Globalization is a widely used term which can be describe or defined in various ways but if we are to describe it in economic terms there are lot of definitions which all bothers down to the same point which is the removal of barriers withing boarders in order for free movement of goods and services

How to view Globalization

Globalization is the objective trend of economic development in the world today, featured by free flow and optimized allocation of capital, technology, information and service in the global context. It is the inevitable result of the development of productive forces and advances of science and technology, especially the revolution of information technology since the 1980s and 1990s.

As a result, economic interdependence and interaction between countries are becoming ever stronger. In this massive tide of economic globalisation, no country can develop and prosper in isolation. China has learnt from her long history that isolation leads to backwardness. Development,progress and prosperity could only be achieved through opening to and integrating with the outside world, through stepping up exchanges and cooperation with other countries and through absorbing all fine results of human civilization. Therefore, we should embrace and seize the opportunities presented by globalization and adopt reforms to keep up with the steps of the changing world.

Challenges brought by Globalization

Due to the lack of a just and equitable international economic order, the influence of globalization on countries at different stages of development is entirely different. The “dividends” derived from globalization are not fairly distributed. The developed countries have apparent advantages in capital, technology, human resources and administrative expertise and in setting the “rules of the game”. They are usually the most active propellers and the biggest beneficiaries of globalization. The developing countries on the other hand are on the whole in an unfavorably position. Developing countries can obtain some foreign investment, advanced technologies and management expertise, but at the same time they are the most vulnerable to the negative impacts of globalization and lack the ability to effectively fend off and reduce the risks and pitfalls that come along with globalization. In the 1990s, especially in recent years, the gap between the North and the South has further widened. The economic sovereignty and economic security of the developing countries are confronted with enormous pressure and stern challenges. Some least-developed countries are even on the brink of being marginalized by globalization. Therefore, in participation of globalization, developing countries should always be on alert and try by all means to exploit the advantages and avoid all kinds of risk and harm.

China’s Experience

For China, globalization is often seen as a double-edged sword that brings both opportunities and challenges, advantages and disadvantages. How to turn disadvantages into advantages in the tidal wave of globalization depends on formulating the correct policies and strategies. If the policies are correct, challenges can be turned into opportunities. China has learnt many lessons and accumulated rich experiences in dealing with globalisation from its practice of reform and opening-up. In my personal opinion, they can be summarized as follows:

1. To find a road of development that suits the national conditions. In the past 20-odd years, China has maintained an annual growth rate of over 9.3% on average. China is now the 6th largest economy and the 5th largest trading nation in the world. More than 200 million people have been lifted out of poverty. The average life expectancy reached 71.8 years in 2002, close to that of a medium-level developed country. The above accomplishments were achieved against the backdrop of a volatile international situation. The reason why China can achieve so much in such a short span of time and in a constantly changing international environment is because China has found its own road of development, suitable to its national conditions, namely building socialism with Chinese characteristics. In one word, building socialism with Chinese characteristics is to base what we do on the realities of China. While sticking to the basic system of socialism, reforms should be carried out to solve the problems of incompatibility between the productive forces and the relations of production, and between economic base and the superstructure, so as to achieve self-perfection of socialism. Every country is different from the other. While it is important to learn from other countries in the world, no country should simply copy other countries’ model.