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BRIGHTON BUSINESS SCHOOL UNDERGRADUATE PROGRAMMES

EC280: INTERNATIONAL BUSINESS ANALYSIS

Name: Lee Wen-I

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Table of Contents

Introduction 3

1 How is China becoming powerful? 4

2 Global overcapacity and China 5

3. Challenges toward China 6

4. Reaction of China 8

References 10

1. Globalisation in China
Since 1990s, globalizing is shown everywhere in the world. The commodities, cosmetics, clothes, or even designer goods are now made in any country that you might think of. In the widely cited report, Goldman Sachs argued that the economic potential of Brazil, Russia, India and China is that they may become among the four most dominant economies by the year 2050, with China surpassing the United States in output by 2035. Globalization has become one of the important issues in this global economics. However, when it comes to representing the success of globalization, China often came out. China influencing more and more on the inflation, Yyield to Maturity (YTM), wage standardization, capital flows, migration and even building city quotations on the markets. China certainly plays an important role for the future globalization development. From the financial magazines, it shows that although China is not the only country that developing extremely fast, it is the most important one.

1.1 GDP and growth in China
In 2000, the GDP growth rate in China is almost two times than the combination of Brazil, Russia and India. Luthans states that: ‘China’s GDP has remained strong, maintaining at least 8 percent growth and surpassing 10 percent in 2006. In the first quarter of 2007, GDP grew at a blistering 11.1 percent, causing some concerns that the Chinese government has been unable to tap the brakes on this rapid growth.’ (International Management, 2009: p27) In the other hand, China is not only provided inexpensive

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