China Globalisation
Essay Preview: China Globalisation
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Chinese society has undergone immense changes as a result of its governments decisions on issues such as economic policy. In my report set out below, I now aim to assess the general direction and thrust of the political and economic policies currently being undertaken to further progress China as a nation.
Progress
China is widely regarded as a pivotal player when it comes to world and regional economic growth. Increases in Chinese demand currently account for at least half of export growth in Hong Kong, Taiwan and Japan, while Chinas trade deficit with the remainder of East Asia has contributed to the resurgence in the economies of South East Asia and Japan.
Years of reform contributed to China enjoying one of the worlds biggest booms. In my opinion, adopting the correct types of reform measures is the rock on which any successful economic story is built. Crucially, light industry and agriculture have more or less been taken out of public ownership, while the Chinese government still runs some heavy industries. As is the case in so many countries, agriculture plays a key role in the progression of a nations economy. China is no different. A household responsibility system lead to annual growth in farming output of 8.2%, despite the area of land used being decreased. An even more critical change was Chinas increasing favourability towards cash crops instead of grain and rice. I believe that diversion into the correct areas of agriculture can lead to massive rewards for any country and China has been no different. Vegetable and meat production rose to a level that meant Chinese farming production was adding the equivalent of Californias vegetable industry every two years. Trade in agriculture was freed to the point that China became an exporter of food, which was in stark contrast to its previous famines.
Industry
China is now one of the worlds largest producers of textiles, steel, ships and concrete and there is no doubt that economic policies which have helped to develop these industries have contributed to Chinas economic well being. Chinese steel production grew to 418.8 million tonnes in 2006, one third of global production. I believe strongly that too much wage inflation can have a negative impact on an economy, so it is good news for China that labour productivity in some of its steel companies is greater than that in the Western World. I would summarise that if Chinas economic and political leaders can keep the countrys cost base under control, then further inward investment may come their way as European multi-nationals search around looking for ways to save money.
Furthermore China has the worlds biggest automobile market, with its automobile production soaring to 9.35 million 3 years ago. So, we are starting to see that China is not solely reliant on one economic industry for its wellbeing and the countrys economic policy makers must be applauded for this. Due to reduced government interference, light industries such as