Country Fact Book China

ACADEMIA DE STUDII ECONOMICE DIN BUCURESTI

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Historical Background

The earliest recorded human settlements in what is

today called China were discovered in the Huang
He basin and date from about 5000 B.C. During the
Shang dynasty (15001000 B.C. ), the precursor of
modern

China's

ideographic

writing

system

developed, allowing the emerging feudal states of

the era to achieve an advanced stage of civilization, rivaling in sophistication any society found
at the time in Europe, the Middle East, or the Americas. It was following this initial flourishing
of civilization, in a period known as the Chou dynasty (1122249 B.C.), that Lao-tse, Confucius,
Mo Ti, and Mencius laid the foundation of Chinese philosophical thought.
The feudal states, often at war with one another, were first united under Emperor Ch'in Shih
Huang Ti, during whose reign (246210 B.C. ) work was begun on the Great Wall of China, a
monumental bulwark against invasion from the West. Although the Great Wall symbolized
China's desire to protect itself from the outside world, under the Han dynasty (206 B.C.
A.D. 220), the civilization conducted extensive commercial trading with the West.
In the T'ang dynasty (618907)often called the golden age of Chinese historypainting,
sculpture, and poetry flourished, and woodblock printing, which enabled the mass production of
books, made its earliest known appearance. The Mings, last of the native rulers (13681644),
overthrew the Mongol, or Yuan, dynasty (12711368) established by Kublai Khan. The Mings in
turn were overthrown in 1644 by invaders from the north, the Manchus.
Geography and Climate
Located in Southeast Asia along the coastline of the Pacific Ocean, China is the world's third
largest country, after Russia and Canada. With an area of 9.6 million square kilometers and a
coastline of 18,000 kilometers, its shape on the map is like a rooster. It reaches Mohe in
Heilongjiang Province as its northern end, Zengmu Ansha (or James Shoal) to the south, Pamirs
to the west, and expands to the eastern border at the conjunction of the Heilongjiang (Amur)

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River and the Wusuli (Ussuri) River, spanning about 50 degrees of latitude and 62 degrees of
longitude. China is bordered by 14 countries -- Korea, Vietnam, Laos, Burma, India, Bhutan,
Nepal, Pakistan, Afghanistan, Tajikistan, Kyrgyzstan, Kazakstan, Mongolia, and Russia. Marineside neighbors include eight countries -- North Korea, Korea, Japan, Philippines, Brunei,
Indonesia, Malaysia and Vietnam.
Surface area (sq. km) in China was last measured at 9.597.000 km in 2014, according to the
World Bank. Surface area is a country's total area, including areas under inland bodies of water
and some coastal waterways. This page has the latest recorded value, an historical data chart and
related indicators for Surface area (sq. km) in China.
Climate
Most of the country is in the northern temperate zone. There are complex climatic patterns
ranging from the cold-temperate north to the tropical south, with subarctic-like temperatures in
the Himalaya Mountains, resulting in a temperature difference of some 40E C from north to
south. Temperatures range from 30E C in the north in January to 28E C in the south in July.
Annual precipitation varies significantly from region to region, with a high of 1,500 millimeters
annually along the southeastern coast and a low of fewer than 50 millimeters in the northwest.
There is an alternating wet monsoon in the summer and a dry monsoon in winter. North China
and southward are affected by the seasonal cold, dry winds from Siberia and the Mongolia
Plateau between September/October and March/April. Summer monsoon winds bring warm and
wet currents into South China and northward.
Natural Resources
China has substantial mineral reserves and is the worlds largest producer of antimony, natural
graphite, tungsten, and zinc. Other major minerals are bauxite, coal, crude petroleum, diamonds,
gold, iron ore, lead, magnetite, manganese, mercury, molybdenum, natural gas, phosphate rock,
tin, uranium, and vanadium. With its vast mountain ranges, Chinas hydropower potential is the
largest in the world.
China's Administrative Territory Division System

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The Constitution of the PRC stipulates administrative areas of China are divided as follows:
(1) The whole country is divided into provinces, autonomous regions, and municipalities under
direct control from the Central Government.
(2) The provinces are sub-divided into autonomous
prefectures, counties, autonomous counties, and cities.
(3) Counties, autonomous counties and cities are
divided into townships and nationality townships.
The autonomous regions, autonomous prefectures,
and autonomous counties are all national autonomous
areas. The central government in Beijing sets up the special
administrative regions as needs warrant. At present, there are 34
provincial administrative units in China including 4
municipalities directly under the Central Government. There are 23 provinces,

autonomous regions, and 2 special administrative regions.

Demographics
According to INDEX MUNDI:
Population

1,373,541,278 (July 2016 est.)

Age structure

0-14

years: 17.1%

15-24

years: 13.27%

25-54

years: 48.42%

55-64

years: 10.87%

(male

126,732,020/female

(male
(male

108,172,771)

97,126,460/female

85,135,228)

339,183,101/female

325,836,319)

75,376,730/female

73,859,424)

(male

65 years and over: 10.35% (male 67,914,015/female 74,205,210) (2016 est.)

Birth rate

12.4 births/1,000 population (2016 est.)

Death rate

7.7 deaths/1,000 population (2016 est.)

Sex ratio

at
0-14

birth: 1.15
years: 1.17

male(s)/female
male(s)/female

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15-24

years: 1.14

male(s)/female

25-54

years: 1.04

male(s)/female

55-64

years: 1.02

male(s)/female

65

years

and

over: 0.92

total population: 0.92 male(s)/female (2016 est.)

Economy
GDP: $10.98 trillion (2015 est.)
GDP - composition, by end use:
household consumption: 38%
government consumption: 13.6%
investment in fixed capital: 43.4%
investment in inventories: 1.6%
exports of goods and services: 21.7%
imports of goods and services: -18.3% (2015 est.)
GDP - composition, by sector of origin:
agriculture: 8.9%
industry: 40.9%
services: 50.2%
(2015 est.)
Unemployment rate:
4% (2015 est.)
4.1% (2014 est.)

China Interest Rate

male(s)/female

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Interest Rate in China is expected to be 4.10 percent by the end of this quarter, according to
Trading Economics global macro models and analysts expectations.
Inflation Rate in China averaged 5.42 percent from 1986 until 2016, reaching an all-time high
of 28.40 percent in February of 1989 and a record low of -2.20 percent in April of 1999.
Exchange rates:
Renminbi yuan (RMB) per US dollar - 6.2275 (2015 est.)
There are four central areas of footwear manufacturing in China and just like their distinctly
different geographical locations in China, they specialize in different types of shoe production.

Dongguan, Guangdong province

Jinjiang, Fujian province

Wenzhou, Zhejiang province

Chengdu, Sichuan province

China is one of the most rapidly growing countries in the world, and when it comes to
manufacturing, China reigns supreme as the largest supplier in the world. According to statistics,
6 out of the 10 major export ports in the world are located in China. Much of Chinas
manufacturing is located in 5 major Chinese metroplexes.
Shanghai is one of the most important economic, financial, trade, and shipping locales in China
today. This is due to its incredibly rapid development of industry over the past 25 years.
Shanghai is responsible for the manufacturing of communication equipment, automobiles,
electronics, steel products, petrochemicals, and biomedicine. Nearby in Ningbo and Hangzhou,
linked to Shanghai by the Hangzhou Bay Bridge and overland high speed rail, heavy
manufacturing of consumer and commercial goods takes place daily.
Following Shanghai, Beijing is another leading city in China that is largely focused on
manufacturing pharmaceuticals and electronics. It is also one of the leaders in bio-engineering
and information technology.

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Beijing holds its industrial power due to its sister city, Tianjin, which itself is another
manufacturing giant. This city is a leader in aerospace and aviation, mobile phones, automobiles,
and alternative energy products.
Guangzhou is one of Chinas most prominent urban cities. There are thousands of factories
located throughout each of the citys manufacturing zones, and those factories manufacture
everything from toothpicks to automobile parts. This city has seen an influx of traders from
African countries since the 1990s. They came to Guangzhou, China because they were attracted
by the low cost of goods; however, they decided to stay and export goods back home. This has
led to numerous partnerships between various Chinese manufacturers and African traders.
Intermarriage of businesses has become the result of this partnership.
Finally, there is Shenzhen, which is known worldwide to be the electronics manufacturing hub of
China and the world. It is also home to 12 million people. If you want to establish a business
footprint in the world related to electronics, Shenzhen is just the place.
Inflation rate (consumer prices):
1.5% (2015 est.)
Exports:
$2.143 trillion (2015 est.)
$2.244 trillion (2014 est.)
country comparison to the world: 2
Exports - commodities:
electrical and other machinery, including data processing equipment, apparel,
furniture, textiles, integrated circuits
Exports - partners:
US 18%, Hong Kong 14.6%, Japan 6%, South Korea 4.5% (2015)
Imports:
$1.576 trillion (2015 est.)
$1.809 trillion (2014 est.)
country comparison to the world: 3
Imports - commodities:

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electrical and other machinery, oil and mineral fuels; nuclear reactor, boiler, and
machinery components; optical and medical equipment, metal ores, motor vehicles;
soybeans
Imports - partners:
South Korea 10.9%, US 9%, Japan 8.9%, Germany 5.5%, Australia 4.1% (2015)
Reserves of foreign exchange and gold:
$3.406 trillion (31 December 2015 est.)
Financial risk:
The Current State of the Chinese EconomyA Brief Overview
There exists great skepticism about the accuracy of many Chinese macroeconomic indicators.
There are significant reasons for this perception. First of all, any government exercising such a
significant role in managing the direction of an economy is highly likely manipulating official
statistics. In a nation of almost 1.4 billion people, quarterly gross domestic product (GDP)
figures are often released just 14 days after the end of the quarter with no subsequent revisions.
(In the U.S., GDP figures undergo two revisions, sometimes significant, spanning out 60 days
after the first release.)
The headline figures often conveniently match Beijings target figure. To admit the economy was
growing at a 4 percent pace could cause a loss in confidence in the relatively early 10-year tenure
of Xi Jinping. There are plenty of inconsistencies. While GDP was reported to grow at a 6.8
percent in 2015, electricity consumption rose by only 0.5 percent. These two figures are simply
not consistent.
Competitive advantage:
. Today, China has distinct competitive advantages that edges its rival countries in the global
market. Among the BRICS economies, China accounted for a majority of the foreign direct
investment (FDI) inflows in 2013, at a hefty 46%. This figure is expected to increase further as
the tireless economy of China continues to surge forward. This article will explore some of the
reasons to invest in China and their interest in gaining entry into the world largest market.

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Infrastructure

As a priority for the Chinese Government, the infrastructure systems in China remain world
leaders. Since 1992, China has spent into its infrastructural mechanism higher amounts of the
country's GDP than any other economies. Nowadays, China spends more than the US and EU
together, and its biggest investment in the last 20 years has gone towards Roads, Rail, Power and
Water.
The fast growing mechanism brings to the critics' attention the concern around the quality of
materials and design in construction, with issues such as the 2011 train crash and numerous
bridge collapses.
There are those who favor the investment, praising it as the system which aided in pulling
approximately 700 million people above the poverty line in the last two decades.
In urban infrastructure delivery, there are three key sectors: transportation, energy and water.
In what concerns transportation, the rail network in China is the most common means of
transportation, and it is ranking among US and Russia as for the top three biggest trains in size.
The air travel also is known for its efficiency of staff and their courtesy.
China has an increased road utilization, however as the country advantaged the rail network to
the road infrastructure, the latter is not as even and advanced as the other countries. China still
having a low car ownership rate, it is important to note that only Chinese driving licenses are
recognized: thus tourists can rent a car only if they also have a driver with an approved license.
Besides the bicycle (the most economical means of transportation), bus, car, and metro, China
has excellent waterways, with an impressive 110,000 of navigable streams.
The Chinese government set aggressive sustainability targets in the energy sector by increasing
the non-fossil fuel (nuclear and hydro) and decreasing the economic output of energy intensity.
The government is working now on its imposed target to have 20% renewable power by 2020.

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Likewise, in what concerns the waste-water sector, the goal is to reduce the water usage by 30%.
China as already success stories in this field and companies are working on innovative
technology to reduce the water waste.
However, given the infrastructure heavy growth model that the Chinese Government has
adopted, researches at Oxford University claimed that the infrastructural investments have been
poorly managed and that 75% transportation projects exceeded their budgets. Thus, the
researchers bring to the attention that sometimes the investment could be greater than the
benefits.
5

Technology

In what construes the technology sector, China has an emerging trend, seen in the Silicon Valley
and the BAT Companies such as Baidu, Alibaba and Tencent, as well as the new upcoming startups.
As expressed by Harvard Business Review, human capital comes close to 11%-15% of the
countrys GDP and the amount of qualified labor underpasses the market growth and demand.
The low level of labor qualification in China leads to an interesting mix of shortage in labor as
well as unemployment.
This being said, the Wall Street Journal published an article mentioning that Chinas technology
sector is underestimated. In order for China to achieve higher growth in the digital infrastructure,
it will have to embrace new movements, such as intelligent automation (use of robotics to assist
workforce).
The usage of internet is one of the most influential factors in the economy. Whilst China has
internet access and Wi-Fi in cafes, restaurants and hotels, there are some key differences to be
aware of: as it would be expected, in the urban areas internet access is far easier and more stable
than in the rural zones. Airports and train stations provide free Wi-Fi but there is a catch one
must have a Chinese sim card for it. Moreover, internet cafes are not available for tourists thus
not a good choice when it comes to getting online. The Chinese Government heavily regulates
access to the online connections, thus famous websites such as Facebook, Youtube, Twitter and

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even most parts of Google are censored. When visiting China, a VPN source is the best
investment when it comes to using the internet.
In terms of Chinese TV, all the media broadcast is under the monopoly of the Communist Party /
Government affiliated agencies over 2000 channels are offered however each one of them
meets a certain standard where no violence is seen and they are deemed appropriate ; there are no
privately owned television agencies or radio stations, and all foreign content must be approved
prior to distribution.
Under the technology spec, China is most commonly known for its cheap labor and most often as
an imitator; the reason for this as expressed by researchers, is that the highly competitive market
favors speed over the disruptive trend of innovation . Despite it being known as a copy-cat,
China is emerging towards the inventor side, especially seen in the tech commodities (Silicon
Valley for Hardware) and niche products.
7

Health

The healthcare system in China is fast evolving and rapidly growing. Over the last two decades,
China has improved the delivery of health services, one example being that the system had big
reductions in child and maternal mortality due to infections diseases.
The costs of the healtchare environment are rising as people are demanding better care and now
nearly 100% of citizens have health insurance.
Although the costs are increasing, patients themselves now pay only 32% of treatment cost
compared to a decade ago when they were paying 60%.
Some of the main medical issues in China are inclusive of smoking, contraceptive education
(which is lacking due to the cultural conservatism and tuberculosis, where China was found as
the second largest epidemic.
As people age and develop chronic illnesses such as diabetes, the system is too expensive to
sustain and in China the healthcare costs are growing faster than the GDP growth. The World

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Health Organization illustrates that hospital in China account for nearly 54% of total health
spend. It is being said that patients often receive more prescription than they need and undergo
unnecessary treatment. Most citizens are dissatisfied with the quality of care received, as the
healthcare providers are not rewarded for quality of care but by the number of patients seen.
The private sector is not involved in healthcare and the critics call for this to be changed with
adequate legislation.
On the more traditional side, there is TCM (Traditional Chinese Medicine) which is a mechanism
which accounts for methods such as massages, acupuncture, herbal medicine and specific diets
and life style. This Eastern system is chosen by a part of individuals who have non-serious
illnesses, most often them being related to fatigue and stress.
8. Social and Cultural aspects:

Language
There are seven major groups of dialects of the Chinese language, which each have their
own variations. Mandarin dialects are spoken by 71.5 percent of the population, followed
by Wu (8.5 percent), Yue (also called Cantonese; 5 percent), Xiang (4.8 percent), Min
(4.1 percent), Hakka (3.7 percent) and Gan (2.4 percent). The official national language
of China is Ptnghu, a type of Mandarin spoken in the capital Beijing, according to
the Order of the President of the People's Republic of China. Many Chinese are also
fluent in English.

Education
Education in China is a state-run system of public education run by the Ministry of
Education. All citizens must attend school for at least nine years, known as the nine-year
compulsory education, which the government funds. It includes six years of primary
education, starting at age six or seven, and three years of junior secondary education
(middle school) for ages 12 to 15. Some provinces may have five years of primary school
but four years for middle school. After middle school, there are three years of high
school, which then completes the secondary education. The Ministry of Education
reported a 99 percent attendance rate for primary school and an 80 percent rate for both

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primary and middle schools.

Religion
The Chinese Communist Party that rules the nation is officially atheist, though it is
gradually becoming more tolerant of religions, according to the Council on Foreign
Relations. Currently, there are only five official religions. Any religion other than
Buddhism, Taoism, Islam, Catholicism and Protestantism are illegal, even though the
Chinese constitution states that people are allowed freedom of religion. The gradual
tolerance of religion has only started to progress in the past few decades. About a quarter
of the people practice Taoism and Confucianism and other traditional religions. There are
also small numbers of Buddhists, Muslims and Christians. Although numerous Protestant
and Catholic ministries have been active in the country since the early 19th century, they
have made little progress in converting Chinese to these religions.

Customs and Traditions

The Chinese celebrate religious festivals, such as the Spring Festival, Moon Festival and
Tomb-Sweeping Day (to honor one's ancestors), as well as secular festivals such as
Chinese New Year; and all involve symbolic rituals and foods. The birth of a child is
another joyous occasion, particularly the naming ceremony; a baby boy's head is shaved
and wrapped in a red cloth, which is subsequently thrown in the river. Large and
elaborate funerals usher the soul into the afterlife. Folk medicines such as rhinoceros horn
borrow the Taoist belief that all disease comes from an imbalance in qi. Folk beliefs often
go hand in hand with traditional thought borrowed from Taoism, Confucianism and
Buddhism, although only 20 percent of the population officially espouses these religions.

Role of the family

The Chinese put a tremendous emphasis on lineage and family ties. Some families can
trace their genealogy back over centuries. For men, carrying on the family name by
having sons is a major goal. Many men, especially firstborn sons, remain at home with
their parents in order to care for them in old age. Even married couples often live with
parents. Many young couples consult matchmakers in order to find a mate. Once a

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woman is married, she is expected to join her husband's family and often moves under
the same roof as her in-laws.

Role of the woman at social level

The issue of gender roles and equality has been contentious in China. Traditional beliefs
have always placed men ahead of women in the social hierarchy, and the issue has been
exacerbated since the Communist government initiated the one-child policy. Age-old
beliefs created pressure on families to produce a boy so the family name will carry on.
The result is an ugly history of female infanticide and abandonment, which hasn't yet
been eliminated. However, under Communism, women have made great strides in other
areas, particularly in working and taking on greater roles in professional and public life.
They are able to inherit property.

Entertainment
A number of games and pastimes are popular within Chinese culture. The most common
game is Mah Jong. The same pieces are used for other styled games such as Shanghai
Solitaire. Others include pai gow, pai gow poker and other bone domino games. Weiqi
and xiangqi are also popular. Ethnic games like Chinese yo-yo are also part of the culture
where it is performed during social events. Qigong pronounced (Chi Kung) is the practice
of spiritual, physical, and medical techniques. It is as a form of exercise and although it is
commonly used among the elderly, any one of any age can practice it during their free
time. With its combination of physical flexibility and movement, breathing technique,
and constant state of focus and mediation, it has also been a way to cleanse and heal the
body and helps get in touch with your inner-self. Qigong has continuous rhythmic
movements that help reduce stress and build stamina as well as to improve certain
functions of our body such as cardiovascular and digestive.

9. Political aspects:

Political climate
The politics of the People's Republic of China takes places in a framework of a socialist
republic run by a single party, the Communist Party of China. State power within the
People's Republic of China (PRC) is exercised through the Communist Party, the Central

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People's Government and their provincial and local representation.
The President of China is the titular head of state, serving as the ceremonial figurehead
under National People's Congress. The Premier of China is the head of government,
presiding over the State Council composed of four vice premiers and the heads of
ministries and commissions. As a one-party state, the General Secretary of the
Communist Party of China holds ultimate power and authority over state and
government.

Government type
The primary organs of state power are the National People's Congress (NPC), the
President, and the State Council. Members of the State Council include the Premier, a
variable number of vice premiers (now four), five state councilors (protocol equal of vice
premiers but with narrower portfolios), and 29 ministers and heads of State Council
commissions.

System of political parties

The primary organs of power in the Communist Party include:

The General Secretary, which is the highest-ranking official within the Party and usually
the Chinese Paramount leader.

The Politburo, consisting of 22 full members (including the members of the Politburo
Standing Committee);

The Politburo Standing Committee, the most powerful decision-making body in China,
which currently consists of seven members;

The Secretariat, the principal administrative mechanism of the CPC, headed by the
General Secretary;

The Central Military Commission;

The Central Discipline Inspection Commission, which is charged with rooting out
corruption and malfeasance among party cadres.

Human rights and minority situation

Human rights campaigners continue to criticize China for executing hundreds of people
every year and for failing to stop torture, as well as for continuing to censor political and

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artistic expression. Chinese rule over Tibet is controversial. Human rights groups accuse
the authorities of the systematic destruction of Tibetan Buddhist culture and the
persecution of monks loyal to the Dalai Lama, the exiled spiritual leader who is
campaigning for autonomy within China.
Ethnic minorities in China are the non-Han Chinese population in the People's Republic
of China (PRC). China officially recognizes 55 ethnic minority groups within China in
addition to the Han majority. As of 2010, the combined population of officially
recognized minority groups comprised 8.49% of the population of mainland China. The
PRC's Constitution and laws guarantee equal rights to all ethnic groups in China and help
promote ethnic minority groups' economic and cultural development . One notable
preferential treatment ethnic minorities enjoy is their exemption from the population
growth control of the One-Child Policy. In addition, the PRC government has provided
preferential economic development and aid to areas where ethnic minorities live.
10. Judicial environment:

Law System
The judicial branch is one of three branches of government in the People's Republic of
China, along with the executive and legislative branches. Strictly speaking, it refers to the
activities of the People's Court system. The Chinese court system is based on civil law
modeled after the legal systems of Germany and France, but with local characteristics.
Constitutionally, the court system is intended to exercise judicial power independently
and free of interference from administrative organs, public organizations, and individuals.
Yet the constitution simultaneously emphasizes the principle of the "leadership of the
Communist Party."

Level of perceived corruption

A country or territorys score indicates the perceived level of public sector corruption on
a scale of 0 (highly corrupt) to 100 (very clean). A country's rank indicates its position
relative to the other countries in the index.

Rank

Country/territory

2015 Score

2014 Score

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83

China

37

36

11. Trade environment:

Most important retailers

Bailian (Brilliance) Group: Supermarket

Gome Home Appliance Group: Electronics Specialty

Suning Appliance Company Ltd.: Electronics Specialty

Dalian Dashang Group: Department Store

Nonggongshang

Supermarket

Group

Company

Ltd.:

Hypermarket/Supercenter/Superstore

Commercial centers

1. New Century Global Center, Chengdu

S

Features: THE BIGGEST MALL IN THE WORLD (and BIGGEST BUILDING!),

water park, IMAX theater, 2,000 hotel rooms, 16 million square feet (150 hectares)
2. IFC Mall, Hong Kong

Features: scenery, world's best transport, world's top restaurants; Four MTR Lines meet
underneath; 200 boutiques and stores

Products: luxury fashion, jewelry, watches, electronics

3. Landmark Mall, HK

Features: top fashion mall in Hong Kong

Products: luxury fashion

4. Harbour City Mall, HK

Features: Hong Kong's biggest mall, 2 million square feet (18 hectares), 700 shops,
middle-priced restaurants, central location

Products: clothing, electronics, consumer products

Buying habits
Toys
The younger generation of parents is more willing than older generations to pay for toys.
New parents tend to buy Western brands for their children, as they perceive those toys to
be safer than Chinese ones.
Convenience foods
The young generation spends significantly less time cooking than their parents and

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instead turns to restaurants and convenience foods, such as microwave meals and instant
noodles. Many Chinese do not consider Western convenience food appetizing, though it
is generally easier to prepare than Chinese convenience food. Many local companies are
researching how to make Chinese food more convenient.
Pet products
Many Chinese consumers own petsmostly cats and dogsbut few spend money on pet
products, such as food and toys. Instead, they make these items at home. The new
generation, however, is wealthier and has less time to make do-it-yourself products. As
this generation ages, the consumption of pet products will rise.
Personal care products
The consumption of personal care products in China remains low, but this market has
great potential for growth. For example, most Chinese men do not wear cologne and most
Chinese buy shampoo without conditioner. As incomes increase, more Chinese
consumers will be able to afford non-essential personal care productsespecially
cosmetics and mens personal care products.
Wine and whisky
Wine and whisky have broken traditional alcohol preferences in China, as the young
generation seeks alternatives to strong traditional spirits, such as baijiu (see Opportunities
in Chinas Alcoholic Beverage Market). Wealthy consumers often flaunt their status by
drinking high-end wine while lower-income consumers drink local beer. Though
traditional alcoholic drinks will still dominate the China market in most places, big cities
and their young wealthy consumers will contribute to a fast rise in wine and whisky sales.
Snack foods
The young generation will spend more than their parents on snacks for themselves and
their children. Traditional Chinese snacks, such as roasted sunflower seeds and dried
sweet potatoes, are generally made by small local factories. But recent food and product
safety scares have led some Chinese consumers to view food products made by such
factories as unsafe or unclean. The market for Western snack foods, such as chocolate
products and potato chips, will expand as young consumers fancy these snacks more than
traditional Chinese ones (see Chocolate Fortunes).
Health food and products
Though health food and products are still generally expensive, Chinese consumers are
paying more attention than ever to their health. Most elderly and low-income Chinese
consumers turn to natural solutions and Chinese herbal medicine while younger and

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wealthier consumers often look to Western products, which are generally pre-prepared.

Mk Environment of China
There are many different advertising agencies in China and I would like to introduce only a few
award winning companies.
Grey Group China
Grey Group is one of the largest advertising agencies in the world, so it is no surprise that they
have headquarters in China. They offer full services providing any company looking to enter
China with start to finish marketing assistance. Working will Grey Group will provide you with
quality professional work but also a hefty price tag. They work predominately with fortune 500
companies including heavy hitters like P&G, Volkswagen, and Nokia, just to name a few.
Leagas Delaney
Leagas Delaney has offices in Shanghai and originally began in London. They are more focused
on creative advertising. They believe that their main job is to create and sustain relationships on
behalf of brands and that to do this takes insightful analysis, brave strategies, bold ideas and a
sensitivity to the culture of the clients we work with. They dont have such an impressive
clientele but they will do the job for you.
Ogilvy & Mather
Ogilvy & Mather is a worldwide advertising agency. Their website is trying to be different and
unique but annoying and hard to navigate. I do know that they operate in China and they have
won many Cannes Lions awards in 2012. They are one of the best but we all already know this.
Their client list includes companies like American Express, Coca-Cola, and Louis Vuitton.
JWT
J. Walter Thompson is also one of the best known advertising agencies in the world and also part
of the WPP group. Its no surprise that I have listed three companies owned by WPP, since WPP
is the largest advertising company in the world. JWT has offices in Beijing and Shanghai

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offering everything needed to enter into China. Campaign Asia awarded them the Agency of the
Year in Greater China.
Lowe China
Lowe operates out of Shanghai and they are owned by Interpublic Group. They have the power
and ability to handle any corporation looking to enter China. Their client list includes companies
like Microsoft, The United Nations, and Ikea.
High Risk Situations
China is one of the countries most affected by natural disasters. It has 5 of the world's top 10
deadliest natural disasters, the most frequent hazards are floods due to the fact that China is
located in Asia where the monsoon is present and delivers rain for 6 months a year.
Also China had 3 of the most deadliest earthquakes ever registered. The 1976 Tangshan
earthquake, with death toll estimated to be between 242,419 and 779,000, is ranked the third
deadliest earthquake of all times, and 8th deadliest natural disaster. The 2008 Sichuan
earthquake that took lives of close to 70,000 was the greatest since 1976.
Chinas crackdown on drug use has been going strong for almost a year (2014-2015). In June
2014, President Xi Jinping and Premier Li Keqiang both denounced drug use and called for
stronger efforts to fight drugs. That translated into increased action, with a rise in the number of
drug-related arrests. Chinese law enforcement also sought to send a message by arresting highprofile targets, most notably Jackie Chans son Jaycee, who was arrested in August 2014 and
spent six months in prison for possession of marijuana and providing a shelter for others to
abuse drugs.
The increased attention to drug use in China results, as might be expected, from a growing drug
problem. According to statistics released by the Supreme Peoples Court in 2012, drug crimes
more than doubled from 2006-2011, with the number of cases increasing from 31,350 to 69,751.
From 2007 to 2011, drug-related crimes increased by an average of 15 percent each year thats
about 75% higher than 2006.

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But there are some doubts as to whether harsher punishments can actually contain drug use in
China. As a January New York Times article pointed out, even in the midst of Chinas crackdown,
drug dealers felt comfortable selling their merchendise in public on the streets of Beijing. China
could learn from the United States mistakes in this regard after spending trillions on the war
on drugs and arresting millions, theres been little impact on rates of drug addiction. Chinas
own war on drugs may be doomed to follow the same fruitless path.
Its worth mentioning that due to increase in drug consumption and low level of sanitation you
have a high risk of contacting Type A Hepatitis and Typhoid from contaminated food or water,
regardless where you are eating or living also if you fancy some new medical procedures you
may get lucky and go home with Type B Hepatitis and if you like outdoor activities you may get
Japanese Encephalitis, Rabies and Malaria viruses. There is no risk of Yellow Fever in China, the
government requires proof of vaccination against it only if you are coming from a country with
the risk of yellow fever.
PROs to enter the chinese market
THE HUGE GROWTH of Chinas manufacturing in the last 20 years cannot be attributed to
Chinas embrace of the world market alone, as neoliberal academics want us to believe. It is the
outcome of a combination of many unique factors, the most important of which relate to the
legacy of the great social and political transformation that came about between 1949 and 1979.
Not understanding Chinas contemporary history is to understand nothing about Chinas future.
There are seven great advantages of China that I believe can overcome the problems at the
moment:
-

First, she has a more developed and balanced industry than many developing countries
Second, Chinas very strong and effective state machinery has been an effective tool for

mobilizing resources for modernization

Third, the sheer size of China a huge country with a population of 1.3 billion

greatly magnifies any advantages you may have

Chinas fourth great advantage is the legacy of land reform. Chinas land reform is
generally recognized as much more successful than India. China already out-competed
India as far back as 1980 and even earlier in all human development indicators: literacy
rate, daily calorie intake, death rate, infant mortality rate, life expectancy, etc

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-

The fifth element of China advantage is deep-rooted nationalism. The dominant Han
ethnic group accounts for more than 90%, of the country, whereas the Indian dominant

ethnicity only accounts for one-fifth of that nation

The sixth advantage of capitalist China is her absolutely atomized labor in face of an
absolute state. The 1949 revolution was a genuine mass mobilization of peasants for

modernizing and democratizing China

Last but not the least, China has a unique advantage in the big leap forward to embrace
global capitalism, namely the unique factor of having Hong Kong, Macau and Taiwan as
her door to the world.

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https://www.travelchinaguide.com/intro/geography/
https://en.wikipedia.org/wiki/Administrative_divisions_of_China
http://www.indexmundi.com/china/demographics_profile.html
http://www.tradingeconomics.com/china/interest-rate/forecast
http://www.tradingeconomics.com/china/currency
http://www.heritage.org/research/reports/2016/07/evaluating-the-financial-risks-in-

china
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