Impacts of Globalization to Chinese Economy
...nying the investment, it also applied a way to learn western advanced technology and excellent management experience, which were helpful for China to adjust the frame of economy, for example, auto industry, banking and high-tech industry. On the other hand, China joins the international economic system that offers a global market for Chinese cheap commodities. For Chinese people, they are not producers but also consumers, so they can have more choice, high quality goods and services but less money for consumption as more foreign commodity into Chinese market. Next, foreign investments enter China will help to resolve the unemployment problems. Many experts and economists think that China’s accession to the WTO will cause large-scale unemployment problems because many state-owned enterprises (SOEs) will have to close or bankruptcies. In my opinion, I think those problems have existed before China joins the international economic system. Since in 1998 China began a restructuring of state-owned industry, millions of workers have been laid off. Another fact is that there have a large number of superfluous labors in countryside, even though they are said in work at government statistical data. According the estimate of Chinese government officers and economists, China has an unemployment population about 230 million, 200 million are in countryside, 30 million are in city. Without consider the increase of population, the increase speed of Chinese economy can provide 10 million jobs every year, and it need 23 years to digest the huge unemployment. Labor is also a kind of assets, the large number of unemployment mean that it is in a situation of relative surplus. And this situation will be easier to settle if China can attract more foreign investment. As a result of it, the unemployment and China government will be happy to see as more as multinations operate in China. Furthermore, China government has to continue and even advance the market economic reform in order to adapt the change of economic circumstance. To participate in the global economy, China must perfect 4 basic conditions: 1. China have to change plan economy system to market economy system in order to be a part of global economy; 2. China must insist on the open policy to get double-win posture both for china and other countries; 3.China have to obey the world principles and rules of trade; 4. In the rules of market economy, an excellent capital market should be built up, and the private property should be protected. All these things need Chinese government to change his political system and economic mode. Although economic globalization gives many chances to Chinese economy, it also will be a challenge or even a bale if Chinese government and enterpriser don’t realize the risk of entering into the global economic system. The vital strike of globalization is to the internal companies of China. As China open his market to foreign capitals and corporations, the environments of Chinese enterprise won’t be safe and protected as before. The outdated and noneffective companies will have to close or be replacing of foreign organization. The challenge of market will be more brutal and hardhearted. There must have a time to wash out the members of market and shuffle cards over again. Secondly, the stability of Chinese economy will be weakened. In econo...