China's expansion in international business : the geopolitical impact on the world economy

Capturing the overall development of the Chinese economy, this comprehensive book offers an introduction to one of the most astonishing economic growth stories of the last three decades. The authors identify the key stages and unique features of China’s development, exploring its geopolitical impact on the world economy, and in particular, on the European Union. Analysing factors such as education, urbanisation and innovation, this book highlights the reasons behind China’s success in the international market, and places a special focus on the country’s energy policy. By providing insights into such an important case of expansion and growth in international business, this innovative book will be of interest to those researching Asian business, internationalisation and the Chinese economy. Introduction 6 Introduction 6 Contents 10 List of Figures 11 List of Tables 16 1: China and Its New Position in the World Economy 18 1.1 Introduction 18 1.1.1 The External Preconditions of the Emergence of the Chinese Economy 25 1.1.1.1 Macroeconomic Rationale of China’s Economic Growth 33 1.1.2 The Emergence of the Chinese Economy 42 1.1.2.1 The Role of Greater China in the Transformation of China’s Economy 44 1.1.2.2 The Impact of Japan on the Development of Chinese Industries 48 1.1.3 China on the Way Up 52 1.2 Conclusion 58 Bibliography 63 2: China’s Economic Growth and Its Main Sources 66 2.1 Introduction 66 2.2 The Underlying Fundaments of the Development of China’s Economy 69 2.2.1 The Sectoral Structure of China’s Economy 77 2.3 China’s Labour Force and Education System 86 2.3.1 China’s Creation of Education-Science-Research Linkages 95 2.3.2 Research and Development as the Key Determinants of China’s Future 104 2.4 Conclusion 107 Bibliography 109 3: The Growing Importance of China in the Global Trade 113 3.1 Introduction 113 3.1.1 The Systemic Changes of the Development of China’s Foreign Trade 118 3.1.2 The Territorial and Commodity Structure of China’s Foreign Trade 125 3.1.2.1 China’s Changing Territorial Priorities 127 3.1.2.2 The Commodity Structure of China’s Foreign Trade 135 3.1.3 The Development of China-EU Trade Relations 146 3.1.4 The Development of China-US Trade Relations 156 3.1.5 The Development of China-Japan Trade Relations 163 3.2 Conclusion 170 Bibliography 173 4: FDI as a Driving Force of China’s Expansion 177 4.1 Introduction 177 4.1.1 The Unique Role of FDI in the Development of China’s Economy 177 4.1.1.1 The Role of FDI in the First Phase of China’s Economic Development (1978–2000) 180 4.1.2 An Analysis of the FDI Inflows into China: A Historical Context 182 4.1.2.1 The Development of China’s Investment Environment Following 2010 185 4.1.2.2 The Competitiveness of China’s Economy and the Role of FDI in its Growth 195 4.1.2.3 China’s FDI-Related Investment Measures Following 2017 199 4.1.3 China’s FDI Outflows–Inflows and Their Influence on International Business (OFDI) 200 4.1.3.1 China’s FDI Outflows 201 4.1.3.2 China’s OFDI: First Movers 205 4.1.3.3 The Development of China’s OFDI in the Post-Crisis Period (2009–2012) 211 4.1.3.4 The Development and Structure of China’s OFDI in the Period of 2013–2017 215 4.1.4 China’s OFDI in Europe 218 4.1.4.1 The Pre-Crisis Period (2005–2008) 222 4.1.4.2 The Period of the Global Financial Crisis (2009–2012) 223 4.1.4.3 The Post-Crisis Period (2013–2017) 225 4.1.4.4 The Strategies of Chinese Companies in the European Market 226 4.1.4.5 Chinese in the CEE-16 Countries 228 4.1.5 One Belt One Road Investment Project: The Chinese Way of Globalisation 235 4.2 Conclusion 243 Bibliography 245 5: The Importance of the Energy Sector in China’s Growth Strategy 252 5.1 Introduction 252 5.2 The Energy Market and its Linkages to the Competitiveness of an Economy 255 5.3 Chinese Energy Market 259 5.3.1 Energy Security in the Context of the Globalisation of China’s Economy 259 5.3.2 China’s Energy Mix 260 5.3.3 Coal as a Main Element of China’s Energy Mix 263 5.3.4 China’s Coal Consumption and its Impact on the World Price 267 5.3.5 The Role of Natural Gas in the Energy Mix of China and the EU 270 5.3.6 The Role of Crude Oil in the Energy Mix of China and the EU 272 5.3.7 The Role of Nuclear Energy in the Energy Mix of China and the EU 276 5.3.8 The Role of Renewable Energy Sources in the Energy Mix of China and the EU 279 5.3.9 China’s Production and Consumption of Electricity 280 5.3.10 The Impacts of Primary Energy Consumption on the Global Market 281 5.4 A Comparison of the Energy Consumption of China and the EU 282 5.4.1 Electricity 282 5.4.2 Coal 284 5.4.3 Crude Oil 288 5.4.4 Natural Gas 292 5.4.5 A Comparison of Energy Security of China and the EU 294 5.4.6 Empirical Analysis of China’s Dependence on Fossil Fuels (an Example of Crude Oil) 295 5.5 The Prospects of China’s Economic Development and its Dependence on Energy Sources Until 2030 301 5.6 Conclusion 304 Bibliography 307 Quo Vadis China? 310 Bibliography 322 Index 344 This comprehensive book is an introduction to the most astonishing economic growth story of the last three decades. Capturing the overall development of the Chinese economy, the authors identify its key stages and unique features, but above all the geopolitical impact on the world economy, with special focus on the European Union. The book explains the reasons behind China's economic success, drawing on factors such as education, urbanisation, the importance of energy policy and the innovation boom in international business of Chinese firms. Written by distinguished experts in the field, this definitive book brings new insights into the Chinese economy, with a unique focus on China's energy policy Front Matter ....Pages i-xviii China and Its New Position in the World Economy (Peter Baláž, Stanislav Zábojník, Lukáš Harvánek)....Pages 1-48 China’s Economic Growth and Its Main Sources (Peter Baláž, Stanislav Zábojník, Lukáš Harvánek)....Pages 49-95 The Growing Importance of China in the Global Trade (Peter Baláž, Stanislav Zábojník, Lukáš Harvánek)....Pages 97-160 FDI as a Driving Force of China’s Expansion (Peter Baláž, Stanislav Zábojník, Lukáš Harvánek)....Pages 161-235 The Importance of the Energy Sector in China’s Growth Strategy (Peter Baláž, Stanislav Zábojník, Lukáš Harvánek)....Pages 237-294 Back Matter ....Pages 295-335