Socialism's Dilemma Of 2016

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

In 2008, the Global Financial Crisis broke out; both the American economy and the economy in the West suffered a hard blow. However, a big economy system in the East emerged unexpectedly. China is now able to challenge the America’s decades-long dominant position in economic area. Started during the middle of 1990s, China’s manufacturing industry developed rapidly that billions of exports were floating out, and China was given the title of “the world’s factory”(BBC). By the end of 2010, China with a GDP of $5.8 trillion, surpassed Japan’s GDP of $5.48 trillion, became the world’s second largest economy system (BBC). China also exceeded Japan became America’s largest foreign securities holder. Since then, China has been seen as the US’s

Our research over the past five years into the battles between multinationals and local Chinese companies reveals that while market dominance by local champions is far from universal, it’s becoming ever more frequent. In industries as different as beer brewing, mobile-phone manufacturing and laundry-detergent production, Chinese companies — often seeming to appear from nowhere — are forcing multinationals to rethink their strategies and their hopes for explosive growth in the China market.

Outsourcing to a company in China gives the advantage of having business ties to China’s finical

One example is that China’s one child policy has forced a generations of young adults to be sole providers for older family members, thus giving them less money to spend (Washington Post, 2015). To protect the market shares for domestic organizations, countries such as China, have attacked foreign multinationals. In one year, as many as thirty multinational organizations were placed under investigation. Thus, more and more multinationals are becoming cautious about their international affairs. In 2013, it was said that “at least 3,000 U.S. companies were victims of data theft and network disruptions” and many state-owned enterprises (SOEs) have gotten access to local contracts and markets which are unavailable to foreign firms (Washington Post, 2015). Due to such failures, companies are working to find the best international business model such as reshoring and localization. Therefore, according to the author of this article, “there’s money to be made for multinationals the world over, but they are going to have to rethink their strategies for making it” (Washington Post,

To attract foreign investors China will have to change or modify its foreign policy. These changes first became apparent in 1995 when China opened their doors to American movies, music, and software. Then in 2000 they promised to make their currency convertible for foreign trade. They have also continuously cut tariffs and regulations to gain admittance into the WTO.

Relationships with China have proved profitable for some major U.S. corporations. One of the reasons that the U.S. has become so dependent

At the heart of these issues is one disturbing fact: China does not play by the rules. China’s market is largely a state controlled participant in the otherwise free markets (Dorn 78). The situation has not gone completely unnoticed, in 2012 President Obama announced the creation of a Trade Enforcement Unit, specifically citing unfair trading practices in China (“Obama Announces”). Despite America’s first-steps toward economic defense, the speed at which American wealth migrates to China continues to increase (U.S. Census Bureau).

China applies significant restrictions on foreign investment. But still maintains one of the world’s best economies. There are three main principle industries in China; Agriculture, Industry, and Services. Each contributing 9.7%, 43.9%, and 46.4% respectively to the overall GDP of China. The state government of China however has a huge influence on industry, out of the 61 Chinese enterprises on the Fortune 500 list, only four of these enterprises

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

Chinese enterprises make acquisitions to enter and penetrate a host economy by using state-sponsored soft budget constraints (Warner

The Chinese Communist government has complete power over the legislation, economic and cultural institutions. While western economies have governments that promote transparency for doing business, China’s Communist Party’s rules and regulations have made transparency difficult (Jayaraman, 2009). Large manufacturing companies can come under various and random regulations and bureaucracies, and the Chinese promotes a form of social networking called guanxiwang, where guanxi is the relationship between the individual and the entities of the network (Jayaraman, 2009). With the heavy amount of corruption and the lack of transparency the guanxiwang or the social network with connections with people from the communist party can help western businesses avoid red tape and bureaucracy.

On the other hand, Western countries became cautious with Chinese investors too. As China’s mergers and acquisitions shift to “high-end technology and electronics”, Western governments’ step in as “scrutiny” preventing Chinese companies from taking over control commercially above nation’s capability over domestic business. As a case in point, China’s State Grid Corp. and Hong Kong-based Cheung Kong Infrastructure Holding Ltd were tending to buy out the majority stock shares of Australia’s biggest electricity network in 2016. Eventually, the deal ended up intercepting by the Australia government because it ultimately threats the national security. Likewise,

The government of china is very keen to encourage foreign investors, because foreign companies are regarded as relatively good corporate