Business Essay: Chinese Global Economy
Chinese Global Economy Free Essay Example
Background of the Review
China is noted as the largest nation in Asia. However, although the largest among all the nations around the globe, it was one of the least the least when it comes to development and advancement especially including economy and technology. However, as the 21st century took dawn, China began to parade as a newly developed country that has all the capabilities to outgrow its traditional systems of old economic strategies as it embraces a new age of economic advancement.
The change from the traditional towards the modern Chinese society has had certain issues and consequences to the people and the lives that they are living. It could not be denied that somehow these changes created deep effects on the kind of business operations that the said group of entrepreneurs from the country were undergoing. Through this review, an understanding on the changes and the different developments in China shall be discussed based on the reactions of different authors who managed to defend the reasons behind the advancements and the definite effects of the process in the lives of the human societies staying in the country.
Issues and Significance
How and why is the Chinese economic development practically affective on the part of the global economy? Yes, the reason behind the studies that were pursued with regards the Chinese economic standing is the fact that there are specific effects of this situation to the global economy. In this review, a focus on the internal and the external effects of this issue shall be given expansive discussion. This discussion then definitely aims to outline the deep interest that the globe has over the developments of the Chinese economy based on the views, opinions and informative researchers of prominent economists and peers who have furthered their understanding with regards the said issue in concern.
The author of this literature review aims to create a practical summary that would show how the different researches used could be used to identify the different developments of China in connection with its economy during the past three decades. Through this, the author further hopes that the different situations in connection with the situation could be better given proper attention to thus fixing the issues and concerns that may affect both the internal and the external members of the Chinese society.
PART A: The Old Chinese Economy (The Era of Barter Trade)
During the 18th to 19th century, China was noted for its comprehensive way of exchanging goods with other nations around Asia. Basically, the system includes the traders, the receivers and the products that they are to use for exchange. Considerably, it could not be denied that this approach to product exchange have actually established the earliest systems of economic establishments between nations around the globe. The definition of economic success was that of the creation of measurement that identifies the level of resources that one nation has to trade with another country; the more the resources are, the higher the economic status of the country is (Wu, 2004).
For several years, the Chinese community under the many imperialist parties that ruled it has depended so much on barter trade system. They continued to exchange their goods such as that of the porcelain items for spices and other ingredients that they usually use for cooking (Wu, 2004). Yes, it could not be denied that somehow, the effects of the “call for the need” pushed the early Chinese community to search for possible ways to at least create a definite response to their living requirements. Without the needs, the “push” to survive through barter trade might not have been that possible at all (Starr, 2001), and the birth of the barter trade might not have been that successful (Hsu, 2007).
The years of dynasties have affected the shaping of the Chinese economy as well. It could not be denied that somehow, the people extended their thoughts about the possibility of getting what they needed for survival. The persuasion to survive in the middle of the different dynasties’ control has definitely instantiated the source of improvement that the barter-trade system has incurred during the years ahead. After the dynasty rule, the newly freed China, although still under a communist government began to embrace the different offers of globalization in a gradual position.
PART B: How History has Shaped the Chinese Economy
Tradition and culture are two huge factors that identify China from the other different countries around Asia. The people’s definite hold on the traditions and the culture that they have once been involved with were definitely the reasons behind the slow definition that the economic status of China has taken during the past few decades of human society’s strong hold to globalization. As the western communities started to flourish towards the new sense of defining economic success, China remained concentrated on preserving the culture and tradition that it has been rooted upon (Journal of the Chinese Statistical Association, 2002).
There was nothing else to do but to create their chance of developing their country from within. China has been widely divided by the dynasties that ruled them. Their chances of developing further have been halted by the walls of not knowing the possibilities of their creative response to the challenges that they are facing as a nation.
Somehow, the communist system of governance has created a rather centralized approach in managing the people and their lifestyle that was geared towards perfect recovery. However, because of the division that has been made by history itself, it was not that easy to control China as a united country (Harding, 1998). China had no choice but to start from scratch all over again. The only mark that the dynasty years have instantiated on the creation of the great wall of China, the wall that guarded China from foreign invaders as well as from definite possibilities of advancement as copied from the western ways of living. This has been the real reason behind the well preserved tradition of China that has now become one of the most distinctive characteristics of the modern Chinese community.
PART C: Bringing About the Need to Discover New Systems of World Economy
According to the study of Alfred Chan (2001) on the definite reactions of China to the policies of the “great leap forward”, the Chinese community began to follow the instructions of their communist government to push through in establishing economic zones in the country. Some zones are dedicated to agriculture while some others are established as industrial zones. This zoning system has created an easier process for the government to oversee the works of the people concentrated on one matter that is different from the other.
Basically, the system tries to involve a huge consideration on how far the people of China are willing to take to be able to take into consideration the status of their area. Whether the people liked it or not, they were rather motivated to respond to the commands of the higher governance. The campaign on the “great leap forward” system has indeed managed to increase the Chinese concentration on their economic growth and has rather empowered the system of development of the country towards improving their business systems and the process by which they give back the benefits to their people.
Human power was a definitely important part in this phase of development. Without the people, the development would have been impossible. It must be remembered that back then, complicated machines that can take charge of massive production was not that easily produced yet. This is the reason why the need for well cooperating team of human workers was indeed a huge consideration to take for the government of the country.
One particular problem that increased in concentration with regards this issue is that of the existence of too many uneducated Chinese work force. No matter how many the people living in China are, the number of the well educated ones is rather controlled in number. Only those who were primarily educated were the ones who got the good jobs and for those who had lower chances of getting a good source for education were the ones that ended up in the labor sector, the ones who practically fuelled the economic strength of China’s standing through the use of their efforts that identified them clearly as a huge operating work force.
Education needed to be furthered; this has been the observation of Jonathan Spense (1991) as he tried to study the history behind the development of China, that somehow, educating the people was a sure need for those who were asked to assist the nation in becoming a rather larger source of economic growth in Asia. Apparently, the term “sleeping giant” that noted the large mass of dwelling place that China has was not actually referring to the country itself but more of like to its people, who were less knowledgeable of the procedures of progress that they were supposed to undergo (Waters, 1997).
Language was another factor to consider. Being traditional as it is, the Chinese community relied so much on their traditions and their personal capabilities of handling economic growth. Due to this, the chance to learn other language has become a very expensive luxury for many ordinary Chinese individuals. It was an expensive matter to consider learning English. This practically shielded them from being able to communicate easily with other people around the world. At some point, even those who belong to the elite families have had hard times in handling the English language successfully. (Waters, 1997)
Waters (1997) even mentioned in his material that China was chained to its tradition and its language. However, in some way, these factors are the ones used by the Chinese communities around the globe to be united together even when distance does not allow them to be completely together. He even adds that this fact may have been the key reason why all around the globe, little Chinese communities spur out and the actual reason why their traditional cultural celebrations such as that of the Chinese New Year is celebrated not only by the Chinese people but also that of the non-Chinese societies recognize these special occasions.
Yes, history has a great effect on the Chinese economic status at present and somehow has also shielded the country from immediately contemplating to the challenge of becoming global. These issues have had negative and positive effects on the lives of the Chinese people altogether. The basic understanding of these issues shall lead towards the realization on how hard it was for China to leap towards the call of modern globalization where majority of the western culture rules the situation that every nation under the said economic state creates a rather effective influence on the culture of the other countries enjoined in the capsule of global trade. (Guo 2001)
PART D: Handling the Challenges of Globalization
Why was it hard for China to jump in the process of developmental progress that embraces the globe of nations at present? There are actually three major factors to consider when this issue is given practical consideration according to the study of Harry Waters entitled China’s Economic Development Strategies for the 21st Century.
The first factor is education. Education is basically one of the most important issues that China has to deal with. It could not be denied that somehow, with less educated people, the process of development could not be easily expected. Knowledge is needed to push development forwards. Without the existence of people who are knowledgeable in industries and professional systems, the engine towards proper advancement would never work. According to a recent study handled by the Henley John and his colleagues (1999), almost 54% of the current young population of the Chinese community are not able to go to school due to financial issues. Most of these individuals come from the rural areas of the nation. Most of those who are in the urban sections of the country are rather imposed to create ways that are essential for their survival in the city. Though this is the case, there is still and alarming 34% of the young generation of the Chinese urban population that are not able to reach ample source of education to be able to create or at least find a good job that would fuel up China’s journey towards modernity. (Henley, et al, 1999)
The second factor is that of the language. Being a non-English country that thrives in the middle of a highly economized society, China needed to adjust from the regular kind of living that it has been used to, to becoming more westernized. Some were even torn from becoming highly advanced to becoming more traditional. To many elder generations of the country, embracing the English language is a sinful act of betraying the language and the culture established by their ancestors (Waters, 1997). It was never easy for either the middle-aged towards the young generation of China to decide on whether or not they would completely allow the new western communities take over their systems and their culture.
Some who have fully accepted the challenge tried to learn English from exclusive schools, online English institutions and personal tutoring services from personal teachers offering the said service. It could not be denied that somehow, this leap towards development has equipped China in becoming one of the fastest growing economies in the world today.
The last but definitely not the least factor of consideration is that of their culture and religion. This is practically the reason why there are many businesses wanting to establish in China are having doubts towards the said possibilities. Most are having questions as to whether or not the Chinese communities would be able to handle the situation considering the fact that they have to many cultural and religious limitations that needs to be considered by any particular investor wanting to get the service that China could provide.
No matter how hard it is for China to survive the challenge of globalization, the government and its people never ceased to try. This is the reason why both culture, products and even the religion of China now affects the entirety of the human population around the globe. Even media itself is already being affected by Chinese arts and entertainment making the Chinese culture rather international apart from the local influence it has been able to afflict to its people during the past few decades of its history.
PART E: Outsourcing and Employment in China
One of the most important issues that could be considered when it comes to the development of the Chinese community and its business sectors is that of the existence of the process of outsourcing. Outsourcing or offshore employment involves the process by which outside organizations or foreign investors try to invest on the labor force of an outside country. Its application has practically given way to the cheaper procedures of coming up with the most important considerations that the said organizations could take in reducing their expenses when it comes to paying for labor.
Besides India and the Philippines, China is considered to be among the top three Asian countries to which western business organizations outsource labor from. Basically, in China, most of the outsourced jobs to their labor force are those that are included in the industry sector. Organizations such as DELL and IBM have huge sections in China as well as that of APPLE Computers. The standard procedures of completing tasks for these three international computing companies have been adapted by the workers of China and are thus producing at least 73% of the major products supplied by the said companies.
Is this a risk for the business owners? Of course it is. But as it is, the benefits are high as well especially when the connection between the countries involved is followed specifically. With the guidelines provided by the head quarter branches of business organizations, the level of development has become one of the most important keys towards modern China’s progress towards effective improvement when it comes to its economic standing.
Yes, it was not that easy at first, but the Chinese community was able to take on the challenge that was placed in front of them. Today, 46% of China’s GDP depend on outsourced employment. This notes the effective approach that outsourcing definitely created on the systems of Chinese entrepreneurship and labor enforcement. (Spence, 1991)
The labourers need not be English cultured. They just need to be well cooperative with what their higher superiors require of them as part of their duties to the job. In consideration with the issues raised by other researchers as mentioned in the earlier phases of this review, it could not be denied that China could not wait for the long time needed to have its people, practically those of the ordinary sectors to be well educated before their force and skills could be used in helping advance the country towards globalization (Spence, 1991). This is the reason why Chinese business organizations tried to find the most effective ways of making the system centralized to one person or one particular group of individuals who could communicate to the outside investors making the entire process controlled by the main operators of the business and their primary connections in China. It could not be denied that somehow the operations of business have become more organized than that of the consideration given to less controlled business processes.
PART F: Significance of the New Chinese Economy to the World
China is now considered as one of the most economically stabled countries around the globe. Standing at the third position preceding the Unites States of America and Japan, China is now considered as the awaken giant of Asia. It may still be hard for China to complete the need to widen the teaching of English in the country, but the country sure is making the necessary measures to adjust the situation.
However, only those who can afford the service are the ones who are able to learn the said language. Only those who are privileged are the ones who are able to be well educated towards becoming a more successful individual. Even though China has made a great mark in becoming one of the fastest growing economies in the entire Asia, it still holds a shocking percentage of poverty that increases to at least 3% every year. Apparently, the increasing level of living in China has left at least a staggering 56% of the entire population of humans in the country. These ones are considered by some socialists as the most devastating effects of modern globalization to countries such as that of India, Philippines and now, China. (Starr, 2009)
PART G: How China Fares in the Face of Global Competition
In the field of global completion, everything gets too tough and usually out of hand once the situation gets uncontrolled between investors and the countries to which they are forming close relations with. China, being one of the top receivers of investors has had the chance or might as well be noted as the cream of the crop when it comes to modern outsourcing procedures. This is the reason why picking China as one of the best rising competitor in the field has been a common connotation among entrepreneurs at present.
Undeniably, China has been undergoing certain changes in the past few years that brought the entire country to this particular standing. History has long time been identified as the world’s sleeping giant especially when it comes to the establishment of a more stabilized economy. It could not be denied that through the years of history, this fact is being proven thoroughly by the existence of the different evidences that China is indeed a huge group of people who are waiting to happen.
Some 5,000 years ago, China stood as a country of pure culture, the cradle of Kung Fu and Tai Chi that are today known as the most ancient cultural traditions that has been preserved and passed on to both Chinese and non-Chinese civilization around the world (Perry, 1980, 43). In fact, these practices of Chinese martial arts are now recognized as a classical form of art.
But what is China today? Has it awoken yet? About 30% of China’s territory is now noted as cradle of modern industry. More than martial arts, China is now known to be the host of the fastest growing city in the world, Shanghai. Every year, Shanghai China is observed to grow by 20% in population and 40% in profit. It could not be denied that with the territorial mass that it covers today, it is already identified to be four times bigger than the big apple, New York City in the United States (Perry, 1980, 42).
Not only that, Shanghai China is also seen as the country’s central host for industrial and commercial growth. If one gets to the main routes of the city, he would not be able to deny that the structural creations found in that area of China is an epitome of a growing community that is ready to inflict influence in the growing position of globalization in the world.
The contradictions between the people of China on whether they should remain culturally focused or they should be changing their old beliefs and traditions so as to fit in the wings of modern globalization has raised the bars on the debates on how the country should consider development. For this matter, it could not be denied that the division of ideas in connection with this matter somehow creates a balance that at least half of the population supports cultural preservation while the other half supports change (Perry, 1980, 54). Yes, the stakes are many, the challenges are eminent and the need to act on the part of the members of the Chinese community has been already laid. Yes, the world waits until the big giant completely awakens and position itself as today’s tiger economy that is ready to take on the world economy by surprise.
Summary of the Review
The world continues to keep an eye on what China is still to take on in the coming years. With the modern buildings that adorn its cities, with the increased level of economic progress that it is taking into huge consideration, would China be actually able to face the challenge of environmental devastation in the country? Would it still be able to sustain the needs of its poor population or would it practically hurl the poverty stricken communities into more depressing situations in the future?
These questions are among the most important issues that China has got to keep an eye on. A successful country does have some consequences to progress that should be considered. All these consequences could be simply be taken willingly or could be given solutions to.
With the modern technology aiding research and progress of the different countries around the globe, it is simply advised that China continue to find the right ways to adjust properly towards the challenges of globalization and assist all of its people towards the needed understanding they need to have regarding the role that they play in China’s quest towards becoming the number one economy that shall embrace the world.
Yes, China is a very much promising country that holds at least 34% of the world’s entire population. The labor force that it has to offer the world has a staggering effect on the level of procedures that the world shall take in employing the people from this country. With outsourcing taking the lead in increasing the country’s GDP by at least 4% every year, the possibility of marking China as one of the most marketed skilled workers around the globe could be expected.
Certainly, the global competition for economic recognition between nations around the globe is very tough. The level of understanding that each country has towards this process of modern commerce creates a great chance for each country to make a name in the industry. With years of experience and practical struggles for recognition, it could be noted through this review that China is indeed one of the countries who would willingly take the challenges offered by globalization itself.
Through the years, China has instantly managed how to develop from a country of pure dynasty and strife towards a freer nation that is able to take on the challenges of a new world. The instances by which the country itself creates a more definite management system as to how and when it is going to use its labor force for outsourcing purposes has been proven effective for the nation to climb up the stairs of definite development. It could not be denied that through this approach China has gained the different benefits of adjusting their lives and their systems of business operations for the sake of the greater population that expects to be served by their government.
The consequences of globalization to the lower end of China’s population though could be considered severe. The level of poverty and the kind of living that the Chinese poor has never escalated but instead deepened down to its boiling point that many are already hopeless of getting the jobs that they need to survive. Communist as the governance in China is, it is expected to support the needs of the people in a better position since the dictatorship is what the people follows. However, even though this is the case, the operation of the modern commercial systems of international trade intends to directly affect the lives of the people who are included in the process of gaining global recognition that assists their entire nation into becoming known as the fastest growing economy not only in Asia but most of all around the globe. The quest for national success never stops, and China, along with its people would never be at the verge of putting off their hope to becoming the best there is.