China Business Sme

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

Due to the large increase in globalization, many organizations relay on international business for competitive advantages. However, offshoring a business has never been easy especially if there are a lot of cultural, environmental and economical differences. China’s opening up to the world has not only made China’s economy stronger but it has also given many advantages to the outside world as well. Some of those advantages include cheap labor cost, risk sharing, economies of scale and less operational cost but to achieve these advantages it may takes plenty of time to observe new location, cultural training, and understanding of international business. As written in the article, “Red China, Red Tape: How to Start a Business There,” China

In fact, besides the three companies (Alibaba, Tencent, and Huawei) stated above, only Xiaomi, a smartphone developing company was able to go out of China in 2015. The lack of companies able to develop outside of China may imply a monopoly inside of China is at play as well as other countries are rejecting companies from China to enter to confront its policies. Even though the result of monopolies interfering the economy is minimized by the Chinese government because of price controlling is in the hands of the government, the cost of companies not being able to globalize impacts Chinese economy greatly. For example, as the market in China saturates, other countries’ markets become critical for companies to

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

China, although a communist dictatorship, is expected to become the globe’s largest economy by the year 2030 (McFarlane, 2008). A large competent labor force, strong system of education, entrepreneurial culture, and massive government infrastructure investments allows China to stake its super power claim in the global economy (McFarlane, 2008). To do business with China, one must understand the country’s history and context (McFarlane, 2008, p. 2). China

During the last few years much of the economy has been deregulated, a process that was well under way before December 2001, the date of China’s accession to the WTO. During the 1990s almost all of the former industrial ministries and state commissions were abolished, cutting the number of institutions and officials at the centre looking to be involved in business affairs. Some old school planning apparatchiks have no doubt survived but there are fewer options for them to slake their thirst for control. Many state-owned enterprises have been sold off and a large proportion of those that remain have lost market share to private domestic firms and foreign-invested enterprises (FIEs).

The main point I would say that is essential to success in china is adaptation. If a business is able to adapt well to its surroundings, i.e. the ability to easily change its products and services to match the needs of

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 growing economy is not only gaining international prestige, but its confidence has soared as it continues to be the world's fastest growing economy for the past three decades. "China's rise as a manufacturing base is going to have the same kind of

With the increasing global economy, it is no surprise that Chinese and American businesses are working together more closely. Despite the anti-Chinese rhetoric that is common in politics, the fact remains that the globalization of business will see the Chinese and Americans crossing paths and working together. Due to the hyperbole involved in politics, myths are common involving Chinese business practices. A closer analysis will likely dispel the common myths involving business practices in China.

Market environment will affect business’s development and influence their strategy outcomes. In another word, selecting a good market to start-up a new business is a half of success. Focusing on the historical data, we can easily find out that China’s average annual growth for the last three decades were 10%, In 2014 according to the global recession this number dropped to 7.4% (Walker, 2015). Even through China’s economy looks like stumbling but the data still present that Chinese market is better than the U.S. since the U.S. average annual growth for 2014 was 2.4%, which is still far away from the late ninety’s 4% annual growth rate (Mitchell, 2015).

The main advantage of doing business in China is the fact that China has emerged as one of the world’s strongest economic forces, driven by the shear number of

China’s accession to the WTO in 2001 has helped shape its economy to becoming a more predictable environment for trade and foreign investment. Corporate governance and frameworks for business operations and interactions have improved, providing a much more transparent environment. (Deckers, 2004)

Base on the first assessment, refer to the PESTEL and Porter’s 5 Forces analysis (Appendix 6.1), the most attractiveness in China is the point of huge increasing population which have recorded 1,370,536,875 (National Bureau of Statistics of China 2012) on 2011. And as one of the BRIC countries, China has also recorded a 7.4% of GDP growth rate in 2012 (Trading Economics 2012), which is an evidence showing China is a strong emerging market. Regard to the technology used, China has relatively lower penetration rate than the other two countries. But operating business in China has a lower cost than the other two countries, example as the labour cost.