Globalisation is the process of increasing integration among different countries, resulting in the establishment of a single world market. Globalisation has been accelerated in the last 50 years due to the relative stabilisation of international relations, development of international institutions that have assisted in the management of globalisation, technological developments and changes in domestic policy. China is the largest country in terms of population size and has recently become the second largest economy in PPP US$ terms. China has made rapid progress in economic and human development by reforming its economy. Between 1978 and 1997, the Chinese government made vast changes allowing its economy to become more efficient and opening up its doors to the global market to reap the benefits globalisation.
Economic Growth and Development
The impact of globalization on China’s economic growth is far-reaching. During the past 20 years, China’s international trade expanded 16 times, with its ranking in the world bounced to seventh from the original 32nd. Trade dependence rate lifted from 10 to 36%. The amount of FDI is now the largest amongst developing countries. According to a modular study on the synergy of FDI conducted by the Development Research Centre of the State Council, China’s GDP recorded an average annual growth rate of 9.7% over the past 20 years, of which 2.7% was attributed to FDI. Apart from using such statistics to show the impact of globalization on the Chinese economy, we recognize that integration with the world economy is instrumental to improving the Chinese economic structure, speeding up the establishment of the market economy, raising the level of corporate governance and technological capability, as well as optimizing its human resources.
The impact of globalization on China’s economic growth is momentous. Globalization presents to everyone a world which is increasingly liberalized and market-oriented. It also brings us intensified...