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International Business. China

March 24, 2016 | Author: | Posted in international relations, social sciences

Running Head : International Business : China

Title

Development and Potential of China in the Global Market

Development and Potential of China in the Global Market

China

The Chinese economy has been showing rapid growth in the past decade and there seems to be a potential for strong growth into the foreseeable future . China has undergone a great transformation from a nation that was one of the world ‘s greatest opponents of globalization into a committed advocate of globalization . The transformation set in after 1978 , when Deng Xiaoping and other leaders began [banner_entry_middle]

to focus on market-oriented economic development . The Chinese economy is today far more open than Japan and this has been made possible largely due to adoption of the rule of law , of commitment to competition , of widespread use of English , of foreign education , and of many foreign laws and institutions (Overholt , 2006 . With respect to liberalization and globalization , China has effectively become an ally of U .S . and Southeast Asian , supporting freer trade and investment than is acceptable to Japan , India and Brazil . Global marketing is becoming more and more important along the years with the increasing trend in internationalization . In the early 1980s it dismantled collective farming and allowed private enterprise again . Now it is one of the world ‘s top exporters and is attracting record amounts of foreign investment . However , China ‘s transformation is not matched by political change . Having gained admission to the World Trade Organisation , China is benefiting from increased access to foreign markets , but in return it is under an obligation to expose itself to competition from abroad Relations with trading partners have been strained over China ‘s huge trade surplus and the piracy of goods (BBC , 2006

China ‘s large and rapidly growing market has attracted large volumes of FDI in recent years (US 54 billion in 2004 ) as transnational corporations have invested heavily in to benefit from the country ‘s emerging middle class and its higher purchasing power (GlobalEdge , 2006 . However , there are some hurdles to be crossed if China is to develop to its full potential in the global market According to Zhang Lichuan , a Director with the Statistical Department of General Administration of Customs of China , there are four major obstacles to Chinese foreign trade (People ‘s Daily Online , 2006

China should deal with pressure from international markets that are gradually becoming saturated

The cost of Chinese exports is increasing , partly because of the higher cost of labor and environmental protection

Increasing international trade protection has caused China to stumble into difficult territory . In fact , China has been involved in the world ‘s largest number of anti-dumping cases in recent years

The trade imbalance between China and other countries is getting worse As the Renminbi appreciates , Chinese enterprises will face greater exchange risks in import-export trade . Increasing pressures from the appreciating Renminbi will create new requirements and challenges for Chinese enterprises engaged in import-export trade

Analysis of the country ‘s global competitiveness

According to the CIA World Fact Book , China… [banner_entry_footer]

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