"Taxation in China" redirects here. For taxation in Imperial China, see Taxation in premodern China. Taxes provide the most important revenue source for the Government of the People's Republic of China. As the most important source of fiscal revenue, tax is a key economic player of macro-economic regulation, and greatly affects China's economic and social development. With the changes made since the 1994 tax reform, China has preliminarily set up a streamlined tax system geared to the socialist market economy.
Globalisation is the process by which each individual country and economy is converging into a larger global economy. Globalisation has many impacts both positive and negative. In recent decades globalisation has had strong impacts in China and thus is predicted to be one of the 4 largest economies by 2050(BRIC). China has benefited greatly from the onset of globalisation and their economy would not be the size it is today if it was not for globalisation, however globalisation has had some strong negative side effects on China. China has been impacted on globalisation through international convergence, economic growth and the quality of life, trade investment and TNC’s, distribution of income and wealth, environmental consequences, financial markets, international business cycle and the implementation of government policies.
The Effects of Outsourcing on the Economy In recent years, outsourcing has become an increasingly popular alternative for some of the largest corporations in North America, who are looking for inexpensive ways of lowering overall costs. Outsourcing, which is the relocation of jobs to other foreign countries, has become a controversial new way of doing business. In considering the pros and cons of outsourcing, we have to ask some key questions: Who is benefiting for outsourcing? What types of jobs are being outsourced? What effect does outsourcing have on Americans?
(Banga, 2010) The importance of China luxury market has raised sharply in the recent years, (Kapferer and Bastien, 2009), based on the World Luxury Association report, in 2011, the luxury sales in China reached $12.6 billion, which is nearly a quarter of global luxury annual sales. (Li & Fung Research Centre, 2012) China just overtook France, Britain, Italy and Japan, became the second largest luxury goods market. (Xinhua, 2011) At the moment, the western world was suffering from the recession and main consumers-middle classes, were lack of interests and demands in purchasing luxury goods, but China seems not much affected by the economic woes, the China’s luxury market keep increasing dramatically, Yuan rose in value compared with devaluate of European currency unit will also increase purchasing power of Chinese consumers. (Xinhua, 2011) The luxury brands and companies are eager to enter and dominate the very profitable China market. Hermès is one of the companies leading the expansion of the emerging market, since the first Hermès store opened in 1997, now there are 20 stores in China.
Learned from the failure experiences, Deng realized that in order to let China to be modernized, the reforms should be taken initially on the interest in the economic sector. Then Deng started his goal by advocating China to open its door to the rest of the world, which was the "Open Door Policy". -Special Economic Zones were designated areas in China that were provided of special economic regulations that were different from other areas in the same country. Moreover, these regulations contained measures that were favourable to foreign direct investment. All these measures have triggered and spectacular economical growth in the Chinese economy.
An excellent example of China, whereby the nation has broken traditional perspective of individualising and ignoring other countries, to now a globally active nation, hence, the fastest growing nation in the world. Statistically, open economies have grown at rates that are on average 2.5% points higher than the rates of growth in economies closed to the forces of globalisation. However, there are social and economic costs to globalisation. Trade liberalization rewards uncompetitive ones, it requires participating countries to undertake economic restructuring and reform. While this will bring benefits in the long term, there are dislocation costs to grapple with in the immediate term, and the social costs for those affected are high.
For this reason the Chinese government encouraged exporting of porcelain and other goods to Southeast Asia. (Upshur, 2002) The commercial guidelines from the Chinese government gave a specific list of items that were in demand from scattered Southeast Asian ports. With the boom in trade between China and Southeast Asia came a great amount of Chinese traders. These traders began to form communities in Southeast Asia and influenced new lifestyles in which the imported goods from China played an important part. (Archeology and Early Chinese Glass
Hong Kong’s Government-Business Relationship The government in Hong Kong is highly regarded for not only its efficiency and fairness, but also for its efforts to protect investors and their business operations (Economic focus). The Hong Kong Trade Development Centre (HKTDC) and InvestHK are government agencies designed to ensure the rights of businesses are safeguarded. The HKTDC connects over 100,000 businesses in China, Hong Kong, and other parts of Asia with over 600,000 buyers worldwide. This creates great ease when exporting goods. InvestHK was created to do the reverse.
Globalization is beneficial to developing countries because it raises income, creates jobs and creates an economy where it is possible for people to afford nice things. Throughout Meredith and Hoppough’s article readers are presented with strong examples of logos. Meredith and Hoppough give hard facts and evidence that support globalization and make readers see the good in globalization. The author’s choose to show the positive effects of globalization through facts and statistics. For example Meredith and Hoppough state “Per-person income in china has climbed from $16 a year in 1978 to $2,000 now” (Meredith and Hoppough 393).
Throughout the period 200BCE – 1450CE, the changes that took place along the silk road, such as increasing demand for silk over time, the diffusion of Religion, and the altering of political boundaries, greatly impact the India, Europe, and Southeast Asia; however, there were significant continuities such as the desire for the types of goods over time and the benefits people received from the roads. Silk was the most famous export on the Silk Road. Although it is the namesake of this trade route, the demand for this product began in a minute manor. Over time, the demand for silk from Europeans became rampant. China exported silk to Europe, which viewed it as a most luxurious item.