Positive and Negative Impacts of Globalization in China

Abstract

This paper regards it as its main task to examine systematically the Chinese reactions to globalization. To achieve this goal, the analysis will focus on three questions. Firstly, it will find out the general understanding of globalization by the Chinese elite. The term "general understanding" means in this sense the understanding which most Chinese scholars and politicians seem to share regardless of whether he or she is "pro-globalization" or "anti-globalization". Secondly, it will try to identify the main strains of the Chinese debate on globalization. In doing so, the substantial arguments of the different groups will be reported briefly.1 Finally, the paper attempts to outline the policies used by the Chinese government to meet the challenges of globalization.

Table of Contents

Abstract2

Chapter I: Introduction5

1.1 Background5

1.2 Methodology - Secondary6

1.3 Limitations of the study6

1.4 Overview of Report7

Chapter II: Literature Review11

2.1 What is Globalization?11

2.2 Impact of Globalization on Nations12

2.3 Institutional change, reforms and opening of the economies14

2.4 Structural features of development and key imbalances16

Chapter III: Developments in China Arising from Globalization Effect18

3.1 WTO Accession China18

3.2 Open Door Policy21

3.3 Economic Globalization22

3.4 Living Standard has increased23

3.5 Social and Political Impact25

3.6 Free Trade25

3.7 Current Plan in Pursuing FDI28

3.8 Privatisation31

3.9 Why China is Attracting FDI33

3.10 Competitive Advantages in Global Market36

Chapter IV: Negative Impacts of Globalization38

4.1 Quality of Life and the Environment38

4.1.1 Worker Exploitation38

4.1.2 Health and Education39

4.1.3 Poverty and Inequality41

4.1.4 Environment44

4.2 How to Keep Competitors out45

4.3 Debt crises and marketization under Pressure47

Chapter V: Future Recommendations52

5.1 Tear down the administrative interventions by party organizations and government agencies into the enterprises.52

5.2 Introduce social security system.53

5.3 Develop human capital and attract human resources.53

5.4 Streamline the state institutions.54

5.5 Reconstructing the legal system.54

Chapter VI: Conclusion56

References58

Positive and Negative Impacts of Globalization in China

Chapter I: Introduction

1.1 Background

It is certainly disputable to say that there is a general understanding with which all Chinese taking part in the globalization debate agree. But on the other side, there are at least three assumptions less controversial amongst most people.

The majority of the Chinese elite seems to believe that the trends of globalization are inevitable. They believe strongly there is no alternative to globalization. This attitude is basically in accord with the understanding of the globalization by the International Monetary Fund. As Eduardo Aninat, IMF Deputy Managing Director, noted, "China must make decisions that will determine how well it integrates further into the global system. There is no longer a question of whether to integrate, but only of how best to do so." (Liu Kang 2003) Indeed, the feeling you cannot stop globalization, and that globalization will continue to go on regardless of whether you are willing to go with it or not exists strongly in the minds of many people. Pang Zhongying, a senior diplomat of the Chinese Foreign Ministry, called globalization, for instance, a "new issue" in history, and warned the Chinese "you can't refuse any new issues, much less move against the trends of history." (GUTHRIE 2009)

1.2 Methodology - Secondary

The method of investigation used consists of a theoretical framework of secondary data by ...