Examine the Effects of Globalisation on China
The process of globalisation in China has been a rapid one. China’s exponential growth since the fall of Mao has lead to increased international influence – with China now operating on an international scale.
Economically globalisation began in 1978 following Deng Xiaoping’s Open Door policy. This opened up China to foreign investment and the international markets. This lead to an influx of transnational corporations, which was advantageous to Chinese companies who benefitted from technology transfer. However, the TNC’s moved to China for its cheap labour and manufacture, which presented an ethical dilemma for China. Leaders had to decide whether to compromise on a lack of investment and poor …show more content…
Politically, globalisation has lead to China’s acceptance into the WTO in 2001and a permanent seat on the United Nations Security Council alongside owning $800.5 billion in US treasury securities in 2009. This has opened it up further into world trade. It has strengthened Asia’s voice within the international financial organisation and given Asia a greater bargaining power. This has benefitted China greatly as within the first six months after its acceptance into the WTO, China’s FDI had risen 20%. It has also helped drive its developing socialist market economy. It is also becoming more open, with David Camoron visiting China in Dec 2013 – this is huge progress from 50 years ago when western leaders weren’t allowed into the country. However along with benefits there are also negatives. The accession into the WTO has also increased the “floating population” in urban areas. This is because trade only occurs in major cities, so there is more money available in the cities causing poor rural migrants to move in search for a better quality of life. In addition it has also increased the gender and age