The Impact Of Globalization On China

Globalisation is the process of increased integration between different countries and economies resulting in the establishment of a single global market and greater influence internationally on economic activity. This influence has had a major impacts both positive and negative, especially on what are known as the BRICS economies, the world's 5 major emerging economies which includes China. Over the past 4 decades China has benefited greatly from globalisation and its current size would not have been achievable if it wasn't for globalisation, however China has also been negatively impacted through globalisation. China has been impacted on globalisation through international convergence, economic growth and development, trade investment and …show more content…
Trade makes up a large portion of China's overall economy. Since the introduction of the “open Door” policy, China has managed to reap the rewards of international trade. This strategy was extremely beneficial for the Chinese economy as it started by setting up the Special Economic Zones in southern coastal provinces, to attract foreign trade and investment; it offered low tax rates, cheap labor and less regulation. Over past 30 years the average export levels have increased by 17% annually. This shows that China’s international trade levels have increased dramatically due to globalisation. China's joining of the World Trade Organisation has also created more opportunities for its economy as mentioned before, with its reduction of its trade barriers and introduction to new trade partners opening up the country to international trade and …show more content…
In 2014, exports of foreign-invested enterprises (FIEs) grew by 3%, accounting for 45.9% of China’s total exports, and imports increased by 3.9%, representing 46.4% of China’s total imports. By the end of 2014, China approved a cumulative of 809,829 foreign investment projects, with actual utilized overseas FDI amounting to US$1,513 billion. Before China’s loosening of its foreign policies, its banking system was inefficient and weakly structured. Through globalisation and introduction to competition, China’s banks had to readjust to its new circumstances and improved its standards to match those of the global economy, to attract and protect foreign involvement. China also authorized some foreign banks to open branches in Shanghai and allow foreign investors to purchase special "B" shares of stock in selected companies listed on the Shanghai and Shenzhen Securities Exchanges further encouraging investment in domestic