College of Technology London
Master Entry Programme
Positive and Negative Effects of Globalisation on China
Module: Study Skill
Instructor: Mariana Bogdanova
CTL ID: 105724-77
The Positive and Negative Effects of Globalisation on China
The combination method of local economics, civilisation and sophistication through the worldwide system of communication, transportation and trade is known as globalisation. The combination of the local economy to the foreign economy through different activities such as international trade, investment, international migration and the expansion of new innovation which are related to economic globalisation. It is commonly known as the integration of local economy, new technology, the tradition of the people and political factors to the foreign countries. Globalisation has influenced the different countries depending on their level of achievement and their expose to the movement of the global economy (Milward, 2003).
Globalisation is a multi-dimensional process approach from view-point of the distinct disciplines. Economists give emphasis on the increase of global trade, flow of international capital and the liberal governance of the international companies. Political scientists observe globalisation as a procedure which tends to demoralise the nation and rise of the new government. Similarly, socialists inspect globalisation as the spread of a multi-culture and the supervision of the mass-media by large firms (Wall et al., 2010). However, it is the process of becoming the whole world into the single market. Moreover, the goods and service, capital and manpower are taken from the whole world.
China will be the next economic supreme power. Many economists predicted that in some years China will counterpart the Japanese and US economy. China is success to take the advantages of raised globalisation to extend its fast growth of economy and development. (Yao & Yueh, 2006). China has also experienced the difficulties of economic integration. Because of the economic integration, China got the achievement of being the next supreme economic power. Globalisation has became very good for Chinese people to increase their annual income and better lifestyle. Globalisation in China has resulted in major economic development, attributed by maximised distribution of capital, technology, information, services and the opportunities as well as challenges presented by globalisation in the world today.
Globalisation is the core idea for the financial improvement in China, faced by the open movement and maximised the distribution of capital, information and technology. It is predictable consequence of the development of science and revolt of information tools since the decade of 1980. In the present context of financial globalisation no one can progress in separation. China also has got so much knowledge from her past; separation gives backwardness in every sector of development. Development and prosperity in every sector is obtained by open policy (). The impact of information revolution varies in different industries. The information technology has changed in a large scale in industrial sector of the developed industrial countries. The burst of some companies such as computer, software, communications and some financial services gives huge amount of new product and efficiency but other industries are in their constant position.
In economic sector, China is a new advanced machine for the world, while the global prosperous also preparing some remarkable chances for china and even Asia. As the President of China Jintao H. (2005) points out that in the time of 26 years the GDP of China upturned from $147.3 billion to $1.6494 trillion which is overall 9.4% increased per year. Similarly, its international trade increased from $20.6 billion to $1.1548 trillion of overall increase of more than 16%per year. Likewise international exchange rose from $167 million to $609.0 billion. The figure of poor in rural area has dropped from 250 million to 26 million. The life standard of Chinese people improved rapidly and national power of china has remarkably upturned. At the present time most of the power nations invested in more than 400 firms and above 700 of R&D centres in China ().
The structure and central process of the industrial sector of the country is diversified. There was no any main trouble in the central system at the reform period at the time of 1980s, separated from topographical division of industrial arrangement (Huchet, 1993). In spite of liberal vanishing of the strategy, the central government maintained its regulations on the main national owned companies. Local government was also the de facto owners of the national and some joint small scale corporation in the series of different governmental decentralisation process. Because of the inspiring fiscal policy, these business got advantages from the decentralised banking system and upgrading policy for the community leaders according to their ability to develop the local economy. As a result, at the end of 1980s, there was some distinction among companies in their regulation process like large government enterprises run from the central government and the small and medium level business in city area are monitored by the local government.