Since the late of 1980s, the second stage of diversity, straight connected to the progress of competition in Chinese firms. Because of great competition in some companies like light industry, food production and textiles, forced them to apply reforms to change the market. The rise of the great competition in the mid of 1990s has forced to the rise of some new Chinese group companies with complicated regulation arrangements. The Public sector financial companies such as trade, transportation, finance and state group companies are fully supported and controlled by the central government. The joint ventures capital is regulated by international companies and small groups are controlled by the main owners. At the early of 2000, there were more than 21,000 large state-owned companies straight controlled by the central government (Huchet et al., 2007). These enterprises got approach to all source of financing which were supported by the government authorities. They had benefit from political connections to reach the state commercial banks to get the different types of credits.
In this situation, China’s entry into the WTO with secured sectors like automobiles, steel industries, machineries and telecommunications, enforce a greater control on these firms in order to face the competition with multinational companies. However, there were a lot of restrictions to the opening-up sectors in the protocol accepted by China for its succession into WTO. So, this could have conflicted result for these Chinese firms. The massive process of trying to win in there market and privatisation have remarkably progressed the process of corporate governance of these companies and firms. Overall, China’s entry into WTO was the positive impact on their system of governance for increment of the opportunities for collaborations with international groups and increasing potentiality to compete in local market.
The influence of globalisation on different countries in their development stages are not the same. The profit from the globalisation is not properly shared out for different nations. The developed nations got advantages in different ways such as capital, technology, human resources and administrative process. These countries are the most dividend of the globalisation. Conversely, the developing countries are in opposite position of getting the benefits from this. They may get some foreign investment, modern technology but extremely susceptible to the bad influence of the globalisation and deficiency of the capacity to decrease the risk appears with globalisation. In the recent years, the economic security for the underdeveloped nations is on the edge of being freeze out by globalisation. So, while taking part in globalisation process, the developing nations should be attentive and try to feat to get the advantages and keep away the risk and hazard. They should increase the strength of regional cooperation and minimise the difficulties and risks (Snowdon, 2007).
In the past two decades, China supposed an annual average growth rate of 9.31% (). At present, China is one of the supreme trading nations in the earth. According to World Bank’s Development Indicator, the overall life expectancy of China is approached to 73.1 years in 2008, which is near to that of developed nations. China has run in its own unique roadmap of socialism so that the above desired result was obtained in the short duration of time.
In a speech by Dr. Chen J. (2003), China is systematically opening for developed as well as developing countries in the field of economic and social development. Opening-up proceed gradually from four main economic zones to the World Trade Organisation through coastal cities and capital cities. China paid focus on international cooperation and competition during opening-up interval and got advantages from cheap labours to inter foreign investments and technology to boost up the economy.
On the contrary, in an article by Nolan & Zhang (2002) in ‘World Development’ focused that there are challenges for Chinese policy-makers from the international business and high-economic countries. Because of lack of privatisation, Chinese firms are unable to take part on the ‘global-level playing field’. Furthermore, there is competitive struggle between firms and customers in the market level and also no perfect competition between small firms but competition between large and oligopolistic firms.
China is aware about the future of regional cooperation for recovering the risk-opposition capability. Developing countries are facing the problem from the weak economic condition and it is difficult to resist the risk of globalisation. So, increasing the power of regional financial cooperation, they can get benefit from this. In the present context, regional and sub-regional cooperation such as South Asian Association for Regional Cooperation (SAARC); are growing day after day. In this situation, China has also signed The Framework Agreement of ‘Association of Southeast Asian Nations’ (ASEAN) on 4th November 2002 with viewing on the establishment of free trade zone with the eleven countries of south east Asia by 2010 (Dr. Chen, J. 2003). After that, China has made its own unique policy and achieved a good progress in different fields.
According to the World Bank’s report on China Quarterly Update 2010, China’s economic growth is rapidly growing during the global crisis periods also. The growth is 9.6% in the third quarter of 2010. The export part is very strong and the domestic demand is also very high. Conversely, the import is slow down and the external surplus is rising.
On the other hand, there is an impact on cultural convergence by the globalisation. One of the reasons of globalisation of trade is cultural convergence also. The advanced communication system and rising of international travelling have guided to increasing uniformity of overseas market. Similarly, the advanced technology increased the extent of global media and decreased the cost of communication for Chinese people. As a result, their tests were conversing and create the global market for standard product. The changing of daily lifestyle and following the western culture are the main impact on Culture. As an example; now a day’s, Chinese people are celebrating their birth day as similar to the European style. Most of the children are unknown about their traditional style.
China plays the role of attracting foreign investment for so many years and now China itself invested overseas, on the quest of new opportunities, markets and raw materials for its financial developments. One of the important overseas businessperson from Shanghai is Jacob Wood who had passed more than 30 years in an African business empire ‘Golden Gate Group’. This group consists of some standard hotels, restaurants, construction and real estate business. It gives job for over 20,000 people on the majority of Nigerians (). On the other side, China has given largest growing market for the world. In the coming one decade the import of China will be over $2 trillion from other country. On the contrary, millions of customers are benefiting from the cheap and top class Chinese product. (Dr. Chen J. 2003).
Conclusion
China has obtained some positive as well as negative experience in her long history by the globalisation. The revolution on information technology provided a good opportunity to introduce China into the global market. Now, China exports the product in most of the developed countries as well as developing countries. In every part of the world, we can easily get the Chinese product. China has just come into sight onto the global market as a main economic dividend after the time of entry into the WTO in 2001.
Many economists predicted that China will be the next economic supreme power and she will overtake the US and Japanese economy very soon. China achieves very much progressed in industrial sector by applying her own unique roadmap. This is the main factor to increase the overall growth of the country. China is successes to meet the life expectancy near to that of developed country. On the other hand, China faced the challenges from the multinational company and high economic countries in the policy-making. But also China is success to implement her own socialism which is the milestone to increase economic growth in global crisis time also which provides the opportunity to introduce China with the investment in foreign countries.
References
1. Aninat, E. (2001), ‘China, Globalisation & IMF’, International Monetary Fund: (). [Accessed on 6th April, 2011]
2. Branstetter, L. & Lardy, N. (2006), ‘China’s Embrace of Globalisation’, NBER Working Papers, Cambridge: (). [Accessed on 4th April, 2011]
3. Dr. Chen J. (2003), ‘China and Globalization’ Chinese Economic Association Annual Conference: (). [Accessed on 8th April, 2011]
4. Huchet, J.F. (1997) “The 15th Congress and Reform of Ownership. A Decisive Stage for Chinese State Enterprises”, in China Perspective, No 14, November-December pp.15-25.
5. Huchet, J.F., Richet, X. & Ruet, J. (2007) Globalisation in China, India and Russia. New Delhi: Academic Foundation, pp. 44-55.
6. Kuhn, A. (2008) ‘China Alerts its role in World Economy’ (March 31st). USA: (). [Accessed on 10th April, 2011]
7. Milward, B. (2003), Globalisation? Internationalisation and Monopoly Capitalism, UK: Edward Eagler Publishing Limited.
8. Ning, W. & Yifeng, S. (2008), Translation, Globalisation and Localisation, A Chinese Perspective, Great Britain: British Library cataloguing in publication Data.
9. Nolan, P. & Zhang, J. (2002), World Development: ‘The Challenges of globalisation for Chinese Firms’. Vol. 30 Great Britain: Elsevier Science Ltd. (pp. 2105).
10. Snowdon, B. (2007), Globalisation, Development and Transition, UK: Edward Eagler Publishing Limited.
11. The President Jintao H. (2005) ‘Why China Loves Globalisation’, The Globalist, Washington D.C. June 7(). [Accessed on 12th April, 2011].
12. Wall, S. Minocha, S. and Rees, B. (2010) International Business. (3rd ed.) England: Prentice Hall.
13. World Bank (November, 2010), ‘China Quarterly Update’, New York. Available at: (). [Accessed on 13th April, 2011].
14. Yao, Y. & Yueh, L. (2006), Globalisation and Economic Growth in China, China: World Scientific Publication Co. Pte Ltd, pp 28-44.
15. Zhang, X., Fan, S. & Hoan, A. (2010), Narratives of Chinese Economic reforms: How Does China Cross the River? (Series on Economic Development & Growth; Vol. 4), China: World Scientific Publication Co Pte Ltd.
Part 2
Portfolio
1. Essay Outline
The Positive and Negative Effects of Globalisation on China:
A. Introduction: Positive and Negative effects of Globalisation on China
- Definition and meaning of globalisation on the world and on the context of China.
- How to view globalisation.
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Thesis Statement:
Globalisation on 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.
B. Opportunities and challenges given by globalisation in china:
1. Impact of revolution of information technology.
(i) Statistics.
2. An attempt of classification of Chinese firms and China’s entrance to WTO.
(i) Historical evidence.
3. What are the challenges for China with the growing economy in the world?
4. Challenges brought by globalisation.
C. Impact of globalisation on China.
1. Why China has adopted opening-up policy?
(i) Statistical evidence.
2. Why China has accepted different Agreements like ‘Framework Agreement with ASEAN’?
3. Cultural convergence on China.
(i) Example to support the idea.
4. Contribution of China to the global economy.
(i) Statistics and example.
D. Conclusion:
- Brief summary of the whole essay.
2. Paragraph from Set Text
China has just entered the WTO. At this historic juncture, it is crucial that global big businesses and government policy-makers in the high-income countries appreciate the se-verity of the challenges that confront China’s policy-makers and business leaders, even in key ‘‘strategic industries.’’ Privatization and liberalization are far from sufficient to enable China’s leading firms to compete on the ‘‘global-level playing field.’’ The ‘‘global-level playing field’’ is not an abstract concept. In the end the marketplace involves a competitive struggle between firms, which, together with consumers, are the building blocks of the eco-nomic system. For the leading systems integrators and first tier suppliers in each industrial sector, this is a competition between small numbers of identifiable large, often oligopolistic, firms. The struggle is not between the in-numerable nameless small firms of textbook perfect competition (Nolan & Zhang, 2002, pp. 2105).
Notes
- Challenges for Chinese policy-makers from the large international business & high-income countries.
- Chinese firms are unable to take part on the ‘global-level playing field’ because of lack of privatisation.
- Competitive struggle between firms and customers in the market level.
- No perfect competition, between small firms but large and oligopolistic firms.
Paraphrase
In an article by Nolan & Zhang (2002) in ‘World Development’ focused that there are challenges for Chinese policy-makers from the international business and high-economic countries. Because of lack of privatisation, Chinese firms are unable to take part on the ‘global-level playing field’. Furthermore, there is competitive struggle between firms and customers in the market level and also no perfect competition between small firms but competition between large and oligopolistic firms.
3. Globalisation on China (Paragraph)
“To adopt opening-up policy. China's opening to the outside world is comprehensive. It opens not only to developed countries, but also to developing countries, not only in economic field, but also in all areas of social development. At the same time, it is not a blind opening, but a self-conscious one, not a disorganized opening but a systematic one. China's opening proceeds and deepens in a gradual and step by step fashion. It started from the 4 special economic zones, to coastal cities, then to capital cities of inland provinces and now it has reached an unprecedented stage of all-round opening demonstrated by China's accession to the World Trade Organization. During its opening-up, China paid special attention to give full play to its comparative advantages to actively conduct international cooperation and competition. For instance, China has fully exploited its advantages of low cost of labour to attract foreign investment and technology to push economic development and better efficiency and quality of economic growth. These measures have brought the Chinese economy increasingly integrated with the world economy” ().
Notes
- China is systematically opening for developed as well as developing nations in financial and social development.
- Opening-up proceed gradually from four main economic zones to the World Trade Organisation through coastal cities and capital cities.
- Focused on international cooperation and competition during opening-up interval.
- Used the advantages from the cheap labours to inter the foreign investment and technology to boost up the economy.
Paraphrase
In a speech by Dr. Chen J. (2003), China is systematically opening for developed as well as developing countries in the field of economic and social development. Opening-up proceed gradually from four main economic zones to the World Trade Organisation through coastal cities and capital cities. China paid focus on international cooperation and competition during opening-up interval and got advantages from cheap labours to inter foreign investments and technology to boost up the economy.
4. Bibliography
1. Nolan, P. & Zhang, J. (2002), World Development: ‘The Challenges of globalisation for Chinese Firms’. Vol. 30 Great Britain: Elsevier Science Ltd. (pp. 2105).
2. Dr. Chen J. (2003), ‘China and Globalization’, Chinese Economic Association Annual Conference: (). [Accessed on 8th April, 2011]
3. The President Jintao H. (2005) ‘Why China Loves Globalisation’, The Globalist, Washington D.C. June 7(). [Accessed on 12th April, 2011]
4. Huchet, J.F., Richet, X. & Ruet, J. (2007) Globalisation in China, India and Russia. New Delhi: Academic Foundation, pp. 44-55.
5. World Bank (November, 2010), ‘China Quarterly Update’, New York. (). [Accessed on 13th April, 2011].
6. Branstetter, L. & Lardy, N. (2006), ‘China’s Embrace of Globalisation’, NBER Working Papers, Cambridge: (). [Accessed on 4th April, 2011]
7. Kuhn, A. (2008) ‘China Alerts its role in World Economy’ (March 31st). USA: (). [Accessed on 10th April, 2011].
8. Yao, Y. & Yueh, L. (2006), Globalisation and Economic Growth in China, China: World Scientific Publication Co. Pte Ltd, pp 28-44.
by
saru_ghimire5yahoocom (student)
