66565 66565 china analysis paper 1

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China analysis paper
China is one of the most populous countries of this world. The country is situated to the eastern
side of the continent Asia. According to the geography of the country, the eastern and southern
parts are the most productive in terms of agricultural output as well as the largest proportion of
the Chinese population. The other sides of the country are characterized by basins and rolling
plateaus. These features lower the agricultural potential of the country towards the western and
the northern side. The country covers more than nine million square kilometers in terms of the
area. Various physical features are found in the country including rivers and hills (Webber 593).
The largest area of the country’s topography is usually mountainous. The country has about fiftysix ethnic groups with about seven different dialects. However, the languages mostly taught in
China include Chinese, Tibetan, Uyghur, Mongolian and Zhuang. Mandarin Chinese is the most
popular official language in the country. However, most autonomous regions have their own
official languages for their regions (Sheng et al. 7).
China as a country is also popular for being the country with the largest population worldwide.
In fact, it contributes an approximate of the sixth of the total population worldwide. The
population density in the country is 147 per square km. according to the latest estimates by the
United Nations. Moreover, the largest proportion of this population lives in the urban areas.
Despite these facts, the country also doesn’t lag behind in terms of natural resources. This means
that the country has very many resources of commercial importance (Webber 587). There are
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significant reserves of mineral resources such as coal, mercury, copper, tin and fluorspar among
others. This results in a large supply of products to the outside world. In addition to mineral
resources, there is also a variety of different landforms that contribute to the agricultural
potential of the country. This is mostly towards the east and south of the country where
topography and climate favor agricultural production.
Chinese culture
The cultural aspect in China is influenced by both ethnicity and geographical location of people
across the country. According to anthropologists, people within a particular community in the
country come up with their own culture. It is this culture that dictates how different groups of
individuals behave and interact. The culture is broken into smaller elements such as religion,
morals and values as well as social structure among other aspects (Piotroski et al. 235). The
country is thus referred as a multi-cultural owing to this fact of numerous cultural groups.
This country is known for having a unique characteristic in terms of the social values. On this
ground, there are two main schools of thought referred to as Taoism and Confucianism. These
are the most influential philosophical schools. However, there is always a conflict between
philosophies of these schools of thoughts which has resulted in debates on which school to trust.
As a result, other concepts like Buddhism have emerged. Despite the fact that China is a multireligion country, Confucianism has gained greater popularity over the rest making it the soul of
the Chinese culture. It is the most indigenous religion above Buddhism which takes the second
rank. Earlier before, it was believed that this country was dominated by atheists. However, recent
surveys have indicated otherwise showing more than 80% of the population having religion
beliefs.
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Other important aspects of culture include the festival celebrated by the inhabitants of a given
country. In China, for instance, there are several of them celebrated by different groups in
different ways (Piotroski et al. 229). The most popular include the New Year and mid-autumn
festivals. Arts are also a significant feature including sculptures and paintings. The diverse
cultural aspect in China has contributed to its being named the largest exporter in value terms of
cultural goods in the world recently. The cultural goods and services exported include jewelry,
crafts and artifacts.
Ethical issues
Ethical issues in China play a significant role in the business environment of china in a way that
they cannot be undermined. It is this ethical issue aspect that dictates the code of conduct in the
business sector thereby seeking government attention. However, there are different issues that
are addressed in this sector. Among the issues include aspects such as pollution control
measures, corruption and bribery issues and the support of the corporate social responsibility
(CSR)(Yin et al. 305). These issues are very present in the Chinese market attracting the interest
of studying the current situation in the market.
The spotlight in the Chinese market has shown great interest in studying the performance of
companies in the light of corporate social responsibility (CSR). The corporate social
responsibility is the aspects that enable companies operate efficiently in whichever environment.
In China, it is not the consumers that drive corporate responsibility but instead, state-owned
enterprises play the role. Aspects of CSR enable the production firms to maintain a smooth
supply chain thus encouraging and enabling them expanding their operations (Yin et al. 302).
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Sometimes, however, CSR practices are dependent on such factors as culture, political aspect as
well as the geographical region.
In addition to CSR, there are other ethical issues such as pollution, corruption and human rights
aspects. On matters of corruption, for instance, the Chinese government is in the forefront in
fighting the corruption in the business environment (Yin et al. 304). Among the efforts by the
government is legal framework to criminalize corrupt practices. However, despite the efforts by
the country to curb corruption and bribery, the menace continues influencing the business sector
negatively. On the issue of pollution, the country has recently engaged in a debate on how to
save it from the environmental catastrophe. Another issue is on the human rights which have
experienced problems as there has been discrimination of the minor groups, child labor, and poor
labor standards. However, the government is working to improve on this especially through
improving the wages for workers.
Government and political factors
This country is a one-party state whereby the party in the leadership is known as the Chinese
Communist Party. Therefore, this means that power is concentrated in this particular party. The
constitution governing the country was last amended in the 1980s. The legislature, known as the
National People’s Congress, is responsible for determining the economic strategies of the
country. China opened itself economically to the rest of the world in the late 1970s (Sheng et al.
12). Therefore, there is good environment for conducting business, especially when considering
the openness of the economy. On the contrary, it may be unsuitable due to the concentration of
power in one party which leads to ineffective policies and limit on the citizens’ rights.
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On the issue of the regulation of the businesses in China, there have been continued elimination
of the barriers that constrained trade both within and outside of the country. Under the newly
amended foreign trade law, the government allows Chinese individuals to freely conduct their
businesses (Sheng et al. 9). The issue on tax is such that corporate income tax has been lowered
recently from 30% to 20% making the business environment relatively favorable. The individual
tax on the foreigners working in the country is progressively charged with rates ranging from 345%. Dealing with agricultural and food products is faced by a very complex governing system
in order to ensure quality and safety in the area.
There also trade policies that are employed by the authorities of China to ensure that businesses
be run as required by the law. For instance, quotas, incentives, subsidies, and taxes have always
been applied to regulate the way economic activities are conducted. In the year 2008, the
government reduced corporate income tax to encourage the urge of people in conducting certain
economic activities (Sheng et al. 15). Quotas are mostly practiced on the imports as a way of
improving the balance of trade. Despite the policies, the government of China is striving to
promote a conducive business environment.
Economic factors
China has worked a great deal in reducing the barriers to foreign trade. This has been done in
order to encourage imports and exports between the country and the rest of the world. However,
the imports must undergo through the China Compulsory Certification to ensure that they are of
good standard. It also practices pre-shipment inspection for the commodities that are imported as
raw materials to ensure environmental protection standards are reached (Webber 597). On the
other hand, there is a clearance slip for exportation of goods. Other duties charged on imports
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include the countervailing as well as anti-dumping duties as a way of protecting the domestic
industries from external competition.
The infrastructural situation in China was in the recent past demanding but a hope is there for
those willing to venture in the economy. This is because the government is pushing for reduced
cost of capital for companies to be effected by the central bank. For the government to accelerate
construction investment, it has attracted private financing through public-private partnerships.
The government has cut down the bank interest rates as well as the reserve requirement ratio thus
encouraging financial institutions to lend money to investors at relatively lower costs (Sheng et
al. 8-9). This creates a good business environment in the country since one can thereby start a
business easily.
The labor laws in china are formulated and provided under the PRC labor law which calculates
the minimum payment as well as the work time. The law requires an 8-hours work day and a 44hour work week. If this is violated, the worker must be compensated a certain percentage of the
base salary. Nevertheless, most companies ignore the employment law of the land. Another
factor to be considered is the cost of living which is said to be relatively lower compared to most
other parts of the world.
In conclusion, based on this essay it is clear that there a both strengths and weaknesses of
conducting businesses in China. However, the strength may outdo the challenges. For instance,
the large population is an advantage due to the availability of market (Webber 586). Reduced
corporate tax is also another advantage among many others discussed in this document.
Nevertheless, few challenges are there such as labor laws which tend to oppress the investor
among others.
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Work Cited
Piotroski, Joseph D., and T. J. Wong. “Institutions and information environment of Chinese
listed firms.” Capitalizing China. University of Chicago Press, 2012. 201-242.
Sheng, Shibin, Kevin Zheng Zhou, and Julie Juan Li. “The effects of business and political ties
on firm performance: Evidence from China.” Journal of Marketing 75.1 (2011): 1-15.
Webber, Michael. “Re-emerging China and Consequences for Economic Geography.” Eurasian
Geography and Economics 51.5 (2010): 583-599.
Yin, Juelin, and Yuli Zhang. “Institutional dynamics and corporate social responsibility (CSR) in
an emerging country context: Evidence from China.” Journal of Business Ethics 111.2 (2012):
301-316.
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