Extra credit blog: China and globalization——ZHENG YAYUAN

 -Is globalization good for China? 

For China Economic globalization is a manifestation of the progress of productivity and production relations, which is in line with the market law; capital is profit-seeking, and global investors must tend to place their capital in countries with advanced financial technology and high consumption capacity, because it means more profits, while countries with insufficient production factors can only use parts of their comparative advantages, such as labor and resources, and China's accession to the WTO is After decades of development, the economy entered a new situation when China gradually became an exporter of technology, and the role of China in globalization increased, so it is a mutually reinforcing relationship.

The impact of globalization on China has been tremendous. China joined the WTO in 2001 and officially embarked on the path of globalization. By 2003 China's GDP had achieved double-digit growth, and this high growth continued until 2008. This could not have been achieved without the contribution of globalization, which allowed us to take advantage of our strengths and link to the opportunities of globalization.

In 2000, China's GDP was only $9.9 trillion, in 2008 this figure became $30 trillion and in 2020 it became $101 trillion, a 20-fold increase from 20 years ago.

This is a remarkable achievement for the world. China has the endowment and potential to become a world power, and it has been proven many times in history.

For China Along with the construction of the international vertical specialized division of labor system, the production process of products is divided into different parts and reconfigured globally according to the resource endowment and comparative advantage of each country or region, which has an important impact on the industrial structure of China. In the process of economic globalization, the trend of change in the share of each component of China's three industries has certain common features, i.e., the value added based on domestic value chains and satisfying China's final demand occupies a larger proportion of the total and shows a U-shaped trend, while, on the contrary, the value-added component of export-related parts does not have a high share and shows an inverted U-shaped trend during the analysis period. In addition, GDP based on China's domestic value chain and global value chain has different industrial structures, with the primary and tertiary industries accounting for a larger share of China's domestic value chain and the secondary industries accounting for a higher share of the global value chain. Thus, as China's participation in global value chains increases, the share of secondary industries expands further, and conversely, as globalization slows down or even reverses, the share of tertiary industries increases.

 -Is China good for globalization?

Globalization is now pushed to a new crossroads and faces unprecedented challenges. China, as the world's second-largest economy, is addressing the opportunities and challenges facing today's globalization process from the perspectives of the current and future of free trade, international talent flow and governance, the changes in the diplomacy of major powers, and the impact of the new crown epidemic. As a beneficiary of globalization, China's strategy to cope with this unprecedented change in a century, issued a positive initiative that "China should continue to defend globalization and participate more actively in global governance".

China's contribution to global nominal growth in the 1980s and 1990s was only three percent, and compared to the United States contribution to more than 30 percent of global economic growth in the same period, China's contribution was only one-tenth that of the United States. But by the beginning of this century, China's contribution to the global economy had reached more than 9 percent of the total nominal growth in seven years, which is close to one-tenth of the global total, a threefold increase year over year. In contrast, the relative decline of the United States, whose contribution to the world economy fell from one-third to one-fifth of nominal growth during this period, a one-tenth decline year over year. With time, the growth and decline in the economic contribution between China and the U.S. have become even more pronounced, with China's share of global nominal economic growth reaching one-half, or 47 percent, by 2015 after the 2008 global financial crisis. In the eight years since the 2008 global financial crisis, China's share of global nominal growth is still only one-fifth of the global economy, although the U.S. has seen relative growth from 2000 to 2007. China has actually surpassed the US as the largest contributor to total global economic growth.