Economic Globalization In China

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As the rapid growth rate of economic environment in current world market, economic globalization is affecting emerging countries economic development by increasing oversea business activities such as FDI, export-import, also the culture communication between different countries are interacting and influencing each other during diplomatic business activities. The globalization also simulates innovation and creativity in the emerging countries; it encourages the spirits of entrepreneurship and drives the emergence of innovative business models. China as one of the fastest growing countries in efficiency-driven economy system, where economic growths are based upon manufacturing in domestic markets, outsourcing, and exporting products to foreign…show more content…
It gradually becomes a national trait aligned with cheaper labor force that attracts the developed countries. In other words, the developed countries are willing to progress manufacturing outsourcing in China. Moreover, market demand boosts in the stage of economic development, therefore, there are massive amount of potential opportunities occurring in the market place. With increasing amount of the FDI, China is constantly absorbing knowledge and learning skills from innovative technologies and trying to help local business development. As a result, the GDP is rapidly growing since 1995 (World Bank Data 2017), which indicates that the purchasing power of customers is sharply boosting in the domestic market. In 2001, China was formed into BRIC with other three countries as one of most powerful emerging market country in the world, the utility of being one of the most powerful emerging countries simulates foreign investment in manufacturing industries, as it offers greater business opportunities for entrepreneurs to dive into the…show more content…
“According to the economic policy changed and market reform by Deng Xiaoping in 1992, the Chinese communist party leaders have now publicly acknowledged the positive contribution that entrepreneurship can bring to the country’s development.” (Puffer, S. M., McCarthy, D. J., & Boisot, M. (2010). Chinese government policy supports the entrepreneurship by optimizing fiscal and taxation policies to reduce difficulty and uncertainty in infant industries. It makes easier for entrepreneurs to raise fund and gain enough financial support in the start-ups. Moreover, “government reduce taxation burden for small-medium size enterprise such as cut down the income tax to 18% for those enterprise with annual profits around $12,000, therefore with the increasing size of small and medium firms, it brings more job opportunities, simulates economic growth and promotes technology innovation in the market.” (Chen, J 2006). The policy also encourages innovative business development in various market area by enhancing the intellectual property protection and extended accessibility towards financing and outsourcing for entrepreneurs, “the enhance of protection of property rights are crucial for the entrepreneurs who need to rely on the security of their
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