Globalization and Its Effects on China

Globalisation had big effects on China. The term globalization has brought some positive impacts and some negative impacts on the world market economy. As with all types of changes, this massive economic revolution has affected the marginalized people as well along with business. And it is good that it is; the onset of globalization has kick-started a movement of liberalization of independent thought process, which due to the heightened global interconnectivity may prove more successful than it ever was in any of the past socio-economic and cultural revolutions and in this respect China cannot be overlooked. However, it is evident that the influence of globalization is showing during the last few years and it can be stated that globalisation has been a mixed bag for China with relative positive and negative fallouts. It can be stated that the brighter effects of globalisation are showing in the field of economy but on the darker side it is ramifying the local customs of China (Kynge, 123-5).

Social effect

Urbanization and population relocation

Developed tourism due to globalization can be referred to as a new era of sunshine gradually but progressively scattering its rays all over the world, incorporating the nations, bringing people, culture and economies close to each other. Alignment with the world through these western festivals signify escalating global connectivity, incorporation and interdependence in the economic, cultural, technological, social, ecological, and political orbs. The interest acts as an umbrella phrase and is perchance best explained as a unitary progression comprehensive of several sub-processes, such as improved financial interdependence, augmented cultural authority, rapid progress of information technology, and superior governance and geopolitical defies that are ever more binding people and the biosphere extra firmly into one global system. Here the general lifestyle of the common people is steadily moving towards a common monoculture (Oosterhaven, pp. 347-354).

Life style

It can be well established that globalization accelerates the spreading of foreign festivals in China. Hybridization of cultures is nothing new to the history of the world and it as happened earlier. However, the only difference this time is that the scale is taking place at a much larger parameter today. We can well ascertain there would be a single culture in days to come is the current trend is in motion on an uninterrupted manner. There would be a loss of cultural pride, sovereignty, individuality but the gradual change would make it bearable for all, and the one world scenario would be welcomes by the generations undergoing the change. Informational Globalization is the augment in information flows between geographically inaccessible locations. China is going through all these aspects today. No wonder China would be facing a mode of amalgamation of cultures for these close contacts with the outside world. This is influencing its culture and festivals and foreign festivals are making its way into Chinese popular culture and festival at the cost of its own festivals (Bergsten, pp. 36-40). However, there is the issue of economy and it has been elevated to a high point due to globalisation.

Economic effect

Importation and exportation

Chinese and foreign traders, for example, will acquire the privilege to import and export on their own – and to put up their products for sale without seeking the assistance of a government intermediary. Average tariff rates on important agricultural exports of United States dropped from 31% to 14% in 2004 and on industrial goods from 25% to 9% in 2005. The accord also opens new prospects for U.S. suppliers of services like telecommunications, insurance, and banking. After accomplishing a two-pronged WTO accord with the EU and other trading associates in summer 2000, the People’s Republic China worked on a polygonal WTO concurrence package. To enhance exports, the People’s Republic China has gone along with policies such as fostering the fast expansion of foreign-invested factories, which assembled imported machinery into consumer products for export. The People’s Republic China joined the WTO on December 11, 2001, after 15 years of discussions, the best ever in GATT history (Li, pp. 383-400). The issue of foreign investments have been greatly instrumental in this context.

Foreign investment in China

In 2001, China operated as APEC chair, and Shanghai hosted the annual APEC leader’s conference. During his visit to the United States in the year 1999, Premier Zhu Rongji signed a bilateral Agricultural Cooperation Contract, which revoked longstanding Chinese exclusions on the import of citrus, grain, poultry, and beef. In November 1999, the United States and People’s Republic China arrived at a historic two-sided market-access covenant to pave the way for the People’s Republic China’s attainment to the World Trade Organization (WTO). As part of the extensive trade liberalization accord, the People’s Republic China agreed to reduce tariffs and put an end to market obstructions after it become a member of the world trading body (Anwar, pp. 83-109). These measures have also instrumented the domestic development.

Domestic development

At the beginning of 2006 China arises as the second largest economy in the world determined by domestic PPP (purchasing power) measure, at about $10 trillion USD, although such approximation must be taken with a great deal of warn as PPP estimation is very vague, more than ever in a huge country like China, Chinese acquiring capacity varies radically between Shanghai and Sichuan, and PPP is immaterial for imported products and overseas acquisitions. By the end of 2008, China foresee (determined by exchange rate) to go beyond Germany as the third largest economy, and to overtake Japan by the year 2015. Thus, it is certain that China is fast becoming a global super power, at least economically and its logical transition into a political force to be highly recognized (Anwar, pp. 83-109). Thus, it is obvious that globalisation presents a good amount of positives for China.

Positive

Economic growth

Globalisation has helped China to become an economic powerhouse. Over the next 50 years, the BRICs economies, China is probable to become a much larger force in the world economy. The rate of GDP growth, income per capita and currency movements in the BRICs economies together shows possibility of their growing larger than the G6 in US dollar terms in less than 40 years. By 2025, they could attain over half the size of the G6. Of the recent G6, only the US and Japan are among the six largest economies in US dollar terms in 2050. The listing of the ten largest economies of the world may seem relatively dissimilar in 2050. The prevalent economies in the world (by GDP) may not continue to be the richest (by income per capita), thus making premeditated preferences for firms more intricate (Zhu, pp. 49-73). The end result is the development of China as a nation.

Nation status

Globalisation has given China a complete status of nation than a backward communist state. It should be mentioned that the only thing growing faster than China is the publicity of China. China being one among the world’s ancient unremitting civilizations has always left backrest of the world with its intelligence and self-reliance. The record of China’s progress over the past two decades has demonstrated naysayer wrong and optimists not positive enough. Instead of all its back drafts, China managed to pave its path to development. It could easily be predicted that in the nearest future China would accomplish its ambition of becoming the most powerful nation in the world where the local life is changing at a rapid pace (Oosterhaven, p. 354).

Life chances

In accordance to anthropological theory or concepts of monoculture, it is evident that the local judiciary or authority seldom manages to catch up with the psyche of the local culture at the advent of a foreign concept or dominant culture. However, it should be taken into account that the East has very intricate value systems, which even today pose questions to the West. A thorough understanding is needed of their culture, perceptions and style of thinking in order to accurately predict their behaviour on Western understanding scales. Ethical values and corporate social responsibility are fast gaining global priority. The corporate sector has, since long, behaved as an isolated entity, powerful enough to influence and dictate directions in the life of the common person, as well as governments. The emergence of environmental concern and sustainability issues has highlighted the role of ethics and social responsibility in the functioning of the corporate sector. Modernisation has brought in materialism and consumerism, which by itself is not detrimental. (Garnaut, 47-51) However, there negative aspects of globalisation too.

Negative

Social Impact

Western festivals like Christmas and Valentine’s Day are taking over the traditional festivals of China like Bullfight Festival of Miao, Knife-Pole Festival of Lisu, Torch Festival of Yi and Water-Splashing Festival of Dai. This is a serious consequence and hybridization of cultures due to globalization can be identified as chief culprit. Globalization has an assortment of characteristics, which influence the world in numerous dissimilar ways. The various forms of Globalization are as such, Industrial Globalization, pseudonym Trans-nationalization is surfacing of worldwide manufacture markets and wider access to an assortment of merchandise for consumers and companies. The lack of interest in local festivals indicates the ramification of local culture due to close contact with foreign festive cultures developed by close contacts due to globalization. Loss of local festival means loss of identity and existence crisis for the local population. Steps must be taken to prevent this from happening. Government must take needed measures to save the local festivals of China. (Garnaut, 67-9) Another problem is the business system that has to be changed to become at par with the rest of the world.

Trading problems with other country

The primary factor for China to conceptualize would be the fact that every country pursues business differently. Laws affect the ways in which business is conducted from region to region and country to country. Negotiations are never conducted exactly as they would be where you have pursued such actions in any city, in any state in whichever country from which you originate. Knowledge and understanding of how others conduct business is an incredible advantage toward the understanding of global management accountancy situations. For example, where the deal is always the single most important consideration to Americans, the details and the way those details are ironed out would be more important for Europeans and Asians. This is where cultures clash in the boardroom. Something many who are experienced in global management accountancy would state unequivocally (Zhongguo, p. 44). However, all these changes and fast economic growth resulted in unequal growth of prosperity that is creating drift between the rich and poor.

Poor and richness

Ideally, it is believed that globalization is the means to create a global positive impact upon the poor and the poverty in general by opening the doors to availability of a host of opportunities and resources, which would have, otherwise not been available nationally. The downside is that globalization seems to profit the rich more and the poor less, thus widening the gap further. It is true that globalization actually means the broadening of global linkages, while also affecting upon the social and cultural dimensions of the global society, hence propagating a one-world-citizenship, which has one economy, one culture and one social order. This is the process with which the poor countries can think of modernization and global competition, enhanced living standards, and work opportunities; on the other hand, this very same process is the one, which can destroy economies by sudden influx of foreign capital, can destroy marginalized workers livelihood and destabilize national banks. Hence, globalization literally is like a coin – with two very separate sides and much of it is realized in China (Zhongguo, p. 166).

Conclusion

Globalization is the comprehension of a universal widespread market, based on the liberty of exchange of supplies and capital. Political Globalization is the conception of a world government, which controls the associations between countries and assures the rights arising from communal and financial globalization. However, it should be mentioned that China has coped with the changes quite well in its own way. In this context, it should also be mentioned that as far as international strategic order is concerned China has projected its position in this aspect with great success. It is true that their ideas about values are different but they hardly exert it on their foreign issues. That way China remains at par with rest of the world. Thus in a way there is every possibility that China is likely to be a “status quo” power. However, it is clear from the discussion that globalisation has influenced China and there are both good and evil sides of this situation. On one side, it has developed the economy of China but on the other side, it has neutralized the local customs of the country. Thus, globalisation presents a mixed bag for China.

Works Cited

  1. Anwar, Syed Tariq; Trends in international business thought and literature: Reviewing east asia’s miracle, its economic dynamism, and future issues; The International Executive; 39, 1, 83-109, Wiley Company, 2007
  2. Bergsten, C. Fred, Bates Gill, Nicholas R. Lardy, Derek Mitchell; China: The Balance Sheet: What the World Needs to Know Now about the Emerging Superpower; Perseus Books Group, 2007
  3. Garnaut, Ross & Ligang Song; China: Is Rapid Growth Sustainable?; Asia Pacific Press: Australian National University, 2004
  4. Kynge, James; China Shakes the World: A Titan’s Rise and Troubled Future–And the Challenge for America; Houghton Mifflin, 2007
  5. Li, Julie Juan, Laura Poppo, Kevin Zheng Zhou; Do managerial ties in China always produce value? Competition, uncertainty, and domestic vs. foreign firms; Strategic Management Journal; 29, 4, 383-400; Department of Marketing, City University of Hong Kong, Kowloon Tong, 2008
  6. Oosterhaven, Jan & Tianhu Fan; Impact of international tourism on the Chinese economy; International Journal of Tourism Research; 8, 5, 347-354; Faculty of Economics, University of Groningen, 2006
  7. Zhongguo, she Hui; China: An Economics Research Study Series; Eastern Universities Press, 2004
  8. Zhu, Cherrie Jiuhua, Chris Nyland; Marketization, globalization, and social protection reform in China: Implications for the global social protection debate and for foreign investors; Thunderbird International Business Review; 47, 1, 49-73; Faculty of Business and Economics, Monash University, 2008

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