China Globalisation

Introduction – International Convergence

We often hear that the world is getting smaller... this doesn't mean the world is literally becoming smaller but the interactions between nations is greatly increasing due to GLOBALISATION. This is the process interaction among nations around the world in order to develop the global economy and it also refers to the integration of economies and societies all over the world. China is one of the few countries that have been able to take advantage of globalisation which has made China what it is now!

Economic growth

China is a dominant player in the global economy standing as the 3rd largest economy in the world after the USA and Japan as result of sustained economic growth averaging over 10% GDP per annum throughout the last thirty years. This is incredible considering China's standing as the 49th largest economy in 1975. Remarkably, China as the fastest growing economy in the world over the last three decades with a population of 1.3 billion and the 3rd largest geographical space of any country has the potential to become the most dominant player in the global economy. Refer to Appendix A & B.

China is being called a "phenomenal economy" because it has preserved an 8% growth rate of its GDP while the rest of the world sinks into a recession and its ability to survive and significantly assist the entire global economy against the calamities of the worst global economic crisis, since the great depression, in 2008 which is an example of China's economic strength and power.

China adopting globalisation, the process of on-going development and deepening of world markets in capital, goods and services through increasing commercial exchanges across national boundaries, has been the channel for much of this economic success.

As such the process of globalisation has had a profoundly positive impact on China that has extended beyond economic growth into important areas such as economic development. For example, over 400 million people have been lifted out of poverty since china embraced globalisation with its "open door" policy in 1980.

Economic Development & Quality Of Life

China's economic development and quality of life has made rapid progress which has resulted in substantial increases in HDI. Today, China ranks as the 81st nation in terms of Human Development Index (HDI) which currently is .777, moving over 20 places since the early 1980's. In 2009 China's trade surplus was about US$200 billion, having a surplus allowed to the Chinese government to spend on HDI factors such as education, technology and health. There are numerous reasons that China's HDI has increased considerably, an example may include the opening up of TNC's that gives the Chinese people additional wealth which allows them to increasing in leisure spending, hence improving their quality of life and living standards.

This improvement in both HDI and quality of life is owed to the process of globalisation. Thanks to this process China is on its way to become a developed economy and has aimed of achieving a rank of 50th in HDI by 2020.

Environment Consequences & Income Distribution

Admittedly the economic story of China, influenced by globalisation has been predominately positive. The growth of the industrial sector in the Chinese economy has come at a cost and with it have arisen a series of negative outcomes especially in the areas of environmental degradation and income inequality. Today, China has 16 out of the world's 20 most polluted cities and pollution alone costs China over $US200 million each year. Also air pollution is a major cause of death in Chinese on average 750,000 people die prematurely due to respiratory issues. This also leads to acid rain on over 30% of China's territory. Refer to Appendix C & D.

Cheap labour & lands-?? foreign investment--? Economic development and growth--? ?pollutions

The increasing difference of income distribution between China's industrialised areas compared to its rural areas but this is all on the change. An industry worker gets about $90US per month whilst it takes a framer about 6 months to earn that. In recent years TNC's have looked to open factories in rural areas where it's cheaper to maintain factories and employ people. This has transformed farming villages into manufacturing powerhouses which brought higher wages to rural areas. Thus causing private consumption to increase, which is a bonus to the Chinese economy, as rural areas makes up 60% of the population. An increase in income has also caused the overall life expectancy rate to increase to 72.5 years. Refer to Appendix