Effects of Globalization on China Essay

Effects of Globalization on China

The effects of globalization on China can either be categorized as positive or negative. According to most people, globalization is like a double-edged sword that cuts on both sides. Globalization refers to the development of a world trading platform, which ensures the free movement of goods and services, capital, technology among other factors of production between countries. Apart from the exchange of goods and services, globalization is also characterized by flow of labor and money across the trading partners. Globalization eliminates geographical barriers between countries.

The Main Effects of Globalization on China

Globalization has benefited China in quite a number of ways. However, it has also been blamed for certain negative circumstances. The following are the key effects of globalization on China;

Economic development  

Through globalization, various kinds of trading activities have been able to thrive between China and the rest of the world. This has ensured flow of capital and investments to and from China, encouraging economic developments in various sectors. After the United States and Germany, China comes third among the largest trading countries in the world. Globalization has enabled China to look at trade from a different perspective and enhance a liberal environment. As a result of this, many Chinese businesses have been able to come up, thereby impacting growth in various sectors of the economy.

Globalization has ensured economic growth in China in different ways. For instance, it ensured the accession of China to the World Trade Organization in 2001. This integration has enabled Chinese companies to gain a competitive edge in the global market, attracting investments and increasing revenues.


Despite the economic development and growth that has been experienced in China as a result of globalization, it has also created space for exploitation. For instance, several companies in developed nations like the United States are now outsourcing labor from China at very low rates. Due to the availability of cheap labor in China, many foreign firms have relocated their manufacturing activities to the country. This not only exploits the labor force but also impacts the neglect of health and safety standards in an effort to produce cheap goods.

Globalization has also led to the exhaustion of China’s resources by foreign firms. As China rose through the ranks to become an economic powerhouse, it attracted foreign investments by multinationals. When these multinationals come into a country, they bring with them various reforms and policies, which in the long run, hinder competition and sustainability of local companies.

Order Now


As a result of globalization in China, many industries started coming up due to the increased investments. In an effort to raise their living standards, many people started moving from the rural areas to urban centers. In fact, people even began migrating from other neighboring countries into China for employment. This further led to the growth of cities and various establishments to cater for the growing population. Over the years, several rural areas across China have also been able to develop into urban centers. For example, the number of rural poor in China declined from 250 million to 30 million from 1978 to 2000.

Technological Development                                                                                       

As China gained a significant spot on the global map, it developed ties with various developed nations like the US, Europe among others. Although China is now one of the key exporters of technology, most of the developments were impacted by globalization. When foreign firms came into China, they brought in new information and technology, which have enabled the country to further develop its infrastructures in various sectors of the economy.

Cultural exchange

Globalization has also attracted people from various cultural backgrounds into China. Besides, many Chinese people have also been able to migrate into other parts of the world and mingle with the rest. When this happens, there is usually cultural erosion caused by the associations and relationships between the populations.

Conclusion on Effects of Globalization on China

The free movement of goods, capital, technology and people to and from China has had great impacts on the country and its partners. Generally, the effects of globalization on China are more inclined to the positive side considering the tremendous economic development that has been achieved over the years. However, it should be noted that globalization has also hurt a fraction of the population to some extent.

The above essay about effects of globalization on China is one of the samples you can read on our blog. In case you may need help with any assignment or term paper, do not hesitate to talk to us for the best.