China’s Globalization
China’s Globalization
In these current times, the world is intertwined and connected by an array of intricate economic transactions, social, environmental and political problems and collaborations. This can be seen even in the day to day news. For example, the recent increase in price for grain products is believed by many people to have been caused by a decision by policy makers in America who settled on subsidizing the production of ethanol which is a form of gasoline that contains an additive that is present in corn. In addition, China has recently emerged as a major finished goods exporter and this has affected, either negatively or positively, the wages of labourers in both poor and rich countries. Large corporations such as Apple, Microsoft, Toyota, and Samsung have greatly expanded their operations in affiliate countries globally building complex production networks which share technological know-how and prowess to produce even more complex goods that are marketable everywhere in the world. In the following article, we are going to look at China, its views on globalization and how globalization has affected it as a country (Gu, 2010).
In the last two decades, China has seen some tremendous changes which have transformed it from being the world’s greatest resister of the global institutions to one of their most ardent supporters and even an advocate of globalization. China is now a more open economy even than countries such as Japan and it is globalizing most of its large institutions in a high degree that has never been seen anywhere else in the world since Meiji in Japan. Such things as the adoption of the rule of law as the guide to the country, its commitment and respect to competition, the widespread use of foreign languages especially English, learning foreign education systems cannot be seen as just the updating of Chinese institutions but they are a transformation of Chinese civilization as a whole (Gu, 2010).
Most, if not all of China’s successes (mostly economic) can be traced back to globalization and liberalization. For instance, never in human history have so many workers in a country improved their living standards so rapidly as witnessed in China. For this reason and other successes, popular support for even more globalized institutions surpasses even that of Japan, where after the war, the post war recovery was conducted in a highly controlled and managed economy (Gu, 2010). Consequently, China has now improved their diplomatic ties with the United States and the Southeast Asian region, they have come to engage in even freer trade and economic investments than is seen in other countries such Brazil, India or Japan.
One of the most crucial steps that the Chinese government took in order to further integrate the Chinese economy to the world economy is its accession to the World Trade Organization (WTO) which happened in November 2001. These developments, however, are not proof that globalization is still not a controversial debate among the Chinese (Gu, 2010).
The Chinese Take On the Globalization Issue.
It is a disputable matter if anyone was to say that there is any certain general understanding that is agreed upon by all Chinese who take part in the debate on globalization. However, there are various assumptions which are less contentious amongst most people.
First and foremost, the crème de la crème in Chinese society seems to be of the opinion that globalization is an inevitable trend. This belief is fundamentally in accord with that of the International Monetary Fund (IMF) in regard to globalization. As put by Eduardo Aninat, the IMF Deputy Managing Director, “China must make decisions that will determine how well it integrates further into the global system. There is no longer a question of whether to integrate, but only of how best to do so.” (Aninat, 2001)
The thought that globalization is an irreversible process whether you are willing to go along with it or not is in fact an idea held by many people. For instance, as put by Pang Zhongying, a high ranking official in the Chinese Foreign Ministry, described globalization, as a “new issue” in the world’s history, and he went ahead to warn the Chinese that “you can’t refuse any new issues, much less move against the trends of history.” (An Wei and Li Dongyan 2000)
Secondly, most scholars in China are of the view that globalization is not only an econo,mical process as it may be assumed by many but a social and political process as well. For example, a scholar at the Chinese Academy of Social Sciences in Beijing explains globalization as a process in which the free flows of capital internationally cause pressure which forces changes in the domestic structures of different people hence forming new strata relations and also awakening fresh individual consciousness (Gu, 2010). He believes that this process is affecting all countries and thus its global. Globalization, according to his argument is also political since all countries are facing problems that have a lot in common, which is, to identify opportunities and problems that arise due to the increased interaction among the different and diverse human socities. Consequently, political reforms and foreign policy adjustments are prioritized all over the world (Gu, 2010).
Lastly, most Chinese scholars also agree that globalization confirmed the failure of on “two parallel world markets” as assumed by Stalin. For them, they see globalization as the success of the free market company as compared to other economic models such as those of the former Soviet Union and, also, some of the so-called Third World countries. However, most Chinese scholars and the elite in the society are deeply concerned by what they term as “Americanized Globalization” , that is, America played a major role in the promotion of the global economic market.(Aninat 2001).
China’s Policy to Meet the Challenges of Globalization*
It is difficult or even impossible, at the moment, to find one policy which is intricately formulated by the Chinese government and designed to meet the challenges that are brought about by globalization. Most political tools introduced by different figures of authority in China seem to be sketchy and therefore cannot hold water. However, it is important to note that Beijing’s policy on globalization is slowly taking shape even though some parts of the policy still are ambiguous and unclear (Gu, 2010).
Generally, Beijing’s policy on globalization is has involved an active and direct adjustments in its internal structure so as to counter the pressure that the WTO membership exerts on them. China has made tremendous attempts to make both the state institutions and other societal structures able to resist or endure any predictable imbalances caused by the further integration of China’s economy with that of the world, the following are some of the areas that have undergone internal adjustments (Gu, 2010):
• All administrative interventions by political party organizations and government agencies have been torn down. Hundreds of large and medium sized manufacturing companies were converted into joint stock companies. Some industries/service sector companies such as railway, civil, aviation, telecommunications and electricity sectors are lagging behind in the conversion process.
• Introduction of a social security system including health insurance, pension scheme and insurance against unemployment.
• Development in human capital and attraction of human resources from foreign countries.
• Streamlining of state institutions to enhance their effectiveness in administrative work.
• Reconstruction of the legal system.
Conclusion
The globalization debate has divided Chinese elite group. However, the balanced analysis of both the benefits and costs of globalization is slowly becoming the basis on which China’s policy on globalization is being formed. While China is adjusting its structures internally, it’s clear that China is still closely keeping its main aim as an active participant in globalization, playing an active role in the settlement of world economy rules. As the Chinese Vice-Premier Wen Jiabao said, “the Chinese government has always dedicated to the establishment of a just and rational international economic order and will strive for this goal with unremitting efforts… All countries, big or small, strong or week, rich or poor, should have equal rights to participate in the formulation of the `rule of games´ in international affairs.” (Wen 2001). In this sense, it can be argued that that the Chinese’s policy on globalization is also a power policy whose objectives are to expand China’s influence on world affairs. This form of power policy is however not in a military sense of it but its based on the leverage that comes with active participation in the world’s affairs and economy(Gu, 2010).
Works Cited
Gu, Xuewu. “China and its Reactions to Globalization”(2010) 1-8. http://www.bpb.de/system/files/pdf/E4SM4X.pdf
An, Wei, and Li Dongyan: Shizilukou shangde Shijie, Beijing 2000.
Aninat, Eduardo, China, Globalization, and the IMF, Speech on the Foundation for Globalization Cooperation’s Second Globalization Forum, Sanya City, China, January 2001. http://www.imf.org/external/np/speeches/2001/01140.html.
