Analysis on the Influence of Economic Globalization on China’s Economy and Countermeasures

Abstract

Economic globalization is a historical product of the global market economy, which is naturally produced by the growing international division of labor and socialized production. In the economic globalization, China obtained huge institutional dividends, and the scale of foreign exchange earnings from exports continued to expand. Therefore, China becomes a world-renowned manufacturing factory, whose economic aggregate ranks second only to the United States globally. The research on the economic globalization is necessary for China to confront the global economic environment. However, there is not much research on China's policies toward economic globalization and policy framework at present. Based on empiricism, this paper applies some basic theories of classical economics to analyze the influencing factors of economic globalization on China’s economy. It preliminarily constructs a policy framework for China to respond to economic globalization, and analyzes the mechanism and significance of related policies. The paper finds that the use of institutional advantages to deal with the impact of instability in the international environment and deeper reforms, including the relationship between the government and the market, and the promotion of technological innovation and industrial structure adjustment and upgrading, are the reasons why China’s economy moves forward courageously despite ups and downs.