China is a socialist economy. Although growth in China's economy is spurred by globalization, this country has not experienced its full potential due to its unwillingness to completely or even in good measure open up its economy to imports, especially import of Hollywood movies.
of Foreign Trade and Economic Relations (Import/Export License System, 2008).
International organizations have displayed keen interest in investing in China, notwithstanding its restrictive policies. China has displayed good business sense in spite of its negative political rhetoric. 400 of the top fortune 500 companies have invested in China. Cheap labor and improved working conditions appear to spur economic radiance. However, it is good to keep fingers crossed. Economic gains have yielded little political reforms. In case flight of foreign capital starts taking place there will be problems of unemployment and uncertainties in finance (Overall Evaluation of WTO Entry's Influence on China).
While on the subject, it is also pertinent to remember China's growth is spurred by exports. Its domestic market may find it very difficult to survive should exports come down significantly or vanish altogether. ...