Ceren ERGN/20715829

Is China a Regional or Global Power?

After the Deng Xiaoping governance, China included capitalist world economy. With the foreign trade reform; import duties and export subsidies was decreased. Economical liberation and boom of China caused the including capital accumulation. Chinas attendance in World Trade Organization (2001) is the important step of globalization of China. Between 1978-1994, Chinas reel average growth rate is almost percentage 9 and at this period, national income increase double rate. Chinas foreign trade increase almost percentage 15 after 1982. Agriculture value added % of GDP decreased after 1990s. However, still China's agricultural value added is high against most industrialized countries. Chinas industry value added is high among the average industry values. Becoming Worlds most crowded country feature cause the big market for transnational companies. The number of TNCs in China exceeds seven hundred thousand. The most number of TNCs locate in China due to labor workforce and high population. Balance of export and import is in favour of export. Chinas increased export is around % 35 against the around % 25 import rate at GDP. Economic growth provides the necessity of raw material and energy. Therefore, energy is important problem for China. Energy use exceeded energy production after 2000s. Chinas increased industry rate cause the increasing energy using. China unemployment rate is low; however, off-the-books unemployment is rather high. Foreign direct investment rate has increased day by day in China. The beginning of 2000s, labor intense sectorial products produced. However, nowadays capital intense, such as chemical and oil manipulative products, have produced. With foreign direct investment, Chinas local industry hits for six in the cause of economic growth. Chinas undeterred boom cause a question, Is China a regional or global power? Chinas regional integration with Taiwan and Hong Kong and high-level trade relations with South Korea shows that China pays importance regional integration in Far East. Chinas economic relations with Japan may be defined as complementary relations. In 2002, ChinaJapan trade is top level. Japan is big capital export shipper and China has capital demand burst. China-USA economic relations based on low technology products. However, USA meet Chinas 1/5 foreign trade. Chinas unbalanced GNP distribution ad high unemployment rate are the obstacles to becoming super power. However, political and economic potentials are indicators of regional power of China.