The rapid integration of the world’s economic systems through the breaking down of barriers to trade, finance, investment, technology and labour around the world has had profound effects on the Chinese economy. The world ’s largest economy has embraced the process of globalisation through trade liberalisation, financial market reform and the ‘open door policy’ therefore enabling China to receive the benefits of globalisation. This process has stimulated economic growth leading to sustained increases in per capita incomes, improvements in quality of life and significant reductions in poverty and unemployment. However, the effects of globalisation and rapid economic growth have come at a cost, resulting in significant environmental degradation …show more content…
Trade liberalisation and the reduction in bureaucracy has enabled overseas firms to enter the Chinese market to take advantage of cheap and vast labour, creating millions of jobs. However, the privatisation of state-owned enterprises in the face of international competition as well as economic restructuring has also simultaneously led to mass job losses, especially in rural areas, posing a challenge to the Chinese economy and the government. During the period 2009 to 2015, China’s urban unemployment rate averaged 4.8% which is lower than the world average of around 7%. However, the real unemployment situation is likely to be more serious as migrant workers and newly graduated students are not included in government statistics on unemployment. As well as this, China has had historically low levels of unemployment, thus, a trend of increasing unemployment levels indicates a worsening situation. We can see the extent to which the impacts of globalisation have had on China, through historical unemployment statistics. In 2009, unemployment reached a 30 year high of 5.4% reflecting the impacts of the Global Financial Crisis and highlighting that China is now increasingly exposed to external shocks. The movement away from labour intensive industries (i.e. manufacturing and agriculture) and the effort towards service based industries, due to the process of …show more content…
American economist, Rostow through his ‘Stages of Economic Development’ demonstrates that economies may ignore environmental quality in their quest for growth. This notion is true in China, with government and private firms using unsustainable practices in order to maximise globalisation opportunities. China suffers mostly from chronic air and water pollution caused by both the demand for energy (i.e. coal mines) as well as the process of manufacturing. This effect on the Chinese economy is quantified through China’s emissions, which in 2010, was 8,286 million metric tonnes, 35% higher than the next uppermost emitter, the United States. China is also home to 16 out of 20 most polluted cities in the world. Consequences for not cleaning up the environment will not just be a health crisis but an economic one. The Chinese government is now recognising and addressing the environmental problems which have occurred due to both rapid economic growth and industrialisation. It has set targets which aim at reducing pollution levels with $6.6b committed in spending in order to achieve such targets. Such examples include investment in nuclear power instead of coal, hydroelectricity (i.e. Three Gorges Dam) as well as new stringent environmental laws. It is hoped that new regulations and investment will lead the way for renewable energy and a sustainable
Shanghai is one of the most cities with developed economy due to this many people come to the town to find work. During 1983 and 2000 years the number of migrant workers increased from 0.5 million people to 3.87 million people. A large percentage of migrant workers work on manufacturing (25.8%). 19.6% and 13.9% people earn money on construction and trade, respectively. In public organizations often work native citizens than immigrants. In the other spheres such as skill...
One of China’s best successes has in turn been one of its biggest downfalls. One of the main problems is China’s greatest success which has been its phenomenal economic growth. This is one of the main drivers of the current environmental problems that the country faces. Factories dump pollutants into the air and water. It is difficult to see the Chinese government making the significant sacrifices required to improve their environment if it means slowing down their economic growth.
In 2005, Chile and China signed a free trade agreement, the first agreement of its type ever signed in Latin America. Since the agreement was signed, trade between China and Chile has grown exponentially. Chile is the leading country in Latin America that has maintained good relations with China, beginning in 1970 when Chile was the first South American country to recognize the Peoples Republic of China (Jenkins 2009). Over the years their relationship has continued to develop through the many rounds of discussions that have taken place since the FTA was first established. By examining the economic implications the China-Chile FTA has had on the Chilean economy, it is seen that while both countries trade markets are benefiting, the Chilean market is facing more negative impacts than the Chinese economy. Although both countries have solid reasoning to invest with one another, China has had much more to gain from entering into this trade relationship.
China and Japan both had very relatable experiences from the 1800s to present times, as they both have had to completely or partially abandon prior political polies that were deemed no longer applicable. For example, in 1978 Chinese Chairman Deng Xiaoping abandoned a vast majority of the policies that Chairman Mao Zedong had implemented during his reign. Though Mao considered them all fundamental to communist China, they often did not work or caused more harm than good. For the Japanese, they initially attempted to resist the outside influence of the Americans in the early 1800s, however they were no match against them and implemented Westernization to become a better nation.
China’s economy is one very large indicator of its role in globalization. “In 2010 China became the world’s largest exporter” (CIA World Factbook). Without China many places such as the United States of America would be without billions of goods imported from China annually. An influx of companies moving their manufacturing to China has allowed people to flock to cities and find jobs. China’s economy has grown exponentially over the last few decades. In the last three years China’s economy has grown by nearly ten percent every year. Despite this influx of money to China it has also resulted in many drawbacks. For example, China’s environment has been obliterated. China burns more coal than every country in the world combined. Beijing has been so badly polluted that there are actually companies that sell cans of fresh air to people, and gas masks are a common sight. On January 12th 2013 Beijing’s air pollution reached a record setting 775 PPM. To put that into perspective, the scale for measuring pollution is 0-500 PPM. This set an all-time recorded high. In Los Angeles a high ...
The renowned American anthropologist and cross-cultural researcher Edward Hall has stated “culture is communication and communication is culture” (Pennycook, 1985, pp. 269). Accordingly, a thorough study of the communicative patterns of any group provides a window into that group and vice versa. This section will compare the culture and communication patterns of China with those present in the United States of America. This comparison will be accomplished by examining four cultural dimensions or aspects of communication. For convenience and clarity, the presentation of these dimensions will be broken down into four subsections: power distance, individualism/collectivism, high-context/low-context communication, and proxemics.
The Three Gorges Hydroelectric Dam was envisioned as China’s new symbol of power in a world that is driven by the latest innovations. However, today it is viewed around the world as a catastrophic environmental disaster that became a reality through corruption, improper planning, and complete disregard to pleas of warning. The dam was China’s answer to control annual flooding, a problem that in 1998 displaced 300 million Chinese who lived on the banks of the Yangtze River. It was also China’s tactic to increase international trade by deepening the Yangtze River to accommodate large cargo ships farther into Mainland China. Most importantly, it was China’s 24 billion dollar investment to decrease the annual burning of 50 million tons of coal with the goal of producing 10 percent of China’s total electricity needs by 2012 in response to the needs of its growing population. Despite these goals of economic growth and clean energy production, government officials ‘cut-corners’ during inspection to save money and refused to listen to warnings from engineers and environmentalists regarding the potential environmental devastation. “China decided to launch the project – then solve the problems along the way.” (John Byrne, the director of the University of Delaware’s Center for Energy and Environmental Policy)
Another negative aspect of globalization that can be closely linked to the settlement of MNCs and FDI in China and the exploitation of its resources is that the returns of the investment placed in China or the money made by the MNCs is fully returned to the home country of the MNC. When MNCs settle in China, they do pay a corporate tax to the Chinese government. The benefits of this to the government is that they will charge them corporate taxes and have jobs in the labor force created. However, the profits made by these MNCs do not retain in China and are sent back to their home country. This implies that the MNCs simply exploit the resources available in China such as cheap labor and low production costs and do not fully return benefits to the Chinese people. This also creates a loss of economic sovereignty and loss of economic security in China as its resources are being used up and it is not
An efficient life is one of the issues that prevents the government in the world to put full effort into protecting the environment. There is a trade off between a country’s development and environmental policy. For example, China has achieved rapid economic growth through industrialization in past few decades and become one of the largest economic power countries in the world. As a developing country, China wishes to use all the resources in the nature to boost their economic. The government wants to earn more money to improve rural areas in China and to reduce the poverty rate in the country. In order to reach those goals, mirac...
The population of China has change rapidly as well as the main sectors of jobs. China has changed their Life style from agriculture being the largest section at 42% of China working in farming and other agricultural related work, while services was at 32.2% and Industrial work being the smallest at 25,2%. But in 2011 35.7% of the population is was working in services, 29.5% in industry and the agriculture section of China to 34.8% making the sections quite even .When the population grew the Chinese had a large change and started to even out the three sections.
China has approximately 20% of the world’s population, which is around 1.3 billion people (Morris, 2009, p. 111). Also, China has become one of the worlds biggest manufacturing countries within 30 years (Fawssett, 2009, p. 27). However, such rapid development has come at a cost, which has created various environmental problems. Coincidentally, China has 16 cities on a list of the 20 worst polluted cities in the world (Fawssett, 2009, p. 15). Therefore, this essay will explain the reasons for China’s environmental problems, then evaluate the claim that the Chinese government and people, are tackling these environmental problems. First, crop farming techniques over the last hundred years, and their consequences will be explained. Followed by, how peoples choice in food has changed over the last hundred years, and how this indirectly affects the environment. Then, how a capitalist economy is linked to agriculture, and finally what the Chinese government and people are doing to tackle these problems.
Zhu, Y. & Warner, M. (2000). “An Emerging model of employment relations in China: a divergent path from the Japanese?” International Business Review, 2000, Vol.9 (3), pp.345-361. [03 April 2014]
Though China is the world's fifth-largest country in terms of area and the second largest country in Asia, it is the most populous country in the world. There is over one billion Chinese people which is 19 percent of the world's population and the population still keeps growing. From 2000 to 2010, Chinese population growth is about 6.2% and if we compared the population from 1960 with 2010, the population had grown more than 100%. While half of Chinese people live in the rural areas, the urban population is growing rapidly. In January 2012, urban population has exceeded the rural population for the first time. Now about 100 million rural people become migrant workers which move in and out the cities in search of work. This has caused many problems in China , since in the past and the present day, such as traffic jams in the city, pollution, and most importantly the shortage of food and shelter. This might affect the Chinese economic as well.
When the new Chinese Government was set up in 1949, the new government faced a lot of problems. First on their agenda was how to re-build the country. As Communist Party of China (CPC) is a socialist party, their policies at the time were similar to that of the Soviet Union’s. Consequently, the CPC used a centrally planned strategy as its economic strategy when it first began. For a long time, the Chinese economy was a centrally planned economy in which none other than the state owned all companies. In fact, there were absolutely no entrepreneurs. As time went on, the problems of a centrally planned economy started to appear, such as low productivity, which was the key reason for restricting the development of China. With the population growing, the limitations of the centrally planned economy were clear. In 1978 China started its economic reform whose goal was to generate sufficient surplus value to finance the modernization of the Chinese economy. In the beginning, in the late 1970s and early 19...
4. Discuss the forces that are leading international firms to the globalization of their sourcing, production, and marketing.