Housing market in China Case Study Example | Topics and Well Written Essays - 5000 words

Housing market in China - Case Study Example The method that was adapted in this study to accomplish the aim involved the discussion of the characteristics of globalization and how it leads to economic growth. A background on the property market and its dynamics is also provided. The period under study were divided into two: 1999-2000 and 2001 up to now. The topics were divided into the commercial and residential sector. This was done to provide for points of comparison. An extensive search of primary and secondary literature was conducted on all available resources such as peer-reviewed journals, magazines, newspaper, other scholarly articles and finally, the Internet. Business information providers from the public sector such as China's Statistics Center and private venture such as the GoldmanSachs provided many historical and statistical data and were subsequently used. Results of the study indicates that there were many factors that led to the boom in the property market industry which includes government reforms, flow of Foreign Direct Investment (FDI), worldwide events sponsored by China and other market reforms. With regards to the commercial sector, the supply was mainly fuelled by the demand generated by people belonging to multinational companies. In the residential sector, the supply was fuelled by people migrating from rural areas to work in the urban areas which was developed with the influx of investments of both Chinese and foreign businessmen. All of these developments were argued to be largely a result of China globalizing itself. In the end, it was concluded that globalization did indeed fuelled the rise in the property market sector. Chapter 1. Introduction China went under Communist control with the victory of Mao Zedong over the Nationalist Chiang Kai Shek. In spite of the spirit that animated the country, it was only due to the efforts of President Deng Xiaoping to reform and the open-up China that the country has undergone a profound transformation never seen in the country before. His efforts would prove to be a step toward China embracing the globalization concept. Chinese President Hu Jintao (2005) relates that China has benefited from globalization because in a short span of 26 years from 1978 to 2004, China's GDP increased from $147.3 billion to $1.6494 trillion registering an average annual growth rate of 9.4% while foreign trade rose from $20.6 billion to $1.1548 trillion with an average annual growth rate of over 16%. China's foreign exchange reserve increased from $167 million to $609.9 billion while the number of rural poor has decreased significantly from 250 million to 26 million. Jintao (2005) further notes that by the end of 2004, China had attracted a total of $562.1 billion in FDI, approved the establishment in China of more than 500,000 foreign-funded enterprises and created a huge import market of some $560 billion annually. At present, most countries and regions have had enterprises with investment in China, and over 400 firms out of the Fortune 500 have invested in China. The number of R&D centers set up by foreign investors i n China has exceeded 700. The overall national strength of China has remarkably increased while the quality of life of its