China'S Impact on the Global Economy: From China Price to China Standard

Abstract

China's entry into the global economy is universally accepted as a defining feature of this new century. Much debate has focused on the impact its economy is having on world market prices, both as producer and consumer. This 'China Price' effect puts tremendous pressure on Western firms. But China is not just competing on price. Supported by new regulatory institutions, it increasingly influences market rules and technology standards as well. Such Chinese efforts pose a direct challenge to Western competitiveness. While Western firms must adapt to the 'China Price', countering the 'China Standard' will require coordination with governments to formulate a countervailing regulatory agenda.

Keywords: China, Globalization, Regulatory Institutions, Business-Government