China’s Global Economic Impact
Your paper should be in APA essay format, including an abstract. There should be a
minimum of five references. The questions listed below should be answered
in the essay; however, not listed. Please no bullets or lists.
Please use the Game Theory to discuss China’s strategy.
China offers an interesting picture of a political and
business environment. Its economic presence heavily depends on manufacturing
and its inexpensive labor resources. As a result, this dependence has led to
over-investment and overcapacity in certain industry segments such as oil,
steel and cement. Also, China’s socialist banking tactic has complicated an
already intense economy. As a result, the country’s veracious economic growth
has sent inflationary and deflationary impacts across the world by raising
prices of the globally traded commodities like oil, cement, steel and other
metals. China’s old growth model, driven by infrastructure investment and
driven by cheap credit, has run out of steam.
China has made leaps and bounds in the economic landscape of
the global economy. Changes in policies enabled private sector and global
competition that were previously monitored by the government to pick up steam
as new laws in place to increase the number of children household to one plus
and lastly, Xi Jinping’s (the leader of China) announcement to support a more
sustainable consumer driven expansion in China (Silverstein, 2013).
China’s mission in the era of Jinping is to have a technology driven economy
high in quality and productivity performance. Their goal is to be the
number one Superpower.
It has taken time to reboot the ideology of the political
system which has provided optimism for economic growth. According to Fox (2013)
China’s goal is not be a revolutionary power, yet, a revisionist power.
Revisionists want more for themselves, whereas, revolutionists want to overturn
As of 2018, there are 120 Chinese corporations on the
Fortune Global 500 list. As far as brand recognition, the number is
very low. To sustain a competitive advantage product branding in this
region is a high priority. Huawei established in 1987 made its 2019 100 Best
Global Brands debut, at sixty-eight. Huawei is a basic research
organization focusing mainly on technological innovations and solutions that is
fully owned by its employees.
It has been an uphill road for China to overcome the stigma
of its production quality. To address a poor reputation, several areas
must be addressed: having a more culturally diverse organization would
help their leaders understand global needs and open channels of communication;
China must shift from low quality, low value to high quality, high value;
lastly, China must address country related political issues including
cyberespionage, xenophobia and increased tariffs.
Historically, China’s gross domestic product (GDP) has
shifted from the public sector to the private sector. This has enabled
joint ventures which facilitates a smoother transfer of global communication,
technological knowledge and cultural acceptance which is needed for
growth. Studies posit China’s growth is largely due to its labor force
(Yueh, 2015). China has been a high growth economy for over thirty years
reaping a double-digit growth (Mangus. 2018). Today, the rate has slowed down
to about six percent in the next twenty years.
Issues facing China today according to Mangus (2018) are:
China needs to improve its financial misbehavior over the last twenty years;
China also seeks to be a more prominent player in the global monetary system;
also, there is a significant aging population and middle-income trap.
Looking at China, we can suggest that economic conditions,
economic policies and the economic systems are the significant external factors
that constitutes the economic environment of a business. The economic
conditions of a country for example, the nature of the economy, the stage of
development of the economy, economic resources, the level of income, the
distribution of income and assets are very important determinants of business
strategies. Because there is no universal strategy for all industries, only
those strategies that are tailored to an industry and to the skills and assets
of a firm succeed.
1. What is an
economic system? What are the basic problems of an economic system?
2. What are the
features of a mixed economic system?
3. Explain the role
of government in solving problems that arise from different economic systems.
privatization and trace the history of privatization.
5. Explain the
different routes of privatization.
6. Give your
arguments for and against privatization.
7. Why is China’s
8. Bring out the
nature and causes for globalization of business.
9. Explain the
stages involved in the economic transition of globalization.
10. Evaluate the impact of
globalization on China’s economy.
11. List the strategies
used for globalizing a business.
12. Natural resources are
the wealth of a country’s economy. Discuss China’s key resources.
13. Evaluate China’s
government policies towards management of their natural resources.
14. Evaluate the impact of
economic development on environmental issues.
Fox , J.
(November, 2013} The Chinese Steamroller is Already Sputtering. International
Business. Harvard Business Review. Digital Article
Mangus, G. (2018)
Red Flags: Why Xi’s China Is in Jeopardy. University Press.
Silverstein, M. J.
(November 2013) Ten Predictions for China’s Economy in 2014. Economy, Harvard
Business Review. Digital Article.
(December 2015) China’s Growth: A Brief History. Business Economics.
Harvard Business Review. Digital Article.
China’s Global Economic Impact