Discuss the influence of globalisation on the Chinese economy and evaluate the strategies use to promote growth and development. Globalisation is the breakdown of trade barriers between nations to allow for the free flow of goods and services, ideas, communication and information. In the 1980s, China had implemented a series of economic reforms which allowed the country to better integrate with other nations in the region. This was endorsed by the government for the Chinese nation to develop itself and become an emerging country to meet advanced international standards. It has since joined world and regional agreements and organisations, is exporting products and becoming more technologically advanced. Globalisation has resulted in increased growth, greater development which has led to income inequality, increased investment and financial flows, greater emphasis on environmental management and improved government policy. To maintain or manage the impacts of globalisation the Chinese government has implemented strategies. China’s participation in global economic events and trade has been both beneficial and damaging for the nation.
China’s rapid growth in the past decades is caused by the increase of the acceptance of Globalisation. China has undergone many transformations. It has implemented "open door" economic reform policy in 1978, which saw the move from a centrally planned economy to a market based economy with a trade oriented focus. With conjunction to this strategy, China joined the Asia Pacific economic corporation (APEC) in 1991 to develop and maintain economic relations within its region. This impacted China as there is now greater exportation of cheap goods and foreign economic integration. This is beneficial to China as it has allowed for economic expansion and greater financial flows, which in turn has created greater economic stability for the nation. Due to these economic reforms, as can be seen on the graph, China’s GDP growth in 2011 is approximately 9.4% per year compared to the world GDP of approximately 3% per year which has positively lifted 600 million people out of absolute poverty.
China also utilised their labour resources efficiently by redistributing employment from the previous self-sufficient agricultural sector to more industrialised areas which increased manufacturing. China’s large population of over 1.3 billion and high labour productivity has allowed the nation to become an economic power. This transition from an agricultural to a more industrialised economy had allowed individuals to secure employment and for the nation to develop a more skilled labour force. China’s acceptance of Globalisation has allowed it to develop various strategies to manage its rapid growth. The strategies implemented by the government have proven to be beneficial for the overall economic potential and reputation of the country and its citizens.
The rapid growth of globalisation on the Chinese economy has caused greater economic development. This includes greater quality of life, consumption and income. However, this boom is not equally enjoyed by the whole Chinese population as it has unfortunately resulted in a greater class divide within the nation. The western areas of China are largely underdeveloped and outperformed by the eastern areas, thus, the level of income between urban and rural areas has been widening due to globalisation. This growing concern of inequality has prompted the Chinese Government to implement improvements to the system. Such measures include the ‘develop the west campaign’ which includes increasing investment in rural areas, especially in infrastructure, irrigation, education and health and the implementation of the 2007 agricultural tax and subsidies for agricultural production. The government’s investments aim to create a balanced and prosperous society through economic and social development. As a result, China’s HDI measurement rose from 0.368 in 1980 to 0.668 in 2011,...
Bibliography: Dixon Tim, O’Mahony John
Australia in the Global Economy, 2012 edition
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