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China Globalisation

In: Business and Management

Submitted By sannenathan
Words 1652
Pages 7
Globalization refers to the process of increased integration between different economies around the world and the increased impact of international influences on all aspects of life and economic activity. The four main indicators of globalization include: international trade flows, international financial flows, international investment flows and the transfer of technology, as well as the movement of labour between countries. Mao Tse Tung’s successor, Deng Xiao Ping, implemented a range of radical economic reforms that transformed China into an economy with a domestic focus to one with an international focus. Since becoming integrated within the global economy, China has become a bastion of world economic growth (increase in real GDP over time) and this has enabled it to make some progress in economic development (a broad measure of quality of life).
Globalisation has affected every country around the world differently. Specifically, the Chinese economy averaged 10.1% economic growth between 2003 and 2009 as a result of globalisation, causing it to become the second largest economy in the world. China experienced its annual real GDP rising from 8% in 2003 to over 11% in 2007. This high level of growth has seen China’s share of the world economy increase by 3.5% in this period to 15% in 2006, when measured in PPP terms. China’s now accounts fro 25% of world eco growth about equal to USA’s share. The main drivers of this high rate of economic growth were business investment and net exports. Despite this extended period of growth, China’s GDP per capita remains relatively low by world standards, currently at around US$7000 in PPP terms.
This economic growth has led to significant improvements in China’s economic development. The Human Development Index (HDI) is a measure of economic development devised by the United Nations Development Program that takes into

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