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International Business - Country Factors Analysis on China

Essay by   •  April 1, 2012  •  Case Study  •  1,225 Words (5 Pages)  •  1,778 Views

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Moussa diop

International Business

Country Factors Analysis on China

After a long reflection, my partners and I concluded to conduct our business in China. For that same perspective we are trying to understand some factors that are essential to know before going in adventure in China. After a deep research, I know that doing business in China is not obvious but could be at the same time very fruitful if you have an clear understanding of their political and legal factor, then know their culture and beliefs and finally their economical and the rise and fall of their currency.

The most populous country in the world, the people Republic of China is today emerging as one of the major global economies. China is known as a country of etiquette and ceremonies. The unique character of the Chinese is built on the strong sense of pride in their ancient history and culture. I believe in this day that we need to understand the basic Chinese cultural, ethical and the business values is paramount to any organization wanting to conduct business in today's very quickly progressing China.


China is really deepened in the communism since their leader Mao Zedong. Mao taught the Chinese people the notion of equality of everyone throughout the whole country. Communism kept on progressing gradually from the 1911 revolution to Now. Mao was influenced by the philosophy of Karl Marx and at the same time the Chinese population was experiencing poverty, starvation and mass killings. All those factors contribute to the rise of communism in that region.

That phenomenon starts changing with the death of Mao and the Deng Xiaoping election in 1977. The new views of Deng were that it was necessary for china to embrace a more free market system that could help the country recover economically. He thought the only way to succeed in that path was to adopt some capitalist principles. Fortunately, with the new reforms, China was able to start reconstruction on its economic issues although there are still many governments' controls still in the country. With this new form of politics, China began to emerge in modern industrialization. With all the progression with Deng politics, China still is a truly socialist country. In 2003, President Jiang Zemin intensifies the desire to introduce private companies to exist in China.

Rules and regulations of the country

In China, almost all foreign companies are subject to many restrictions and barriers. But fortunately with your expanding connection with the Chinese society, Geocore would be very lucky because with all the rules and regulations that we could find in China, we gladly can surpass almost all of them. With a joint venture with Google Earth, who really know the Chinese market and based for a quite a while is also a great help with this phenomenon. Foreign companies in China are required to have a high level of permissions which is really difficult and hard to find. For example, in the advertisement business, there are many prohibitions and limitations that could narrow the business and not really show what your business stands for. Another threat is the competitor rivalry. They are the people that do not want to see your advertisements prospering in their TV channels.

Government attitude to foreign business

The Chinese government is known as being a very hard to approach in term of business. Since 1978, China under the leadership of Deng makes its first opening to western markets and investments. This approach helped China become the second largest economy in the world. His successor, Jan Zeming took almost the same route and further more to allow entrepreneur and business people to join in the communist party which make private businesses legal in the country. That thinking of a new kind of leadership is continued by the next president, Hiu Jintao. The Chinese population itself is a little suspicious



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