Impact of Globalization on China
Bob Palmiere
Globalization Impact Analysis - China
8-03-13
BU 526 – Global Management I. Executive Summary
Since 1978 when China moved from a closed economy based entirely around the state to a more open, market-based economy, their growth rate has been an astounding 9.5% per year on average (Wikipedia, 2013). China is also the world’s second biggest exporter of goods and services, with 2012 exports totaling over $2 Trillion USD. Their trade surplus is $322 Billion (CIA Factbook). When one considers the fact that China is still classified as a communist country, these economic indicators become even more impressive.
To that end, all political power in China is held by the Chinese Communist Party, or the CCP. There are no real political opposition groups, due to the fact that the CCP persecutes people who speak out against the state. There are three branches within the Chinese federal government. The executive branch is led by the President, currently Xi Jinping. Although President is the highest position that can be held in many governments, in China the President is in many ways a figurehead whose primary job is to be a liaison between the rest of the world and the National People’s Congress (Higgins, 2011). Although the Chinese President and Vice President are elected, the only people who get to vote are members of the NPC. In actuality the Chinese federal government functions as more of an oligarchy, with senior members of the NPC setting the direction of the country and passing their rulings to the President to implement and to sell to the global community. Under the federal level, there are local governments that control the 23 provinces, 5 autonomous regions and 4 municipalities (CIA Factbook). Although Federal law trumps state and local law, local government agents are appointed by the NPC and in practice have a lot of autonomy except in measures that directly conflict with federal priorities. The municipalities of Beijing, Chongqing,
Globalization Impact Analysis - China
8-03-13
BU 526 – Global Management I. Executive Summary
Since 1978 when China moved from a closed economy based entirely around the state to a more open, market-based economy, their growth rate has been an astounding 9.5% per year on average (Wikipedia, 2013). China is also the world’s second biggest exporter of goods and services, with 2012 exports totaling over $2 Trillion USD. Their trade surplus is $322 Billion (CIA Factbook). When one considers the fact that China is still classified as a communist country, these economic indicators become even more impressive.
To that end, all political power in China is held by the Chinese Communist Party, or the CCP. There are no real political opposition groups, due to the fact that the CCP persecutes people who speak out against the state. There are three branches within the Chinese federal government. The executive branch is led by the President, currently Xi Jinping. Although President is the highest position that can be held in many governments, in China the President is in many ways a figurehead whose primary job is to be a liaison between the rest of the world and the National People’s Congress (Higgins, 2011). Although the Chinese President and Vice President are elected, the only people who get to vote are members of the NPC. In actuality the Chinese federal government functions as more of an oligarchy, with senior members of the NPC setting the direction of the country and passing their rulings to the President to implement and to sell to the global community. Under the federal level, there are local governments that control the 23 provinces, 5 autonomous regions and 4 municipalities (CIA Factbook). Although Federal law trumps state and local law, local government agents are appointed by the NPC and in practice have a lot of autonomy except in measures that directly conflict with federal priorities. The municipalities of Beijing, Chongqing,