The Domestic Business Environment of China

2549 Words Oct 19th, 2008 11 Pages
Introduction China has already experienced a substantial growth in the field of international business because aside from its local companies going international, many international companies from different countries have already started to dominate the Chinese market. As a result, it was perceived that the Chinese economy will continue to grow at a relative pace and would be stable enough to be derailed easily by sudden crises. But even though the Chinese economy is now getting popular in the international market, the country is not taking its domestic business environment for granted because no matter how the country’s economy was fueled by the growing presence of international companies, the country remained adherent and makes it …show more content…
In other words, the political environment of Chinese domestic business is quite weak and can be easily outshined by the increasing numbers of foreign companies that are using its worldwide strategies to enter the huge market of China. But in contrary, Ritter (2007) wrote that the country has always been committed in improving the development of its domestic business environment and always adhere to the objective of prioritizing quality over quantity of foreign investments, especially after the government learned from the increasing monopoly of foreign-invested companies that do not pose threats to economic security of the country only but most especially, to the capacity of domestic Chinese enterprises to begin independent innovation. Moreover, since China can no longer deny the fact that foreign investors and companies are a big help in economic booming, the national government has developed some measures in order to ensure that both domestic and foreign companies would work harmoniously, such as the nexus between the private entrepreneurs and Chinese party-state which, according to Jorgen and Xiaoqing (2008), has been developed in response to both globalization and reforms despite issues that this kind of political dynamics would create tension between the parties involved.
Economic Environment The economic environment of Chinese domestic

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