• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

How has the process of globalisation has affected the Chinese economy?

Extracts from this document...

Introduction

Globalisation, in economics terms, is the process of increasing integration among different countries, resulting in the establishment of a single world market. Globalisation is encourages overseas trade, reduction or removal of trade barriers, therefore economic growth and development. This essay will look at how the process of globalisation has affected the Chinese economy in areas of trade, finance markets, income distribution and environmental issues; and analyze the strategies that the Chinese government has employed to encourage economic growth and development. In the past decays China have experienced significant increases in international trading and investments flows due to globalisation, which leads to high levels of economic growth. From 2001-2007 China experienced an average economic growth of 8.5% per year. All material and non-material indicators show a rise in income, quality of live and standard of living. The HDI in China has risen from 0.527 in 1975 to 0.768 in 2004. There has also been an increase in overall education level and overall reduction in poverty. However this improvement is not shared evenly across the population, which will be discussed later. ...read more.

Middle

As globalisation cause increase in trading, overall income levels have increased and the amount of saving is also raised. An increase in saving means that there will be more investment from the bank in local businesses, as more capital is available. This also boosts the economic growth in China. In 1990 and 1991 China set up its first stock market in Shanghai and Shenzhen. This stock market provided a new way of investment for both domestic and foreign investors, encouraging further economic growth and development. Although globalisation has caused a significant economic growth and development in China, these benefits of globalisation are not equally enjoyed by the whole population. The richest 10% of the Chinese population (mostly living in costal cities) owns 45% of the nation's wealth, while the poorest 10% own only 1.4% of it. The costal cities benefit more from globalisation because of its proximity to the rest of the world. This uneven distribution of income shows that the improvements in standard of living and quality of life are not equally shared. ...read more.

Conclusion

The Chinese government has shown a keen interest in fixing this problem by establishing many different laws and regulation regarding the environmental protection and resources management. However these policies cannot be reinforced due to the weak and corrupted structure of state governments. In conclusion, the Chinese economy has benefited greatly from the process of globalisation in terms of economic growth and development. As China lower their trade barriers, giving the positive impact of increase in international trade and foreign investment, resulting in significant levels of economic growth and development. Globalisation has also provided competition for domestic industries, encouraging high efficiency and competitiveness. The Chinese government has also established the stock market, providing a new channel for both domestic and international investment. However these benefits of globalisation are not equally enjoyed across the population, as there is an inequality in distribution of income, in which the government established no specific policies to address this problem. The growth in economy also caused environmental problems such as degradation and pollution, which the government have showed keen interest in managing this problem, but have so far failed to reinforce the policies established to protect the environment. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. Split Votes: A Nation Divided on the Marijuana/Drug Legalization Debate

    Unless both are tried, there will be no way to prove, without a reasonable doubt, which policy is more cost effective. The moral critical arguments for both sides have no solid backing in the documents both sides use as evidence for their cause.

  2. Retailing In India - A Government Policy Perspective

    The effect of FDI on China can be classified in terms of the significant statistical changes that have occurred in the past few years. FDI in Retailing has helped in growing the retail market The graph shows the retail sales trends observed in China over the last decade and a half.

  1. 'Critically assess the notion that 'corporatism' improves economic performance'. Does globalisation threaten or enhance ...

    Henley and Tsakalotos further point out that in corporatist economies there is the ability to avoid profit squeeze in response to adverse economic shocks, which enables employers to maintain rates of investment and deliver sought after future employment stability. They argue that this is both in the short term sense

  2. Use game theory to analyze an oligopoly competition of two great rivals, Wal-Mart and ...

    Sourcing in China is significant for Wal-Mart's operations and the company is the largest single sourer in the PRC. If Wal-Mart was a nation it would be China's eighth-largest export destination. To sum up, Carrefour established stores in 15 cities first and then integrated them to gain economies of scale and scope.

  1. The Quest for Optimal Asset Allocation Strategies in Integrating Europe.

    Also for the conditional model (short term investor) in the second subsample, he finds that diversifying over industries is a much better strategy than diversifying over countries. He argues that shift in optimal asset allocation strategy is a consequence of the harmonisation in the monetary and policy rules in the European Monetary Union.

  2. The development strategies which have been adopted by India and China over the last ...

    range of 7 - 8 % per year during 1998 - 2002 (IMF Survey 2003). China's expansion has been particularly impressive recently, when it maintained its growth even in the face of a global growth recession in 2001 and an anaemic recovery in 2002.

  1. Chinese economy sets for soft landing in 2005.

    Summit 2004, said that China should tackle key challenges such as its underdeveloped banking system and capital markets and the need to improve the protection of intellectual property rights. The rampant growth of investment in recent months, said Qin Xiao, Chairman of China Merchants Holdings, Hong Kong SAR, another Co-Chair

  2. Economics of European Integration

    More concretely, it means that the incumbent players in each national market needs to be well controlled in order to ensure that they do not abuse their "previous" dominant position. Moreover, we observe that in the recently liberalised markets in Europe, a trend towards concentration of generators and suppliers occurs,

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work