Influence of transnational corporations on the level of life of the population of the host country: the experience of China

Abstract

The article is devoted to the study of various indicators of China's development since the beginning of the reforms. The subject of research of the article is the China's development. The goal is to study the results of China's interaction with transnational corporations. The objective  is to examine the growth rates of gross domestic product (GDP) and national income per capita, the level of average wages, the level of poverty, the index of population’s quality of life, the indicator of pollution. General scientific methods are used, such as analysis, synthesis, comparisons. The following results were obtained: China's interaction with transnational corporations led simultaneously to different results. On the one hand, the country has become rich, shows economic growth, the increasing of wages and urbanization, the level of poverty has decreased, Chinese banks have become leaders in the global market, the country has become one of the largest investors in the world. On the other hand, a number of problems appeared: excessive contamination, uneven distribution of income, dependence on food imports. Conclusions:  China's interaction with transnational corporations had both positive and negative effects. According to a number of experts, China's economy now is evolving in two directions. The first direction is characterized by a slow growth of those industries that have been traditional for the country: steel production, shipbuilding, industrial production. In these sectors, the government began to control surplus capacity, compliance with world standards, including environmental ones. Another direction   includes industries focused on the production of services and using new technologies. At present, China is at the stage of structural reforms in economics, during which it is possible that China will be able to solve its problems.