Globalisation challenges facing China

argona(a)ization challenges facing chinawarewareThe aim of this turn over is to identify the challenges that globalization presents or is presenting to The Peoples Re existence of China, and show Chinas reaction to these challenges. globalisation as a building block refers to channel toward a more(prenominal)(prenominal) integrated and interdependent world economy. ( heap, 2009, p6). Globalisation can be projected at from a market point and in addition a production point. A market point referring to creating a global market place where markets that were once separated by different barriers cause atomic enactment 53. Hill (2009). Globalisation of production refers to the manipulation and taking advantage of the differences related to to factors of production oecumenical, for example be of different factors may vary. This is cal direct out sourcing of production. Hill (2009)China is a perfect example for globalisation ,with a creation of 1.3 billion people and with a culture dating back 6000 geezerhood, these magnanimous patterns and strong cultural background form a both(prenominal) a large market and a large work force. Politically, China is governed by the CCP (Chinese Communist Party).(Kahn, 2009) China is sleek over perceived as one of the key players to lead the world out of recession.1.1Methodology.Secondary research has been apply to compile this report. With an aim of getting academic facts most globalisation, and up to visualise information on China, both text supports and internet sources overhear been used. The capital(prenominal) text book for the research for this assignment has been International Business by Charles W.L. Hill.2. Chinas populationWith just over 1.3 billion people, china has the biggest population and is the worlds largest commonwealth .As the worlds population is approximately 6.7 billion, china represents almost 20% of the worlds population .2.1 Chinas economy.Since the launching of the scotch so rt outs in the late 1970s which focussed on decollectivization of agriculture, liberalisation of prices, decentralization of economic production, granting more independence to state-owned business enterp parachutes, opening up the country to foreign direct investment chinas economy has had substantial product.In the period of 1990-2004, its economy grew at an average rate of over 9.5%,the highschoolest maturement rate in the world. In the fiscal year of 2007, chinas GDP stood at US$3.4 trillion making it the worlds third largest economy by GDP, afterward the United States and Japan (CNN 2009), and in 2009 surpassed Ger galore(postnominal) becoming the 2nd largest economy in per capita terms, despite global economic s slumpdown.Much of the winner is attributed to chinas slow and staunch approach in implementing the reforms.Chinas economy is expected to to grow by 9.5 % in 2010 (The State Council information look for Centre, a in the lead state hazard tank)From figure .2 we s ee that Chinas output grew by 10.3% in 2010 to, slower than its growing in the anterior quarter (11.9%), but not substantially slower. pretension in any case eased, going below the central banks official target of 3%.The slowdown is not necessarily bad news, chinas economy is now operating(a) at full capacity.3. GlobalisationGlobalisation is is the objective trend of economic outgrowth in the world today, featured by free consort and optimized allocation of capital, applied science, information and service in the global context. It is the inevitable go of the increment of productive forces and advances of science and technology, especially the revolution of information technology since the 1980s and 1990s. (H.E. Ambassador Zha Peixin At Chinese Economic Association one-year Conference (14 April, 2003))The influence of globalization on countries at different stages of development is very differentChina has taken advantage of increase globalisation to promote its growth and development. over the past 30 years chinas parcel out in world trade has diversify magnitude by over 20 times . Trade dependence rose from 10 to 36%. immaterial Direct investment has increased by almost 2009 over the previous year making China the third largest recipient of FDI . According to a modular study on the synergy of FDI conducted by the phylogeny Research Centre of the State Council, Chinas GDP recorded an average yearly growth rate of 9.7% over the past 20 years, of which 2.7% was attributed to FDI.These effects of globalisation have helped the Chinese people in terms of advanced lifestyle and one-year income and china has been label conduct the next super economic power.In 1999, the world bank and the united nations development program issued a report which points that the number of poverty stricken people is increasing in many places in the world but china is an exception. The number of rural poor decreased from 250 one thousand million in 1978 to 30 million in 2000 and poverty relative incidence from 30.7% to about 3% in 2000.However, along with these numerous opportunities ,came hefty challenges. This has led Chinese governance to adopt a series of strategically hearty policies so as to address the challenge of economic globalizationWe shall look further into these challenges in the following sections4.CHALLENGES RESPONSES OF CHINAChina faces a number of challenges due to globalisation. Some of these includeThe growing income ine smell gap between the rich and the poor.Unemployment, inflationWesternisation and the loss of strong cultural roots, and increase in corruption.Country-wide improvement of transport and communication.However, the more pressing challenges faced by china are analysed in more detail below4.1 wellness and preceptBefore the reform, Chinas two key health indicators i.e life expectancy and babe mortality were much better than average for low income countries andmiddle income countries. In the beness Health Org anizations (WHO) 1978 Alma Ata Conference Health For All by the Year 2000, Chinas primary health reverence systemwas featured as a amaze for the world. Life expectancy increased from 35 to 67 years and child mortality dropped from more than 200 per 1000 to 42 per 1000. The health dish out system has gone through some(prenominal) rounds of market oriented reform since the 1980s.Despite high GDP growth rates in recent years, the quality of the health care system has not been improved or even been maintained in many ways.Health care costs skyrocketed 15 fold even after inflation was taken into vizor (from 14.32 billion yuan to 662.33 billion yuan), as more clinics and hospitals are pressured by the profit motive.Instead of continuing as a leader of health care performance, China has flex a leader in the worldwide trend toward private health care financingIn July 2005, the Development Research Center of the StateCouncil released an official document admitting that market-oriente d health care reform had not been a Success,According to a Peoples Daily Online report in October 2004, China plans to set up a cooperative health-care engagement by 2010 to enable Chinas 900 million rural residents to enjoy basic medical care.91 In May 2004, China Daily reported that the government allow for invest 1 billion yuan ($121 million USD) in projects to improve public health infrastructure in rural areasAs with health care, procreation costs have skyrocketed in the last 20 years while the share of government financing has dropped significantly. In 1999, public expense on pedagogics was further 2.79 part of GDP, in comparison to 4.38 percent of the world average. This means that the cost of education has become very high and children from rural poor families asr forced to drop out.Also, with much emphasis being put on higher learning, education is increasingly geared toward book knowledge and college entrance exams, often ignoring community conditions and take ins.E ducation has therefore become a risky investment especially for poor countries as the chances of upwards social mobility are limitedMarch 2005, Prime Minister sebaceous cyst Jiabao announced a fee-exemption policy.The policy will remove fees for 14 million students in the countrys 592 poorest counties. The plan will continue until all rural students witness a free primary education. The government also promised funds to build up rural schools over the next five years to reflect education in urban centers-supplying technology much(prenominal) as satellite educational programs and educational DVDs.4.2 environmental degradationAs an economy grows, so does its pick out for resources and environmental problems arises. China in the main exportations are manufactured goods, and in the work out of manufacturing there is always some form of degradation or contamination done to the environment.An estimated 300million people are drinking contaminated water in china, only 20% of solid waste is properly disposed of, and only 10% of se operate is treated according to the Organization for Economic Cooperation and Development These environmental problems are costing 7% of China GDP, and will rise to 13% if this problem is not addressed properly.In 1994, the government began a massive clean up campaign for the Huai River, one of the most grime rivers in China. After billions of dollars were poured into the cleanup effort, the improvement of the water quality still remains an illusionThe development of China has been accompanied by industrial and mining accidents, and severe ecological damage such as deforestation, desertification and defect erosion, the report says. It estimates that 2.64m sq km, or 27.5% of the countrys landmass is now becoming desertified. Some cd million people are affected by extensive acres salination and blowing sand. This is leading to villages becoming buried, the reduced life of irrigation works and widescale respiratory diseases. (OECD,2 007)Chinas post pollution increased this year for the first time since 2005, the environmental protection ministry has said, due to sandstorms, a rise in construction and industrial projects, and more cars. The explosion of private vehicles in recent years (19 percent annual growth) has increased oil consumption.The ministry found that the number of good air quality days in 113 major cities across the nation had dropped 0.3 percentage points in the first six months of the year compared with the same time last year.(physorg.com) more than construction and industrial projects that started this year due to economic recovery and the fast increase in automobiles should also be blamed, Chai Fahe, vice head of the Chinese Research Academy of Environmental Sciences, told the China Daily newspaper.Theres also increased demand for oil and other fossil fuels occurs implicating a rise in carbon emissions. Both China and India are carbon hungry nations and in the past years, nations consent t o buy carbon emissions (Carbon Offsets Daily, 2009).The Chinese government has uttered a keen interest in addressing the problem by establishing many different laws and regulation regarding the environmental protection and resources managementAs a solution to global warming, the Chinese president introduced the carbon intensity measure, in this, the nation is planning to decline its emissions of CO2 per unit of GDP by 2020 (BBC News, 2009). The government is hoping to promote renewable energy resource projects, such as hydroelectric, solar and wind energy, by fling financial incentives.The Chinese government has allowed the proliferation of environmental NGOs, hoping these NGOs can fill in the gap to educate the public on related issues and address the countrys pressing ecological problems. There are about 2,000 officially registered environmental NGOs, with perhaps as many registered as business enterprises, or not registered at all. Many international NGOs such as the Nature Cons ervancy, Conservation International, World Wildlife Fund, and Greenpeace have established offices in China.Many green NGOs have worked very closely with Chinas State Environmental Protection Administration (SEPA). In December 2004, SEPA suspended the construction of about 30 large projects because they lacked the environmental impact assessment required by law4.3 CompetitorsChinas export-led economy has facilitated trading with other countries.. During the global recession prices of exports increased as a result of inflation. This gave way for other low wage countries to gain foreign direct investments from host countries that outsource labour.In 2004, several multinational companies outsourced from India and Bangladesh which offer same or even less allowance than china (srinvasan 2004)china formed partnerships with its dominant economies, Brazil, india and Russia ( also known as the Big four) in order to reduce on the competition and ready fairer trade conditions for the member c ountries.4.4 municipal consumptionChina is an export led economy and it faces the challenge of transitioning to one that depends mainly on domestic consumption. An economy cannot rely only on foreign exports for future GDP growth. Domestic demand is weak as Chinese consumption is low.Responding to the dramatic change in the economic climate, China has made a fundamental shift from over-relying on exports to boosting domestic consumption to keep its economy afloat, Chinas Vice President, Xi Jinping, calling for a new direction, argued that we must develop the economy mainly by relying on the domestic market and attach great splendor to domestic demand, especially consumption demand, in driving economic development..This may be achieved by emphasizing private consumption, keeping inflation low and sustaining a strong currency in order to keep the purchasing power of the consumer boosted. The transition, though healthy for the long-term, is unlikely to be smooth. Export-oriented fact ories cannot suddenly be rebuilt to serve domestic needs.5. ConclusionSince the economic reform when china clear up its trade barriers to other countries, it has seen high levels of economic growth.Much of this success can be attributed to its large population which provided a large work force, that enabled increase in productivity making china one of the worlds leading exporters. One can reasonably say that chinas advantage in gentlemans gentleman resources has largely been liquidated.However the number of elderly has increased alongside decrease fertility rates. leaving the government with the challenge of improving health celestial sphere so as toHigher education has increased significantly in recent years, but at the cost of basic public education for most children. One could reasonably propose that Chinas advantage in mankind resources has largely been liquidated. This also partly explains whyEnvironmental degradation has also been a key setback and the government has encou raged NGOs that focus on environmental issues to sensitises the public.. Chinese environmentalists need to gain independence both financiallyand intellectually. The heavy dependence on international funding makes them vulnerable to governmental attacks. Some have been accused of being foreign agents who are essay to stop Chinas development.Instead of learning only from their western counterparts, Chinese groups need to have more exchange and communications with ecological colleagues from other develop countriesChina is also putting more into research and technological development in order to face the challenge of competition. They hope that by offering superior products they will continue to remain at the top of the export market. only china still has a long way to go in terms of technological development and creativity.)China now depends so much on exports of labor-intensive products, directly competing with other developing countries. But for china to depend solely on exports is not wise so the government believes that by boosting domestic consumption, it will form a more balanced economy.Globalisation has offered china opportunities as well as challenges. And it is melodic phrase to reap benefits from the advantages while avoiding harm from the disadvantages.