Economic Globalization And China’s Industrial Optimization And Upgrading

Since the 1980 s,economic globalization became the major trend and profoundly affecting the global economy’s growth and structures.Phase characteristics and trends of globalization affect not only the national development strategies of developed countries,but also the process of industrialization of developing countries.The growth of C hina is now following a comparative advantage in industry,and the process of industrial optimization and upgrading is now greatly affecting by the globalization,technological revolution and industrial revolution,it’s not only big opportunity but also big challenge to china.After thirty years of reform and opening up,China has been integrated into the global value chains but still at the low end,and industrial optimization and upgrading now under heavy competitive pressures from both developed countries and other developing countries.No more cost advantage and the environmental situation being worsen,China need to change the existing mode of economic development,from factor-driven or investment-driven to innovation-driven,to avoid the "middle income trap".As a world power,China should not limited to passively adapt to the economic globalization,but to plunge into in the process of economic globalization actively,and actively create a more just and reasonable international environment,made to meet the international contribution to world power status.This will not only help the domestic industry to optimization and upgrading,but also conducive to the sustainable development of economic globalization.With economic growth and opening up,China’s economic globalization continues to improve and effect industrial development further more.We need to figure out how to better use the chance of globalization to push our industrial development,but the current research is still inadequate:1.Refer to economic globalization,the existing research of phases and phase characteristics just described trend,rarely involves starting time,alternating motives,division flag and criteria.2.Existing research mostly focused on empirical research and countermeasures research,rarely involves mechanism research.Some research on C hina’s companies “go out” strategies almost base on the company’s view but not national strategies.3.Most of the existing research tries to analysis industrial clusters’ upgrade,base on the transnational corporations and other global buyers’ control to global market,but rarely on domestic development of economic and social.This research tries to make some innovations refer to the above deficiencies.1.Further improve the theory of economic globalization evolution.Economic globalization since the 1980’s are explicitly divided into three stages in this paper,which are the stage of commercial capital globalization,the stage of industrial capital globalization and the stage of financial capital globalization.We predict that the stage of information capital globalization is upcoming,and analyzes how different stages evolve from one to another.According to dominant forces in the evolution of economic globalization,we use the ratio of multinational companies’ production and sales to total commodity and service export of the world,the ratio of multinational financial companies’ profits to all multinational companies’ profits,the ratio of internet finance to all finance respectively as indicators of three stages.We also propose criteria on judging different sta ges.2.Enrich the theory of industrial structure optimization and upgrading in C hina.This paper builds a theoretical framework of C hina’s industrial optimization and upgrading under the background of globalization,and analyzes the mechanisms that globalization affects industrial structure optimization and upgrading in China from three angles,respectively corresponding to industrial economy,post-industrial service economy and economic integration,and reflecting increasing market orientation and higher efficiency of market allocation.O ur research provides theoretical support for C hina’s industrial structure optimization and upgrading in the era of globalization.3.Based on "two combination","three kinds of countermeasures“ are put forward(1)The combination of the global value chain theory and the domestic market,which put forward to construct the national value chain based on the cycle accumulation and causal relation of human capital,market upgrading and technological innovation.(2)The combinat ion of the development strategy and industrial policy,which further put forward three kinds of countermeasures to achieve motive power transformation of industrial optimization and upgrading,which are to put forward the policy to strengthen the real eco nomy from the point of industrial structure,industrial organization and trade and investment etc,to fully develop fictitious economy by implementing financial policies focusing on the capital market,small and medium banks,Internet banking and financial regulation,and to fully develop fusion economy by implementing information policies focusing on integration of informatization and industrialization and industrial integration.This article guided by the theory of economic globalization and the theory of Industrial economics,and combined with relevant researches at home and abroad,which is from the stage characteristics and development trend of economic globalization,to economic globalization and the evolution of international industrial division,to theoretical and empirical analysis of China’s industrial optimization and upgrading under the background of globalization,to the case analysis of successful implementation of industrial optimization and upgrading,and to countermeasures and suggestions.There are seven chapters in this paper including composed of three parts,which are theoretical part including introduction,literature review and basic theory as the first two chapters,analysis part including the economic globalization and global industrial optimization and upgrading,Theoretical analysis of C hina’s industrial optimization and upgrading under the background of economic globalization,the pressure and constraints of C hina’s industrial optimization and upgrading under the background of globalization as the third to the fifth chapters,countermeasure part including the experience and lessons of Japan’s industrial optimization and upgrading under the background of globalization,main conclusions and policy suggestions as the sixth and seventh chapters.The main conclusions of this paper can be summarized as follow :1.There are three stages of economic globalization since 1980s:(1)globalization of commercial capital: 1980s—1991.In 1991,total production and sales of multinational corporations exceed the world merchandise exports for the first time,which marked the end of the globalization of commercial capital and the start of the globalization of industrial capital;(2)globalization of industrial capital: 1991--1999.In 1999,the total profits of financial TNCs first time exceed 1/3 of profits of all multinational company,which marked the end of the globalization of industrial capital and the start of the globalization of financial capital;(3)globalization of financial capital: 1999--.Alternate evolution of economic globalization’s stage does not mean the termination of the previous stage’s dominant trend,but alternatively dominating the force of globalization.The dominant force(capital)powerful not only in the capital on the number of advantages,but also to influence and control the strong trend of development,powerful.2.The previous stage is the hotbed of next stage.The dominant force of the latter stage shows explosive growth at the end of the previous stage showing a strong momentum of development.For example,the global industry capital represented by multi-national corporation rose in the late stage of the globalization of commercial capital,the global finance capital represented by financial multi-national corporation rose in the late stage of the globalization of industrial capital,the global information capital represented by internet finance rose after the international financial crisis of 2008.Every new dominant force is conceived in a pre-dominant force as multi-national corporation to global trade,financial multi-national corporation to multi-national corporation,internet finance to traditional finance.When the emerging dominant force is strong enough it would out of the mat rix a show a unique operating rules and strong influence and control force.3.The industry our country integrated into the international industrial division system,and made great efforts to improve their position in the global value chain in the process of the evolution and development of alternative stage of economic globalization.The impact of globalization to our industrial optimization and upgrading is mainly through import and export trade in the phase of commercial capital globalization,industrialization mechanisms in the phase of ind ustrial capital globalization.When it came to the stage of financial capital globalization,the role of financial markets in the configuration resources was increasingly important.The impact of financial mechanism on the industrial optimization and upgra ding of our C hina was growing.At the same time,the impact of information system on the optimization and upgrading of C hina’s industry will be global and strategic along with the information technology fully infiltrated into various areas of economic and social.The above three mechanisms are not simple substitution relationship.Instead,they overlap and promote each other.4.In the aspect of industrialization mechanisms,the globalization promoted the access of the international industry capital,enhanced our industrialization level,promoted the optimization of industrial structure,enhanced the level of industrial division of labor,promoted industrial and technological progress,and enhanced our position in the global value chain.In the terms of the financialization mechanisms,the globalization promoted the access of international financial capital,improved our financial level,accelerated the formation of industrial capital,improved efficiency of resource allocation and promoted industrial technology innovation,so as to promote the industrial upgrading.In the mechanisms of informatization,the globalization promoted the access of international information capital,improved our information technology,accelerated the innovation process,spawned a large number of new industries,promoted organizational change management,and promoted the industrial upgrading.5.To achieve the optimization and upgrading of industry of China,the circular and cumulative causation of the national economic system is needed to be focus on:(1)to promote the formation of the middle class and technology localization by increasing human capital and strengthening scientific and technological innovation;(2)to promote the formation of the middle class and transformation of the demand structural by raising income levels and narrowing the income gap;(3)the enhancement of human capital and income level,which is reciprocal causation,is affecting the technological innovation and the structure of demand,thereby affecting the industrial optimization and upgrading.On this basis,based on the domestic market and local technology,the global value chain has turned to be the domestic value chain,and is gradually turning to join the global innovation chain.At the same time,to build competitive advantage,we have to promote the financial structure from the bank-based to a market-oriented;focus on the development of strategic emerging industries as the core of a new generation of information technology industry,and promote industrial integration and development.