The Effects of Globalization on China - Coursework Example

The Effects of Globalisation on China Executive Summary This report has examined the effects of globalisation on China. It has particularly focused on the effects of globalisation on China’s economy, national identity and culture. The findings of this report depict that, globalisation has significantly impacted on China in both positive and negative ways. Some of the positive effects of globalisation in China outlined in this report, is that globalisation has led to rapid economic growth, industralisation, the development of transport infrastructure and increase in employment opportunities. On the other hand, some of the negative effects associated with globalisation in China include; population increase, environmental degradation and economic inequalities. Introduction Globalisation is often regarded as the process of international or global integration through uninhibited trade, financial flows, mutual exchange of knowledge and technology (Goyal 2006). According to Mullard, and Cole (2007, p. 83), globalisation is a concept that lacks a concise definition, nevertheless, it is embedded on global forms of lifestyles, identities, consumption and culture. In this context, globalisation is described in relation to the stretching and compression of geographical spaces where information exchanges, capital flows, technology and knowledge economies define the nature of borderless economy. This in turn promotes the expansion of free trade and competitive markets. It also leads to the breakdown of protectionist policies and monopolies (Mullard & Cole 2007). Over time, a considerable number of studies have been conducted to determine the effects of globalisation in China. Some of these studies depict that globalisation has impacted China positively particularly with regards to aspect relating to the country’s economy (Liang 2008; Morris 2011). Conversely, other studies show that globalisation has brought about negative impacts to China’s national identity and culture (Barabantseva 2011; Knight 2008). The key aim of this report is to critically examine the effects of globalisation in China. This report will particularly focus on the effects of globalisation on China’s economy and national identity and culture. In this case, it will depict both the positive and negative effects of globalisation. Foremost, this report will examine the effects of globalisation on China’s economy. Secondly, it will discuss the effects of globalisation on the Chinese culture and national identity. Subsequently, this report will draw relevant conclusions on this issue. Effects of globalisation on China’s economy According to Liang (2008, p. 117), China’s increasing integration and connection with other countries within the global system has significantly impacted on the country’s economic state. Liang notes that globalisation has brought about economic growth in China. As a result of globalisation, the Chinese government instituted several domestic reforms in order to connect with the outside world. For instance in 1978, the Chinese government introduced the “Open Door” policy in order to effectively connect with the outside world. Basically, this policy established “Special Economic Zones” (SEZ’s) as windows for foreign investment and international trade. Initially, regions such as Xiamen in Fujiang Province and Shantou, Zhuhai and Shenzhen in Guangdong were set as SEZ’s. In these SEZ’s market operations such as tax and duty exemptions were given. These measures were put in place so as to attract trade, technology and foreign investments. As a result of these measures, the foreign currency holdings in Fujiang and Guangdong increased significantly. Due to the positive economic outcomes realized in Fujiang and Guangdong, the central government opened up most of its regions to foreign trade and international investments. Consequently, China’s trade rejuvenated and increased at an unprecedented rate (Liang 2008). As a result of globalisation, China has grown to become one of the world’s leading economic powerhouses. The purchasing power of China is ranked second to that of the United States. Currently, China is considered as the third strongest economic power however, it is forecasted that with time China will have the world’s largest Gross Domestic Product (GDP). Over time, China has learnt that it cannot prosper economically as a sole entity (Morris 2011). In order for the country to realize economic growth and development it has to integrate and work together with other global economies. This has in turn made China to embrace globalisation positively by encouraging foreign investments and international trade. It was established that, in the past two decades, China experienced an approximate of 9.7% growth rate, 2.7% of this growth was as a result of foreign investments. Furthermore, in the past two decades China’s, international trade has expanded at least 16times and among all developing countries China has the largest Foreign Direct Investment (FDI) (Morris 2011). Moreover, infrastructural development in China can be attributed to the increasing globalisation trends. Taylor (2010) observes that transport infrastructure in China has developed significantly as a result of globalisation. Over the years, China’s underdeveloped transport system has been a major impediment to the country’s economic development. As a result of increased foreign investments and the establishment of manufacturing industries in China, the Chinese government has made significant steps to improve its water, air, road and railway transport system. For example, there has been major construction of port facilities, ship building, increase of railway network capacity in East coast and Western China, development of highways and expansion of airport services and airlines (Taylor , 2010). One of the most significant impact that globalisation has had on the Chinese economy is on its industralisation. International trade and investment have been the key source of China’s industralisation and rapid economic growth. Over time, China has become a large global production plant. Its open door policies, low tax rates and duty exemptions have attracted foreign investors and multinational companies to set up their manufacturing or production bases in China. As a result, numerous production and manufacturing industries have emerged in China. The establishment of factories and manufacturing companies in China has significantly provided numerous employment opportunities. For instance in 2010, 19.8 % of the world’s manufacturing output was contributed by China’s whereas United States’ manufacturing output was 19.4%. This goes to show that, China has become one of the world’s major manufacturing and production base (MercoPress 2011). On the other hand, globalisation has also brought about negative impacts to China’s economy. For instance, as a result of globalisation, China’s high rate of industralisation has led to environmental degradation, rapid use of resources and increased pollution. A study conducted by the Chinese government depicted that unless the current rate of pollution in China is controlled, by 2020, there will be approximately 600, 000 premature deaths annually associated with respiratory illnesses. As a result, the Chinese government has to spend a significant amount of resources to combat the environmental effects brought about by industralisation (Yao, Wu & Yifulin 2010). Similarly, Liang (2008) notes that in as much as globalisation has brought about positive impact to China’s economy, it has also diminished the quality of life in China and contributed to inequalities. For instance, globalisation has led to a significant increase of China’s population this has in turn diminished the quality of life in China by putting a strain on infrastructure and social services such as education and health care services (Liang 2008). Effects of globalisation on Chinese culture and national identity Ning (2007, p. 27) observes that, globalisation is a strong phenomenon that acts as a major threat to national culture and identity. Globalisation is essentially characterized by increasing mobility and over-inflation and sharing of information and knowledge. As a result, cultures from different nations are continuously becoming homogenized thus weakening weak cultures and national identities (Ning 2007, p. 27). Education is one of the ways through which globalisation impacts on the Chinese culture and national identity. As a result of economic reforms implemented in China in the 1970’s, the Chinese government has been supporting and funding programs that send students to study abroad in order to acquire a high level of expertise that will benefit the country’s economy. Moreover, the increasing population in China has put a strain on China’s education systems thus prompting many parents to send their students to study in developed countries like Australia, UK and the US. Studies show that there are over 1.27 million Chinese students studying in foreign universities. It was estimated that in 2010, approximately, 284, 000 Chinese went to study in foreign countries (Chen 2011). With many Chinese students studying abroad, there is likelihood that their cultural values and national identity may be influenced. For instance, exposure to western lifestyles, values, films, and fashion, music and consumption habits has promoted the spread of western culture in China (Barabantseva 2011; Knight 2008). In addition, information flow through avenues such as the internet has significantly led to the spread of the western culture in China. Consequently, the Chinese government has exerted vigilant efforts to maintain China’s culture and national identity. For instance, the government has enacted and implemented media censorship laws in order to safeguard China’s culture and national identity (Barabantseva 2011; Knight 2008). Conclusion Based on the findings of this report, it is evident that globalisation has significantly impacted on China in both positive and negative ways. One of the positive effects of globalisation in China is that it has led to rapid economic growth, development of transport infrastructure, industralisation and increased employment opportunities As a result of globalisation, China has grown to become one of the world’s leading economic powerhouses. Some of the negative effects associated with globalisation in China include; population increase, environmental degradation and economic inequalities. In addition to this globalisation has also led to the spread of western culture in China thus threatening China’s national culture and identity. Nevertheless, it is apparent that the positive effects of globalisation in China outweigh the negative thus it is plausible to conclude that in general globalisation has been beneficial to China. Bibliography Barabantseva, E 2011, Overseas Chinese, Ethnic Minorities and Nationalism: De-centering China, Taylor and Francis, New York. Chen, S 2011, Chinese overseas students ‘hit record high’, BBC News Asia-Pacific, 18 April 2011 Goyal, K 2006, ‘Impact of globalisation on developing countries’, International Research Journal of finance and economics, Issue5, pp 166-171. Liang, B 2008, The Changing Chinese Legal System, 1978-Present: Centralization of Power and Rationalization of the Legal System, Taylor and Francis, New York. Knight, N 2008, Imagining globalisation in China: debates on ideology, politics and culture, Edward Elgar, Northampton, Massachusetts. MercoPress, 2011, China became world’s top manufacturing nation, ending 110 year US leadership, MercoPress, 15 March 2011. Morris, W 2011, China’s Economic Conditions, Congressional Research Service, viewed 19 June 2012, Mullard, M & Cole, B 2007, Globalisation Citizenship and the War on Terror, Edward Elgar Publishing, Northampton, Massachusetts. Ning, W 2007, Constructing Chinese National and Cultural Identit(ies) in the Age of Globalization, Situations, Vol 1, pp, 27-29. Taylor R, 2010, ‘China’s Developing Infrastructure: The Impact of Globalisation’, Transition Studies Review, Volume 17, Issue 4, pp. 668-685. Yao, Y, Wu, H & Yifulin, J 2010, Reform and Development in China: What China can offer the developing world, Taylor & Francis, New York. Read More