Chinese Economic and Foreign Policies

Paper Summary:

This paper explains that the success of the Chinese economic reforms is attributed to the liberty granted to the non-state sectors to progress in the environment of the market economy. The open door policy is an essential element in the process of economic reforms. It induces foreign investment and encourages the foreign trade. The writer points out that foreign investment has brought in new capital, new technology, managerial skill and training for labor to China. This has infused the contemporary managerial strategies, business techniques and a legal structure for favoring the business dealings. The paper further notes that it has generated competition in the domestic market and the competition has compelled the domestic enterprises to become more efficient. The foreign trade has been made easy due to the availability of the low cost and high quality labor in China to produce goods to be sold at higher prices in the world market thereby increasing the compensation to Chinese labor. The writer concludes that China has thus become an outstanding trading nation in the region, primary to the economic development along with promoting stability in the region.

From the Paper:

"Chinese foreign policy of the mid-1980s results from the four correlated estimations. Firstly, the Chinese reform minded leaders opined that there is possibility for China to attain power and prosperity while safeguarding its national essence only through increased involvement in world activities. Secondly they emphasized that the international environment allows a focus upon domestic development while specifically because Soviet Union is concentrating on other emergent situations and in the process there is ample possibility that China can avail a stable environment in East Asia for the predictable future. Thirdly, they emphasized that China will find it advantageous to participate successfully in the international economic system and by soliciting growing foreign involvement in its own economic development. Finally, it is advocated that China can adopt persistent, independent, pragmatic and purposeful policies not only towards the three major powers of concern to them which are the Soviet Union, the United States and Japan but also towards other crucial areas like Korea, Indo-China and Taiwan. Hence the superseding goals of foreign policy of the reformers that arise from such considerations is to counterfeit a peaceful security environment in support of ambitious internal economic development. The reformers desire to promote economic relationships with all the prospective trading counterparts. They are much concerned in safeguarding the Chinese Sovereignty and autonomy while allowing the impediments of enhanced commercial and security links with the external world. (Okesenberg, 1986)"

More papers on Chinese Economic and Foreign Policies:

• Research Paper # 61106 : "Chinese Economy and Foreign Investment"
• Analytical Essay # 131153 : "Chinese Monetary Policy as Foreign Policy"
• Term Paper # 101203 : "Chinese Monetary Policy as Foreign Policy"

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