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

    As for the profit aspect, Wal-Mart China is one step backward. According to the investigation of China commercial union, Wal-Mart China lost 2.4 billion RMB in 2002 and this loss decreased to 40,000,000 RMB in 2003 until early 2004 when Wal-Mart China reached breakeven.

  2. This report will establish the opportunities and threats presented to Sony by the EU ...

    Thirdly, a situational manager who deals with situations, problems or tasks. Fourthly, a proactive manager who does the task before they even arise because they like efficiency and are very systematic. Lastly we have the reactive manager who does task when they arise.

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

    The MRP does argue on the same moral plane as prohibitionists in some instances. They say that "the best way to protect the health and well-being of both our community and our children from marijuana-related harm is to control

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

    China began reforming its closed, centrally planned, non-market economy in 1978. India always has had a large private sector and functioning markets which were subject to rigid state controls until the hesitant and piecemeal reforms that were initiated in the 1980s (Srinivasam 2003).

  1. Economics of European Integration

    to the electricity industry. Because of this diversified nature of electricity consuming companies, the liberalization in the electricity market may have a different impact on one group to another, what will be discussed further in this paper. Finally, also the fact whether companies are active on a national or multinational

  2. Chinese economy sets for soft landing in 2005.

    "Our macro controls have achieved success," Zeng said. "The overheating of fixed-asset investment has lessened." But he warned that problems still exist and that curbs on lending and investment should not be relaxed. The Summit brings to Beijing more than 500 business leaders from 30 countries.

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

    a partial ordering of the choice alternatives, and therefore does not yield a ranking for all investment options; nor does it forward the 'best' or the 'worst' option. Markowitz (1952, 1959) showed that an investment in a portfolio of securities offers investors risk and return combinations that are not possible from individual securities.

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

    Corporatist arrangements are also seen to seek to achieve a consensual framework in which durable, long term relationships between state, trade union and business can be fostered. There is the existence of a 'consensus' between labour and firms with shared perspectives on the goals of economic activity.

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