Chinese Global Economy

Topics: Socialism, Market economy, Capitalism Pages: 4 (1205 words) Published: April 9, 2013
1.How has China’s employment relations evolved over the past 50 years? Employment relationships in China have undergone changes during the process of transition to a market economy and through the impact of globalisation. Both market forces and institutional arrangements have played important roles in determining the changing character of employment relationships in Chinese auto and banking sectors in recent years (Zhao, Zhang, Zhao, Poon, 2012). China has moved towards the development of a socialist market economy where they hope to hold the term ‘socialism with Chinese characteristics’, which is a market that combines substantial state ownership of large industries with private enterprise (Zhao et al. 2012).

Though China has also been credited with high growth rates in GDP, it seems that with the transition to an economic system based on market competition that the employment relationship has now become contentious. Employment relations over the past 50 years have evolved from a lifetime-employment system to now a contract-based system where employers can now reduce their workforce without legal obligation (Zhao et al. 2012). These developments have caused huge ramifications for employees as they have ultimately lost all job security, and legal rights to dismissal in economic downturns. This shift contributes to the amount of stress vulnerable to the economy. 2.How has globalisation impacted the Chinese economy?

With the accelerating process of economic globalisation, there have been significant impacts on industries and sectors (Zhao et al. 2012). According to the journal article under analysis the structure of China’s economy in almost all industries has been impacted by globalisation to some degree (Zhao et al. 2012). This has led to various changes in the area of employment relationships.

China’s stronghold in the Auto industry has moved from a closed, command economy (30 years ago) to the establishment of policies stating that all major foreign...
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