International Business and Trade Analysis

Of

China

International Business and Trade Deadline:

Midterm Project April 16, 2022

Required By: Complied By:

Dr Rosadel C. Jarmin Ricalinn Cariño
Joana C. Ruano
Email Address: Email Addresses:
rosadeljarmin@ncba.edu.ph carino.ricalinn@ncba.edu.ph
joanaruano@ncba.edu.ph

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Background Information: 
 Provide the basic information about the globalization of that country 
Strengths: 
 List down the positive side about globalization
Weaknesses: 
 List down the negative side about globalization
Political Analysis: 
 Provide the political background of the country 
 Assess how the politics affects the international business and trade
Economic Analysis:
 Provide highlight about the country’s economy / and how economics of the country affects
the globalization
 Highlight the globalization development for the past 20 years
Socio-Cultural Analysis: 
 Provide cultural assessment of the country 
 Assess how the society and culture affects the international business and trade 
Technological Analysis:
 Assess the advantages and disadvantages of using technology in the globalization process
 Highlight the country’s technical platforms that aids the international business and trade
development
Environmental Analysis: 
 Assess the environmental issues that influence globalization
Legal Analysis: 
 Highlight the legal requirements/ compliances relating to globalization
 Mention some government agencies and their requirements
Conclusion:
 Explain how the ideas above fit together.
 Closing sentence. Final words. Connects back to the introduction. Provides a sense of
closure.

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Background Information

China is the oldest continuous major world civilization, with records dating back about 3,500
years. China is the world's third-largest country by territory, and it has the largest population. It is
the home of one of the world's oldest civilizations, with a distinct and sophisticated culture.
Globalization has been a powerful economic growth driver. According to McKinsey Global
Institute (MGI) research, cross-border movement of goods, services, finance, data, and people
increase GDP and fuels productivity growth—and China has been one of the world's major
beneficiaries. From 1978 to 2018, China went from being a country that was largely isolated from
the rest of the world to one that embraces and drives globalization. Over the last four decades,
China's re-emergence and steady growth have seen it become a central force in the global
economy and a key player on the international stage. Within multilateral institutions, China can
bridge the perspectives of developing and advanced economies. Globalization is already affecting
China's economic growth. China is quickly establishing itself as the new champion of economic
cooperation, trade, and globalization. As others retreat from the fore, Chinese businesses seek to
expand and grow into every corner of the globe. The deterioration of support for globalization
poses serious risks for China, whose economic prospects are inextricably linked to its integration
into global markets. The story of China's development in the four decades since Reform and
Opening Up is inextricably linked to the globalization process. The Belt and Road Initiative (BRI),
devised by China's premier Xi Jinping, is a Chinese globalization case study worth following
because it focuses on connecting the region's vast array of countries. It's one of the reasons for
China's growing globalization, and this Chinese-led trade network allows large, medium, and
small businesses to realize their potential and trade more easily and broadly throughout Asia.

Strengths

1. China has fully utilized its advantages of low labor costs to attract foreign investment and
technology in order to propel economic development and improve the efficiency and quality of
economic growth. Globalization benefits China in terms of economic growth and development.
Because China has reduced its international trade barriers, international trade and foreign
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investment have increased significantly, resulting in significant levels of economic growth and
development.

Globalization benefits China in terms of economic growth and development. Because China has
reduced its international trade barriers, international trade and foreign investment have increased
significantly, resulting in significant levels of economic growth and development.

2. Globalization creates greater opportunities for firms in less industrialized countries to tap into
more and larger markets around the world. this can lead to more access to capital flows,
technology, human capital, cheaper imports, and larger export.

3. Globalization has led to an improvement in standard of living through improved roads and
transportation, improved health care, and improved education due to the global expansion of
corporations. 

4. Because of globalization many multinational companies set up their branches in China,

resulting in an increasing number of job opportunities.

5. Increased Transport of Goods. One of the primary results of globalization is that it opens
businesses up to new markets in which they can sell goods and source labor, raw materials, and
components.

Weaknesses:

1. China is one country that has suffered greatly as a result of the negative consequences of
globalization. Air pollution is currently a major issue in China. Air pollution harms both health and
the environment. Beijing, a major Chinese city, has extremely high levels of air pollution. China,
the world's second-largest economy after the United States, is undeniably influenced by
globalization. As a result, the introduction of advanced transportation as part of globalization has
had a negative impact on China's environment.

2. Some adverse consequences of globalization include terrorism, job insecurity, currency

fluctuation, and price instability.

3. Globalization is negative because it forces the world's poorest countries to do whatever the
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developed countries tell them to do.

4. Globalization has Limited the work of domestic Institutions. This restricts their importance in the
international field.

5. Globalization stresses the single economy and market but on the other hand, It may increase
inequalities and regionalism. Thus, there are wider chances of increasing inequalities and
differences among different nations.

Political Analysis

The political system in China is authoritarian. There are no freely elected national leaders, political
opposition is suppressed, all religious activity is controlled by the CCP, dissent is prohibited, and
civil rights are severely restricted. In China, elections are held under a single-party authoritarian
political system. China has met the criteria for superpower status, citing the country's growing
political clout and economic leadership, which has given the country renewed standings in the
international community. It is the world's most populous country, with charming and enthralling
citizens. It is also one of the most powerful political and cultural forces that has shaped our world.
China has a rich and beautiful history as well, with people more focused on learning and inventing
than conquering. The Chinese Communist Party (CCP) is modern China's founding and ruling
political party, officially known as the People's Republic of China. Since its founding a century
ago, the CCP has held a political monopoly, oversaw the country's rapid economic growth and
rose as a global power. As the party approaches its centennial in 2021, it faces challenges both at
home and abroad, including economic inequality, the COVID-19 pandemic, and the climate crisis.
China's growing global influence has had a significant impact on the political and economic
decisions of her partner countries. Governments intervene in trade for a variety of reasons,
including political, economic, social, and cultural ones. A country's government may seek to
protect jobs or specific industries on a political level. Some industries, such as defense,
telecommunications, and infrastructure, may be deemed critical for national security. Some
governments may object to the sale of advanced technological information to hostile foreign
interests. When another country is politically or economically unfair, some governments use trade
as a retaliatory measure.

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Economic Analysis

Globalization has had a significant impact on China's economic growth. China's international
trade has grown 16 times in the last 20 years, and the country's ranking has risen from 32nd
to seventh. The rate of trade dependence increased from 10% to 36%. China was the
world’s fastest-growing economy for over 30 years (around 10% per year for three decades).
It is now the world's second-largest economy, with a GDP of 15.8 trillion USD in 2020. China
is known as "the world's factory." It is the largest producer of concrete, steel, fertilizer,
clothing, and toys in the world. China has maintained an annual growth rate of more than 9.3
percent on average over the last 20 years. China is now the world's sixth largest economy
and fifth largest trading nation. Over 200 million people have risen out of poverty. In 2002,
the average life expectancy was 71.8 years, which was close to that of a medium-level
developed country. The aforementioned achievements were made against the backdrop of a
volatile international situation. China's ability to achieve so much in such a short period of
time and in such a volatile international environment is due to the fact that it has found its
own path of development that is appropriate for its national circumstances, namely building
socialism with Chinese characteristics. In a nutshell, building socialism with Chinese
characteristics means basing our actions on Chinese realities. The nation’s period of double-
digit GDP growth in the mid-2000s was fueled by even faster growth in the flow of goods in
and out of China. As exports surged from just $257 billion in 2000 to $2.4 trillion in 2016,
China became the world’s top exporter. China's share of the global economy jumped from
4.0 percent in 2001 to 17.4 percent by 2020.

Socio cultural Analysis

Cultural factors and The Fundamental Principles of Business Culture

China has the largest population of any country: 1,133,682,501 people were counted during
the census taken in 1990. This population had grown rapidly in recent times, expanding by

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approximately 15 million each year, an increase equal to the total population of Australia.
Between 1964 and 1982 China added 313 million to its population, more people than lived in
the Soviet Union during that time. This rapid growth has occurred because the death rate
has dropped sharply. The birthrate has also fallen, but the total population is enormous, and
there are many young people. Thus, without extreme means of population control, the
outlook is for continued rapid increase. The problem of providing an acceptable quality of life
for a society this large - and growing ever larger - is a major concern in China. In an effort to
reduce the rate of population growth, the Chinese government since 1978 has promoted the
one-child family among the Han. Married couples are urged to have only one child. Family-
planning advice and birth-control techniques are easily available and commonly used.
Chinese business culture is largely influenced by Confucianism. Thus, primarily, the
Confucian concept of Guanxi implies that a relationship network is crucial and based on the
values of solidarity, loyalty, modesty and courtesy. Second, hierarchy in China, both in
business and privacy, is purely vertical and highly respected. Third, Chinese people will be
careful to save face in order to protect individual reputations, influence and dignity. However,
it must be emphasized as well that these values have somehow slowed down over the last
decade while modern Western business approaches have been increasing gaining ground.

Technological Analysis:

How to view Globalization

Globalization is the objective trend of economic development in the world today, featured by
free flow and optimized allocation of capital, technology, information and service in the global
context. It is the inevitable result of the development of productive forces and advances of
science and technology, especially the revolution of information technology since the 1980s
and 1990s.

As a result, economic interdependence and interaction between countries are becoming

ever stronger. In this massive tide of economic globalization, no country can develop and
prosper in isolation. China has learnt from her long history that isolation leads to
backwardness. Development, progress and prosperity could only be achieved through
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opening to and integrating with the outside world, through stepping up exchanges and
cooperation with other countries and through absorbing all fine results of human civilization.
Therefore, we should embrace and seize the opportunities presented by globalization and
adopt reforms to keep up with the steps of the changing world.

Challenges brought by Globalization

Due to the lack of a just and equitable international economic order, the influence of
globalization on countries at different stages of development is entirely different. The
"dividends" derived from globalization are not fairly distributed. The developed countries
have apparent advantages in capital, technology, human resources and administrative
expertise and in setting the "rules of the game". They are usually the most active propellers
and the biggest beneficiaries of globalization. The developing countries on the other hand
are on the whole in an unfavorably position. Developing countries can obtain some foreign
investment, advanced technologies and management expertise, but at the same time they
are the most vulnerable to the negative impacts of globalization and lack the ability to
effectively fend off and reduce the risks and pitfalls that come along with globalization.

China's Experience

For China, globalization is often seen as a double-edged sword that brings both
opportunities and challenges, advantages and disadvantages. How to turn disadvantages
into advantages in the tidal wave of globalization depends on formulating the correct policies
and strategies. If the policies are correct, challenges can be turned into opportunities. China
has learnt many lessons and accumulated rich experiences in dealing with globalization from
its practice of reform and opening-up

To find a road of development that suits the national conditions. In the past 20-odd years,
China has maintained an annual growth rate of over 9.3% on average. China is now the 6th
largest economy and the 5th largest trading nation in the world. More than 200 million people
have been lifted out of poverty. The average life expectancy reached 71.8 years in 2002,
close to that of a medium-level developed country. The above accomplishments were
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achieved against the backdrop of a volatile international situation. The reason why China
can achieve so much in such a short span of time and in a constantly changing international
environment is because China has found its own road of development,

China's Contribution to World Economy

China's participation in Globalization is by no means a one-way street. When the world

economic growth remains weak, China's economy is one of the few bright spots. As World
Bank Report on Global Development Finance 2003 published in early April pointed out that
China's fast growth "helped to drive the recovery in East Asia. Together with policy stimulus
in other countries, China's performance lifted the region to growth of 6.7 % in 2002, up from
5.5% in 2001. Average regional growth of more than 6% is expected for the next two years,
with China increasingly becoming the engine of the regional economy."

Environmental Analysis

As one of the most rapidly growing countries and the largest energy consumer in the world,
environmental pollution in China, including that of air, water, and land, puts its people at risk
of many acute and chronic diseases. Recent reports that more than half of China's
groundwater is polluted, and of so-called cancer villages where increased incidence of
cancer might be due to industrially polluted water along the Huai River, have sparked public
outcries. In today's global economy, products are manufactured and traded around the
world. In the context of this increasing globalization, measurable amounts of pollutants from
China are spreading overseas via both natural and human means, resulting in substantial
global health concerns.

Legal Analysis

During the past decade, the Chinese government has pursued greater engagement with a range
of international legal regimes. China's expanded participation in international regimes for trade
and human rights, for example, can provide deeper understanding of the factors influencing
China's international behavior. Building upon scholarly perspectives about institutional
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compliance with treaty texts and the influence of local conditions on China's policies and practice,
this article examines China's participation in international legal regimes for trade and human
rights in light of dynamics of normative engagement and the paradigm of selective adaptation.
Normative tensions help explain China's policies and practices on compliance with the WTO
trade regime, while the imperative of normative engagement helps explain much about China's
international human rights diplomacy.

Globalization of the economy, public affairs, human rights, environmental issues and laws
indicate the developing tendency of human beings and society, and this has a great
influence on the third reform of Chinese law in many aspects. Upon its entrance into the
WTO, China carried out a large-scale clarification and amendment of its laws and
regulations, and incorporated itself into the global governance structure. This marks the
beginning of the third legal reform in the country. This reform includes the reform of the
political and legal system, restructuring of the legal system, and evolution of the real
meaning of law. In the future development of Chinese law, the fundamental nature of
modern, global and human civilization, and the legal profession will penetrate much more
into the whole Chinese law and its operation.

Conclusion

China has a growing market infused with rapid industrial development and economic growth.
As the world’s third largest trading nation after the United State and Germany, China will
continue to be an important business partner of the United State. US business people and
organizations must understand the differences in the economic, political, and cultural
environment of the country as these can be difficult to manage and may hinder business
development. Especially important is to learn about cultural and political differences and their
impact on business practices and business conduct.

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 REFERNCES
Balfour, F. (2004). Chinese reform picks up speed, Business Week, March 8,46.
https://link.springer.com/article/10.1007/s11463-006-0022-5
https://www.usi.edu/media/3654697/Business-Environment-China.pdf

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