Globalization_Does_Have_a_Positive_Effect_on_China

Section: 32 CRN: 771 Student ID: 1167348 Name: SUN Kexun(Sophie) TOPITC: Globalization does have a positive effect on China The argument for globalization emerged as soon as China carried out its Reform and Opening-up Policy, and with a greater degree of China’s involvement in the global market, the discussion has been enduring and getting heated. Its export occupies a terrific position in the world market, but faced with the imposition of restrictions from other countries at the same time, like the case of the special protectionist tariffs on tire imports from China, conducted by President Obama; China also provides a permissive market for foreign productions and its own consumers, which, however, may threaten its domestic enterprises. As a result, China is confronted with both benefits and attacks from outside world, and many people argue that the harm of globalization is much larger than its benefit. Here we are going to argue that the trend of globalization has had mainly a positive influence on China in both economic development and democratization in political domain. Firstly, huge economic progress has been made after China entered into global market. As Chow recorded, “the total volume of exports and imports increased from 20.64 billion US dollars in 1978 to 1.1 trillion US dollars in 2004”(Chow, 2005). From the increasing numbers we can see that China really benefits from globalization in both exports and imports. The exports, which include hardworking talents and inexpensive manufactures, can not only increase the employment,(7.5 million jobs are created due to exports in 2000-2005 (Feenstra, 2007).) but also make the most of domestic human resources in exchange for other better resources or productions. As China has the comparative advantage in manufacturing, she must acquire more other goods than through producing them alone (Chow, 2005). In turn, the imports of China also benefit her a lot in economic development. For example, China also brings in large number of foreign capital to build up and promote its industries. According to the China Statistical Yearbook, the total value of foreign capital used is 20 times more than that in 1985 (National Bureau of Statistics of China, 2010). In a word, the circulation of import and export shapes a dynamic market in China and pushes its economics forward through the process of globalization. Furthermore, globalization can help to improve the democratization and political reform in China. As a result of globalization, the economic freedom and increasing incomes of people help to nurture a more educated middle class. From the perspective of middle class, who set up the fertile ground for democracy, a rise in economic status spurs their political awareness and they begin to pursue a more transparent government to allocate the social resources efficiently and equally. For example, the netizens, most of who needn’t to struggle for their life, usually expose some illegal or immoral actions of the people in power thus push much pressure on the government. On the other hand, the authority, who is the actor of political reform, has to carry out democracy under internal and external pressure. The domestic pressure, which we have mentioned, is the requirement from the mass. While the pressure from outside usually comes as accessories of economic openness. As Dalpino, a scholar of Southeast Asian Studies, emphasizes, the US encouraged China to enter into WTO to “require the regime in Beijing to provide a more transparent and accountable government and strengthen the concept of the rule of law” (The Brookings Institution, n.d.). From these two sides, democratization is a foreseen consequence of globalization for China. On the other hand, quite a few people argue that foreign companies shocked local or domestic enterprises, and that the market share of products from abroad or produced by domestic foreign-invested enterprises is soaring. Over time we would lose independence in economy. However, things are not like that actually. Although national industries are faced with the risk of being replaced by foreign companies, it can also be a good opportunity to encourage their innovation and to raise consciousness about competition. Where there a need, there is a market. Consumers’ preference to foreign products implies the weakness and shortages of home products like the lack of creativity and low quality. Under the pressure, domestic producers have to work harder and be outstanding in globalization. And they do. From the result of Li and Florida’s research, we can see that technology has positive and significant relationship with the output. Shanghai and Beijing, whose technological innovation rank the highest among other cities, have the better economic performance than others (Li& Florida, 2006). So though there are challenges, we can have modification and make better use of the globalization. To sum up, from domains of economics and politics, globalization is a strong impetus to China’s society. The Chinese market is getting more active and being improved significantly with the interaction with rest of the world, and a democratic, transparent and efficient government is on the way as response to globalization. In addition, to avoid the negative influence of globalization, China should keep its independence among global market and adapt to the pace of globalization at the same time, in which way can it have a brighter future. Reference List: Chow, G. C. (2005, September). Globalization and China’s Economic and Financial Development. Princeton University, Department of Economics, Center for Economic Policy Studies, Working Paper No. 115, p.7. Retrieved from: http://www.princeton.edu/~ceps/workingpapers/115chow.pdf Dalpino, C. E.(n.d.) Does Globalization Promote Democracy': An early assessment. The Brookings Institution. Retrieved from: http://www.brookings.edu/articles/2001/fall_democracy_dalpino.aspx Feenstra C. R. (2007, August). China's Exports and Employment. University of California, Davis, & National Bureau of Economic Research, & Chang Hong International Monetary Fund. Retrieved from: http://www.nber.org/books_in_progress/china07/feenstra-hong8-31-07.pdf National Bureau of Statistics of China. (2010). China Statistical Yearbook 2010: 6-13 Utilization of Foreign Capital. Beijing. Revised from: http://www.stats.gov.cn/tjsj/ndsj/2010/html/R0613e.htm Li, T.,& Florida, R. (2006). Talent, Technological Innovation and Economic Growth in China. The Martin Prosperity Institute, University of Toronto. Retrieved from: http://www.rotman.utoronto.ca/userfiles/prosperity/File/Talent_Technological_Innovation_and_Economic_Growth_in_China .w.cover.website.pdf