Case Study Of An American Business In China

Entering an untapped international market can strengthen a business tremendously—but what if the costs outweigh the benefits for the market itself? China has long been an important player on the global stage, but recent advances in manufacturing, natural resources, and energy production have catapulted the expansive country to the forefront of international trade. Currently the world’s fastest growing major economy, China is set to eclipse the United States as the world’s largest economy by 2016. Among various domestic and international plays, one of China’s most fascinating uses of its

China is the largest market in the world, and probably the hardest business environment. This narrative reflex China’s immense diversity, complexity, and its enormous competitive intensity is unrivalled versus the world.

Determining the most important factors to consider when doing business in China can be tricky. There are a number of things to consider starting with the Chinese culture. Chinese expect foreign businesses to be sensitive to their culture. They do not expect them to be fluent in the Mandarin language but they are more open to those who try. Chinese people are very are very loyal to their families and place high value on their history. Relationships take very high priority when attempting to forge new ventures in China. The Chinese are protective of their culture and work hard to maintain it’s integrity; therefore, they expect to take as much time that is needed to

China, the second leading exporter in the world, is known for their immense role in the United States economy. Without China’s contribution to the U.S. economy, the United States would suffers tremendously. This is the same case for China, the contributions from foreign companies is a big reasons for China's success. The relationship between these two superpowers were not always very strong. For years the United States trade system was not a very compelling situation for other countries to do trade. As the United States evolved into the superpower country they faced a lot of complications. For the United States of America to remain one of the world’s most powerful countries a strong relationship with China is a necessity. The continuation of

China is supplanting its primary economic opponents around the globe to a great extent without the utilization of power. China 's prosperity denotes the first instance of realm building in the time of globalization. The United States played a key role in China 's economic ascendance by advancing globalization and grasping, lately, free market conventionality (Zhang, Duysters & Filippov, 2012). In the records of history, it will be noticed that it was the United States itself that championed another economic structure which at last undermined its own particular position on the planet. China 's choice to open its economy to the world concurred with the U.S. drive for globalization. In addition, the United States and the Western companies opened the financial conduits to China through direct venture and subcontracting trade agreements. Notably, as the Western capitalism went global, China turned into the factory of the world. China has turned into an undeniably critical part of the worldwide trading framework in the course of recent decades; enthusiasm for the nation and its universal financial strategies has expanded among global business analysts who are not China authorities (Petras, 2012). This paper represents an endeavor to give a review of the business atmosphere toward globalization in China with and a brief outline of the real strides in the advancement of Chinese strategy towards international trade as well as foreign direct investment, protectionism, and their

These issues affect all companies, but present the most serious challenge to small foreign firms that are new to China and lack international and country-specific experience. Larger firms are coming up with strategies to address these issues, if not resolve them.

Many years of strong economic growth and smart exporting strategies has allowed China to come close to surpassing the U.S. economy. China is currently in its 13th Five-Year-Plan, which is China’s economic guideline. In this five-year plan, which covers 2016-2020, China intends to focus on innovation and encourage foreign investment (The 13th, n.d). China’s focus on innovation will challenge U.S. manufacturers attempting to do the same. Should China enact policies more open to outside investment, it will likely allow the U.S. to strengthen US-China relations and improve its economic stance through foreign investment in China.

China is on its way to attaining mega market status as a consumer of technological goods and services. Countries unwilling or unable to compete for a share of this market place put themselves at a substantial competitive and economic disadvantage. The admission of China into the WTO will greatly benefit many companies across the board in the United States. The potential for computer makers, software makers, internet providers and internet service providers are immense and American companies could gain tremendously from their potential. These benefits will not be limited to the big name companies of the United States either. Smaller start-up companies will be on the same grounds now and receive the same benefits as larger firms. The small companies will now be able to sell their products in China where as they could not do so before because of the numerous obstacles that only the larger firms were equipped to maneuver around in China. Thus all businesses working from within the United States will have the fair opportunity to extend their reach into China.

Nowadays, China, the emerging market in Asia, contains huge business opportunities. At the same time, because of the different culture and history, the characteristics of Chinese society including its source of power, social order, and solidarity, is actually very different from the West. The big difference is that China is a relationship-oriented society. For this reason, how can Westerner adapt the ways of doing business in China? Here are three recommendations for the entrepreneurs that want to enter the Chinese market.

China’s recent rapid economic growth has astounded countries around the world, including the U.S. Domestic policies that improved incentives for economic competitiveness were one of the main reasons that China was so successful in increasing its Gross Domestic Product (GDP). “The combination of Chinese land and labor with the capital and expertise of Taiwan and Hong Kong industrialists provided a particularly important boost to exports and employment during the first decade of reform.” China attracted investments from multi-national corporations, which further contributed to China’s revival as a great trading nation.

China is seen as a very influential and prosperous country in terms of its technological advances, the fact that we are in trillions of dollars in depth to them , referring to the United States, etc. With that being said; however, China has multitudes of problems facing its country. In terms of freedom, China has one of the lowest scores on the scale, because its lack of education and its increasing income inequalities among its people. Many reforms need to take place, as well as more education. Although China technologically is sufficient and prosperous, these articles below focus on key problems faced in China early decades ago, as well as still today. Encouraging entrepreneurship, higher levels of education, reformed agricultural base, etc, will all be significant factors in the promotion and overall prosperity among China.

In today’s world, economic power is the prime moving force in determining how much a country can produce, buy, or sell their products or services. One notable economic powerhouse is China. Over the years, the Chinese business climate has grown from a centrally planned economy to a socialist market economic system. Having this new economic system gives foreign investors many market opportunities. However, one must not forget the differences in political and cultural environment that can create risk and uncertainty for foreign investors. According to a 2010 survey by the US-China Business council, companies are reporting strong growth and profitability despite the economic downturn. China has a large market and their purchasing power is ranked second in the world. Although companies are profiting, there are fourteen business issues in China. They are: administrative licensing barriers, competition with PRC state-owned enterprises or national champions, intellectual property rights enforcement, cost increases for labor and raw materials, restrictions on foreign investments, restrictions on market access in services companies, transparency, government procurement standards and conformity assessment, protectionism risks in China, lack of equal treatment from domestic companies, lack of consumer awareness/understanding about products, miscommunications due to language barriers and ethical issues, and the difference in human resource practices. In the United States, managers tend

A common international business discussion in America today, is the assumption of an ominous Chinese power play in business. Americans assume that the combination of industry leverage and sheer number in population gives China a global advantage that they can exploit at will, a card they are sitting on, waiting to play. To help explore this concept, I will focus on China’s tech industry. We will examine some of China’s behemoth corporations in this market segment and compare them to their equivalents in the United States. Chinese corporations are subject to government oversight and many are restricted to the size of their economies due to relationships the government has created with the rest of the global economy. If the oversight and restrictions did not exist, would these corporations dominate the tech industry, or will they dominate regardless?

Conducting business in China necessitates a large amount of respect, patience, humility, timing, cunning, knowledge, and a certain amount of aggression. The knowledge that these are needed and that are to be used for success in negotiating is virtually worthless unless you are aware of when and how to use them. The missing of cue to change from being patient to aggressive, or being humble instead of cunning, can make or break a negotiation instantaneously. Americans that aspire to obtain a sector of the Chinese market must invest the time in understanding the sources of Chinese culture and not just the culture itself. Within the adoption of today 's Chinese business practices, is insight into the ancient history of a culture that has not just survived. This society has flourished longer than any other civilization in the history mankind. The knowledge of only what we want to achieve from an individual negotiation with a Chinese business person is very near-sided and will most certainly end in a poor relationship. Instead, there must be a firm understanding of what the Chinese counterpart seeking from the partnership as well and be able to anticipate their needs and wants. This is necessary because it is the very tactic that will be used by one’s Chinese counterpart.

So many Chinese companies are currently operational all over the world with go-global strategy. They are making impact in terms of investment and infrastructure development. China is even taking over some of