Political, Social, Legal And Economic System

2283 WordsDec 5, 201410 Pages
Introduction China, the world 's second largest economic power, one of five permanent members of the United Nations Security Council, and the only Communist Party-led authoritarian state in the G-20 grouping of major economies (Susan V. Lawrence, 2012). Over the last three decades, the value of Chinese trade has approximately doubled every four years. This rapid growth has transformed the country from a negligible player in world trade to the world 's second largest exporter, as well as a substantial importer of raw materials, intermediate inputs, and other goods. What businesses must focus on is how a country’s political system impacts the economy and the particular industry. Firms need to assess how local policies, rules, and regulations…show more content…
The Communist Party of China (CPC), which has 80 million members currently, has been in power in China for more than six decades (Thomas Lum, 2009). CPC is fundamentally different from the multiparty or two-party system in Western capitalism countries. CPC is also different with some countries imposed a one-party system. Political stability is a critical point for a country to attract foreign company investing in their country. Businesses need to assess if a country believes in free markets, government control, or heavy intervention in industry. Social System China, the world’s largest society, is created by a set of institutions that across extensive linguistic, environmental, and subcultural differences (Hays, 2012). Residents of the southern and northern regions of the country might not understand each other 's language, enjoy each other 's foods, or make a living from each other 's land. China has diversity of people and language. Over 50 different nationalities living in China, the majority (94 percent) are Han Chinese; the other groups include Tibetans, Mongolians, Zhuang, Li and Miao whose languages and customs are quite different from those of the Han (SACU, 2001). The official language in China is Mandarin (Beijing dialect), as spoken in Beijing (the Capital), but there are also many different dialects to listen for. The main different in China is "Mainland" such as Jiangsu, Zhejiang, Shanghai non-trading port and “Costal provinces”
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