China. Economy

China, officially the People’s Republic of China, is the largest country in East Asia. It is located in Asia-Europe mainland east, the west coast of the Pacific Ocean. China is one of the fastest economic growths, but Chinese productivity overall level is relatively low, area develops lopsided; level of science and technology and cultural quality is not high enough. “China is the world’s …over 1.3 billion…” [1] It shows how many people China has now. And the most intensive urban are Shanghai, Beijing, Tianjin…and that makes most of the main business are local in these cities.

The main businesses are processing trade, like iron and steel, shipbuilding, tires…etc. It brings a multitude of business opportunities to cooperate with these countries such as Russia. For example, in 2011, Russia began developed oil shipments to China via the Pacific Ocean Oil Pipeline.

China is a big country and most population country; it has a big consumer market for multinational business cause China is capable of producing, you can get what you want from China by doing business. China is opening because they begin to popularize English, children start to learn English from nursery classes and China has a lot of English courses for people to learn. English is the one of most popular language to contact to each other, so when people doing business in China they can better to communicate.

China has a lot of people, they culture of management and technical staff which have to adapt to the needs of the contemporary market economy. China has a good traffic no matter shipping, ports or fly, port access is a big business in China. “130 of China’s 2,000 ports are open to foreign ships” [2] China has a lot of the ports, 90% of the trade volume shipping, Chinese exports of manufactured goods by port. China is not only developing of efficient port, but also promotes import and export, and promotes the growth of the trade. China has become one of the most potential for development in the world economy, and people’s lives overall well-off level.

The agriculture is the most main economic sector, “China Agriculture is one of the most important sectors of economy and as the statistics suggest the China Agriculture provides more than 12 percent of the total Gross Domestic Product or the GDP in the country.”[3] China’s agriculture has also been developed by imported advanced technique and better production from Brazil, America and other WTO member counties, although there is a long distance with over 15000 kilometers far away from North American.

5 years after joining WTO, China ‘s investment environment gets further improvement, become quite competitive world manufacturing processing base, at the same time as the global transnational investment, many world famous Multi-National Corporation in China have to adjust its business strategy. Countries are aware of the crag-fast situation that it is not easy to develop internationalization strategies and global business in China. Some counties have stuck to the strategy, which was trying to set up international institutions in different regions by their own method.

The fact is it is hard to access into a brand new market directly for foreign corporations by using their traditional theories. The successful company which like GE Company, with the world’s leading technology and design capabilities, it is through the establishment of the Pan Asia Technical Automotive Research Center, promote the joint venture enterprise independent innovation. And they are doing well in environmental protection and energy conservation and the development of circular economy. Automobile industry pollution to human survival environment is threatened, if aging motor vehicle cannot be applied the new emission control technologies, will greatly pollute the city air quality.

GM in China and government, academic institutions, enterprises to carry out various levels of cooperation, through the “general principles ” list of corporate environmental responsibility, reduce its products all over the world on the environmental negative effect. General Company gave his green supply chain project to China, to help Chinese suppliers to further reduce their raw material and energy consumption.

Next, I am going to talk about the institutions of China, and I will talk about it in 5 parts which are political and social system, degree of openness, product market, labor market, and capital market. All of the business activities need to obey the rules from Chinese government to do their business, if not you will consider illegal. Business internationalization should be generalized, multiple levels. From the organization, Multi-National Corporation occupies an increasingly important position. Along with this trend, regulatory agencies are increasingly transnational, that means it is so important to know about the institution of the country before you entry the business.

Along with the reform, China’s increasingly open, the same time Chinese want to improve their status in the world, so far, are not illegal enterprises and business can be practiced in China. From the special economic zone to the coastal and open city, and then to the bonded zone in China, in the exploration of reform and opening up new path. Since the 90’s of last century, China has established 15 free tax zones, as the highest degree of openness of China’s special economic development area, effectively promoted the integration of China and the world.

“Since 1980, China has established special economic zones in Shenzhen…”[4] Beijing as the capital of China, its technology openness is ahead of others cities; it is showing Beijing as a national science and technology, cultural center, in technology acquisition, the advantage of the respect such as scientific research international. But in the degree of economic openness not as much as Shanghai and Guangdong, especially Shanghai is the huge openness economic city. The reason why I think is probably because Beijing mainly as a central enterprise headquarters or foreign export-oriented enterprises has no special advantage.

So I think Beijing should focus on the technology advantage into enterprises international competitive advantage, raise economic extroversion to spend. But when it comes to the institutional framework, the typical relationship, Chinese political and social system and labor market labor limited and incomplete voting rights, and their minimum wages, even when they are not paid on time. Therefore, poor working environment, low welfare, illegal contract, work overtime, the labor law and the plight of today.

Although there are clear rules requirements, labor safety and hygiene, protection of female, working time, and collective contract, it is still very difficult to implement multiple situations and in remote areas. It looks like the global institutions will gain and loss in this case. That are the things you need to consider to do business in China, but China still have a large product market. Now people getting rich than before, and they not just wanting the cheaper product, they more like the high technology like iphone and ipad. 你先消失一下,她会来联系你的, 你到时候要做到,收放自如,和她的关系保持着一般的暧昧,她心情不好时一定要随叫随到,买单时候大方点,其他的时候不要提你想进一步发展的事,等到她觉得少不了你的时候,你再慢慢靠近……不要卑微,不要罗嗦,不要孩子气

Let’s see “Clusters represent a new way of thinking about national, state, and local economies, and they necessitate new roles for companies, government, and other institutions in enhancing competitiveness.” [5] It is like Silicon Valley in California, there are variety of industry clusters appear in China.

For example, the low-cost strategy attracts to global cell phone manufacturers. There are five large manufacturers distributed in the world, included Korea, US, Europe, Japan and China. From 2006, 82 manufacturers concentrate on the southeast of China due to the lower capital funds and core technology. Sooner, the local cell phone clusters become stronger. However, they are facing serious problems. One is, short history make less experience and competition. Customers are preferred to new-tech cell phone than old fashion one, while foreign investment like NOKIA has mature market economic policy. Another one is, there are numerous cheap copy cell phones like NCKIA going about now.

Obviously, many clusters such as mining and light industries noticed that government has established Property Law for protecting legal business trading. Being together can reduce the costs and enhance the productivity; Porter’s diamond model can easily proved. To increase productivity, factor inputs must improve in efficiency. Then, such as medical industries, contained farm production, sale, new recipe research, needs a large group of clusters. Add to the allowance from government and demand conditions, Chinese medicine have wide development space. People are more concern about the green consumption. Some of health care products benefit them a lot. Particularly, after-sale service is significant.

China is a country with a population of, with economic conditions make a spurt of progress, China market will enter products consumption era, clothing consumption will no longer simply to meet their most basic needs for survival, to higher psychological needs, self meet the demand leap, especially for hundreds of millions of people into the middle class, the reflection of their social status and taste of clothing needs to be more and more urgent, will accomplish batch capture the requirement of estate garment brand.

Specially in the age between 18-30 years, The ages of the consumer groups is the clothing consumption is the main groups, consumer groups in the purchase of clothing is the most frequency, total purchase amount of more groups, the age of the population at around 180000000, in which the female population of slightly more than in men, and China’s overall population sex ratio counter.

The group has a certain economic foundation, a strong desire to buy, fashion, the pursuit of fashion, personality, dare to try new things, easy to accept a variety of brand new. The population in large part of impulsive shopping. It is the clothing brand most, the most competitive market segments. Stream of consciousness from the cognitive perspective, the interaction between the different innovation main body is always accompanied by the knowledge flow and diffusion.

Especially along with the constant social knowledge, along with the people to the era of knowledge economy ‘s involvement, knowledge flows has gradually become the main body of innovation interaction of basic way of improving innovation performance, has become an important way. System or system in the various organizational innovation performance depends more and more on energy station absorption and utilization in other places develop knowledge, technology or products. Most studies show that, in a wide range of level of technology diffusion on industrial productivity have positive influence. Its importance in many cases like R&D inputs for the importance of innovation performance.

For example, The multinational auto companies before entering, the automobile industry of our country to produce trucks, car number, low proportion. With the development of automobile industry, the situation has been fundamentally improved. Through Multi-National Corporation to introduce technology demonstration effect, linkage effect and the training effect, the domestic automobile enterprise product quality is improved.