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Impact of Globalization


The world system began to change. Globalization is a qualitatively new stage in the economic and technological, informational, and cultural rapprochement of the countries and nations that form international production, the global capital and labor markets, a common information space. This process has allowed China to go forward. Today, it has the largest economy in the world after the USA. China, which for the past 30 years grew and developed, will be a major force in the global economy within the capitalist system. The impact of China on the world and the US economy further increases. Now, the USA and China are two countries with the largest economies. There are differences between them as well as a common interest in world peace and human progress. This research paper will examine how globalization has influenced China and explain which impact different types of global forces and issues have on people living in the state. Moreover, it will consider the relationship between China and the US.

China is a socialist (communist) state in East Asia. China borders Mongolia in the north, Kazakhstan in the north-west, Russia and North Korea in the north-east, India and Nepal in the south-west, and Bhutan, Myanmar, Laos, and Vietnam in the south. In the south-east, it is washed by the South China Sea. It is the largest populated country in the world with a population of more than 1.35 billion persons (Wasserstrom, 2013, pp. 12-13). The majority of the population are ethnic Chinese (Han). However, 55 other nationalities and ethnic groups (Zhuang, Uighurs, Mongolians, Tibetans, Hui, Koreans, and others) live in China. The population density is 139.57 persons per km2 and the ratio of the urban and rural population is 29% and 71% (Wasserstrom, 2013, pp. 12-13). The official language is Chinese; however, tourist centers widely use English, and in the north of the country, the Russian language is often used.

The state is ranked third in the world in terms of area, which is 9.6 million km2 (Wasserstrom, 2013, p. 12-13). The capital of the state is Beijing, and the largest cities in the administrative sense are Shanghai, Chongqing, Wuhan, Xi'an, and others. China is a communist republic. The President of China is the head of state. The highest organ of state power is the National Congress with a permanent representative body called the Standing Committee. China Revolutionary Committee of the Kuomintang, China Democratic League Association of Democratic National Construction of China is the most popular political party (Wasserstrom, 2013, pp. 12-13). Officially, the entire population is considered to be atheists, but many practice Confucianism, Taoism, Buddhism, Lamaism, Protestantism, Catholicism, and others.

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China's climate is largely defined by its topography. In total, China is located in three climatic zones: moderate, subtropical, and tropical. In the Northwest, the climate is moderate, sharply continental, but on the Qinghai-Tibet Plateau, it is cold. The average January temperature here ranges from -10 to -25?S (Wasserstrom, 2013, p. 15).

The United States

The United States is the state in North America. The area is 9.5 million km2, which makes it the 4th largest country in the world (Fouberg & Moseley, 2015, p. 25). The population consists of 318 million people, which ranks the USA the 3rd in the world as for population size (Fouberg & Moseley, 2015, p. 26). Americans of the United States is a nation with diverse racial composition. Caucasian ethnicity, or people who came from the United Kingdom, Germany, Ireland, and other European countries are currently dominant in all respects and regions, except for Hawaii. Next stand Negroid, Mongoloid, Latino race, and others, which accounts for over a third of the population. The most common language in the United States is English, which is native for 228.7 million Americans older than 5 years (80.0%) and Spanish is native for 35.5 million US residents (12.4%) (Fouberg & Moseley, 2015, p. 26). The proportion of urban residents in the total population is 45%, meanwhile the part of the rural population is 55% (Fouberg & Moseley, 2015, pp. 25-32).

Administratively, the country is divided into 50 states and the District of Columbia. There is also a number of island territories under the US submission. The capital is the city of Washington, D.C. The main territory of the United States, called continental states, is located on the North American continent and it stretches from the Atlantic Ocean in the east to the Pacific Ocean in the west. In the south, the USA borders on Mexico, in the north - on Canada. Furthermore, United States includes two more states. In the northwest of the continent, Alaska shares border with Canada. In the Pacific, there is Hawaii. The Russian-American border runs through the Bering Strait. The United States also owns a number of islands in the Caribbean Sea, for example, Puerto Rico, and the Pacific Ocean - American Samoa, Midway, Guam, etc. There is a number of island territories of different status that are under the control of the United States, but are not included in them. The US Constitution is fully valid on the territory of the uninhabited atoll of Palmyra. The rest of the territory has their own primary legislation. The largest of these areas is of Puerto Rico. Since the USA is located on a large area, it contains almost all climatic zones from the Arctic climate in the north of Alaska to tropical in Hawaii and southern Florida (Fouberg & Moseley, 2015, pp. 35-36).

According to the US Constitution, the US federal government has powers. State powers that were not defined for a referral to the federal government by the Constitution are implemented by states. The principle of the US Constitution involves the separation of powers. Thus, the federal government is made up of legislative, executive, and judicial authorities, acting independently of each other. The highest legislative body is bicameral US Congress, consisting of the lower house, the House of Representatives, and the upper house, the Senate. The highest executive body is the President of the United States. The President is the head of state, commander in chief of the armed forces. The highest judicial authority is the Supreme Court of the United States. The main political parties are Republican and Democratic. However, there are also many other smaller parties (Fouberg & Moseley, 2015, pp. 15-16).

Local Impact of Globalization on China

Political Aspect

The concept of democracy is a relatively young notion for a more than 4 thousand-year Chinese history. However, China's leaders believe that the time of political reforms has come. Changes are designated by the term democratic socialist policy. It entails the introduction of universal democratic mechanisms that create the conditions or serve as levers for influencing the authorities in order to make them serve the interests of all segments of society. In addition, the introduction of democratic traditions has become a tool to overcome the negative effects that have accumulated and become an obstacle to the further development of China. Thus, through the democratization of the political system, China has managed to tackle corruption in the specific conditions of transition to the market economy (Guthrie, 2012, p. 90). Now, the democratic forces in China are weak. The success of the reform requires a fairly strong group of politicians who can put the public interest above selfish class interests.

Environmental Issues/Challenges

Today, China is an active participant in international conferences in the field of environment. The biggest success of global environmental policy - the Montreal Protocol on Substances that Deplete the Ozone Layer was impossible without the participation of China. The state is the world leader in the production of CFCs, and this agreement would have been ineffective without the participation of China. Nowadays, climatic changes are associated with greenhouse gas emissions (primarily carbon dioxide). China is currently ranked first in terms of carbon dioxide emissions; however, the state often opposes tough regulatory measures (Veeck, Pannell, Smith, & Huang, 2011, p. 56). Politicians and the public in China rightly point out that the current global environmental problems are primarily the result of the development of the countries of the North. According to Chinese scientists, a gradual shift towards "green development," low-carbon "circular economy", cleaner production and consumption is necessary, and in 2012, China invested 65 billion US dollars in clean energy (Veeck et al., 2011, p. 59).

Human Rights

In 2008, China ratified Convention on the Rights of Persons with Disabilities that was established after the Committee on the Rights of Persons with Disabilities supervisory authority over the implementation of the Convention. However, in 2002, China refused to sign the United Nations Convention on the Protection of the Rights of All Migrant Workers and Members of Their Families that was dedicated to the protection of rights of specific groups of all migrant workers and their families. In the PRC, homosexuality is no longer considered a criminal offense since 1997. In April 2001, it was officially removed from the list of mental disorders. As China also refused to sign Optional Protocol to the Convention on the Rights of Persons with Disabilities, the state, however, attempts to become the conductor of the ideological basis of globalization (Guthrie, 2012, p. 87). Individualism and freedom of the individual become a core value of this ideological basis. Now in China, personal (somatic) human rights, among which the right to death (euthanasia), change of sex, homosexual sex, transplantation of organs and tissues, the use of drugs or psychotropic substances, surrogacy, artificial reproduction, sterilization, abortion, cloning, gay marriages are actively formulated in terms of globalization.

Economic Consequences

China opens to the outside world in all areas of the national economy. The volume of China's foreign trade of goods and services grew by more than 15 times, and its rates were in three times higher than of the total world trade. In terms of trade turnover, the country has entered the top ten countries. China accounts for over 10% of world GDP. China has attracted more than 265 billion dollars of foreign direct investment and 127 billion dollars of credit, as well as created around 300 thousand companies with foreign participation (Guthrie, 2012, p. 100).

Globalization has led to the economic recovery in China. Foreign direct investments are directed into industrial production and stimulate economical rise. Chinas average real income per capita increased by 20 percent (Guthrie, 2012, p. 106). There has been a widespread reduction in poverty since the country opened its economy.

With the economic growth in China, the part of the poor population has decreased. The growth of high-wage jobs significantly contributed to this fact. However, wages decreased in almost all industries oriented on the domestic market. Due to this, along with the low overall level of pensions, mass poverty majority of the population can be created. The gap between the average income of the poorest part of the population and the richest part has increased as well.


China reviews the ways in which state can meet the needs of medical care for the population. The government has taken steps in the direction. The basis of the reforms is two initiatives: the new cooperative medical programs designed in order to meet the needs of the rural population, and the program Basic Medical Insurance for Urban Residents. The government aims to increase the proportion of the population with formal insurance and gradual increase of the availability of health services and the strengthening of financial risk protection. Moreover, China has invested 1.3 billion US dollars in research and development of medicines, control of communicable diseases and their prevention (Veeck et al., 2011, p. 76). However, liberalization of trade in health services leads to the fact that more and more people get health services abroad. China healthcare market system is often inaccessible to the public because of its high cost. However, in the context of globalization, telemedicine has appeared. Telemedicine is a remote medical practice using audio and video and data technology. It gives an opportunity to receive a necessary consultation in their country. In addition, China does not use a policy of assimilation in order to attract highly qualified professionals. The country attempts to invest costs in education of own medical personnel.

Crime and Terrorism

In China, globalization is expressed in the weakening of state control over the economy. Free-market ideology, minimization of barriers for the free movement of goods, services, information, people reformatted and "modus operandi" of organized crime and terrorism, which is the same, have gained greater freedom of action. In response, China has announced the creation of so-called Calm China, organization acting against crime and terrorism (Veeck et al., 2011, p. 76). Globalization has made terrorism a global threat. The feeling of danger and risk has become universal and constant in China. Poverty, social injustice, and the social and economic inequality are the most powerful motivators of rising crime, extremism, and terrorism in the conditions of advancing globalization in China. Thus, globalization creates essential conditions for the growth of the transnational organized and terrorist crime. Growth of terrorism is also caused by the intention of the crimes to overthrow the pro-American mode.

Chinas Impact on the World and the United States

Political, Economic, and Cultural Relations between China and the USA

The USA is interested in economic cooperation with China. This fact is linked to the growing interdependence of the economies of both states. China is very interested in the preservation of the American market, which is the largest for China, and attracting foreign investments that come mainly from the USA. This allows the country to maintain high economic growth rates, even during the economic downturn and develop the most backward sectors of the economy.

The USA expresses solidarity to the Chinese government on the issue of terrorism. Both states consider terrorism as a factor of strategic importance and a threat to world peace. China supports the USA in a consolidation of the forces of the international community to combat terrorism (Rosecrance & Guoliang, 2009, p. 123).

In addition, the issue of human rights plays a great role in the US-China relationships. The USA points to the problem of violation of human rights in China, but at the same time, it is not willing to develop a serious conflict with China on this issue (Rosecrance & Guoliang, 2009, p. 129). It can be concluded that the United States uses the issue of human rights in China in order to put pressure on China and for the weakening of its international position.

China and the USA have reached an important consensus on the strengthening of relations of cultural exchange. The establishment of Organization for the Assistance of China-US cultural dialogue at the highest level was the basis of cultural exchanges and cooperation (Rosecrance & Guoliang, 2009, p. 130). It has a stimulating effect on the successful development of relations between Beijing and Washington in the educational and cultural spheres.

If China develops well, it will benefit the entire world and the United States. However, now, China is a hostage of its economic growth. The decline of GDP growth below 8 percent a year will cause a rise in unemployment, which could lead to a social explosion. The export-oriented Chinese economy needs new markets. Stable relationships with major importers, the main of which is the United States, can provide them. The USA seeks to force China to implement political evolution and Western-style democratization of public life. Therefore, Barack Obamas coming to the White House has made the idea of a US-Chinese partnership one of the main trends in world politics. The concept of symbiosis between the two powers Chimerica - was launched. However, it was rejected by China at all levels (McGiffert, 2003, p. 56). Now, China is able to significantly influence the USA. The following situation can serve as an example.

Recent Situation

Washington announced its intention to sell the consignment of arms to Taiwan for $ 6.5 billion (McGiffert, 2003, p. 42). In response, China has frozen bilateral military ties. China has done this for several times. However, now, the state has also threatened to impose sanctions against the US companies involved in the Taiwan deal and block the adoption of new sanctions of the United Nations against Iran. This situation was caused by domestic political factors in both countries. Washington believed that in response to the statement of friendship Beijing should finally make a number of concessions. Beijing did not see the desire of Americans to understand the Chinese concerns about military-technical cooperation with Taiwan and did not make any concessions. Obamas administration has changed its approach to Beijing in the direction of greater rigidity (McGiffert, 2003, p. 43).

Today, China is not strong enough in militarily-economic terms to start a global competition with the United States. Moreover, China and the United States depend on each other. In China, focused on Western markets, severe economic sanctions could lead to social unrest. In addition, China's desire to increase the activity of the armed forces significantly and to send them abroad to protect its economic interests would be negatively perceived not only in Washington.

Attempts to solve the Taiwan issue and China lead to a conflict with the United States. Leaders of China have repeatedly stated that China does not allow the independence of the island of Taiwan. Leaders of Taiwan, with the support of the United States, modernize its armed forces in order to oppose China. In March 1996, the US President Bill Clinton sent two aircraft carriers to the Taiwan Strait area in response to China's military training in close proximity to Taiwan (McGiffert, 2003, p. 67).

Attempts Made to Address the Issue

In order to solve the issue, the USA continuously puts pressure on China, trying to force Beijing to renounce the use of military means. The USA seeks to maintain the military balance between China and Taiwan and continues to sell weapons to the island (McGiffert, 2003, p. 56).

The advantage of such policies is the fact of avoiding a direct military conflict with China because of the problem of Taiwan. The outbreak of hostilities in the Taiwan Strait can lead to a military conflict with China. Thus, the USA does not want drastic changes of the current situation in the relations between the two sides of the Strait. Perhaps, the USA could win the war with China. However, the damage done by the United States, in this case, would be dramatic. In addition, positive aspect of these attempts is a possibility to establish a dialogue mechanism between the two sides. Among the disadvantages the fact that selling weapons to the island clearly establishes the total responsibility of the United States for the defense of the island can be named.

In the current situation, such policies seem to be the only possible way since given the presence of the nuclear potential in China and the United States, an open military confrontation between countries can lead not only to a full-scale world war, but to the destruction of all mankind.

Major Facts One Needs to Consider when Travelling or Working in China

When travelling or working in China, it is necessary to consider the fact that environmental issue is very crucial. Twenty of the thirty most polluted cities are situated in China; smog covers the metropolis as a daily reminder of problems with the environment. One should also remember that the population is characterized by a cultural and social heterogeneity so it is important to behave in an appropriate way. In addition, Chinas economic growth provides excellent opportunities for career growth in the areas aimed at the international market so when searching for a job in this region it is important to consider this fact.


The era of the Cold War ended long ago, and now the world lives in the age of globalization. China and the United States as the two countries with the largest economies, despite the differences between them, have common interests and responsibilities for world peace and human progress. China, despite facing enormous difficulties such as overcrowding, lack of resources, a large gap in incomes of urban and rural residents, prosperous and less-developed regions, etc., will continue to grow rapidly over the next ten years at least over the next ten years. However, without democratization, China will not be able to consolidate the achieved trade advantage over the United States and become a global industry leader.