Paper Example on Understanding China

Introduction

In China, demographics that are rapidly changing, increased consumer spending, rising incomes and increasingly business environment that are open have helped to make the market of the Chinese attractive to the Western businesses across many industries. Additionally, sales that are declining in their home markets has forced many European and American organizations to firmly relocate China to the center of their global growth strategies that is long-term (Meyer, & Peng, 2016). Breaking into the market of the Chinese successfully might be an impossible task to foreign organizations with limited or no business experience.

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Pathways to International Trade in China

China relies on a catalog investment in enhancing foreign investment and international trade in some economic sectors while discouraging other nations. For the regions that are developed in China, the catalog's goal is to steer the foreign investment towards, (1) businesses that are non-labor intensive, high value-added investment, (2) Technically advanced manufacturing investment and (3) investment in energy-saving technologies and low pollution as depicted by the professional services firm of the PwC (Nolan, 2015). The government of the Chinese favor investments that are foreign which supports its sector of manufacturing by the provision of access to advanced technology. Immediately a company or an organization has realized that it creates good business sense in growing its international trade by increasing into China, there are many ways it can continue such as setting up an enterprise that is wholly owned, a commercial investment that is foreign-invested, a representative office or a joint venture (Nolan, 2015).

Role of China in Global Business

As the sustained economic growth of China translates into higher assertiveness of its world's role, the research theme of the CIGI focuses on the agenda of China in shaping the economy globally. Research ranges from the agenda of China for the IMF, the G20, the financial and monetary matters, to its investment policies and international trade, such as those focused on the renminbi internationalization (RMB) (Meyer, & Peng, 2016). This theme engages the scholars with an important ability in connecting with the leadership of China and the policymakers in ensuring that the research that is resulting embeds a relevant perspective of the Chinese. Nevertheless, China's contribution role might change the global economy as in the past years, the growth of China has been driven mostly by exports. Currently, China is transitioning to an economy that is consumption-driven, and an investment that is outbound will continue growing as a way of increasing the global prosperity (Shenkar, Luo, & Chi, 2014). More foreign companies and real estate are owned by the Chinese than many people realize.

Additionally, cinema is a soft-power sign of growing influence. For instance, the Hollywood scriptwriters no longer draw bad characters from China as the country is using its large market size to influence how Hollywood conducts its business (Nolan, 2015). Nonetheless, China aims to drive global growth and reform in the following ways: An economy that is innovation-driven, tapping many small and large business potentials, the one road initiative, the one belt, that connects trade markets across the Eurasian sea and land. Also, a middle class that is rising, spending power and growing in number to drive consumption, liberalization of financial markets, that speeds improvement in the market of the Chinese (Shenkar, Luo, & Chi, 2014). Enterprise reforms that are state-owned that open the biggest industries of China to the world and an overseas investment, leveraging the capital of China in revitalizing the global economy.

References

Meyer, K., & Peng, M. W. (2016). International business. Cengage Learning.

Nolan, P. (2015). Understanding China: The Silk Road and the Communist Manifesto. Routledge.

Shenkar, O., Luo, Y., & Chi, T. (2014). International business. Routledge.