Impact of globalisation on China

Globalisation of Chinese Economy
Benefits	Costs
Because of globalisation, China’s economy now interacts with other economies of the world, and results in high levels of economic growth.	Globalisation has been accepted by china through de-regulation (e.g. Creating an open market economy). This means that laws have been changed to allow interaction with other countries and results in a loss of power.
There has been an increase in use and ease of communication, between economies. This leads to increased trade and financial flows.	Because there is an increase in market interdependence, China’s economy has become quite vulnerable and exposed to external factors that threaten it. (e.g. The Global Financial Crisis)
Through globalisation, people are able to travel around the world quite easily. An Increase in international migration has boosted tourism and has brought money into the economy.	There are social and economic costs to China due to globalisation. The Engage with the rest of the world, a countries economy must go through structural change. This can cause economic and social dissatisfaction during the restructuring of the country.
In China, there has been an increase in Foreign Direct Investment (FDI) this is accelerates growth and increases financial flows within the economy.
Globalisation has boosted China’s economy and therefore reduced poverty. There are increased living standards and an increased life expectancy.
There is now economic peace and stability after globalisation. There is a higher confidence in China’s economy through the interaction and interdependence of all the economies of the world.