Economic Environment In China Case Study

Measures which affecting goods. In 2005 it was 3.5 percent, down from 4.4 per cent in 2000. More than 47 per cent of tariff lines are duty free. The highest tariffs apply mainly to textiles and clothing and to passenger motor vehicles and related items. Some 96.5 per cent of tariff lines are bound and Over 99 per cent of tariff rates are ad valorem. But the specific rate applies only to cheese and curd, the compound rate applies to used cars

Americas insatiable demand for cheap goods has caused an increased gap in the annual U.S. trade deficit over recent years. The U.S. trade deficit with China was an astronomical $365.7 billion in 2015. The United States imports consumer electronics, clothing and industrial machinery from China. Many of the imports are from U.S. based corporations that send components to China for less expensive assembly. After assembly the products are shipped back to the U.S market for retail sale. Although the profits are attributed to American-owned companies which are ultimately domestic entities the merchandise is classified as an import by law. The growing trade deficit with China is a hot topic in American politics. Legislators often try to impose tariffs or other forms of trade protectionism against China to support

China is one of the most talked about countries in the world today. There are many reasons for this, but first one of the most obvious would be the recent incline in economic development. Since the early 1900’s China has expanded its economy to record highs. This economic boom is driven off of the countries build up of product driven economics. Many of the products are wide ranging, but of the jobs and exports have been created from the recent technology boom. The economy in China is also driven off of the rise in the population. China, is one of the most populated countries on the globe. As of today China’s population has reached 1.3 billion. This is a high and many researchers don’t see it slowing down anytime soon. While this Asian country may be highly populated research has been shown that the population is not equally distributed. The population is divided up between north and south, and east and west. The eastern portion is more agriculture based so the population is lower in this area. On the other hand the population on the western side is more populated due to the industrialized cities that inhabit factories and more multibillion dollar corporations. Not to mention that the Chinese capital is Beijing and has one of the most populated and industrial environments in all of Asia. In recent years China has opened the doors to western culture, and this opening has paid off handsomely. The curiosity and adaptation to the new culture has flourished the economy in China

For any country, international trade will have an effect on its economy. One factors that influences trade in China is inflation. If inflation is high in China, exporting to China will decrease and local businesses may resort to purchasing in other countries. Another factor that will influence trade in China is the impact of national income; if this increases compared to the home country, the current account of the foreign country will decrease, and the real income level will rise and result in demand for imports. Government policies also affect MNC’s when it comes to subsidizing exports and restrictions on import bills. If exports are subsidized, it will make local business bigger competition for companies importing to that foreign country. Restrictions on imports such as imposing of tariffs on imported goods, can reduce the company’s import. Any restrictions on exchange rates will affect the ability to use the revenue that businesses receive in Renminbi. This will cause the new Chinese law to affect doing business in China. Also if China’s government changes its policies on the value added tax

China has been a focus of many foreign investors, owing to various reasons which serve to create attractive business opportunities. For instance, the country has been experiencing rapid infrastructural developments, reducing cost of doing business within the society. It has also been remarkably stable in terms of both political and economical pillars of the state. It has also a wide market due to its high population, providing market for products and services of many businesses (Hill, 2014).

In the 21st century, the competition between diverse countries is increasing extremely intense. With the rise of the third world, as the biggest part of it, China’s influence in economy has become a controversial issue due to the prosperity of economy. To be more specific, China became the second-largest economy in 2011(McCurry,J and Kollewe J,2011).And in recent years, according the data in the bar chart below, China GDP’s is growing rapidly and the growth rate is staying between 7% and 8% before 2015. At the same time, because of the development of economic globalization, the relationship between different countries is getting closer and closer, especially in the world trade. Therefore, although China has already slowed down the step to

Some of the product or services will have taxes like outside car, Hyundai product from Japan. The reasons for restricting trade range from internal political and economic pressures to mistrust of other nations. For example trade restriction between Russian and Ukraine this two country like enemies each other and fight so the both country against the trade restriction. There are had pros and cons. Against of trade restriction is loss jobs, which is if all the good was import from others country it will affect to the youth mostly to find the works because the entire thing was supplies by other country (Kapoor,2012). Other than that is also more expensive because import product and have taxes to

Nirupam and Jeffrey (2000) have found that, on quotas and tariffs, India out of 59 countries being ranked. India is ranked 52 on average tariff rate in 1999. Reductions of tariff rates (between 0 and 20 percent) required much greater openness to averages in East Asia. Most significantly, as many exporting countries of East Asia has been successful over past several decades, tax tariff on imported goods used for export and on imported inputs into export production should be duty free.

In view of these ,it is now important to see how we can enter the Chinese market. I.e strategies

The China market provides many opportunities for foreign firms to take part in its economy; this is different from transferring parts of an industry to China – taking advantage of high quality labor at low costs - for the purpose of re-exporting.

Economic profiles have been and will continue to be the most important trend shaping the consumer landscape. The Chinese are getting richer faster, the disposable income of the urban consumer is expected to double between 2010 and 2020 from approximately $ 4,000 to $ 8,000. This is close to South Korea 's current standard of living but far behind the United States, Japan and other developing countries.

Ningchuan Jiang Visiting Professor. FedEx Global Education Center. UNC. Chapel Hill. NC 27599, USA Depart. Economics and Management, Chengdu Textile College, Chengdu 611731, China Abstract It has been more than five years for China’s entry into WTO. With the decrease of regulations of tariff barrier and non-tariff barrier, the export market of Chinese textile products has been expanded and the market shares have been increased, which arouses great attention of many countries in the world. Some countries increase the limit of import. What should be noticed is the more covert and more agile trade barrier, which

Primary imports - commodities: electronic products, mineral fuels, machinery and transport equipment, iron and steel, textile fabrics, grains, chemicals, plastic

Protection of local industry: import tariffs have the outcome of raising the value of imported products comparative to similar goods produced in the local market. This places foreign producers at a competitive disadvantage when selling in the resident

Hong Kong is a free port and does not levy any customs tariff (i.e. border tax) on imports and exports. However, Hong Kong levies an excise duty on liquor (with an alcoholic strength of more than 30% by volume measured at a temperature of 20℃) of 100% of its value(Customs