By Christina Kitova, CEO and Founder Carticulus Media Communications, based in Markham, Ont. Canada
With Donald Trump elected as the US president, his “American-first-ism” seems inevitably to pose a number of negative impacts on globalism. While at the current stage, globalism is still an effective and necessary driving force for the world economy. The world’s largest economy, the US, is ready to put aside the flag of globalism, then, who else has the ability and responsibility to carry on?
In 1978, Beijing announced reforms by utilizing the globalization process with industrialization and modernization initiatives. The active recognition of problems and search for new solutions can resolve the challenges of globalization with a proper economic strategy that would also benefit China’s economy.
China’ globalization was developed in stages, standing on the forefront of establishing economic zones in the Southern Region that opened up industries to foreign capital investments. Moreover many industries were open to foreign investors. Joint-ventures with foreign corporations allowed higher volumes of exports, which boosted GDP (gross domestic product) growth rates.
The efficient application and differences from the global completion, the robust architecture of economic initiatives have helped China to develop rapidly in the past several decades into the world’s second largest economy.
Though at certain costs, namely, deteriorated environment, weakened home industries, more vulnerable to financial markets, etc., China’ economy has significantly benefited from globalization in the economic sphere, meanwhile the nation continues to be one of the largest recipients of foreign investments.
The investments provide new technology developments, and a majority of the world’s largest corporations have opened up regional offices in China.
Significant GDP growth in China has made the country one of the world’s industry leaders and a strong engine for international corporate growth.
Globalization is beneficial for China on account of GDP growth driven by exports. The majority of current China’ exports are brand name products produced with the same quality as you would find in the Western markets, nevertheless the price point is lower, which bring more potential for higher profit margins.
Characteristics of China’s economy focus on exports that enter US and Western European markets, making it the main driver of China’ economic growth, while corporate leadership is designed to accommodate China’s needs and demands.
And China holds the largest foreign reserves in the world, estimated at over $3 trillion US dollars.
As China’s economy enters the “new normal’ stage, Beijing is restructuring its developing pattern, reducing its reliance on exports. Accordingly, foreign investments seems low compared with Chinese government investments and strategic funding allocation by the strong leadership and economic savvy of Chinese President Xi Jinping.
Globalization is still boosting China to enjoy high margin profits and economic growth with new growth points, especially cultural and investment’s “going out”.
China’ cinematography industry produced movies that are the highest rated with significant demand in other nations. Additionally,Chinese numerology and literature are becoming more popular. The commercialization within a multitude of cultural genres have driven foreign demand and interest.
Beijing has implemented a successful strategy to blend global modern demands and consumer appetites with national traditional ideologies.
Globalization also provides economic opportunities to transform the information technology industry to become one of the most dynamic and profitable sectors of the modern global economy. China continues to be a leader in the field and one of the great influencers.
Meanwhile, China became a net capital exporter and the second largest foreign direct investment nation in 2015, after the US, which means China’s “going out” policy has achieved substantial results. The Asian Infrastructure Investment Bank (AIIB) is spearheaded by China to focus on the Asian continent to support the least developed nations in the region.
Economic globalization has manifested itself with multidimensional processes, unification of global economic space, and development of economic policies within nations.
Beijing is establishing a leadership role within the global economy, along with economic governance reform.
The overall direction, factors and strong performance of the China’s economy can offer Beijing a strong position to lead the world’s global economic strategy.
( The opinions expressed here do not necessarily reflect the opinions of Panview or CCTV.com. )
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