Open Door Policy in China, Coursework Example

The Policy Issue

The policy was established between 19^th to 20^th century to allow for an equal open trade system in China for all countries (Hang-chi, 2018). The policy was used to mediate on foreign colonial powers that had business interests in China. The policy required that none of the foreign competing colonial powers possess exclusive trading rights in any specific zone within the country. The policy was also used to refer to the opening up of China for external businesses that needed to add investments in the republic. The policy set China to change economically and improved into a modern state.

Ethical And Moral Issues Associated with The Policy

Open door policy has increased the influence of foreign superpowers in the country. The increase of foreign influence in the country led to increased anti-foreign and anti-colonial sentiments (Hang-chi, 2018). The anti-foreign and anti-colonial statements led to increased killing of the missionaries working in the country and improved nationalism among the Chinese. An example of the anti-foreign movement was the Boxer rebellion.

The policy led to conflict between the Chinese and Japan. Japan accepted the policy when it was created but violated it multiple times, which led to conflict with China. When Japan presented its twenty-one demands to China in 1915, it was considered a policy violation (Chappell, 2020). The list comprised demand to expand control into China and significant control of the economy.

How The Policy Creates a Connection to Other Global Economic Issues

The policy is essential in understanding the global economic impact of change in prices of essential items due to import-export activities in countries. Open door policy led to China opening for trade, impacting oil and textile share price. In 1986, oil’s share dropped by 12 percent due to a fall in the prices, with textiles rising to 35 percent (Hang-chi, 2018). The growth in the exports of textiles in China was due to limitations by multi-Fiber arrangements, while the changes in oil prices were due to limited world oversupply. The key to good export performance was determined by the decentralization of the regime in China hence the policy.

Open door policy is also essential in the understanding of the recession that happens in countries. The policy introduced globalization in China, leading to the modernization of the country’s economy and improved living standards of citizens. However, the policy also led to extreme inequality in income distribution in the country. The inequality in income distribution has impacts on an economy which includes minimized economic growth and hence recession. Hang-chi (2018) states that a study of the policy explains the wealth distribution in an economy and hence a better understanding of economic recession as a global economic issue.

Legacy Of the Policy

The policy has made China essential in international trade through imports and exports (CGTN, 2017). The increase in imports and exports in China was fast from 1978 to 1988 due to the introduction of the policy. The increase in exports ratio to the country’s GDP also increased due to the open up for trade. Hang-chi (2018) states that the statistics indicate that the increase in the ratio of exports to GDP was sharp, with figures estimated at 5 to 13 percent.

The Economic Impact

The economic view on the impact of the policy is that it opens up a country for trade. China became open for trades with other countries interested in it (CGTN, 2017). The policy was a brilliant way for the US to create opportunities for trading with China, making it assert its interest in the far east economies. The policy allowed the US to open the market for their industrialized items. In the policy that was issued initially by President William McKinley’s administration, suggestions were that all the countries interested in trading with China had to accept an open and accessible trade policy (Hang-chi, 2018). The free and open trade policy would also demand that all the nations interested in trading with China would accept and respect the country’s sovereignty. The move enabled China to expand its economy through trade but was also an advantage to the United States which had a lot of manufacturing at that particular time.

The Historical Impact of The Policy

The historical impact on perception is that it can lead to an uprising of nationalism and rebellion, resulting in a war on a particular state that it is being imposed. The United States did not have the military to ensure that they fulfilled their long-term commitment to China. The hope provided by the US was psychological and moral under such circumstances (Kaspar, 2014). Open door policy led to the build-up of tension between imperial powers and the start of World War II. The Boxer Rebellion started to spread throughout China by 1900 to resist the influence of foreign missionaries and the conversion of the Chinese into Christianity (Chappell, 2020). The rebellious group started to attack foreign nationalists causing them to call for help from their home government (Hang-chi, 2018). The call for help led to armed forces from international delegation coming to China to quell the rebellious group.

References

Hang-chi, L. (2018). 1978: China’s Open-Door Policy. In Kung J. (Ed.), Conjecturing Hong Kong’s Future: Lam Hang-chi’s Editorials from the Hong Kong Economic Journal 1975–1984 (pp. 41-60). Sha Tin, N.T., Hong Kong: The Chinese University of Hong Kong Press. doi:10.2307/j.ctv2n7r97.11

Chappell, J. (2020). Developmentalism in late Qing China, 1874–1911. The Historical Journal, 64(1), 1–23. https://doi.org/10.1017/s0018246x19000669

China Global Television Network (CGTN). (2017, September 26). The Big Picture: How has China’s open-door policy impacted businesses? News.cgtn.com. https://news.cgtn.com/news/3167444f77597a6333566d54/share_p.html

Kaspar, D. (2014). How We Decide in Moral Situations. Philosophy, 90(1), 59–81. https://doi.org/10.1017/s0031819114000308