As the world proceeds to interconnect, and China continues to expand its policies, it is expected to be the world’s largest economy by 2030. As the world’s largest exporter (HIll, 2018, p. 20), China is making massive strides in a wide range of industries. These industries help shape our ever-evolving world as we know it; therefore, the role China continues to play will likely have serious implications. China’s market is also continuing to evolve more progressively, which allows it’s Gross Domestic Product (GDP) per capita to rise steadily, with the current trend of up to 10 percent (HIll, 2018, p. 37). These market growths are contributed to the shift to the privatization of many industries, as opposed to the mainly former state-owned processes (HIll, 2018, p. 88). As China further develops and globalization is more solidified, China’s influences will have a more considerable impact.
One entity that will affect the continued growth of China will be the world trading systems. The World Trading Organization’s (WTO) function is to ensure that countries correctly follow the rules laid out via treaties (HIll, 2018, p. 24). If China has the world’s largest economy by 2030, then how trade is conducted can be altered. Though China has become more progressive with their government over the last 20 years, they are ultimately still a communist country. With the influence of a totalitarianism regime (HIll, 2018, p. 60) as well as being having the largest economy, China can influence global markets to better suit themselves, such as issues pertaining to human rights and intellectual property (Sun, 2004). Intellectual property is a significant area concern across numerous industries, with China often accused of providing low-level enforcement of protecting intellectual property from other countries (Mertha, 2010). By acquiring the influence through having the largest economy, China may lessen the impact of violating the WTO when it comes to intellectual property (Sun, 2004).
With China’s projected likely rise as the global economic leader, there are a few potential implications. There’s a strong possibility that has China’s economy overtakes the United States; China’s RMB may overtake the United States’ dollar, which will profoundly alter global exchange (He, 2014). If China establishes itself as a world economic leader, and thus elevates itself as a political power, there are concerns about stability surrounding future trade. With the potential for political and military unrest in China, business may suffer due to inconsistencies with the unproven RMB (He, 2014).
As of right now, China has already has had a significant influence on global commodities (Pleven, 2010). Though China is the world’s largest exporter (HIll, 2018, p. 20), it also one of the world’s largest consumers (Pleven, 2010). Some industries, such as energy and agriculture, are deeply affected by China due to their substantial population. Metals, such as copper and iron, are often used for infrastructure. With the world’s largest economy and population, China is expected to continue to expand, which will continue to put strains on these precious commodities (Pleven, 2010). All told, as one of the world’s most significant consumers and exporters, China’s need for commodities may have severe impacts on the rest of the world, especially the United States’ dollar and the rest of the world’s economy (Pleven, 2010).
He, X. (2014). Issues surrounding internationalization of china’s currency. Journal of Management Policy and Practice, 15(3), 20-29. Retrieved from https://saintleo.idm.oclc.org/login?url=https://search-proquest-com.saintleo.idm.oclc.org/docview/1558844632?accountid=4870
Hill, C.W. (2018). International Business: Competing in the Global Marketplace (12th ed.). New York, NY: McGraw Hill Education.
Mertha, A. (2010). INTELLECTUAL PROPERTY RIGHTS IN CHINA: Politics of piracy, trade and Protection/PIRACY AND THE STATE: The politics of intellectual property rights in China. Pacific Affairs, 83(3), 579-582. Retrieved from https://saintleo.idm.oclc.org/login?url=https://search-proquest-com.saintleo.idm.oclc.org/docview/751610016?accountid=4870
Pleven, L. (2010). Market flashpoints; flexing muscle: China’s influence on global commodities markets. Wall Street Journal (Online) Retrieved from https://saintleo.idm.oclc.org/login?url=https://search-proquest-com.saintleo.idm.oclc.org/docview/237973079?accountid=4870
Sun, L. (2004). China and the world trading system: Entering the new millennium. The China Journal, (52), 197-198. Retrieved from https://saintleo.idm.oclc.org/login?url=https://search-proquest-com.saintleo.idm.oclc.org/docview/222739175?accountid=4870