Investing in Hi-Tech Industries in China: Pros and Cons

On the other hand, knowledge of the political and legal environment of China will be fundamental. Information on their laws and regulations, such as foreign trade policies, product standards, tax laws and requirements, trade barriers, labor laws, etc. are extremely important when assessing China as a potential market for our company. Finally, a thorough research on China’s market conditions, such as potential competitors, market trends, market opportunities and threats, potential risks, unique market characteristics, etc. will be necessary to obtained a complete evaluation of the country before entering the market.

China is the second largest economy in the world. It has become the fastest growing economy in the world with an average rate of 10% for the last thirty years. The largest exporter and second largest importer of goods has brought China to be ranked first in the foreign exchange reserves. The country with thousands of years of history, started off and continues today as mostly an agrarian economy. Over time China's economy continues to change and prosper. Starting with the first economic change in the early twentieth century, which occurred when the GMD (the Nationalist Party) lost control due to its poor economic performance. This in turn led to their defeat by the CCP. During that time many peasants lost their farmland and this led to a peasant

The economy in China is doing well. China has in its recent years reached financial stability. This is due to the fact that there is a high level of domestic demand. Because of this, many companies around the world begin to invest in the Chinese market. China is also one of the fastest growing when it comes to Information Technology and has been able to attract companies such as Google and even Microsoft. It has been forecasted that the Internet industry in China is expected to increase at a rate of about ten percent within the next five years. This is great news because Google will be able to benefit.

Many products we use today are made in China. Trade between Australia and China has heightened in the last couple of years. China has one of the world’s largest economies. It has an increasing role in shaping the world economy, accounting for a third of the increase in the world’s gross domestic product and imports for the period 2000 to 2003 (The Economist 2004). It is also home to a population of 1.3 billion inhabitants, consuming a variety of goods from food items to luxury commodities, toys, clothing, gifts, most car parts and many more things Australia benefits from. For non-agricultural goods, Australian import tariffs are generally low. The most notable exceptions are on motor vehicles and textiles, clothing and footwear imports.

Between the year 2001 and 2006, China bought more than $ 250 billion in U.S.

To capture the benefits of globalisation, the communist government has moved its focus from domestic to trade oriented. China has become the second largest economy in the world. Since 1980s, it has gone from being the 12th largest economy in the world to the second largest. This indicates that its economy has been growing with an average rate of 10 per cent per year for the last three

China has been moving to a market-based economy since 1978, and a relaxation of central control over certain aspects of the community has helped it become the largest developing economy and the second largest economy in the world when measured by Purchasing Power Parity.

In general, companies invest in foreign markets to increase profit and sales, or they desire to protect their profit and sales from competitors. General Motors is no different, and has heavily invested in foreign markets. No manufacturer can ignore the Chinese market.

Our technology has been advancing so much even in the last few years. We are seeking out new ways to implement our technology as well. We see our technology as an advancement and use it in lots of different ways like social aspects and political. China on the other

1. The decision of expansion of the company’s franchise in China is a good decision from the perspective of global business. Being the leading producer of antivirus software, firewall software and some other computer security components in United States, China may be next profitable market for MegaComp. So, CEO

On a daily basis, people come across hundreds of inventions that are made around the world. Each one of these inventions have profoundly affected the way people live their lives. China is one of the leading providers to the United States. They have also made various inventions that people benefit from today.

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.

According to the Science Technology and Industry Outlook 2014, the share of OECD countries in global R&D fell from 90 to 70 percent in the last decade. The annual growth of R&D among OECD countries was 1.6 percent during 2008-2012 half the rate of 2001-2008, as budgets of public R & D stagnated or declined in many countries, like private investment. The R & D of China for its part has doubled since 2008-2012. Spending on R&D in 2012, was 257 billion in China, 397 billion dollars in the United States, 282 billion dollars in the European Union and 134 billion in Japan, said the OECD.

In recent years, the investment scales of foreign business are increasing stably. In 2001, the foreign direct investment was 46.8 billion dollars. In 2005, it has arrived at 85.5 billion dollars. At the same time, the form and field has changed diversification. With the China economy high speed developing and enlarging the industry field, the foreign investment will related to communication equipment, computer, bank service, insurance service, etc. so it will also increase for a long time.

However, TaiSource shows that they want the market too. If they do so in the near future, USTech will be in a crisis. To avoid the potential threat, US Tech should consider cooperating with a Chinese supplier as an alternative. Another aspect is about Chinese policy, it’s complex, changeable and kind of lean the balance to domestic enterprises. Although TaiSource currently hold the mainland resources and relationships, to have USTech’s own Chinese suppliers could better ease the burden of policy issues and polices to the business if USTech want to explore and expand Chinese market.