Globalization

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The Impact of Globalization on the Chinese Economy

Lu Zhiqiang, Vice President (Vice Minister),
Research Development Centre of the State Council

Chairman, Ladies and Gentlemen,

The World Services Congress takes place at a special time in a special place. It is the time that the World Trade Organization has concluded the marathon negotiations on China’s bid to become a WTO member. It is the place (Hong Kong) which has made profound contributions to China’s economic reform by continuously playing a significant role in it. Needless to say, at such a time and place, the discussion on the developments of the world service industry should give a special meaning to China. And I believe the congress would benefit both the developments of the world service industry and the Chinese economy.

The globalization speedily driven by the world economy has been shaping the world in a profound way. With this mega trend, China was able to break the bondage of the Cultural Revolution. It has taken a historical step to initiate a set of policies conducive to reform and liberalization, with modernization as its mission. Such a move has transformed China from a planned economy into a socialist market economy. It leads China in further opening up and integrating with the global economy, which will in turn speed up the progress of modernization in the country. Over the past 20 years, China achieved significant economic growth. If China failed to make such a decisive move, China would miss the golden opportunity to advance its economy. In absence of such a sound external environment created by economic globalization, the effectiveness of China’s open door policy would have been lacklustre. It explains what motivates China to play a active part in economic globalization.

The impact of globalization on China’s economic growth is far-reaching. During the past 20 years, China’s international trade expanded 16 times, with its ranking in the world bounced to seventh from...
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