From the Maoist to the Post Deng China, a process of economic liberalization and opening toward the rest of the world : implications for transnational companies
Delange, Delphine (2011)
Turun ammattikorkeakoulu
2011
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-201105056278
https://urn.fi/URN:NBN:fi:amk-201105056278
Tiivistelmä
China is a current phenomenon attracting researches because of its spectacular growth as well as rapid and successful transition from a closed economy to a market-oriented economy. This paper firstly aims at recounting the main reforms undertaken by China in order to realize this dramatic shift. It also permits to identify the key actors and organizations which had played a major role in the process. The second part of the study deals with investigating the reasons why transnational corporations from developed countries are choosing China as an investments’ destination; and the possibilities they have to penetrate the market. Then, the emphasis is put on the risks and challenges enterprises investing in China are willing to face.
It asserts that Deng, leader of China from 1978 had played a key role within the reform process, and is even considered as the architect of Modern China. He is the one who had initiated measures in order to modernize, liberalize and open the nation toward the outside world. Two decades later, precisely in 2001, the country became a member of the pro liberal and free trade, the World Trade Organization. This step had conducted to deeply integrate China within the international relations. As a consequence the nation is currently one of the major economic and political actors in the globalized world. In addition, the country offers huge opportunities for investments coming from Western companies, regarding its market size composed of consumers with an increasing purchasing power. However, the Chinese environment still presents some weaknesses, mainly due to poor legislation, strong and opaque bureaucracy and a lack of uniformity within the market.
The paper concludes that China is going to be one of the main actors of the globalized economy of tomorrow. It will on the one hand expand its presence on each continent, either through financial flows or through FDI outflows. It is also argued that the Chinese phenomenon will lead to a major shift within the international relationship organization with China positioned as a leader.
It asserts that Deng, leader of China from 1978 had played a key role within the reform process, and is even considered as the architect of Modern China. He is the one who had initiated measures in order to modernize, liberalize and open the nation toward the outside world. Two decades later, precisely in 2001, the country became a member of the pro liberal and free trade, the World Trade Organization. This step had conducted to deeply integrate China within the international relations. As a consequence the nation is currently one of the major economic and political actors in the globalized world. In addition, the country offers huge opportunities for investments coming from Western companies, regarding its market size composed of consumers with an increasing purchasing power. However, the Chinese environment still presents some weaknesses, mainly due to poor legislation, strong and opaque bureaucracy and a lack of uniformity within the market.
The paper concludes that China is going to be one of the main actors of the globalized economy of tomorrow. It will on the one hand expand its presence on each continent, either through financial flows or through FDI outflows. It is also argued that the Chinese phenomenon will lead to a major shift within the international relationship organization with China positioned as a leader.