Globalization Impact: A Case-Study of an Individual Country
Effects of Globalization in China
Overview of China’s Place Within the Global Community
Globalization refers to the growing interdependence of a country’s economy, culture, and population, brought about by cross-border trade in technology, goods, services, information, and people. China is among the globe’s fastest-growing economies, with the GDP averaging 9.6% through 2019 (Zhang, 2018). The World Bank describes the pace of the economy’s growth as the fastest sustained growth by a country’s economy in history. The country has doubled its gross domestic product and lifted 800 million people out of poverty because of its eight-year growth rate. Due to globalization, China has become the new economic champion as it is the new focal point of trade and corporation throughout the world. Zhang (2018) further states that the global economy is reorienting toward China, creating new business opportunities for foreign businesses to enter the Chinese market. Other countries are retreating from the forefront, while China seeks to grow and expand worldwide. China has made innovation its top priority in economic development. This paper outlines the impacts of globalization in China.
China’s Demographic Information
China’s need for resources to fuel its economy is increasingly felt in the world markets. The country’s magnitude of growth is such that the global impact of its economic development is unfolding across all nations worldwide. According to Zhang (2018), China is the second-largest consumer of energy globally after the U.S. It is also the number one consumer of coal, iron ore, and concrete. The country’s growth is transformative in scale, and it seems to be unending and unprecedented. Its economic growth has been the largest and most sustained economic development during the past twenty years. Over 250 million Chinese peasants have moved from the countryside to the cities in the past twenty years. It is estimated that the number will be twice as high in the next twenty years; therefore, urban areas must be developed to accommodate this number (Ye, 2020). The country is expected to construct more buildings that total up to thirty billion square meters in floor space in the next fifteen years. This development will be the largest urban transformation in history.
China’s Globalization Dimensions
Globalization is a significant phenomenon that consists of three dimensions. The three forms include economic, political, and cultural dimensions that act as global forces because symbols mediate them. Therefore, globalization can be seen as developing and adapting knowledge, behavioral norms, values, and technology across a country. For example, technological advancement has made China’s economic, political and cultural globalization easier by opening up the world’s borders (Ye, 2020). The economic dimension is best characterized by the convergence of three aspects: the capital in and out of the country through technology and information. The second factor is the existence of international bodies such as the IMF and World Bank, which play a role in facilitating capital flows in the global market. The last factor is the increased influence of transnational organizations, which have greater values than some countries’ gross national product.
The political dimension refers to the political globalization index for China that measures the number of high commissions and embassies in the country. Political globalization also involves the number of international companies China is a member of and the number of UN peace missions it participates in (Witt, 2019). On the other hand, the cultural dimension refers to all the means of communication, objects, art, and material things in society. It involves learning, civilization, and the cultivation of minds in society.
The Benefits and Costs of Foreign Investments in China
The benefits of foreign investments in China include economic growth, which is brought about by creating jobs. Foreign investment has boosted the services and manufacturing sector, which has helped reduce the country’s unemployment rates. The increased employment has translated to higher income and equipped the citizens with more buying power. It has also increased human capital development, which involves the competence and knowledge of the workforce. The Chinese people have gained skills through training that have boosted China’s human capital and education (Chin & Gallagher, 2019). Although foreign investments have benefited the economy of China, some disadvantages have impacted the economy. For instance, it has led to a hindrance of domestic investment. Some local companies have lost interest in investing in their household products. In addition, foreign exchange rates sometimes negatively affect the exchange rates in China.
The Effect of Civil Society
The impact of globalization has challenged the exclusivity of China as an actor in international affairs. It has linked distant communities and opened up spaces for new social actors. Some non-state actors who have benefited from this change are civil society groups. Civil societies refer to the space outside the market, family, and government. It is a place where collective organizations and individuals advance their common interests (Witt, 2019). They include social movements, charitable organizations, community groups, and non-governmental organizations. Globalization has led to development among various civil groups by providing the necessary resources required for their growth.
The Global Impact Upon the Culture
The growth of internet access in China has been mirrored by a discernible rise in its use by national and ethnic ideological groups that are anxious to assert their cultural identity. According to Feng et al., (2019), globalization has enabled most of the country’s population to be wired and plugged into music, TV programs, movies, and other countries’ entertainment. These factors have affected the strong culture of the Chinese people as they embrace culture from other nations. People have been forced to change their way of living due to globalization. The influence of globalization has made the English language dominant in China as many citizens strive to study the language and use it in business. The Chinese want to speak English because it is the language of movies, advertising, music, and an essential success tool.
Summary of the Impact of Globalization in China
The adoption of technological advancements has enhanced the country’s economic growth and total factor productivity (Feng et al., 2019). Globalization has also promoted a synchronized uptick in the country’s output and economic cycle. The impact of globalization has also spurred investment and trade, which has intensified pressure on cross-border capital flows. As a result, the effect of globalization in China has boosted both the national and domestic income gap. Economic openings, reforms, and continuous integration into the world economy have enabled China to grow remarkably.
Macro-actions that China can take to Improve its Quality of Life
China’s quality of life can improve through economic development, which refers to an increase in the gross domestic product. There are three macro-actions that the country can take to improve its economic development. The first one is improving the macroeconomic conditions, which involves creating a stable climate of positive economic growth and low inflation. A stable economic environment creates opportunities for investors to have more confidence in investing in China (Chin & Gallagher, 2019). The second step is creating free-market supply-side policies that involve lower taxes, deregulation, and privatization to stimulate private sector investment. To conclude, China should create interventionist supply-side policies to enhance public expenditures on healthcare, education, and public transportation.
References
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Witt, M. A. (2019). China’s challenge: Geopolitics, de-globalization, and the future of Chinese business. Management and Organization Review, 15(4), 687-704.
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