Doing business in China Final Essay

TABLE OF CONTENTS

Introduction/Background …………………………………………………….

Opportunities ………………………………………………………………....

Challenges …………………………………………………………………..

Strategies ……………………………………………………………………

China vs India……………………………………………………………..….

Conclusion …………………………………………………………….…….

BACKGROUND

People’s Republic of China is planets most populous country and second largest by land mass with population of over 1,355,692,544 people, China is one part of the world where civilization developed earliest. It is being recorded that China has a history of nearly 5,000 years, first emperors in many imperial dynasties included China’s Xin, Han, Ming, Tang and Manc Hu. The final Chinese dynasty was ruled by governed by a single socialist party, China has been governed by the communist party seated at the capital city Beijing since the establishment of the people’s republic of China in 1949 under Mao Zedong leadership after the Chinese civil war , where Japan defeated by Mao Zedong and communist people, Although, China is still nominally a communist state with substantial limits to individual political freedom, in the economic range the country has moved sharply away from strict adherence to communist ideology. Mao Zedong encouraged population growth and under his leadership, Chinese population doubled from around 550 million to over 900 million. However, due to a large scale economic and social reform project, resulted in an estimated 45 million death between 1958 and 1961, the one child one parent policy was later introduced in 1979to curb the high rate of growth population in china. The Chinese people have remained an atheist organization, presently recognizing Buddhism and Taoism also Protestants, Muslims and Catholics. The Chinese climate is dominated mostly by dry season and wet monsoons leading to pronounced temperature differences between winter and summer.

INTRODUCTION China is still a developing country with considerable differences between rural and urban areas, China represents a huge and largely untapped market with its GDP and annual foreign direct investment growing yearly. The new firms in China are proving to be very capable competitors that would be able to achieve taking global market share away from western and Japanese enterprises, with industrial sectors opening up in the past year such as franchising, advertising s, inspection services and freight forwarding agency services. Although most industries are largely state owned, the non-state sector made of collectively owned, foreign owned and private companies are gaining importance in the Chinese economy. China joined the World trade organization in 2001 and market access has been gradually phased in, despite considerable bureaucracy, the government is making effort to promote foreign investment and measures are being taken to make the investment climate more favourable and less bureaucratic for new investors. The Chinese government has been able to delegate more foreign investment approval authority to local governments, this is also considered as a step towards reducing bureaucracy. Under the WTO China has been active in removing tariff and non-tariff barriers for trade in goods through the negotiation and application of regional free trade agreement.
With the lack of democratic institutions in China, corruption is widespread, property rights are not always respected and even though the country has integrated many market based economic reforms, there are still large numbers of state owned enterprises, yet many businesses in the western part of the world feel that they must go into investing in China which they do notwithstanding the risk of the market being large. China is moving toward a market based system, where economic growth is strong, legal protection of property rights has been improving

PESTEL ANALYSIS
POLITICAL ANALYSIS
The Chinese communist party and government bureaucracies are being organized on territorial and

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