China's Exceptions Essay

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 has changed in certain ways and remained the same in others from the early Golden Ages to the late 1900s. China has experienced a series of cultural and political transformations, shaping the lives of many Chinese citizens. Culturally, the country’s art and literature hardly changed for almost eight hundred years. Along with their culture, China remained politically the same from the beginning of the Golden Ages all the way until the 1800s. On the other hand, China’s government and society were restructured after new leaders took over. From a monarch to total communism, China’s society had a multitude of new ideas and policies they had to adapt to.

It is this that has sparked China’s vulnerability to external shocks. In 2011, China’s exports amassed almost $2 trillion, however in Feb 2012, China recorded a $31.5 billion trade deficit as a result of the European sovereign debt crisis in which China’s main trading partners plunged into recession. China’s severe BOGS decrease is an attempt to control growth and a sustained level of 7.5%. Investment policies are also critical for China to achieve economic growth and development. Foreign Direct Investment (FDI) in China is being sought primarily in the redesign of State Owned Enterprises (SOE’s) and in the development of interior provinces. Between 75-80% of World Bank loans to China in 2008 were directed to the central and western regions, the most economically disadvantaged. This promotes increased wealth within China, leading to higher levels of development due to a more positive Human Development Index (HDI), which currently sits at 0.687, up from 0.677 in 2010. Thus, trade and investment are critical factors in ensuring that China’s growth remains sustained at 7.5% whilst still encouraging increases in development.

Internet censorship and the requirement of self-censorship not only harm the economy inside China, but also are negatively affecting China in aspects of international commercial trade, even as globalization becomes the trend of today’s world. Chinese Internet censorship is applied to both directions; not only blocks Chinese Internet users’ access to certain foreign websites, but also prevents foreigners from knowing the truth about China through refusal of releasing reliable information. So when foreign companies want to enter the Chinese market, they face a serious question: “How do you assess an investment opportunity if no reliable information about social tensions, corruption or

The process of globalisation in China has been a rapid one. China’s exponential growth since the fall of Mao has lead to increased international influence – with China now operating on an international scale.

Threshold for Foreign Investment Review Board screening of Chinese investment in”non-sensitive sectors” (ie. Excludes agriculture, media, telecoms and defence) rises from $252 million to $1,094 million

One reason for the concern is the current doctrine of immunity, why this is of concern. In the world of international investment, regulations have not always been equal and perhaps in this current moment, it remains varied, at

G. Chinese Investments Subject to Special Security Clearances:India has blocked China's investment in certain sectors like telecommunications, port development and cargo carriers on the grounds that certain Chinese companies pose a security threat. Subjecting Chinese investments to special security clearances could cast a question mark on the future bilateral economic ties of the two countries, according to analysts.

Looking Backward (1888) sheds intensive light on a tremendously arguable question: “Does the environment affect the behavior of citizens?” Based on Jean Jacques Rousseau‘s philosophy “General will and well-ordered society” the answer to the aforementioned question is YES. One can highlight the fact that the fundamental problem for Rousseau is not nature or man but instead is social institutions. Rousseau's view is that society corrupts the pure individual (Le québécois Libre). Rousseau believes that societies are the roots of evil; he clarifies that by stating that the nature of man is a good one and it is being corrupted by the surroundings. Rousseau has come to the realization that due to these corrupted societies “To be sane in a world of

ISDS allows the foreign investor to circumvent domestic courts and to bring sue against a hosted country government. This argument mediated by a panel of private international arbitrators. The provisions for ISDS are written in several bilateral investment treaties. ISDS was created to reduce the political risks related to rapidly increasing foreign investment, and make the commitments made by host States in investment treaties more easily enforceable (EPRS, 2014). In the case of Eli Lilly and Company versus Canada, the provision was written in Chapter 11 of the North American Free Trade Agreement(NAFTA)(wikipedia.org). ISDS often takes place under the supervision of arbitral tribunals such as the World Bank and United Nations.

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.

I found this article "Foreign direct investment: Companies rush in with the cash" on the financial times website (www.FT.com) published December 11, 2002 written by John Thornhill. The reason for choosing this article is my personal interest in the Chinese economy and its attractiveness to the foreign investors. Apart from the foreign direct investment this topic has also helped me in understanding the impact of Chinese economy on the global market.

In this case study, we will attempt to answer what measures China took in preparation for acceptance into the WTO and how it adjusted to its eventual admittance in December of 2001. We will also review some of the problems associated with China’s economic growth strategy.

There are different levels of income and consumption in the different areas of China. Dissimilarities in education, consumption, power, personal habits and tastes lead many multinational companies to view China as one nation, but certainly not one national market. While overseas companies focus on the premium market, China's domestic consumer goods companies compete in principal for middle and low income consumers. Also, the new labor law introduced in January 2008 has improved labor protection and wage regulations, but most importantly it has raised China's factory labor cost substantially causing foreign investors in labor intensive, low margin industries to reconsider their Chinese establishments. China made products are also put under scrutiny with respect to quality, hygiene and safety problems. In a global environment, which is driven by trade friction and financial insecurity, these problems may make it even more politically difficult for China to net result a good year.

The main aim of International business is to build and sustain competitiveness for economic value creation in both domestic and overseas markets (Besanko et al. 2007). Internalisation business theory however has a variety of models that can identify the environmental analysis of specific countries. These models are used for companies to internationalise and find the right location(s) overseas by taking; institutional, cultural fit and success opportunities into consideration. These models also give in-depth information on