...The Reform and Opening up Policy As we know, China turned to the worst of the recession in 1970s after 10 years’ turmoil. At that time, industry and agriculture were stagnating, economy framework was serious imbalance, both urban and rural residents were poor. If China still did not change new policies, we would not have chances to recover economy. In this case, a leader whose name is Deng-Xiaoping launched a new policy called Reform and Opening up Policy in 1978. In his opinion, this policy can help other countries have more understanding of China, because it is the premise of modernization. After World War II, the theme of time changed from revolution and war to peace and development. The reason is developing globalization. In this process, different countries turned to all in one. From the perspective of developed countries, they need to find a way out of their investment, capital, and market. If they did not solve this problem, their development would be limited. From the perspective of developing countries, if those countries continued close and did not developing market economy, they would indefinitely poor, the gap between them and developed countries would widened. Reform and Opening up Policy, is designed by Deng Xiaoping at the end of 1978, is a policy containing several aspects of reforms as well as measures to open up to other countries in the world. It was first put forward on the Third Plenary Session of the CPC 11th in 1978, aimed to primarily at the revival...
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...Reform and Opening in China: “Sequencing” or “Parallel Partial Changing” FAN Gang National Economic Research Institute China Reform Foundation Beijing, China November, 1999 Content I. Introduction: Lessons of Asia Financial Crisis for Reform and Opening ¾ Benefits from Globalization ¾ Constrains to the developing countries ¾ The “unequal footing” ¾ A common cause of Asian crises: “incompatible opening” ¾ The Lessons from Asia crisis: Speed up the reform and Balance the globalization and domestic restructuring ¾ Case of China: Gradual liberalization II. China: Opening process and benefits from the globalization II. 1 Trade. II. 2 Foreign Investment II. 3 Service sectors III. Potential negative impacts of further market liberalization III. 1. Unemployment in general III. 2 Agriculture III. 3 SOEs and Manufacture industries III. 4 Service sectors III. 5 Inter-region and inter-group income disparity IV. Impacts of Asia crisis and corresponding policies V. How to achieve further “Compatible opening” ¾ Will the quick market liberalization solve the problems? ¾ Reforms and opening ¾ “Compatible opening” vs. “sequencing” ¾ Timetable for opening? ¾ No universal solution China has quickly opened its economy in the past 20 years. It is became the largest FDI recipient developing country since 1993 and the trade is already equivalent...
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...Reform and Opening in China: “Sequencing” or “Parallel Partial Changing” FAN Gang National Economic Research Institute China Reform Foundation Beijing, China November, 1999 Content I. Introduction: Lessons of Asia Financial Crisis for Reform and Opening Benefits from Globalization Constrains to the developing countries The “unequal footing” A common cause of Asian crises: “incompatible opening” The Lessons from Asia crisis: Speed up the reform and Balance the globalization and domestic restructuring Case of China: Gradual liberalization II. China: Opening process and benefits from the globalization II. 1 Trade. II. 2 Foreign Investment II. 3 Service sectors III. Potential negative impacts of further market liberalization III. 1. Unemployment in general III. 2 Agriculture III. 3 SOEs and Manufacture industries III. 4 Service sectors III. 5 Inter-region and inter-group income disparity IV. Impacts of Asia crisis and corresponding policies V. How to achieve further “Compatible opening” Will the quick market liberalization solve the problems? Reforms and opening “Compatible opening” vs. “sequencing” Timetable for opening? No universal solution China has quickly opened its economy in the past 20 years. It is became the largest FDI recipient developing country since 1993 and the trade is already equivalent...
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...Throughout this unit, our focus switched towards the economic reformation of China seen throughout the late 1970s that led to the reshaping of China both economically and socially. Through this economic reform, China saw the opening up of its markets to a variety of businesses, which has lead to the formation of an economic policy seen as “capitalism with Chinese characteristics” in which the ideas of the United States’ capitalistic structure is mixed with socialism. (Huang, 2008) Throughout this piece, the impacts of this economic reform seen in rural area, state-society relations, and labor problem will be discussed in order to better understand the social consequences of the reform. Following the unsuccessful economic policies implemented...
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...Service sector in China * Structures, restrictions and recommendations University: Shanghai University – School of Economics Course: Service economics and Trade Tutor: Professor Dong Yinguo Author: Hake Feka Student ID: 13D62241 Abstract The result of the market-oriented reforms in China along with its opening up to the outside world were rapid industrialization and integration in international trade. The service sector has perceived a fast, continued development and has made huge contributions to the overall economy in terms of its share of gross domestic product (GDP) and employment. However, the development of the service sector has been inadequate and has lagged behind its overall stage of development according to international norms. Table of Contents 1. INTRODUCTION 2 2. THE IMPACT OF SERVICE SECTOR IN CHINA 2 3. DIFFERENCES AND GAPS 4 4. OBSTACLES AND RESTRICTIONS 6 5. RECOMMANDATIONS AND CONCLUSION 10 REFERENCES 12 1. INTRODUCTION The result of the market-oriented reforms in China along with its opening up to the outside world were rapid industrialization and integration in international trade. The service sector has perceived a fast, continued development and has made huge contributions to the overall economy in terms of its share of gross domestic product (GDP) and employment. The increasing of the service sector has caught up with the manufacturing sector, which indicates that China is moving into a new stage of development...
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...COUNTRY REPORT OVER CHINA Name: Course: Institution: Introduction In 2014, China experienced one of the biggest anti-corruption campaigns in its 65-year history, regarding the battle's scale, term, and the breadth and the levels of the captured authorities' positions. This battle is seen to have a country wide negative effect on China's general consumption. The effects are so particularly felt on the luxury purchases and the government related purchases. Indeed, in the current political environment and with a continuous decrease of the land division, the nation is still ready to keep up the development of its GDP with a shocking number of 7.5% in 2014. On the other hand, numerous reports from the macroeconomic business and worldwide financial organizations, (for example, the World Bank) have since anticipated a slower economic development for the current year, 2015. This paper provides a report on China's macroeconomic condition, particularly the position in the international trade and the contemporary policies in 2015. Macroeconomic Development China predominantly imports raw materials and in turn it predominantly exports industrial products, both developed and developing countries. It reported a trade surplus of US$ 49.6b and US$ 25.6b in December 2013 and 2013 respectively. Throughout last year, exports rose by 9.7% to US$ 227.5b in December. Interestingly, shipments tumbled to Japan at -7.2%. Figure1. In the appendix represent the trend of China’s Balance of Trade...
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...21st century China is entering a new development stage to comprehensively build a prosperous society and to accelerate its modernization drive. China views these two decades as a period of great strategic opportunity which should be pursued vigourously. From an international perspective, peace and development remain the central themes of our era, and China is working to achieve this peaceful environment for development. From a domestic perspective, 25 years of economic reform and opening up have laid a solid basis for development, and China has achieved favourable conditions to accelerate development. However, opportunities are always accompanied by challenges. A key challenge for China is to adopt new thinking and ideas for development and make a new breakthrough in reform, so as to tightly grasp and make a full use of this opportunity to further promote its modernization drive. I. CHINA’S DEVELOPMENT TRENDS AND ISSUES China has experienced rapid economic growth since the late 1970s when economic reform and opening policies was initiated. From 1978 to 2004, China’s GDP grew by a yearly average of 9.5 per cent, the highest levels of GDP growth in the world. China has successfully maintained its sustained and rapid economic growth in recent years by improving and strengthening macro-control policies. Confronted with the external shocks of the Asian financial crisis of 1997–1998 and the global economic slowdown in 2001–2002, China adopted proactive fiscal policies, a prudent monetary...
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...The Republic of China has had lot of reforms in its development in the last several decades. The nation boasts very unique and varied forms of reforms throughout its practices which are quite different from whatever other countries have followed in the past. Being a country holding nearly 20% of the population, they could not have managed to be one of the fastest growing and healthily developing countries of the world. Having said that, it is easy to believe that the reforms that China has been implementing have been greatly useful in the development at every stage. The economy of China was based on a centrally planned system in the recent past. But with the reforms, China managed to move from an economy that was centrally planned to an economy that is driven by the market. Such a reform was distinctive because it transformed the economic eco-system from a government-centric economy to a more privatized economy. People started entering into the market competing among others, hence bringing about a great change in privatization. China also took up a reform which was completely focused in creating and generating a value that was surplus. The main reason for such a reform was that they could help in financing the transformation and modernization of China. China has also been immensely successful in not only making reform policies but also breaking them down in a way so that people and other institutions can adapt and follow it. Such an ease in their policy was brought about by...
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...country” (Moran, 2012) II. Why choose this study? Since 1978 Chinese government has announced new policy of reform and opening Chinese economic, Chinese government has offered lots of new policy to attract foreign investors, different provinces have different policy but attract more foreign direct investment is a basic state policy. The government has adopted a series of policy measures...
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...Topic: China’s financial liberalization Title: China’s financial liberalization and the policy transformation towards openness Author: Xuepan Cheng 4136801 Abstract This paper focused on the research of China’s financial liberalization reform in order to discuss the economic and financial effects casted by financial liberation. Also the article pointed out the current problems of China’s financial system and provided suggestions for implementation. The main argument of policy suggestions for China is to further lower down the financial limits, so that China will be able to build a better foundation for financial liberalization. Also the effective and constant supervision and modification of the financial regulation system is also necessary for maintaining a healthy macroeconomic environment and continuing capital flows. While the economic globalization, and financial liberalization has become a major tendency that attracts a lot of people’s attention in world economic development since the 1980s, the financial liberation and reform has become a necessity for China to develop it’s financial market and economy wellbeing. 1. Introduction China, as one of the fastest expanding economy in the world, is largely owing to the economic globalization, and financial liberalization since the 1980s. Economic globalization refers to the fact that economic resources (goods, capital, labor, technology, information and other transactions) flow from one country to another. This tendency makes...
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... EC280: INTERNATIONAL BUSINESS ANALYSIS Name: Lee Wen-I Words:1963 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...
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...This paper will look into the liberalization, but with Chinese characteristics, of five determining factors in becoming a country who’s currency is a global reserve currency. These factors are as follows: economic size, macroeconomic policies, flexible exchange rates, financial market development, and finally having an open capital account, and will ultimately prove the China is not quite the rising economic power some believe it to be (citation, 2012). Market Liberalization… with Chinese Characteristics In China, it is currently the year of the dragon, a symbol of good fortune and sign of intense power. With this symbol of fortune and power many Chinese are hoping for a year of economic prosperity, especially for the growth of the Renminbi, or more commonly known as the Yuan. In recent years, China has maintained that it’s “special” economy is pursuing a “market economy, but with Chinese characteristics”. Some of these characteristics include encouraging more of an international use of the currency, while being famous for their inflexibility with exchange rates, and not fully opening up the economy to the free flow of capital. However, the Yuan’s acceptance as a reserve currency will be based on China’s economic size, macroeconomic policies, flexible exchange rates, financial market development, and finally having an open capital account. It seems that with time, it is inevitable that China’s Yuan will one day become a global reserve currency. Depending on the development...
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...analysis after China’s accession to WTO Introduction Since the reform and opening-up policy operated in China in 1978, China has already experienced a process of economic development and international trade improvement. In the early 1980s, China had tried to take several steps to end its economic isolation condition. After that, accompanying with the accession to WTO, China had received a new tide of development no matter in the field of economy or world trade. It has no doubt that China’s accession into WTO would bring about tremendous changes in China’s economic performance. Known as “World Trade Organization”, WTO is one of the most important international economic organizations and also a platform for ideas’ negotiation among different countries. Currently WTO has 159 members and is regarded as the "Economic United Nations”. China has joined the World Trade Organization as the 143rd member of it. From then on, China has made a significant economic improvement in foreign and international trade area, whereas, it also has brought some problems underlying the surface economy boom. And as some experts’ sayings, the disadvantages are far more than the advantages that WTO has brought along these 12 years’ development based on the analysis on the current economic environment, which has also been a challenge to China’s economy and future development from my point of view. The benefits that WTO has brought into China As some experts’ saying, China’s accession would definitely have...
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...system of the country may appear to be negative effects to the sovereign will of the people. The weaknesses of the democratic institutions and dependent economies on external sources will be suffering and vulnerable to the pressures of globalization. The strength of their democratic institutions, capacity to structurally diversify their economies and knowledge advances of their people itself toward development of their country can coping this democratizing issue in globalization. Keywords : Involuntary, globalization, democratizing 1.0 Introduction Globalization has been given many meanings in different contexts. One frequently encountered meaning is that globalization is the homogenization of peoples’ tastes and demand patterns around the world due to increased access to international communication of information about products and services as well as increased access to transportation of products and people across the borders (Carol Hammond and Robert Grosse). Globalization means that events in one part of the world have ripple effects elsewhere, as ideas and knowledge, goods and services and capital and people move more easily across border. Communication tools which play a big role in the world development such like television at the first place had spread out almost throughout the entire world, the images shown in this medium have really permeated societies around the world. Globalization derives from conscious policy decision which may serve to enhance or even erode...
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...Economic Reforms in Asia: The Indian Case Study The Asian economy has seen a rapid rise over the past decade with countries such as China, India and South Korea making major headways. China, being the leader of the group, has been largely tipped by many economists to overtake the US as the world’s superpower by 2025. Asian GDP Performance (1997-2005) Source: http://www.treasury.gov.au The success of these nations came on the back of major economic reforms which transformed these sleeping giants into what it is today. China went through a major economic reform in 1979 and soon thereafter success followed. India, followed the same path, but much later than China, and it was not until the turn on the 1990s that India went on the path of economic liberalisation. This paper will focus on the economic reforms that took place in India and its impact on the country in terms of trade and macroeconomics growth and the birth of new economy. A section of this paper will also be comparing the growth of India in comparison to its Chinese counterparts as well as discuss reasoning behind critics who believe liberalisation was not the main contributor to the growth India is achieving today. Pre-Reform Period Post independence, India saw the need to move from an agrarian economy to an industrial one and as such building its competency in crucial sectors of the economy was important. The role of government therefore included economic management...
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