Cross Culture

Part 2:
I. Economics Strategy of China

Since initiating economic reforms and opening up in 1978, China has sustained an annual
GDP growth rate exceeding 9%, resulting in the uplifting of over 800 million individuals from
poverty. Concurrently, notable advancements have been made in healthcare, education, and
related services.
According to the World Banks, China's economy is strongly dominated by state-owned

enterprises, accounting for over 60% of the market capitalization in 2019, contributing to
40% of China's GDP, equivalent to 15.66 trillion. Currently, China ranks as the world's
second-largest economy in terms of GDP, leveraging the effective management of exchange
rate fluctuations in the market.
Presently classified as an upper-middle-income nation, China has successfully eradicated

extreme poverty,a significant number of people remain vulnerable, with incomes below a
threshold more typically used to define poverty in upper-middle income countries.
China’s high growth is based on investment, and low-cost manufacturing while exports have
largely reached its limits which led to economic, social, and environmental imbalances.
Addressing these imbalances necessitates a transition in the economy's structure,
encompassing a shift from manufacturing to high-value services, a move from investment-
centric to consumption-driven dynamics, and a reduction in carbon intensity.
In recent years, economic growth has moderated due to structural constraints such as
diminishing labor force growth, declining returns on investment, and decelerating
productivity. The forthcoming challenge lies in identifying new drivers of growth while
rectifying the societal and environmental repercussions of China's prior development
trajectory.
China's rapid economic ascent has outpaced institutional development, highlighting

significant institutional and reform gaps that require attention to ensure a sustainable and
high-quality growth trajectory. The evolving role of the state should prioritize providing a
transparent, equitable, and stable business environment, reinforcing regulatory frameworks
and the rule of law to bolster the market system, and ensuring universal access to public
services.
Given its size, China plays a pivotal role in numerous regional and global development
issues. Although not the primary historical emitter, China presently contributes to 27% of
global annual carbon dioxide emissions and one-third of the world's greenhouse gas
emissions. Its air and water pollution have transboundary effects. Consequently, addressing
global environmental challenges necessitates China's active engagement. Furthermore,
China's expanding economy represents a significant source of global demand, with its
economic rebalancing offering new prospects for manufacturing exporters but potentially
impacting commodity demand over the medium term.
China's influence extends to other developing economies through trade, investment, and
ideological influence. The multifaceted development challenges confronting China, such as
transitioning to a new growth model, managing rapid aging, establishing a cost-effective
healthcare system, and promoting a lower-carbon energy trajectory, resonate with other
nations
https://www.worldbank.org/en/country/china/overview
https://blogs.worldbank.org/eastasiapacific/state-owned-enterprises-in-china-how-big-are-
they
II.Politics
China's strategy, set forth by the People's Republic of China (PRC), aims to achieve the
"great rejuvenation of the Chinese nation" by 2049. This strategy represents a determined
pursuit of political and social modernization, encompassing extensive initiatives to enhance
China's national power, refine governance systems, and reshape the international order.
The Chinese Communist Party (CCP) presents this strategy as an endeavor to fulfill
longstanding nationalist aspirations, aiming to restore China to a position of strength,
prosperity, and global leadership.
The leadership of the CCP has consistently perceived China as engaged in a significant
international strategic competition with various states, with a particular focus on the United
States.
In 2019, China intensified its endeavors to advance overall development, which included
stabilizing economic growth, fortifying its armed forces, and playing a more active role in
global affairs.
Some key political-economic issues in China:

Sovereignty
In pursuit of its global political expansion goal, China has implemented numerous policies
directly targeting the economy, strategically maneuvering to elevate its economy to the top
position worldwide. This is because the economy is considered the most crucial weapon in
demonstrating political strength.
Sovereignty: The issue of China's sovereignty is a challenging and unresolved matter. Under
the leadership of the Communist Party of China, the country has taken actions that have
stirred controversies regarding sovereignty with neighboring nations. Among these disputes
are:
● Sovereignty dispute in the “Biển Đông”.
● Sovereignty dispute between China and South Korea: Socotra Rock.
● Sovereignty dispute between China and Japan: Senkaku Islands.
● Sovereignty dispute between China and India: Aksai Chin Border Dispute
https://vanngocthanh.wordpress.com/2013/01/06/an-do-san-sng-doi-dau-voi-trung-quoc/
https://www.researchgate.net/publication/
330049705_China_South_Korea_and_the_Socotra_Rock_Dispute_A_Submerged_Rock_an
d_Its_Destabilizing_Potential
https://www.e-ir.info/2022/06/23/understanding-the-senkaku-diaoyu-islands-dispute-
diplomatic-legal-and-strategic-contexts/
https://www.google.com/search?q=Sovereignty+dispute+between+China+and+India
%3A+Aksai+Chin&rlz=1C1ONGR_viVN1056VN1056&oq=Sovereignty+dispute+between+C
hina+and+India
%3A+Aksai+Chin&gs_lcrp=EgZjaHJvbWUyBggAEEUYOdIBBzU0OGowajSoAgCwAgA&sou
rceid=chrome&ie=UTF-8
China's Actions in Sovereignty Aimed at Economic Purposes to Diversify Energy

Supply:
● China invests in oil and gas exploration in foreign countries to ensure energy
security. In addition to oil and gas exploration, there is also extensive exploitation of
aquatic resources to create a massive source of revenue.
● The islands and maritime areas that China is expanding into are strategic locations
crucial not only for countries in the region but also globally.
● Within China, Beijing faces pressure from the nationalist faction, appearing indifferent
and leveraging this delaying stance to expand oil and gas exploration in the South
China Sea. This narrows down the territorial expansion of China's economic
geography in the South China Sea and certain adjacent regions.
● On the other hand, sovereignty issues have directly led to tensions and a decline in
economic exchanges between China and countries with competing sovereignty
claims such as Vietnam, India, Japan, etc. This impact affects both bilateral and
multilateral cooperation among nations.
=> The current island disputes pose a highly serious global issue, existing not only in the
economic realm through resource exploitation but also with deeper political intentions,
aligning with China's dream to rise above and assert global dominance

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Part 2:

I. Economics Strategy of China

According to the World Banks, China's economy is strongly dominated by state-owned

Presently classified as an upper-middle-income nation, China has successfully eradicated

China's rapid economic ascent has outpaced institutional development, highlighting

Some key political-economic issues in China:

China's Actions in Sovereignty Aimed at Economic Purposes to Diversify Energy

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