is racing towards the number one position in the world owing much to its affirmative financial plans and the party's autocratic regime. The Chinese Economy Chinese economy can be assessed as world’s second largest with a GDP over 6 trillion USDs with an 11 trillion USD’s purchasing power parity. The country has an amazing annual growth over 10 per cent of GDP. The wealth of China largely is largely formed from its natural resources spread on the uneven terrain consisting of plains, mountains, rivers, deltas forests and seas. China can establish its emphatic role in the world economy with a stable support from a list of worthy resources like coal, iron ore, natural gas, aluminum and uranium. Also, the country has the world’s largest hydroelectric power potential. From the agricultural sector, the country stands as the world’s largest producers of almost all edible things ranging from rice to barley. The Chinese mainland has a variety of commercial crops besides the largest supply of seafood and livestock. Majority of its industries relate to mining a processing of several ores including petroleum products. The country is a prominent manufacturer of textiles, cement, fertilizers, footwear, electronic goods, automobiles, high-end armaments and satellites. Presently, the China derives a leading portion of its economy in the field of computer and information technologies. Majority of its products like machinery, medical equipments and textiles are exported while most of the commercial products have their large market within the country itself. Thus, the optimum feasibility of the manufacturing - marketing relationship existing in the country ensures the solidity of its economy, which other countries cannot easily access (“Background note: China.”). An Overview of Growth In the initial phases of the trade settlements in the international level, America and a few European countries had their top edge over the largely under developed Asian countries. However, the later stages of the global economic reforms and new trade positioning have been witnessing the rapid growth of certain Asian countries in a surprising pace with the Chinese economy posting its emphatic leadership of the world economy. China, with its competitive merit in business and all other enterprises of monetary value has made a tremendous leap in the last decade in the average annual growth rate. A country with over 150crore population and frequent natural calamities with a predominant emphasis for agriculture emerged miraculously to be the world’s largest exporter and the second largest importer even as it had challenges from the global dominance of the English speaking nations. An exploration of Chinese economic revolutions reveals the almanac of various political, strategic and socio-cultural changes that took place along with changing leaderships in the recent past of China. The amazing progress of the country in the recent past is a wonderful example for other countries to follow. In the process of its resurrection from a collapse during the Maoist era, China has taught the world a series of theories and practices for policy based comprehensive attention for employment, education, healthcare and most indicatively, expansion of international business. China introduced a more balanced economic structure in which agriculture and industry remain the basic source of income. The principle of state capitalism took its function to regulate the productivity of the country on par with the growth in those basic income generating sectors. Unlike the past, China presently entertains the capital investment of private sector business firms in light and consumer goods manufacturing industries while continuing to hold the ownership of heavy industries in the country. Larger coastal boarders and uninterrupted sea routes cater to the export-import process of the country with enterprise of private firms adding volumes to its increasing exports. Hong Kong, Shenzhen, Dongguan, Zhuhai and Shanghai and many other prominent ports in the Chinese sea line adds value to its rapid business growth. Beijing plays a major role in the country’s educational and healthcare development with accommodation for numerous leading industries in an equal measure with the Shandong region. An Industrious Population Although the entire world considers the overpopulation of China as its burden, the political stability of the communist party turned the assumed burden into world’s largest human capital consisting of people ready to progress in every field. While Chinese population is proud to offer its endeavor in agriculture, industries and other income generating areas, the stability of the national wealth is reassured on the other side. Perfect levels of human resources management have doubtlessly transformed the Chinese economy to a world class within a few years with its people contributing to the productive sectors of the country. According to the observation of certain researchers, “the superlative of the world’s largest population in a single country kindles a bright image of a boundless and industrious people who have created an enormous and growing consumer market as well as a powerful economic engine in manufactures and exports” (Veeck et al, 111). China regards its population not only as its productive resource, but also as the largest market of its own domestic products. Liberalized marketing policies and increasing consumerism in the country have contributed a larger share in its rapid domestic market gains. Along with these trends, the country created employment opportunities through developing the service sector. Progress in education and health being the prime focus of the country’s prosperity, China now has world has hospitals and education centers, mostly for engineering, medicine and hospitality. From a calamity-struck unstable China, the recent decades have taken the country with a charm of luck in every field of its operation. The success of the country can thus be attributed to the result oriented work force and the visionary leadership of the administrators of the Communist party of China. Concepts of Economic Growth Economic progress of a country depends on the consistency offered by governments to assure safety and profitability of the investments from both public and private sector undertakings. Property owners are often ethically challenged by the strictness of laws and the judicial process in the constitution of their business establishments in many cases. China after the Maoist recession term analyzed the draw backs of the country’s law related to trade and tariff and made amendments to empower new investors. A land of unfriendly approach to foreign policies, China struggled a lot to find its place in the international market during the period before economic reforms. During the era of development of law, the leaders focused on promoting business opportunities and other economic activities in the private sector with necessary amendments in the laws of property rights, investment and exchange of commodities. The early stage of law development only saw a mixed result in the economic growth as it was meant essentially for the state owned sectors. For instance, the bankruptcy law in China soon after the Maoist era reflected in a slowdown of public sector performance as it allowed the loss making firms to shutdown their business operations. According to Clarke, Murrell and Whiting, such a scenario resulted in increased unemployment in the industrial sector with many of the state owned firms declined their productivity. Such conditions disturbed the progress of China until it regained the confidence by reforms of laws for the benefit of private sector enterprises. With the emergence of private sector undertakings, the market policies changed rapidly in China. The management tactics and decentralized governance of such firms guaranteed them vital assistance from market researches, policy formulation and quicker execution of corporate decisions. However, the central government provided all support for such firms to grow with its having the supreme authority in the settlement of dispute with the back of generally applicable rules. The gradual release of private firms from the rigidity of state laws started resulting in an overall market resurgence with several new business models rising as results of joint-ownership ventures in the later stages of the reform. The coexistence of reforms of law and economics finally resulted in the government’s recognition that the private sector enterprises are an essential supplement for the growth of state owned capital ventures and attracted many foreign investors in the financial market of China. Contribution of Education China’s education policies around the 1980s were of a promising glory for the country in the later decades. The world’s largest population with equal proportion of young people became a huge domestic market for the investors in the educational system. Until the acceptance of globalization in the field of education, the country had all inferior tools for training in science and technology. At this point China reformed education methods and allowed private organizations to invite foreign students as a major income for their development. As students started flowing into the mainland, Chinese cities gained a rapid growth in its look and status. During this period, China had its control over the regulations of the performance of institutions functioning with privatized education in the country. The visionary approach of the then president Deng Xiaoping had an earmarking effect since the Chinese students began to gain international standards of education. It was in Deng’s period that the process of internationalization of China began. Considering the importance of matching with the international merits of academies in engineering, sciences and management studies as the prime indicator of development of human resources in the country, the president initiated policies to allow international exchange of students and allotted privatization of higher education centers. In the words of Zweig, the choice of Chinese talents studied and worked in America to settle there as permanent residents as a protest against the Chinese policy of restricted five-year visas indirectly created a situation in which China was forced to liberalize its policies for fear of a possible shortage of quality human capital (175-178). Such provisions in the education policies helped many universities with their choice to collect fee from students for the survival of institutions without the intentional delays previously caused by higher level bureaucrats with regards to funding. The effect of such a growth in the standards resulted in the formation of the future of China in the later stages. Presently, China, with its affirmative standards in education can produce professionals in all walks of services and industries for its own need and even for the needs of other countries. Conclusion After evaluating the conditions and the processes through which China has undergone so far, it is evident that the policies of the Communist Party of China was all the way fit enough to race the country’s economic status to an exemplary level. With reforms in laws of trade and education and with the Open Door Policy, China established its strong presence in the world economy. The Communist Party took lessons from the previous experiences and by the close of the 20th century; it emerged as a strategist nation promoting peace-to-progress ideology. Now China holds the global leadership position in all fields of economic endeavors with constant rate of progress. Successful international trade approach and allotment of freedom of private investment have transformed the country to a land of opportunities to all its citizens; and more promisingly, the educational reform has given China the most productive human resource in the world. As far as all the above things are concerned, an assumption that a biased view of global economic giants exists or that may hinder the future prospects of growth of Chinese economy remains meaningless. Works Cited “Background note: China.” U.S. Department of State. (2011). Web. 01 April 2012. Clarke, Donald, Murrell, Peter & Whiting, Susan. “The role of law in China’s economic development.” (2007): 375-428. 01 April 2012. Veeck, Gregory, Pannell, Clifton W, Smith, Christopher J & Huang, Youqin. China's Geography: Globalization and the Dynamics of Political, Economic, and Social Change. UK: Rowman & Littlefield, 2011. Print. Zweig, David. Internationalizing China: Domestic Interests and Global Linkages. New York: Cornell University Press, 2002. Print. Read More