Globalization in China

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China

Globalization in China

The term 'globalization' has been used in many ways to outline changes in social, political and
military spheres, but these are derived from economic change where the basis of production and of
finance are said to have shifted from the confines of national boundaries to encompass the world as a
whole. In the case of China, the really disruptive effects of globalization occurred in the 19th century
and in the first half of the 20th century. It was then that the Chinese traditional Confucian system
broke down in the face of the pressures of globalization as these were forcibly brought to bear upon
China by the Western powers and Japan. In many respects the communist takeover in 1949 and the
character of the Maoist regime that lasted until the mid-1970s was shaped by a nationalist reaction to
this experience. However the 'New China' was caught up in a contradiction by which it sought to
fashion its own approach to achieving communist modernity while simultaneously participating in
the industrial revolution as exemplified by the Soviet Union and by the West. The Maoist approach
emphasized self-reliance and keeping external influences to a minimum. It was based on the
assumption that China could attain its destiny only by internal renewal and cleansing. External
influences were seen in the final analysis as polluting, but to be tolerated only in so far as they could
be shown to serve this internally generated process of self-renewal. This approach that was
fundamentally antagonistic to globalization culminated in the destructive, internally generated chaos
of the Cultural Revolution. Arguably globalization has served China's communist rulers well. Far
from it undermining the basis of communist party rule, it has contributed to its survival by fuelling
the rapid economic growth and the transformation of the economy without revolutionary
implications - at least so far. The communist party has shown surprising resilience in the face of
rapid social change, huge problems of economic and regional inequalities, endemic corruption, large
scale unemployment, rural migration, growing budget deficits, a collapsing health system, under-
funded education and so on.

20th Century China

China's efforts to balance the economic and socio-political tasks of education in its modern nation-
building can be traced back to the struggles of the late Qing dynasty, under threat of foreign
aggression for modernization and national survival. This dilemma has persisted through the
establishment of the Republic of China (1912–49) and the People's Republic of China, and onto that
of the successors and into modern day.
Older societies have had to overhaul their institutions and world views radically in order to conform
with the models of the modern nation state system, with post-1949 China being the time that this
reordering took place within China. After the Tiananmen Square protests of 1989, the Chinese
government instituted a number of reforms that were meant to increase economic growth while at the
same time stifling the proliferation of democratic sentiments in their country. To the CCP (or the
CPC), Democracy leads to political instability which in turn impedes economic development and this
is a sentiment believed by many people inside China.
In 1989 China's population was the largest in the world but its GDP was only ninth in the world, yet
twenty-five years later China's economy has become the second largest after only the U.S. which is it
expected to pass by 2019. This major increase in economic development was not without a cost
because although economic reform and globalization had brought China unprecedented wealth it also
brought China a monstrous increase in carbon dioxide emissions.

21st Century China

Since 2005, China has spent more than $56 billion in sub-Saharan Africa, with significant investment
in oil, platinum, copper, nickel, and manganese as well as other extracting industries. China's
bilateral trade with African countries rose from $10 billion in 2000 to $125 billion in 2010 and
stands to reach $300 billion by 2015, surpassing the United States as Africa's largest trading partner.
China's trade with Latin America has also increased dramatically, rising to 1,500% between 2000
and 2010 through loans and direct foreign investment. China is one of the primary winners of the
Western sanctions again Iran, as it has allowed them to become its top trading partner, purchasing
400,000 barrels of oil per day all paid for with the yuan in an attempt to elevate the global standing
of the yuan against the U.S. dollar.[7]
Chinese integration into the global financial system has taken its first steps by way of the launch of
the "Shanghai-Hong Kong Stock Connect" and "Shenzhen-Hong Kong Stock Connect". The
implications that an increase in Chinese integration into the global financial system are many, with
positives and negatives for both the Chinese and the Western world.[8]
In Hong Kong there have been a number of political battles due to a feeling that with the increase of
globalization came an increase of "Chinaization". Expanding global commerce and the corporate
control of the political process weakens the autonomy and power of local communities. The more
integrated communities become with mainland China, the more prosperity they receive, but most of
the advantages go to the various business tycoons and corporate elites, which can be seen as an
example of the rise in income inequality in China.

Economic Scenario

Since 1980, China has undergone a series of reform policies aimed at transforming its economic
system from a planned economy to a market-oriented economy by combining the planning economic
systems from socialism with a market mechanism from capitalism. This was spearheaded by Deng
Xiaoping who set out to create a more open economically open China, with the results of this new
liberalization and globalization of the economy being substantial. During the period of 1978 to 2012,
China's GDP grew about 9.8% annually and its GDP volume increased 22.5 times during this period,
while its GDP per capita grew at an annual rate of 8.5% and increased 15 times in the same period.
By 2010, China surpassed Japan to become the world's second-largest economy and at the same time
it also surpassed Germany in terms of export volume, becoming the largest in the world. The massive
increase of GDP in China has led to an increase of living standards for the Chinese since their
incomes have doubled or even quadrupled every 10 years. Amid this economic outburst, the income
distribution in China has increased dramatically, changing China from a relatively equal socialist
country to a very unequal country.
The economic globalization of China has transformed the nature of its national policy preferences,
calling into question for the rest of the world what their true intentions might very well be. The
efforts to increase the liberalization of the Chinese economy, spearheaded by the U.S., were met with
mixed feelings due to China's rapid economic progress. The bittersweet nature of China's rise in
economic power leads to questions about whether or not it will support the existing international
order of things or challenge it.
The undervalued Chinese yuan with respect to the United States dollar has brought about questions
to whether or not a move to a more flexible exchange rate would be beneficial to the Chinese
economy, with most experts arguing that no dramatic change in exchange rate is needed and that the
most needed policy attention is the domestic financial sector, not the international.

Cultural Shifts
The Chinese desire for globalization is countered by the fear of losing their own culture, identity, and
history, meaning that the suspicions towards the English language seeping into Chinese (and
worldwide) cultures might be justified, if even to a small degree. English has been seen as a new
form of opium to some which indicates a growing hostility towards English in China but at the same
time raises questions due to English being the predominate language for international trade and
communication.
China faces an unprecedented multitude of problems with regard to language choice and linguistic
identity, some of which are due to challenges imposed by global English from the outside world.
Although English was denounced as a language for the Bourgeoisie and imperialist during the
Cultural Revolution, it is viewed as a necessary tool in China's modernization and integration with
the world.

Tiananmen Square

Tiananmen Square Protest was an event that shocked the world, and the number of protestors who
were killed at in the incident still remains a mystery. The incident had become a global symbol and
was considered one of the most terrifying events in the modern China history. Many people around
the world witnessed the Chinese government who showed no mercy killing unarmed Chinese
civilians and pro-democracy protestors at Tiananmen Square. After June 4, 1989 China has received
criticism around the world, mainly from Western countries in North America, Europe, and some
Asian countries. While the international press reported that the Chinese government had
demonstrated the regime’s brutal suppression of freedom and had violated human rights, some
communist states such as Eastern Germany, North Korea, and Cuba supported China’s actions in
handling the situation. To retort criticism around the globe, the Chinese government insisted the
incident was an internal affair and the force was necessary to maintain “social stability”, and China
also declared that it was a “counter-revolutionary rebellion” that had to be stopped”

Aftermath

Until today, many countries around the world still continue to urge the Chinese government to reveal
the truth of incident and release hundreds of people who are still imprisoned because of the
Tiananmen Square protest. However, the Chinese government has continued to conceal the details of
the event from the public and has tried to avoid discussing the issues relating to this incident. The
Tiananmen event has become a taboo subject in China, and Chinese civilians have been forbidden to
discuss it in the public. Even the media are prohibited to publish news that is related to the event.
Meanwhile, the Chinese government refuses to apologize to the civilians who were killed in this
incident, and the government hasn’t set a memorial day for those who lost their lives in the event. As
its top priority, the CCP has tried every means to maintain stability and social order. At the social
level, it has tried to separate political life and social life. The government applies tight social controls
and tries unthinkable methods to suppress possible activities by opposition forces. The government’s
budget for maintaining social stability is higher than the defense budget. Compared with 25 years
ago, today’s China has less freedom of speech. Although social media has created new channels to
express opinions, today’s Chinese media control is stricter than that of the 1980s. However, in
everyday life the government actually provides citizens with lots of freedom regarding non-political
activities. Over 25 years, China has transformed from a Maoist state to an entertainment center. In
recent years, however, we have seen a decline of morality, from corruption and scandals to a lack of
beliefs and a focus on money. It is not an exaggeration to say that China is facing a social crisis.

After June 4, 1989 China had quickly transformed itself into one of the world fastest growing
economies. Although China is trying to improve its global status by gradually becoming a free
market country, there are still many restrictions within the country. The international opinion and
criticism pushed China to introduce democracy reform and offer Chinese people the freedom.
However, many people in China argue that “China is not ready for a democracy society” even
though they believe Chinese people have more freedom now than in 1989, especially the ordinary
people in non-governmental activities. One of the reasons that the Chinese people refuse to talk
about the incident is because they want to forget about the past. Many believe that to make China
stronger, this would be the path that the people and the country have to go through.

China & Japan’s battle for power in SE Asia

Japan’s influence towards the diverse region of the Pacific and South East Asia started to grow in the
1980’s due to their rapid rise as a dominant economic power in these regions. During the decade,
Japan displaced the United States as the largest provider of new business investment and economic
aid in the region, although the United States market remained a major source of Asia-Pacific
dynamism. Especially following the rise in value of the yen relative to the US dollar in the late
1980s, Japan's role as a capital and technology exporter and as an increasingly significant importer of
Asian manufactured goods made it the core economy of the Asia-Pacific region. Efforts since the
beginning of the 1970s to assume a leading role in promoting peace and stability in Asia, especially
Southeast Asia, by providing economic aid and by offering to serve as a mediator in disputes, faced
two constraints. Externally, there was fear in parts of Asia that Japan's systematic economic
penetration into the region would eventually lead to something akin to its pre World War II scheme
to exploit Asian markets and materials. Internally, foreign policymakers were apprehensive that
Japan's political involvement in the area in whatever capacity would almost certainly precipitate an
anti Japanese backlash and adversely affect its economic position.

After a reassessment of policy, the Japanese leadership appeared to have decided that more emphasis
ought to be given to helping the developing countries of the region modernize their industrial bases
to increase their self-reliance and economic resilience. In the late 1970s, Japan seemed to have
decided that bilateral aid in the form of yen credits, tariff reductions, larger quota incentives for
manufactured exports, and investments in processing industries, energy, agriculture, and education
would be the focus of its aid programs in Asia. By 1990 Japan's interaction with the vast majority of
Asia-Pacific countries, especially its burgeoning economic exchanges, was multifaceted and
increasingly important to the recipient countries. The developing countries regarded Japan as critical
to their development.  In the 1990’s, the bank of Japan began increasing their interest rates due to
concerns over the bubble and soon the land and stock prices began a steep decline, within a few
years reaching 60% below their peak. This led to Japan’s stagnation due to which Japan’s economic
growth and power declined and hence gave rise to the Chinese era.

China’s Rise

China has become a manufacturing base and central destination in burgeoning intra-Asian and
international trading networks producing goods, notably for export to developed countries. There
also is large-scale development of Chinese infrastructure. China has emerged among the top ranks in
the production of steel and other metals, cement, ships, cars, electronic goods, and textiles. It is a
major consumer of international raw materials. In Asia, China is a top trader with such key
neighbours as South Korea, Japan, and Taiwan, and a number of Southeast Asian countries. As it
seeks to sustain a fixed value for its currency relative to the US dollar that is widely seen as
unrealistic but advantageous to Chinese exports, China has accumulated over $600 billion in foreign
exchange reserves. The greatest gains in Chinese regional influence have been registered in South
Korea and in Southeast Asia. Elite and popular opinion in these countries has shown strong pro-
China tendencies. The Chinese approach to Asia has developed gradually in the post Cold War
period and most Chinese motives appear clear to outside observers. Chinese leaders want to secure
their periphery in Asia and maintain stable relations in order to focus on key Chinese domestic issues
involving economic growth and political stability. The Chinese approach to Asia has not always been
smooth, however. China’s wariness of Asian international organizations was overcome gradually,
and even now Chinese officials continue to eschew close interchange with some groups, including an
annual Asian security meeting in Singapore where the United States plays a leading role. China
gradually has shown some flexibility on territorial questions, notably reaching in 2002 after many
years of discussion a code of conduct regarding dealing with territorial disputes in the South China
Sea.

Over the years, China seems to be in control of the Southeast Asian economy and aid. China’s
economy has developed immensely which is why they are being to provide financial aid to the under
developed and developing nations of the SE Asian and the Pacific region.

Religious atmosphere in China

Freedom of religion is guaranteed by China's constitution, although religious organizations that lack
official approval can be subject to state persecution. The government of the People's Republic of
China is officially atheist. Religious affairs and issues in the country are overseen by the State
Administration for Religious Affairs.
Over the millennia, Chinese civilization has been influenced by various religious movements. The
"three teachings", including Confucianism, Taoism, and Buddhism (Chinese Buddhism), historically
have a significant role in shaping Chinese culture, Chinese folk religion, which contains elements of
the three teachings, consists in allegiance to the shen (神), a character that signifies the "energies of
generation", who can be deities of the natural environment or ancestral principles of human groups,
concepts of civility, culture heroes, many of whom feature in Chinese mythology and history.
Among the most popular folk cults are those of Mazu (goddess of the seas), Huangdi (one of the two
divine patriarchs of the Chinese race), Guandi (god of war and business), Caishen (god of prosperity
and richness), Pangu and many others. China is home to many of the world's tallest religious statues,
including the tallest of all, the Spring Temple Buddha in Henan.
Clear data on religious affiliation in China is difficult to gather due to varying definitions on
"religion" and the unorganized nature of Chinese religious traditions. Scholars note that in China
there is no clear boundary between religions, especially Buddhism, Taoism and local folk religious
practice. A 2015 poll conducted by Gallup International found that 61% of Chinese people self-
identified as "convinced atheist". According to one study from 2012, about 81% of the Chinese
population practice some form of Chinese folk religions, Taoism and Confucianism. Approximately
6% are Buddhists, 2% are Christians, and 1% are Muslims.In addition to Han people's local religious
practices, there are also various ethnic minority groups in China who maintain their traditional
autochthone religions. Various sects of indigenous origin comprise 2—3% of the population, while
Confucianism as a religious self-designation is popular among intellectuals. Significant faiths
specifically connected to certain ethnic groups include Tibetan Buddhism and the Islamic religion of
the Hui and Uyghur peoples.

Social atmosphere in China

The Chinese democracy movement, social activists, and some members of the Communist Party of
China have all identified the need for social and political reform. While economic and social controls
have been significantly relaxed in China since the 1970s, political freedom is still tightly restricted.
The Constitution of the People's Republic of China states that the "fundamental rights" of citizens
include freedom of speech, freedom of the press, the right to a fair trial, freedom of religion,
universal suffrage, and property rights. However, in practice, these provisions do not afford
significant protection against criminal prosecution by the state. Although some criticisms of
government policies and the ruling Communist Party are tolerated, censorship of political speech and
information, most notably on the Internet, are routinely used to prevent collective action. In 2005,
Reporters Without Borders ranked China 159th out of 167 states in its Annual World Press Freedom
Index, indicating a very low level of press freedom. In 2014, China ranked 175th out of 180
countries.
Rural migrants to China's cities often find themselves treated as second-class citizens by the hukou
household registration system, which controls access to state benefits. Property rights are often
poorly protected, and taxation disproportionately affects poorer citizens. However, a number of rural
taxes have been reduced or abolished since the early 2000s, and additional social services provided
to rural dwellers.
GOVT. OF MAO

Mao Zedong or Mao Tse-tung also known as Chairman Mao, was a Chinese communist
revolutionary and founding father of the People's Republic of China, which he ruled as an autocrat
styled the Chairman of the Communist Party of China from its establishment in 1949, until his death
in 1976. His Marxist–Leninist theories, military strategies, and political policies are collectively
known as Maoism or Marxism-Leninism-Maoism.

Born the son of a wealthy farmer in Shaoshan, Hunan, Mao adopted a Chinese nationalist and anti-
imperialist outlook in early life, particularly influenced by the events of the Xinhai Revolution of
1911 and May Fourth Movement of 1919. Mao adopted Marxism–Leninism while working at Peking
University and became a founding member of the Communist Party of China (CPC), leading the
Autumn Harvest Uprising in 1927. During the Chinese Civil War between the Guomindang (GMD)
and the CPC, Mao helped to found the Red Army, led the Jiangxi Soviet's radical land policies and
ultimately became head of the CPC during the Long March. Although the CPC temporarily allied
with the GMD under the United Front during the Second Sino-Japanese War (1937–45), after Japan's
defeat China's civil war resumed and in 1949 Mao's forces defeated the Nationalists who withdrew to
Taiwan.

On October 1, 1949, Mao proclaimed the foundation of the People's Republic of China (PRC), a one-
party state controlled by the CPC. In the following years Mao solidified his control through land
reform campaigns against landlords, and perceived enemies of the state he termed as "counter-
revolutionaries". In 1957, he launched the Great Leap Forward campaign that aimed to rapidly
transform China's economy from an agrarian economy to an industrial one. The campaign
contributed to a widespread famine, whose death toll is estimated at between 15 and 45 million. In
1966, he initiated the Great Proletarian Cultural Revolution, a program to remove "counter-
revolutionary" elements of Chinese society that lasted 10 years and which was marked by violent
class struggle, widespread destruction of cultural artifacts and unprecedented elevation of Mao's
personality cult. In 1972, Mao welcomed American President Richard Nixon in Beijing, signalling a
policy of opening China, which was furthered under the rule of Deng Xiaoping (1978–1992). Mao
suffered a series of heart attacks in 1976, dying in that September, aged 82. He was succeeded as
Paramount leader by Hua Guofeng (1976–1978), who was quickly sidelined and replaced by Deng.

Effect of Cold War on China:

With the three nations during the cold war (USA, The soviet Union and China), each relationship
was extremely dynamic in their evolutions, including the changes, the shifts in alliances that
occurred during the turbulent period with China playing a role of the third party. During the
beginning of the Cold War, China and the Soviet Union were allies under a common bond of
communism, but the ideological differences brought an end to the loosely held alliance against the
West.

The Cold War remarkably affected the relations which existed between each of these countries.  As
China began to grow more assertive and powerful, although in large part to Soviet economic aid,
Mao’s increasing ego led to a gradual change in their relationship with the Soviet Union.  Mao began
to distance his nation from viewing itself as being nurtured by the Soviet Union to establishing its
own power base.  As relations between the Soviet Union and the United States experienced its fair
share of peaks and valleys in terms of aggression and hostility, relations between the three nations
would subsequently experience windows of opportunity to try to change their foreign relations with
each other.
China led by their leader Mao, followed the Communist model of the Soviet’s. Mao as a leader
brought in major reforms during the time such as the Great Leap Forward and the Cultural
Revolution. The government under Mao’s rule came up with these reforms, but they did not succeed
because they were not simple and were not implementable. Initially in the Great Leap Forward the
town people were asked to produce iron and steel but later in the Great Cultural Revolution then
again they were asked to produce more food.
Both of these reforms proved out to be a big failure. The main reason was that there was inefficiency
and misallocation of resources.
In the Great Leap Forward, the uneducated and illiterate peasants were asked to produce iron and
steel, which they did but of very poor quality. Then later in the Cultural Revolution educated people
from the cities were asked to go to the rural areas and start farming, again it proved out to a futile
attempt. Overall it affected China badly, economy fell sharply and also the living standards
deteriorated. The peasants suffered extreme situation, millions of them died of starvation and hunger.
The peasants were not able to produce as much agricultural goods which meant they were left with
food shortages. According to The Great Leap Forward the peasants were required to produce
agricultural goods plus iron and steel, this caused mass food shortage because they were unable to
produce both at the same time hence it led to death of many peasants of hunger and starvation.
To conclude, Cold War had a very negative and devastating impact on the lives of people in China.
The reforms led by Chairman Mao were a big failure. These reforms of Mao led to The Great
Chinese Famine which caused many more deaths.

Impact of United States on China:

China has always been a planned economy where the government played a big role in deciding how
the country should be controlled. But after the rise in foreign trade and investments, it has opened
itself to international people, companies and communities. It's no surprise that China is starting to
turn to the United States’ ways of life in many aspects, which has its pros and cons, and in general,
becoming a more diverse country. USA’s influence on China has been seen in these ways:
 FDI: Foreign Direct Investment has been pouring into China with investors attracted by the
investment opportunities and its growing domestic market. This has played a major role in
China’s economic development ad their export success. Investment from the US continues to
grow with an 18% jump. The direct investment from the United States totalled $2.5 billion as
of August 2015. The growth of FDI not only demonstrates the international reliance on the
Chinese economy but their need for it in shaping the way their economy develops.
 Food and Beverages and changing habits: Firms from the United States have penetrated the
Chinese market and the supermarkets have risen to become the leading food retailer in urban
areas, taking the place of some traditional markets. US food chains are thriving in China,
particularly the fast food chains. More and more people are starting to eat pizzas, cakes,
donuts and just about every other American culinary invention. KFC grew to have more than
4000 locations in China in about 20 years and even McDonald’s is expanding in China at the
rate of 10 new restaurants per week. This has not only changed the food and beverages but
also their eating habits on a daily basis.
 The role of International chains and malls in defining trends and fashion : In China, a mix of
higher living standards means people are looking to mostly the American or the Western
brands more than ever. The wealth and buying power of the growing middle income group is
serving as a driving force behind changes in consumer behaviour and lifestyle. The Chinese
use brands as a tool of success in society, as weapons of advancement. Currently the
American companies are filling the gap. Brands like Old Navy, Nike, GAP, Ralph Lauren etc
are taking over because they are able to fill the criteria that the local brands cannot fill.
 Culture: Teenagers in China anxiously await the next episode of their favourite American TV series or
a highly anticipated Hollywood film. Celebrations for American festivals such as Halloween and
Christmas are becoming widely embraced in China, especially amongst the youth. A Chinese wedding
is considered incomplete without the western traditions of a white dress, father walking the bride
down the aisle, exchanging of rings and so forth. American culture began trickling into China over 30
years ago when their borders opened to foreign trade. The Chinese are grasping the American culture
and making them their own.

Cause of Totalitarianism

Totalitarianism can be defined a form of rule in which the government attempts to maintain 'total'
control over society, including all aspects of the public and private lives of its citizens.
There are several characteristics that are common to totalitarian regimes, including:
• Rule by a single party
• Total control of the military
• Total control over means of communication (such as newspapers, propaganda, etc…)
• Police control with the use of terror as a control tactic
• Control of the economy

The rise of totalitarianism in China is largely due to a man named Mao Zedong. He was poorly
educated as a child but highly intelligent. Zedong left home and had become a member of the
Nationalist Army as the Revolution began around 1911. He was soon introduced to and became
powerfully influenced by the philosophies of Marxism.

Following the Boxer Rebellion1 of 1900, (ridding China of all foreigners, massacring all missionaries
and Christian converts), China's citizens experienced starvation, extreme poverty, and grief resulting
in the loss of many innocent lives. This set the stage for the acceptance of men like Zedong and the
godless Communistic philosophies of Karl Marx. After being under the rule of warlords around
1916, many Chinese began joining revolutionary groups and political parties in hopes of changing
their country. During and after the Great Revolution (1914—1918), China saw several movements
which strongly fostered a path into Communism.

These times of chaos and despair played a large role in acceptance of Mao. He had the support of
roughly 85 percent of the nation who were poor farmers. Zedong started a society for the study of
Marxism, and in 1921 its members started the Chinese Communist Party. "Mao Zedong led the
communists after the army successfully finished the Revolution by defeating the nationalists. Then
once Mao was in control, the Chinese loved him and gave ample support in 'return for better changes
for the peasants,'" says writer Christopher van de Merwe.2

The basis of traditional communism is common ownership and production. Karl Marx started
communism as a journey into rational eschatology. But through (Lenin's) Soviet communism, this
was discarded and only atheism and tyranny were left. Marx believed that a man's worth reflected his
efforts and that the state of equality was one's "final stage in life." This philosophy shows
Communism to be not only anti-Christian, but anti any divine deity.

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