Subject:- International Business Country:- China

Submitted By; Group No 7

Group members Roll No

Sneha Adivarekar Vinay Bhusa Priyanka Chavan Prathamesh Deo Shrutika Madan

01 03 09 11 31

Submitted To : Prof. C.S.Balasubramaniam

chinas introduction
A sovereign state located in east asia. World's most populous country, with a population of over 1.35 billion. Single-party state governed by the communist party. Covering approximately 9.6 million square kilometres, china is the

world's second-largest country by land area, but only the third or fourthlargest by total area. The ancient chinese civilization one of the world's earliest flourished in the fertile basin of the yellow river in the north china plain Since the introduction of economic reforms in 1978, china has become the world's fastest-growing major economy. As of 2013, it is the world's second-largest economy by both nominal total gdp and purchasing power parity (ppp), and is also the world's largest exporter and importer of goods.

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Capital: beijing Population: 1.351 billion (2012) world bank Gross domestic product: 8.227 trillion USD (2012) world bank Government: communist state, socialist state, single-party state Official language: standard mandarin

Republic established: 1 january 1912

People's republic proclaimed: 1 october 1949

CHINAS MAP

GEOGRAPHY
Located in southeast asia along the coastline of the pacific ocean, china is the

world's third largest country, after russia and canada Area of 9.6 million square kilometers and a coastline of 18,000 kilometers, its shape on the map is like a rooster. China is bordered by 14 countries.
Physical features The highest step of the typical 'ladder topography' is formed by the qinghai-

tibet plateau at the average height of over 4,000 meters. The highest peak in the world, everest, at 8844.43 meters high is known as 'the roof of the world'. On the second step are large basins and plateaus, most of which are 1,000 2,000 meters high.

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Regional divisions People tend to divide china into four regions, that is, the north, south,

northwest and the qinghai-tibetan areas. The north and south regions are located in the eastern monsoon area and are divided by the qin mountains-huai river. The other two regions, the northwest and qinghai-tibetan regions that occupy 55 percent of the land.
Mountainous topography Large areas of mountainous land, about two-thirds of the country. Out of the mountains throughout the world at the altitude of over 7,000

meters, over 50 stand in china

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Rivers and lakes More than 50,000 rivers have drainage areas that exceed 100 square

kilometres. The Yangtze, the longest in China and even in Asia, is the third-longest in the world. The areas with the most lakes are the Middle-Lower Yangtze Plain and Qinghai-Tibet Plateau. Qinghai Lake, a beautiful natural salt-water lake, is the largest.

Population of China, 19612008

Population Growth rate Birth rate Death rate 1,344,130,000 (2012 census) (1st) 0.47% (2009 est.) (156th) 11.93 births/1,000 population (2011 est.) 7.14 deaths/1,000 population (2011 est.)

Life expectancy
Male Female

73.18 years (2008 est.)

71.37 years (2008 est.) 75.18 years (2008 est.)

Fertility rate

1.18 children born/woman (2010 est.) (183rd)

Infant mortality rate

1.51 deaths/100 live births

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Age Structure
Age
0-14 years 15-64 years

Sex Ratio
At birth 1.18 male(s)/female (2010
census) Under 15 1.13 male(s)/female (2008 est.)

(%)
17.2% (2012 est.) 73.4% (2012 est.)

65-over

9.4% (2012 est.)

15-64 years

1.06 male(s)/female (2008 est.)

65-over

0.91 male(s)/female (2008

est.)

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Languages Official spoken standard in the people's republic of china is

putonghua. Other languages and dialects include other mandarin dialects, and wu (shanghainese), yue (cantonese), minbei (fuzhou), minnan (hokkien or taiwanese, teochiu), xiang etc.
Religion In recent years, the chinese government has opened up to religion,

especially traditional religions such as mahayana buddhism, taoism and confucianism. According to the old chinese government estimate, there were "over 100 million followers of various faiths" in china Buddhism is practiced by between 10.85% and 18% of the chinese. Christianity is practiced by 3.2%, 4% to 5% of the population, while islam by 2% of the population.

Chinas Transportation
Since 1949, however, transportation occupied a relatively low priority in

China's national development.

China's transportation network was built into a modern but somewhat

inefficient system.
Inadequate transportation systems hindered the movement of coal from the

mines, the transportation of agricultural and light industrial products from rural to urban areas, and the delivery of imports and exports

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Rail Transport China's first railroad line was built Highways And Roads Nearly 110,000 kilometres

in 1876
Between 1949 and 1985, more

of roads were designated parts of a network of national highways. and local governments were responsible for their own transportation. sized, and small towns and to railroad connections, making it possible for products to move rapidly between cities and across provincial-level boundaries

Provincial-level

than 30,000 kilometres of lines had been added.

Many double-track lines, electric

roads were built in large, medium-

lines, special lines, and railroad bridges were added to the system.

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Inland Waterways
Inland navigation is China's oldest

Air Transportation
Air transportation in China has

form of transportation.
The central government set out to

experienced tremendous growth and major reforms in the past three decades.
The airport localization program

overhaul the inefficient inland waterway system and brought in local communities to manage and finance most of the projects.
An estimated 340,000 people and

and listed airports on stock markets in China shows the efficiency of Chinese airports.
airports with more competition

170,000 boats were engaged in the water transportation business.

are more efficient than their counterparts.

Science And Technology In China

Chinese government has placed emphasis through funding, reform, and

societal status on science and technology. China has made rapid advances in areas such as education, infrastructure, high-tech manufacturing, academic publishing, patents, and commercial applications. China is now increasingly targeting indigenous innovation and aims to reform remaining weaknesses. Foreign companies are given many incentives for technology transfer and for moving R&D to China. Based on the success of the Special Economic Zones of the People's Republic of China, China has created Economic and Technological Development Zones.

Industrial Outlook
Annual sales volume of five million yuan or above was 4,104.5 billion yuan.

Profit reached its highest ever level of 815.2 billion.

Since 1996, china has been in the lead in the production of steel, coal,

cement, farm-use chemical fertilizer and television sets.

Automobile sector
3 million automobiles sold in 2003 and sales automobiles and vans reached

13 million in 2010. In 2003 china exported us$4.7 billion worth of vehicles and components, an increase of 34.4 percent over 2002. By 2004 china had become the worlds fourth largest automotive vehicle manufacturer.

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Steel China has been rapidly increasing its steel production. Steel production, an estimated 140 million tons in 2000, rose to more than

420 million tons by 2007. Huge steel complexes have been constructed at baotou, benxi taiyuan, wuhan, and ma'anshan.
Power industry The thermal, hydro and nuclear power industries have developed the most

rapidly. China is the world's second in the installed capacity of generators and generated electricity. Power grids of 500 kv have begun to replace the old 220-kv grids in undertaking cross-provincial and cross-regional transmission and exchange operations. In 2001 china exported over 80 million tons of coal, becoming the second largest coal exporting country in the world.

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Machinery Manufacturing China's machinery manufacturing industry can provide complete sets of

large advanced equipment, including large gas turbines, large pump storage groups, and nuclear power sets, ultra-high voltage direct-current transmission etc. Machinery and transportation equipment have been the mainstay products of chinese exports. In 2006, the export value of machinery and transportation equipment reached 425 billion us dollars, 28.3 percent more than 2005.

Market study
The latest value for exports of goods and services (bop, current US$) in

china was $1,997,080,000,000 as of 2011. The exports of goods and services (% of gdp) in china was last reported at 29.34 in 2011, according to a world bank report published in 2012.

The Pros Of Doing Business In China

A strong financial-services sector

One billion consumers Privatization

Chinas Import and exports

Total value of exports: US$2.05 trillion Primary exports - commodities: electrical and other machinery,

including data processing equipment, apparel, radio telephone handsets, textiles, integrated circuits Primary exports partners: US (17.2 of total exports), hong kong (15.8 percent), japan (7.4 percent), south korea (4.3 percent), germany (3.4 percent)
Total value of imports: us$1.817 trillion Primary imports - commodities: electrical and other machinery, oil

and mineral fuels, optical and medical equipment, metal ores, motor vehicles Primary imports partners: japan (9.8 percent of total imports), south korea (9.3 percent), US (7.3 percent), germany (5.1 percent), australia (4.6 percent)

Chinas Trade Surplus

The trade surplus was $27.1 billion for the month, compared with the

median analyst estimate of $27.8 billion.

Exports rose 1 percent in may from a year earlier, while imports fell 0.3

percent.
Exports rose 1 percent in may from a year earlier, while imports fell 0.3

percent.
Appreciation in the yuan this year may also be making chinese exports less

competitive.

Emerging markets in china

Tele communications market

Telecommunications industry in china is dominated by three state-run

businesses: china telecom, china unicom and china mobile. As chinas 2nd generation of mobile communications equipment market is dominated by european and north american companies The quickly rising chinese manufacturers, however, led by huawei technologies and zte are turning to south american, southeast asian and african countries for business opportunities and are increasingly raising their market share in china. Pharmaceutical market China is on the brink of healthcare revolution. Chinese government is well aware that the country is behind the world in innovative technologies and so the pharmacy market is highly fragmented. Only 9% of domestic pharmacy industry is attributed to brands n about only 4 drugs have been approved for marketing in china.

Chinas Special Economic Zones (SEZs)

The ability to use the chinese vast pool of low cost labor was a powerful incentive

to locate in sezs.
The ability to use the chinese vast pool of low cost labor was a powerful incentive

to locate in sezs.
Sezs offered reduced corporate income tax rate, including income tax exemptions

for foreign nationals working in sezs

The first four sezs were established in proximity to hong kong (shenzhen), macau

(zhuhai) and taiwan (shantou and xiamen).

The status of sez was expanded to hainan province which mostly developed the

touristic and agribusiness sectors, which became the fifth sez.

Production and sales of China

Chinas industrial production in august rose 10.4 percent. Industrial output in august was higher than a consensus figure of 9.9

percent and above julys industrial output growth of 9.7 percent.

Country also recorded strong retail sales, which rose at a rate of 13.4

percent in august on a yearly basis.

To the total amount spent on activities in construction and purchase of

fixed assets -- rose 20.3 percent, compared to the corresponding period in 2012
The better-than-expected figures brought cheer to chinese stocks, with

hong kongs hang seng index gaining 0.79 percent, while the shanghai composite index rose 0.66 percent.

Goods Exported By India To China (COPPER)

Coppers chemical, physical and aesthetic properties make it a material of choice in a wide range of domestic, industrial and high technology applications. It is used for Conducting electricity and heat; Communications; Transporting water and gas; Roofing, gutters and downspouts; Protecting plants and crops, and as a feed supplement; and Making statues and other forms of art.

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Copper Ores and Concentrate Export

Year 200304 200405 200506 200607 200708
Source: Ministry of Mines

Export (in tones) 300 18990 Nil 44645 565

Case Study Analysis: Resurgent India

Pros Geographically india is the largest country in south asia and seventh largest

in the world. Early 1990s india moved again its socialist economic and political orientation and aggressively adopted market capitalism Tortous , bribe laden procedures have been abolished and industrial licensing, import permission, technological tie ups, capital issues, foreign investment and much more have been liberalized. India has become robust in the industrial sector. Agriculture continues to be major economic activity contributing to 28% of the gdp. Poverty ratio has declined from 56.1% in 1973 to 19% today. Financial reforms have empowered consumers various loans, deposits and mutual funds. Increasing technology has revolutionized the capital market, facilitated dematerialization of shares gave india an electronic exchange (nse) superior to london stock exchange. Computerization has also facilitated india with micro finance organizations

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Cons
Even though with liberalization n growing IT and BPO revolution,

india is facing the problem of poverty and hunger. India ranks 94th (out of 118 countries researched) in the global hunger index. More than 150,000 framers committed suicide for every 30 minutes. Quality of public services had become pathetic. Health care issues are becoming more dangerous. On one good side of growing economy we have 6 million new phone connections every month then on another side we also have 30,000 villages that have never heard a phone ring even for a single time.

Conclusion
Even if india is on a move it is a resurgent india. India has

secured 43rd place in global competitiveness and would not attract close to $30 billion FDI in one year.
The country has also shifted over it sector and in that we are

moving away from bpo and entering the phase of epo and kpo.