Country choice of investment - China Analysis

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INDEX

INTRODUCTION        4[pic 3]

• CHINA’S GENERAL COUNTRY            

ANALYSIS        5

• China's trade agreement        5
• SWOT analysis of China                       5-6

CHINESE ECONOMY        6

• Economic Indicators                                  6

• China’s GDP                                     7
• China’s Balance of Payment            8
• China’s Inflation                                8
• China’s Economic Growth                9

• The main economic sectors        9

• China’s Employment and

Unemployment                                   9-10

SUMMARY OF ALL THE CHINESE ECONOMY

FACTORS                                                                          10

PEST ANALYSIS OF CHINA        11

• Political factors        11
• Economic Factors        11
• Social Factors        12
• Technological Factors        12

The 3 Industries Driving China's Economy By Sean Ross                                                                                12

• Agriculture        12
• Manufacturing        12
• Services        13
• Service Industry        13

NATURAL RESOURCES IN CHINA        13

KEY FACTORS FOR ENTRY TO CHINA        14

• Identifying the market        14
• Companies to ensure business longevity        14
• Choosing a location        14
• The do's to succeed in China        15
• Foreign investment vehicle        15-16

CONCLUSION        17

BIBLIOGRAPHY        18[pic 4]

1. ITRODUCTION

This study aims to give a deeper insight about China as a country and as a market. Strategic management tools have been used to analyze China on a deeper lever, economically, legally, culturally, politically and also on conducting business and Investment level.

China is the world's second biggest developing business sector economy. The nation is seemingly the world's most vital maker and modern maker, and those two areas alone record for over 40% of China's total national output, or GDP. China is likewise the world's biggest exporter and the second biggest shipper, and it contains the quickest developing shopper showcase.

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General introduction to China:

Nation name: People's Republic of China Government type: Communist state Territory (km²): 9,596,960

Atmosphere: to a great degree differing; tropical in the south to subarctic in the north

Capital: Beijing

Populace: 1.357 billion (2013 gauge)

Populace thickness: 145/km²

Major urban territories: Shanghai; Beijing; Guangzhou; Shenzhen; Chongqing; Wuhan

Ethnic gatherings: Han Chinese, Zhuang, and others.

take note of: the Chinese government authoritatively perceives 56 ethnic gatherings

Official Dialect: Standard Chinese or Mandarin.

Main Religions: Buddhist 18.2%, Christian 5.1%, Muslim 1.8%.

CHINA COUNTRY ANALYSIS:

• CHINA’S TRADE AGREEMENTS

China's respective venture assentions cover confiscation, intervention, most-favored-country treatment, and repatriation of speculation continues. They are for the most part viewed as weaker than the venture arrangements the United States tries to arrange.

Its main partners are: United states, Hong kong, Netherlands, India, United Kingdom, Mexico and Vietnam.

• SWOT ANALYSIS OF CHINA

• Strengths:

• Government Structure: The Chinese government has been hand crafted to administer the 1.4 billion individuals who dwell there. The state and the National People's Congress are assigned as Supreme Powers and the administration is isolated essentially among four bodies every one of which have explicit forces assigned to them.

• Gross domestic product Growth: The GDP of China has been on a development binge for as long as couple of years and on 2017 the development rate is at 6.8 % which is required to be the most noteworthy after the year 2010.

• Media transmission blast: China has seen a blast in the telecom part with a sharp increment in the quantity of versatile memberships. The vast majority of the broad GSM administration organizes over the area has now relocated to third-age (3G) systems.

• Money saves: In the year 2016, China enrolled remote money stores to the tune of USD 3.1 trillion which is the most elevated on the planet. This expands the nation's financial prospects bountifully.

• Shoddy Labor: China in light of its enormous populace offers modest work as well as a tremendous potential market for business. This makes it worthwhile for organizations who are vigilant for setting up assembling offices.

• Weaknesses:

• High joblessness rate: China has a populace of 1.4 billion which is the most astounding on the planet and the work rate is 71 %. With agribusiness division confronting a difficulty the work rate in country China is probably going to endure and an ever increasing number of individuals will be reliant on the administration segment for business.

• Undercapitalized banks: An ongoing report done by International Monetary Fund shows that the banks in China are undercapitalized. A pressure test demonstrates that the banks in the district would experience a capital deficit that is equivalent to 2.5 percent of China's total national output coming to generally $280 billion out of 2016.

• Confinements in property deal: Many nearby governments have forced limitations on the closeout of property and home loan loaning from the year 2016. This has made a log jam in the development business with the outcome that related parts like steel and other development material are additionally adversely affected.

• Opportunities:

• Concentrate on urban movement: Agriculture which was one of the prime wellsprings of salary for provincial China has declined with the outcome that numerous individuals are moving to urban communities. This makes an enormous market for organizations in urban China.

• Concentrate on administration part: After horticulture and assembling the two of which were the essential focal point of the Chinese economy have endured difficulties, the present spotlight is on the administration sector. Considering the colossal populace of the district this can end up being a worthwhile open door for administration organizations.

• Threats:

• East China Sea Dispute: China, Japan, and South Korea have been at loggerheads with one another in regards to their financial zones in the East China Sea. This is making bothers for exchange and trade in all the three nations.

• Negative observations on China: The shut idea of the Chinese government, their becoming monetary may and the high populace rate has all made a negative picture of China among different societies of the world.

1. CHINESE ECONOMY

• Economic indicators:

China is the second biggest economy on the planet and the biggest exporter on the planet.

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