Discuss the Effects of Globalisation on Economic Growth and the Quality of Life in the Chinese Economy

Globalization is when the world becomes more connected. Basically any process that involves economic choices, it has some type of consequence. China has one of the most fast growing economies. It has also been experiences that has resulted in globalization. Air pollution has been the biggest of them yet. Globalization has led to a high level of pollution in China's cities due to high manufacturing and a large population growth.

It is this that has sparked China’s vulnerability to external shocks. In 2011, China’s exports amassed almost $2 trillion, however in Feb 2012, China recorded a $31.5 billion trade deficit as a result of the European sovereign debt crisis in which China’s main trading partners plunged into recession. China’s severe BOGS decrease is an attempt to control growth and a sustained level of 7.5%. Investment policies are also critical for China to achieve economic growth and development. Foreign Direct Investment (FDI) in China is being sought primarily in the redesign of State Owned Enterprises (SOE’s) and in the development of interior provinces. Between 75-80% of World Bank loans to China in 2008 were directed to the central and western regions, the most economically disadvantaged. This promotes increased wealth within China, leading to higher levels of development due to a more positive Human Development Index (HDI), which currently sits at 0.687, up from 0.677 in 2010. Thus, trade and investment are critical factors in ensuring that China’s growth remains sustained at 7.5% whilst still encouraging increases in development.

Since the implementation of the "reform and opening-up" policy in 1978, China's economy has been undergoing a rapid and healthy development. Over the past 27 years, China's annual GDP growth has averaged 9.4 per cent, more than doubled that of the world as well as more than two folds that of the developed nations over the same period. In 2004, China's GDP reached USD1650billion, an increase of 9.5 per cent over 2003.(The Embassy of the People's Republic of China in Australia, June 2005)

The purpose of this research report is to provide an overview of China’s economic growth in relation to the long term economic growth drivers. Critical assessment will be made on the growth drivers to determine whether they lead to long term economic growth.

Globalization is a process that refers to the increased integration between different countries and economies as well as the increased impact of international influences on all aspects of life and economic activity. Over the last 50 years, globalization has had a tremendous impact on the Chinese economy. The impacts brought forth by globalization can be both positive and negative and effect both economic performance, economic growth and the development of China’s economy. Globalization is the main factor responsible for China’s significant growth that has taken place over the last two decades. However, globalization itself is not entirely responsible. The Chinese economy has also implemented strategies which have been very effective in promoting economic growth and development. These strategies include the implantation of“Open door policy”, “Reformation” of China’s agricultural system and joining the World Trade Organisation.

The goals of Deng Xiaoping’s economic reform were the ‘Four Modernizations’. This Four Modernization refers to the reform of agriculture, industry, national defense, and science technology. These reforms were to solve the problems of motivating workers and farmers to produce a larger surplus and to eliminate economic imbalances that were common in command economies.

However, Deng tried to notify that “Socialism does not mean shared poverty.” Deng’s reform policy consisted the introduction of centralized and planned arrangement of the Macro economy, which abolished Mao’s economic construction. However, Deng preserved Mao’s legacy to the point where he emboldened decentralization of decision making for the rural economic groups, and illuminated the primacy of agricultural output. China relied heavily on its agricultural industry during the 1960s, and the goal of this first Four Modernization was to advance the agriculture in China. This meant that China must have a stronger economic foundation. Not only that, millions of people in China were facing starvation ad poverty due to the failure of the cultural revolution. The economic structure of China had to change. To advance the living standards of the citizens in China, and produce a healthier society with access to food, this consisted of introducing new and advanced farming technology, and producing more irrigation systems. To accomplish this, China must operate within the global economy, therefore, open its doors to other nations. This was called the Open-Door Policy, Deng had invited European and American politicians to invest in Chinese industrial development, when they agreed to do so, the Four Modernizations were commenced. Under the Household Responsibility System, each peasant household received a plot of land in which they must sustain, this had provided them with economic as well as political benefits. Moreover, in 1989, 90 percent of households had joined this system. Rather than concentrating on political appeals, which were encouragements for the labor force, such as influencing peasants to earn more money by selling products of their private property at the free market. Deng concentrated on dividing the

On the other hand, in China, Deng Xiaoping focused on the Four Modernizations: industry, agriculture, technology, and national defense. Differing from the Gorbachev’s reform, many of the restrictions against private activities and profit incentives were eliminated, and the government encouraged everyone to work hard to receive their own benefits. The new slogan replaced the tenets of Mao Zedong thought: “Create wealth for the people.” Another success of this program was the attraction for foreign technology and capital by the government’s ability; thousands of students and specialists abroad to study capitalist techniques. Even though Deng’s program had failed to achieve a “fifth modernization” – democracy, his reform helped China make great

Globalization is an important term that is partially responsible for an economic revolution that took place around the world. Theodore Levitt, a former Harvard Business Review editor, coined the term “globalization” and used it for the first time in one of his articles in 1983 (Los Angeles Times magazine, 2006). According to the Business Dictionary, globalization can be defined as “the worldwide movement toward economic, financial, trade, and communications integration” (businessdictonary.com). China can be considered as an excellent example to demonstrate globalization. When Deng Xiaoping was elected as the Communist Party leader, he brought about economic reforms that opened the Chinese economy to the rest of the world and later introduced itself into the World Trade Organization (WTO) in 2001 (bbc.co.uk, 2006). Hence, expanding the growth rate of the Chinese economy, which has been constantly rising over the past decade. As of 2016, China is the second largest economy in the world with a GDP of $12.9 billion USD, and will continue to grow following the trail the United States (money.cnn.com, 2016). The emergence of China and its success as a powerful economy in the world can be partially credited to globalization. The following paper focuses on both the positive and negative ways in which China has been affected by globalization and its outcome that has placed China to where it is today.

In accordance to this, China went on a construction binge. Whole factories were purchased from abroad while others were built with local resources. By 1978, the frenzy for new projects reached a level that reminded some people of the Great Leap Forward. In an effort to promote agricultural production, the government released many of the restrictions on the 'spontaneous capitalist tendencies' of the peasantry. (173) In the late 1980's, the government decided to expand the scope of private marketing. The next step was to increase the amount land assigned to the peasants. The peasants were now not responsible to the government for the use they made to the private plots. They simply could grow what they wished, for the sale to the government or to private markets. This led to furious rebuilding and inflow of foreign investments. All this enabled China to remake itself into Asian's hub of finance, trade and culture.

The changes in China’s economy can be traced to between 1976 to 1978, when the Cultural Revolution had effectively ended and widespread social, economic, and political conflict that accompanied it. The Culture Revolution was motivated in large part by revolution ideology and an attempt to purge the state of its “liberal bourgeoisie” elements, hence the forced reeducation and relocation from the cities to rural areas of millions of Chinese citizens . As the havoc wrought by the Cultural Revolution dissipated, China’s leaders focused on the goal of enriching their impoverished nation. The nation had been paralyzed economically by the chaos that had ensued . While there was agreement among China’s political leaders regarding the need for economic change, the road forward for the nation was unclear.

Deng Xiaoping was one the the Chinese Communist Party leaders. His goal for China was to get it back on the right path, which was economic development within the country. China’s economic development has abruptly stopped under the leadership of Mao Zedong. Deng Xiaoping said “practice is the sole criterion of truth”. His mindset was that by practicing and experimenting with different forms of production and ideas for entrepreneurship, China would be successful in finding their way back to economic development. This started China’s path to economic development through experiments with capitalist methods of production. Thee Four Modernizations were goals that were set by Shou Enlai first, in 1963, but they were later enacted by Deng Xiaoping in 1978. These goals were set in order to strengthen the fields of agriculture, industry, national defense, and science and technology in China. They were enacted in hope of saving China’s economy, following the death of Mao Zedong. These reforms stressed economic self-reliance. They wanted China to have a sense of stability in their economy, while being independent at the same time. The Four Modernizations were designed to make China an economic power by the early 21st century. China was, in fact, able to hurry along their economic development with the help of these reforms. China used foreign investment, a more open market, access to advanced technologies and management experience. Deng was basically making all of the decisions for

Since the reform and opening-up policy published in China in 1978, Chinese economy boomed in the past decades. China is facing great opportunities with its Chinese features; however, it also brings some negative

China has been an enigma for centuries, always one of the world 's most impressive civilizations and cultures known for "outpacing the rest of the world in the arts and sciences" (CIA, 2000; p. ch), often by differences measured not in months or years, but in centuries. China 's fall to communism and the strict dictatorship of Mao Zedong is well documented, as is the economic experimentation instituted by Deng Xiaoping after Mao 's death in 1978.

Huang argues that the results of China 's economic development are mainly due to internal reforms which are the reforms of China’s rural industry. On the contrary, external reforms which made the contribution in the political sense, such as the establishment of special economic zones and foreign direct investment(FDI) , is not a general function as township and village enterprises(TVEs) did in China’s economic development.