_JPG.jpg)
During the 1980s, the Soviet Union collapsed and a majority of its wealth and influence was absorbed by western states; with this collapse, the world exited a duo-superpower geopolitical state and entered one of sole American supremacy, a “Pax Americana”. This era—the 1980s and the collapse of the Soviet Union--is the end of “world history” and the beginning of a new world, a globalized world.
The term globalization is defined as, “…the global integration of international trade, investment, information technology, and cultures.”(Kenton) It is apparent that the shift to an international state of unipolarity (one state dominance) was the catalyst for globalization. America’s global clout, coupled with technology that allows for quick travel and global communication, paved the way for the current condition of international interconnectedness; this led to an increase, and creation, of international actors and agreements. For example, the introduction of multinational trade-agreements like NAFTA, inter-government organizations like the European Union, and an increase in multinational-corporation like Apple and Google.
One state that has unequivocally benefited from the arrival of globalization has been China. Within the past 40 years, The People’s Republic of China has experienced unprecedented growth, over 700 million persons have been lifted out of poverty—you can almost say that China’s transformation has been an international miracle.
The rise:
From the 1950s to the late 1970s, China was under the authorization rule of Mao Zedong, Chairman of the People’s Republic and the Communist Party. Mao Zedong’s China operated under a strict, closed, communist economy: the government controlled all production and economic activity. During this period of draconian communism, China was widely considered a poor state. Even though China was the most populated state, it boasted only the world’s eighth largest economy, with 80% of its citizens impoverished. After the death of Chairman and autocrat Mao Zedong, the reformist, Deng Xiaoping, took the steering wheel and become China’s new leader. Deng Xiaoping spearheaded multiple economic reforms, changing China’s course forever.
One of Deng Xiaoping’s first actions to gradually shift China into the global, capitalist, world was to gift the agricultural industry more economic autonomy. Xiaoping allowed peasant farmers to have more a laeger voice with decision making and the operations of their products. For example, farmers were afforded discretion over their products price. These reforms to the agricultural industry were incredibly lucrative, and all-around successful, that China began to emulate similar reforms to other industries. Also, China began to dismantle harsh trade restrictions, allowing for more international trade.
Deng Xiaoping choose to experiment with poorer region’s local economies by creating special economic zones. These special economic zones were permitted to have more open economies that allowed for more trade and foreign investment, albeit they were still under the government's supervision and were not completely free-market zones. These zones were opened to the global market at the time when globalization become prominent, permeating throughout every continent. Foreign companies were attracted to these newly created economic zones because of the low taxes and the tremendously cheap workforce. Currently, these once special economic zones have completed a 180-degree transformation; they were once the poorest cities in the state, now they are some of China’s most advanced cities.
The success of these new reforms was a triumph for Deng Xiaoping and they showed the Chinese people that a capitalist/communist hybrid system can prosper and that it was inevitable. Since the 1980s, China has been one of the most responsive states; they have gradually adjusted their country to adapt to the new globalized world. Through their economic reforms—opening China to the global market--China has undergone a rapid, unorthodox, economic and political transformation.
The impact:
Since 1980, China has left its footprint on the world, they are a major actor in geopolitics—some consider them to have already attained superpower status (China is on pace to economically eclipse the United States of America).
Before 1980 and under Mao Zedong’s communist rule, China was once considered a poor nation—with nearly all its citizens equally living in poverty. Since, China has become the world’s second-largest economy: Its GDP in 1980 was roughly $200 billion, in 2018 its GDP is $14 trillion. Also, China’s net trade was approximately $40 billion in 1980, and it has since grown 100-fold, to $4 trillion (2018). China is viewed by the international community as the global hub for inexpensive labor, though, China accounts for more than a quarter of the world’s production of high-tech goods—ahead of the United States. The nation has made significant leaps within the past few decades. It is, almost, a unanimous sentiment that the nation has been the biggest benefactor of globalization.
Besides China’s incredible economic transformation, China had also increased its international clout and presence. Under current President, Xi Jinping, China has begun increasing its hard (military) and soft (diplomatic and trade) powers.
Under President Xi Jinping, China had increased its defense spending five-fold (2018: $175 billion). China’s defense budget is second only to The United States of America. Also, China has begun to invest in developing nations in order to establish future trading partnerships. China has poured investments and foreign aid into regions like Africa and Latin America to boost their economies. China’s aim is to create new trading partners that depend on them—like America did post-world war two with Europe and what they attempted to do with China. President Xi has also been aggressively investing in constructing a new trade route in the Pacific and Indian oceans. The nation has poured exorbitant amounts of funding into the development of new ports within these two sea bodies. China desires to create a new trading route, where they oversee and regulate the traffic: a “New Silk Road”. They are willing to spend the money to do so while other powerful nations have been parsimonious.
Globalization has clearly had immense positive effects on The People’s Republic of China. Through globalization, the nation has become a global superpower and its influence rivals the current international hyperpower, the United States. China has financially prospered and the well-being of its citizens had improved remarkably. China went from being a poor, isolated, communist country to the world’s second richest country with a successful communist/capitalist economy—with the world’s most exports. Within the past 40 years, China’s implementation of globalist-friendly reforms has lifted over 700 million persons out of absolute poverty. Now, China has one of the most productive education systems, consistently producing high-quality graduates—domestic and abroad (international students). China now boasts a 90% literacy rate and always ranks in the upper echelon of education rankings.
Although, globalization has had some harmful effects on The People’s Republic of China. As a consequence of China’s unprecedented growth, the Chinese government has, recently, started over-spending on city and infrastructure development. As a result of the government’s building projects, they have begun to run a deficit—spending more money than their tax revenue permits: China has produced and used more concrete within the last 3 years that America has throughout the entire 20th century. China’s budget neglect will eventually cause injury to them; China’s economy is beginning to stabilize and age, so continuing to run a deficit while the economy stagnates will cause future harm. Also, because of China’s perpetual construction and the nation’s over-population, the nation has become dangerously polluted; the air quality in China is ranked the world’s worst.
China is extremely dependent on export and trade, unlike the United States. China does not actually consume what it produces; the Chinese citizens still cannot afford to purchase the iPhones they manufacture. While the aggregate population’s wealth has grown, it still lags behind other rich, developed, countries. China’s current issue is the global backlash they are receiving, especially from President Trump’s administration. As for now, China’s economy only prospers if other nations are willing to buy from them.
Conclusion:
Globalization has boosted international trade, which in turn boost national economies, but the results of this economic boost are inadvertently coupled with inter-dependency (e.g. the European Union and the Brexit deal conundrum). For China to continue its miracle-like course, they must, again, adapt to not only an interconnected world but a new interdependent one.
Bibliography:
ABC News. (2018, November 29). China's 40 years of reform that turned it into a superpower. Retrieved December 17, 2018, from https://www.youtube.com/watch?v=hF__EF_yrFA&index=3&t=0s&list=LLXrkbvtrggq9YyyCZUzqZlQ
Hangzhou. (2016, December 10). China has gained hugely from globalisation. The Economist. Retrieved December 17, 2018, from https://www.economist.com/china/2016/12/10/china-has-gained-hugely-from-globalisation
Kenton, W. (2018, January 29). Globalization. Investopedia. Retrieved December 17, 2018, from https://www.investopedia.com/terms/g/globalization.asp
KJ Vids. (2017, September 30). China's Risks and Challenges. Retrieved December 17, 2018, from https://www.youtube.com/watch?v=73k3v-AxJvM&index=3&list=LLXrkbvtrggq9YyyCZUzqZlQ
Simpson, E. (2018, January 26). Globalization Has Created a Chinese Monster. Foreign Policy. Retrieved December 17, 2018, from https://foreignpolicy.com/2018/02/26/globalization-has-created-a-chinese-monster/
VisualPolitik EN. (2018, January 2). How did CHINA Escape COMMUNISM? Retrieved December 17, 2018, from https://www.youtube.com/watch?v=zjiqHD1cqEg
WHACK. (2015, September 12). Why Is Everything Made In China? Retrieved December 17, 2018, from https://www.youtube.com/watch?v=T8l5Olj7dwE&index=7&list=LLXrkbvtrggq9YyyCZUzqZlQ