Essay on Business Development in china

Report title:
Student’s Name:
ID Number:
Attendance Number:
Section:
Date of Submission:

BUSINESS IN CHINA
China has a significant role in the global economy and it has revolutionized the manufacturing sector across the globe. The investments that are carried out in the various industries that are developed in China tend to provide economic growth to other countries through consistent and large scale production in their China plant. While developing their firm through expansion in China, Multinational companies face various challenges. These challenges include lengthy bureaucratic procedures, huge competition from the manufacturers in China and the preference of the government to the locally owned firms in different sectors as well as complex market conditions and development
The three main players in the political system of China consist of the Head of the Organization department, Head of the propaganda Department and head of the Central Commission of Politics and Law. The political system in China is dominated by the Communist Party that is present there. It has the overall control of the entire political system that is governing the population of China. China has a totalitarian government as it is necessary to manage the population and drive them to the development areas that are to be developed in China. There cannot be a complete democracy observed in China due to the excessive control of the government on each and every business. The role of government is inevitable even in the private sector that consist controlling the various parameters that are developed and are existing in these sector.
Xi Jinping is the president of China. The current economic system is majorly dependent on the manufacturing of products and services that are exported to different corners of the world. It has been the world’s largest economy in terms of the purchasing power parity. It tends to be the largest manufacturing economy in the world. Chinese Yuan is the Chinese currency. The current exchange rate between US dollar and the Chinese currency is 1 Chinese Yuan = 0.15USD.
There are many economic as well as political factors that are present in China. However, the major impact on the growth and business is related to the adverse effects of the political problems that are existing in China. There is an excessive control of the government and the pricing structure is also controlled by the government. It includes many private factors that are partially owned and mostly controlled by the government through their policies, norms and legal framework. The internal political network is not stable and there many cases of discontent that have been witnessed among the people regarding the political system in China.
The economic problems that were faced by China includes the decline in the exports that were made during the previous years. It also includes developing healthy relationship with the other parts of the world. There is a decreasing population of the people who are young and due to this there is a huge threat of about most of the population getting old and are aging very rapidly. There is a touch of the Chinese characteristics that are developed within the legal framework that is sued for providing justice to the special administrative regions that have been developed across the legal as well as judiciary framework that has been developed by the government in the People’s Republic of China that exists in these regions.
There have been large number of revolutions that have occurred in China. It involves developing a framework that would not only be accepted but also evolved and respected by other nations across the globe. There is an increasing dependence on the democratic power of the government where the interests of the people have been developed through the threat that are involved in developing the legal system. The economic growth that has been observed involves carrying a structure and developing a framework for the same.
There are many new laws and legal framework that has been developed by the development of new environmental laws that are very much necessary for the sustainability of the business across the globe. For the population control, they derived the one-child policy that consisted of developing a family planning program throughout the system. There is development of America World Adoption Agency. It has been provided in it that a child that is being adopted by any individual or a group of individual should be younger than 14 years. There are many industry related laws that have been existing in China and the malpractices including the different industries that are manufacturing different products in China and then these products are sold through consistent performance.
There are many reasons for the development of the duplicate markets that consists of obtaining cheaper products as compared to the original ones. The businesses and the industries have to be provided with the trademark of copyrights as there are many chances of the product getting copied and developed across the system. The piracy rate in China for the online content is about 91% and it is the highest by any country across the globe. The five major festivals in China consisted of the Chinese spring festival, lantern festival, Dragon festival and the course of the Qixi festival that has been developed by the house.
There are many values that are developed in these Chinese culture. These are the factors that are based on the existence of harmony and so called prediction that has been depicted through the image and the values that are to be developed across it. These are the main values in the Chinese culture. It has been obtained through the process that has been developed for a single process to be handled effectively.
It has been described in an amazing manner by Ted Platfer, in the book “Doing business in China”, he has provided a guide to the protocol, manners as well as the dining etiquettes that are to be followed while living in China. He has also described how one can be successful by carrying business in the world’s fastest growing economy.
Guanxi refers to the development of social networks as well as impacting the relationships through business and other deals that are carried out through the Chinese economy. It is the dynamic that involves considering the individualistic approach of the person in order to accomplish the tasks and emerge as a leader in the industry. It refers as the type of relationship that is maintained between two individuals and it is very important for ensuring success of a business in the Chinese market. For those who want to conduct business with the Chinese people, they need to understand Guanxi. The concept of Guanxi includes developing relationship in a hierarchical order. It is on the basis of this that one can achieve social and economic progress in China.
In the Hofstede’s model of national culture differences, there are few characteristics that are developed in the form of dimensions and they are:
• “Power Distance Index,
• Individualism versus Collectivism,
• Masculinity vs. Femininity
• Uncertainty avoidance Index (UDI)
• Long Term Orientation versus Short Term Normative Orientation (LTO)
• Indulgence versus Restraint (IND) “
Culture affects the working of an economy according to Geert Hofstede. The impact of culture has to be considered for identifying the unique characteristics that are existing in Chinese markets. For example, Microsoft is providing special version of the Windows to the Chinese government for their employees. Another example consists of the Geely Company that is engaged in developing automobiles. For ensuring success in the Chinese market, they cut their costs through effective utilization of its brands as well as dealerships.
Ted Platfer states that a company has to undergo customization while adapting its market in China in order to accustom with the culture existing in it. According to the article provided by the Forbes, on the “Biggest mistakes that U.S. marketers make in China” the three features that are highlighted are:
“Speed is everything”: One has to adapt rapidly to the market trends and the needs of the customers in order to succeed in the Chinese market.
“Treat China like Europe”: One has to observe the cultural diversity that is present in the different provinces of China and in other words, it should be considered as Europe that is a merger of several cultures present in different countries.
“Rethinking digital locally”: A company has to customize the development of the digital parameter while developing their business in China.

Skills

Posted on

March 10, 2018

Submit a Comment

Your email address will not be published.