The opportunities and challenges of the Chinese market in the context Essay

The opportunities and challenges of the Chinese market in the context of globalization - Essay Example This paper shall discuss these opportunities and challenges. Main Body Literature Review The major economic progression of China for the past 20 or so years has become a source of much admiration as well as concern. Other developed countries, including the US have made significant efforts towards speeding up China’s economic growth. However, when China actually liberalized its economy, the West had contrasting feelings about such liberalization (Wen, n.d). The industrial states are now experiencing trade frictions with China which led to various protectionist actions against Chinese products which have become widely present in their markets. Moreover, the impact of China’s growth are not focused only on the economic, they also have significant political and strategic complications. Being a capitalist economy, the main goals of China as it gains strength is to be under major scrutiny by other countries (Zweig, 1999). It is difficult to understand whether its economic act ivism would present problems to the western goals towards securing political reform, human rights protection, and liberalized trade in Latin America and Africa (Liang, 2010). The bigger issue is also on whether the country will likely become a revisionist player or a status quo unit in the world economy and politics (Liang, 2010). The relationship of developing countries with China is both good and bad. In general, China’s growth has provided opportunities and challenges to the developing countries. The significant rise in China’s imports from the developing world has established an engaging market relating to the diversification of exports; however, other developing countries also have to compete with China’s products within the third world setting (Liang, 2010). For its neighbours in Asia including other developing Latin American states, there is a significant concern that China’s place in the global economy may negatively impact on their own growth. Mo reover, other Asian countries are also having the same concerns as their western counterparts about China’s expanding and growing military capability. Globalization refers to the deeper relations of different countries caused by the expanded trade, investment, and production activities. The past 10 or so years has seen the rapid pace of globalization. Globalization has actually become the foundation of centrality principles following the Cold War era (Smith and Baylis, 2005). The elements of China’s globalization shall be evaluated further in this paper. China’s economic expansion China has benefitted significantly from globalization. Since 1978 when it was gradually liberalizing its economy, the country has secured an annual expansion of its GDP at 9.4 percent. In 2007 alone, it reached a peak of 11.5 percent (Liang, 2010). This growth rate has placed the country in more or less the same pace as Germany as third world’s largest economy. China has increas ed its growth since the 1980s. In 1978, China’s foreign trade was at $20.6 billion and in 2006 it was up to $1.76 trillion (Ministry of Commerce, 2007). China’s trade share in the GDP in 2005 was at 64% (Little Data Book, 2007). China also became a major centre in manufacturing with its export platform of the cross-national production network (Liang, 2010). China’s foreign trade in 2004 included a processing trade value close to $600 million, with 60% of their profits on products