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CAWANGAN SELANGOR, KAMPUS PUNCAK ALAM

FACULTY OF BUSINESS MANAGEMENT

INTRODUCTION TO INTERNATIONAL BUSINESS (IBM530)

GROUP MAJOR ASSIGNMENT


SELECTED COUNTRY: CHINA

GROUP 1
GROUP MEMBER MATRIX CARD
NUMBER
MUHAMMAD NABIL IZZUDDIN BIN MUSA 2022898118
MUHAMMAD LUQMAN AL-HAKIM BIN MOHAMED ROS 2022855428

GROUP: BA244 2A
LECTURER NAME: FAIZAH BINTI MD SOHID
SUBMISSION DATE: 13 JANUARY 2023
Table of Contents
i. Acknowledgement ............................................................................................................. 1
ii. Introduction ........................................................................................................................ 2
iii. Background of the Country ............................................................................................. 4
Historical ............................................................................................................................ 4
Land and Geographical ...................................................................................................... 4
Statistical Info .................................................................................................................... 4
People................................................................................................................................. 5
Political System and the Government ................................................................................ 5
iv. The Dos and Don’ts of Doing Business in the Country..................................................... 7
i. Culture............................................................................................................................. 7
ii. Economy ......................................................................................................................... 9
iii. Politics ....................................................................................................................... 11
iv. Business Practises ..................................................................................................... 13
v. Conclusion ....................................................................................................................... 16
vi. References ........................................................................................................................ 17
vii. Appendixes ................................................................................................................... 20

Figure 1 Location of China Country in the World Map ............................................................. 2


Figure 2 The Official Flag of China........................................................................................... 3
Figure 3 Basic Structure of China Political System & The Goverment .................................... 5
Figure 4 The Graphical Data .................................................................................................... 10
Figure 5 President Donald Trump & President Xi Jinping ...................................................... 20
Figure 6 Beijing, China. The Capital City ............................................................................... 20
Figure 7 The Forbidden City.................................................................................................... 20
Figure 8 China in the Google Map today................................................................................. 20
Figure 9 Baidu Company ......................................................................................................... 21
Figure 11 Alibaba.com Company ............................................................................................ 21
Figure 10 Tencent Company .................................................................................................... 21
i. Acknowledgement
Our deepest appreciation goes firstly to God, for giving us the strength and will to
finally complete this case study. Alhamdulillah. Secondly, we would like to express our sincere
gratitude to our beloved lecturer, Madam FAIZAH BINTI MD SOHID who patiently guided
us throughout this assignment. Her ideas, advice, motivation, and regular supervisions helped
us to stay focused in this long and challenging journey. We consider ourselves very lucky to
have a committed lecturer. Thank you! We would also like to thank our family members for
respecting our privacy when we needed it, and for their constant prayers for all of us. To our
siblings, especially to the one who always helps us throughout this assignment, thank you very
much for the relentless support and encouragement. Not to mention Siti's sister in Kuala
Lumpur, who assists us with this assignment, our appreciation for the understanding and
prayers too. Our love goes to every one of you, in Puncak Alam and Kuala Lumpur.

To our friends, regardless of nationalities, near or far, thank you very much for all the
support and encouragement. Special mention to our classmate, our beloved friend, our
profound gratitude for all the intellectual discussions, gatherings, and friendships. Lastly, to
everyone who were involved directly or indirectly in helping us reach the final touch up of our
assignment journey, thank you very much. May God always bestow His goodness and blessings
upon you. Insha’Allah.

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ii. Introduction
The location of the countries of China with the location on the world map.

Figure 1 Location of China Country in the World Map

China or Individuals' Republic of China is a country with the biggest populace on the
planet with around more than 1.4 billion occupants. China is additionally the third biggest
country in the world with 9,706,961 km² region covered and the principal biggest in Asia. China
was established in 1949, in which two Chinese opponent states were made which are
Individuals' Republic (China today) what's more, Republic of China that is situated in Taiwan
as the aftereffect of patriot Kuomintang withdrawing to Taiwan after being crushed by the
Socialist Faction. China is lining Afghanistan, Vietnam, Laos, Mongolia, Burma, Nepal,
Kazakhstan, Pakistan, India, Kyrgyzstan, Russia, Bhutan, North Korea, and Tajikistan. China
is positioned second in the most noteworthy positioning nations on the planet with

Gross domestic product 13.4 trillion after the US. Beginning around 1979, China
opened to unfamiliar exchange and speculation, as well as executing market changes, bringing
about them turning into the fastest growing economies country with more than 18.3% of Gross
domestic product development even in the post-pandemic period. China has turned into the
biggest maker, stock dealer and holder of unfamiliar trade saves. China's impact and
predominance in the economy has made China a significant business accomplice of the US.
China turned into the U.S greatest wellspring of imports, stock exchanging accomplice and
third-biggest product market. U.S loan costs are being kept low as China additionally goes
about as U.S depository protections and helps U.S in subsidizing their government obligation.

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Figure 2 The Official Flag of China

The red foundation in China's banner represents the Chinese Socialist Transformation.
There is a sum of five stars in the banner with one star being the biggest. Those stars address
Socialist Party of China and their administration that joins generally Chinese individuals. The
direction of the four stars represents Chinese solidarity that rotates around their chief (huge
star). The four stars were initially addressing the four social classes in China's New Majority
rules system: the public bourgeoisie, the metropolitan modest bourgeoisie, the proletariat, and
the common laborers. The five stars are additionally deciphered as addressing the five biggest
ethnic gatherings: the Uyghurs, Zhuang, Han Chinese, Manchus, and Hui Chinese.

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iii. Background of the Country
Historical

China is one the world’s oldest civilizations has been recorded. China civilization known as
the four ancient civilization and its timeline has been set dates back to the Shang Dynasty and
it was almost over 3,000 years ago.

The timeline started with Xia Dynasty dated at 2100-1600 BC. In this period, this period
became the first dynasty in traditional Chinese historiography and was continued to Shang
Dynasty dated as 1600-1046 BC. From here, it would be best to define this dynasty was one of
the civilizations to have historical records and today remaining. During Qin Dynasty (221-206
BC), the timeline now entering Imperial China era. This dynasty is the first to unite China as a
country under an emperor. Imperial China era was ended with Qing Dynasty (1644-1912)
became the last dynasty of China history. Following event, China continued to the era of
Republic of China (1912-1949) where the Beijing, Wuhan and Nanjing become the national
capital. The current era today of China is Modern China up until today. Beijing today is the
only national capital of China country. To conclude the history of this country, the timeline can
be divided into three period;

1. Pre-imperial China (Xia Dynasty- Zhou Dynasty)


2. Imperial China (Qin Dynasty -Qing Dynasty)
3. New China (1912- today)

Land and Geographical

The country capital located at Beijing, China. Geographically, China is located in Asia
continent and focused in Eastern Asia. Even though this country has the highest number in
population, this country still in the top level in area of largest country in the world by ranking
at number 4, with the size to be precise of more than 9 million in square kilometres size.

Statistical Info

China is the world’s most populous country in the world right now. As at 29 December 2022,
the current population of China is at 18.47% to be precise more than 1.41 Billion of world
population based on Worldmeter website. The country capital located at Beijing, China.
Geographically, China is located in Asia continent and focused in Eastern Asia. Even though
this country has the highest number in population, the country is not the biggest size of country

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in the world but this country still in the top position in area of largest country in the world by
ranking at number 4, with the size to be precise of more than 9 Million in square kilometres.

People

This country main language is Mandarin Chinese, the official language of this county, also
Mongolian, Uyghur, Tibetan, Zhuang and others. For additional information, China also known
as "People's Republic of China".

Political System and the Government

Figure 3 Basic Structure of China Political System & The Goverment

The current leader of China country is Xi Jinping, he was appointed and on duty since March
2012. He is the current President of China, the General Secretary of the Chinese Communist
Party (CCP). He is expected to lead the country into the next decade. Xi Jinping can be known
as the one who is the head of state, but the head of government is to the prime minister. This
country too has prime minister in the political system. Chinese Prime Minister is Li Keqiang.
This person can be defined as the second in power of the China political system. To understand
how the Chinese system politic works, the President as a core has been surround by the other
6 member standing committee of the Politburo. They form the innermost circle of China’s
Governance Structure up until today. Theoretically, this system decisions by consensus. All 7
members standing committee are the leader came from the Chinese Communist Party. Being
the only party that can be exist in the country, everything including all institution in China,
government, the court and the military must be report to the party.

Xi Jinping served as the chief create leading group with himself as the decision-making
power in house. China government known as State Council lead by the prime minister, Li
Keqiang the second leader of the party. This state council there is no different to the other

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country of cabinet that run all minister including the capital bank. There’s more unit other that
the government including military, Supervision Commission, Judiciary, The National People’s
Congress (NPC) served as the legislative branch, and The Chinese People’s Political
Consultative Congress (CPPCC).

To be conclude, China country today, the political system is run by the single party
which is the Chinese Communist Party (CCP) can be defined as one-party state and the
authoritarian. The China government lead by the Prime Minister, Li Keqiang. Xi Jinping served
as president, the paramount leader of China.

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iv. The Dos and Don’ts of Doing Business in the Country
i. Culture

The culture of the Chinese community is ancient and distinctive. Understanding it is important
and not only to acquiring a job in China but also surviving there. “Relationship first, business
second” would be best describe the Chinese culture in doing business with them.

• DO understanding ‘guanxi’.

Guanxi itself means “relationship” or “connection”. Guanxi indicates to having personal


trust and a solid connection with someone and can affect moral responsibilities and
exchanging preferences. Chinese people usually do business established on common trust
instead of composed contract and agreement. Some people would indicate this term as a
corruption, but this is how doing the Chinese doing business in China every day and it is
normal over there.

• Greetings and meetings


Regardless of age and seniority, whenever the meeting will be start with a simple handshake
between the business partners. Just a handshake, not more than such as a hug, kiss or a
bowing. Because of the Guanxi, Chinese people will have a long minute of meeting.
Commonly, the meeting will be started with a small sip of cup a tea and small talk is totally
normal. This is because, instead of straight forward to the business matter and critical point,
they are too bound to have built a bridge first and understanding each other attention.

• Language

Even though English can be defined as a well-known language to be use in many locations
and country, but in China, safely to say that only in city and center area such as Beijing,
Taipei and Hong Kong that can understand English fluently. However, it would be hard to
speak and use English as intermediaries communication once out of those major cities.
Doing business in China must learn and master their language such as Cantonese and
Mandarin. It would be perfect if have more understanding in their dialect.

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• WeChat as a main business communication

WeChat is an app that mainly purpose on instant messaging, social media and a platform to
make payment in China. Nowadays, the function of WeChat can be use widely and for
many purposes. By tradition, the exchange of business cards during the first business
meeting is carried seriously in China. This usually take place right after the initial
handshake, introductions and greetings. However today, the businessperson are performing
this digitally via WeChat. It’s popular for contacts to expect you to scan their WeChat QR
code. Using the WeChat app, people can send out the e-business card to the partner
business, message or video call them, and even share large document files. For business
communication in China, this platform has largely swapped email function.

• Business Banquets

Chinese banquet will be held in a big hall and expected to be seated at large and round table
that have a Lazy Susan in the middle of the table. The situation of business banquet in
China are like there will be brief introductory speech and a toast joining with all the
participant and the guest. There will be food served during the banquets and will be place
in that Lazy Susan. A traditional Chinese banquet will be held and over within two hours.
The etiquette that must be follow are:

• Use chopstick or a serving spoon to transfer food from the plate.


• Taste every dish served.
• Finishing a bowl that would means ready for a second helping.
• The Chinese maybe feel offended if turn down some meals.
• Explain why if dislike the meals.

There would be a session to give a gift to the business partner among them at the end of the
banquet. Chinese business partner will not open the gift while there unless were ask to and
need to explain regarding the gift story or something about it. Never give gift such as clock,
umbrella, white flowers specially chrysanthemums and handkerchief. All this item
represent something tear or death in Chinese culture and belief. While knives, cutter and
scissors also too cannot be as a gift to give for because this item may signify as to end the
relationship or cut ties upon the business.

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ii. Economy

• Gross domestic Product (GDP)


China is the second biggest economy on the planet after the US. China's administration
area addressed 53.9 percent of the GDP of the country. Private-possessed firms produce a
huge piece of China's Gross domestic product. The modern area is the second generally
significant, creating 39% of the aggregate, with the horticultural area contributing for the
leftover 7.1 percent. China's Gross domestic product development in 2019 is 6.11 percent,
but because of the Coronavirus pandemic, Gross domestic product development is
supposed to tumble to 1.85 percent in 2020. Despite having a populace of 1.4 billion
individuals, China's per capita pay stays a fourth from the top-level salary countries.
Territorial Economic deals (RTAs)

China has consented to the arrangement of RTAs with exchange accomplices a few
nations including Hong Kong, Chile, Macau, Pakistan, ASEAN, Iceland, Australia, New
Zealand, and India. Moreover, China by and large picks one exchanging accomplice to start
conversations with and none of China's existing accomplices in RTAs, including ASEAN
and Australia, are critical contenders. At the same time, China is reliably one of the best
five exchanging accomplice’s economies and with zeroing in on RTAs with more
vulnerable economies, China might have the option to divert a portion of their exchange
with essential exchanging accomplices, permitting it to adjust and grow their import and
commodities yet forestalling turning out to be progressively dependence on one or much
more economies. At a specific time, RTA accomplices' exchange will be redirected to
China, and this would fortify their need on China while additionally expanding China's
influence in exchanges and political impact. China has made propels into all the world's
economies. Subsequently, RTAs accomplices typically trade natural substances, energy
organizations, or rural commodities to China, while for the most part bringing in material
and electronic items.

• Unemployment Rate

China's reviewed metropolitan joblessness rate expanded to a six-month high of 5.7%


in November 2022 from 5.5% in the earlier month amid progressing Coronavirus
limitations. The joblessness pace of the populace matured 25-59 expanded to 5.0% in
November from 4.7% in October, while those matured 16-24 tumbled to 17.1%, 0.8 rate
focuses lower than the earlier month. Interim, the jobless rate in 31 enormous urban areas

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and towns expanded to 6.7% from 5.0%. The typical week after week working long periods
of representatives in undertakings the nation over declined to 47.7 hours from 47.9 hours
in the earlier month. During the current year, the public authority has designated the jobless
rate to remain around 5.5%.

Figure 4 The Graphical Data

• Economic System

The financial framework that China has is communist market economy. Communism
in a blended economy is a financial framework considering the consolidated combination
of private and government business undertaking that exists in lined up with market free
enterprise and confidential proprietorship. China has the world's second-greatest economy
and the world's biggest assembling economy. Under this financial framework, the public
authority has characterized the objectives, techniques, and focuses for this financial
framework by managing the economy through five-year plans. The technique centres
around helping seriousness in assembling by turning out to be more effective and
progressed, drawing in work concentrated industry to the significant region, and developing
homegrown interest through a communist market economy. The blended economy as a
monetary ideal is upheld by friendly leftists furthermore, with a communist market
economy, China has effectively figured out how to accomplish an equilibrium between the
industrialist and aggregate methodologies.

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iii. Politics

The current issues that can be stated under Dos and Don’ts in the aspect of politics is How the
state runs the business in China. Previously, the impressive development of the country was
heavily propelled by the private sector and enterprise. But rumors said that the President, Xi
Jinping, the Communist Party has reverted to being the definitive authority in industry together
with the politics.

• State intervention

Currently now in China, the party or the state can be found in almost firm and private
company. This clearly show that the states are inside the of major business organization in
China. The purpose of this action was for the country economy to achieve a political end.
The firm being viewed, affected and control for political purpose. This matter can be
defined normal as it because the country was practice this for such a long time since Mao
era. Chine state firm is a predominant leader in the economy and the party remained as a
direct control over state firm.

• Taiwan

The relationship of between China and Taiwan up until today is still tense of both countries.
But the of the countries still trying to figure out the best possibilities to lesser the tension
of the current situation. With the back history of both nations have, the tension has made
the politics relationship of both nations unclear. The issues must be resolved in order to
have a good political confrontation of the nations.

• Data research

Firm and company that are fast develop tend to become indispensable to the country. This
because, the company contained a lot of data that are too valuable such as private
information of the customer, social number security, customer behaviour and identity. The
example companies are Baidu (a search engine), Alibaba (e-commerce) and Tencent
(messaging and gaming producer), these 3 companies known as BAT. Knowing these
issues, the states has set up a regulator that can held the company development, control and
make a selective prevention. This action was because to protect the sensitive data and
prevent from the leak of information to the public or exposed.

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• United State of America (USA)

China once has a political issue with the USA during the Donald Trump term as the
President of USA, regarding the Trade War between the country . The issue was about when
one the country retaliates against another by raising import tariffs or placing other
restrictions on the other country's imports. At the end of the trade war escalated, both sides
didn’t reach to a point where each side resolve by the results China failing to reach what
US targets for import activity. The situation remain the same after USA have new
presidency today. This matter has affected the trade activity between the country by having
high tariffs of certain material that being trade with.

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iv. Business Practises

Chinese business culture is to a great extent impacted by Confucianism. In this way,


fundamentally, the Confucian idea of Guanxi suggests that a relationship network is essential
and in view of the upsides of fortitude, dependability, unobtrusiveness, and politeness. Second,
order in China, both in business and protection, is vertical and exceptionally regarded. Third,
Chinese individuals will be mindful to hide any hint of failure to safeguard individual
notorieties, impact, and pride. Anyway, it should be stressed too that these qualities have some
way, or another dialled back throughout the past ten years while current Western business
approaches have been expanding making strides. Thusly the worldwide union on business
culture codes and global business values can be progressively seen in China.

The Chinese are in many cases risk opposed. Severe techniques exist for the dynamic
interaction. Choices are made by every one of the important individuals after a few gatherings
and subordinates are not supposed to offer their viewpoint. Leaders will consider issues,
options, and arrangements on a drawn-out friendly point of view, because of which the cycle
might be seen as sluggish. Choosing excessively fast will be disapproved of by your Chinese
accomplices. Progressive contrasts should be regarded and attempting to avoid them will quite
often hinder independent direction.

Chinese individuals frequently look for long haul connections and make relations as
opposed to arrange contracts. Carelessness to develop an individual premise of a business
relationship could incite an inability to meet business goals. Laying out the relationship can
endure from a few days to a while. It incorporates formal gatherings as well as home visits,
solicitations to brandish occasions, long suppers and beverages.

• Time Management
Chinese individuals esteem reliability, so show up on time for gatherings. If you are late, you
ought to call your accomplice to illuminate about your deferral and make certain to offer a
conciliatory sentiment for your lateness. Adhering to a severe gathering plan isn't normal, as
Chinese favour gatherings where the finish of the arrangement is seldom coordinated ahead of
time.

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• Technology
Chinese businesses are driving mechanical advancements in arising regions including
new and sustainable power, high level thermal power, cutting edge broadcast communications
innovation, Artificial intelligence, advanced mechanics, and online business, as well as in
ordinary regions like gadgets, apparatus, cars, and fast rails. The volume of specialists and
measure of deals and interest in these Chinese Businesses give proof to the ascent in mechanical
capacity.

Furthermore, cutting edge organizations favour China for assembling arrangements


while looking for the most prominent production network capacity to market developments,
which is a sort of reciprocal development. Apple items are a genuine model. The justification
behind this is that China can meet Apple's elevated expectations. The plant utilizes countless
individuals and can recruit an enormous number of individuals rapidly. These models show
that China's assembling ability as far as scale, speed, and effectiveness far surpasses that of the
US.

• Meetings Management
Conferences are frequently lengthy and will be required a few times to lay out a
supportable relationship. It is encouraged to have response to translation administrations to stay
away from the language hindrance. During conversations, it is normal to have casual discussion
to loosen things up. Often, Chinese are circuitous communicators. Conflict won't be plainly
communicated. Expressions, for example, 'Yes however it very well may be troublesome' and
'Indeed, likely' are liked. To convey terrible news while saving a decent relationship, it is
normal to utilize a middle person who can relax the blow. Times of quiet are an indispensable
piece of the reflection and ought not be interfered. Intruding on the speaker is enthusiastically
suggested not.

Chinese utilize an exceptionally restricted measure of non-verbal communication. The


principal individual of your group to go into in the room should be the most noteworthy
positioned and will situate at the spot of high standing straightforwardly before the host. He/she
will deal with exchanges with the Chinese group pioneer. The remainder of the group will
uphold the pioneer whenever requested it. Haggling is a vital piece of Chinese culture, and one
ought to abstain from tolerating a suggestion without bartering, as it tends to be seen as an
indication of shortcoming. During dealings, don't utilize mental tension strategies, as you
should have been visible as a controller. Just an individual of a higher position will talk, so try

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to choose an unrivalled of your gathering. Remember that the goal is to decide whether it is
feasible to lay out an agreeable relationship to arrange.

Usually, you are offered food and beverages during a gathering. Business feasts are a
significant piece of business relations and individuals should plunk down and eat arranged by
significance. Try not to complete all your food since your Chinese accomplices will think you
are as yet ravenous. If you welcome somebody to a movement or have a feast, you are supposed
to pay for it. Be that as it may, try not to show your cash before your visitors.

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v. Conclusion
China today with a long timeline of historical event that starting since Dynasty Shang
and over 3,000 years ago of history, China can be defined as on the most decorated country
that world have ever had. This country is full of unique culture, strong political system and
government, the language in China such as the Cantonese and the Mandarin that heavily used
surround the world not only to be used in the daily life but together a long when dealing with
the business locally and globally.

One of the reasons that China country today was a well-known country is because it’s
the population of the people has recorded and still holding a record with the highest number of
populations in the world. The citizen of China that know as the People’s Republic of China
know and accepting their country is not perfectly in good state and they are tend not to talk and
discuss these issues publicly. But they are at the same trying to improve the current situation to
its best and most importantly to improve toward the people’s advantages. This is because of
the type of government and political practise that now happen today in China are more to the
country benefits. Most of the business and firm entrepreneur are contained and must have
people from the state that control and give order upon their business activity. All this action
taken from the state was for country and political benefits. It is not safe to safe whether the
state fully control the business or partially or not involve at all. Because of this system, the
business would emphasize and gave a reflection toward the world today.

The Dos and Don’ts of many aspects in China are so unique to its best and some of its
are critical to follow. It would be best to define that China country are opposite to the Western
country when comparing the aspect by taking a simple example of the way Chinese doing
business are very different. The way of how Chinese business are based upon the Guanxi which
is upon the relationship and the bridge between the side. While many other countries tend to
the formalities such as the contract and through a straightforward

Last but not least, we must cherish the uniqueness and the differences of the others
because that what’s make it a beautiful and an identity to that country. It would be best and
perfect to follow the custom of the country and by doing so, it would reflect our respect and
manner to that country and to the people.

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20). PIIE. https://www.piie.com/blogs/realtime-economics/four-years-trade-war-are-

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Trading Economics. https://tradingeconomics.com/china/unemployment-rate

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Santandertrade.com. https://santandertrade.com/en/portal/establish-

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26. Scroope, C., & Evason, N. (2017). Chinese Culture - Business Culture. Cultural Atlas.

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vii. Appendixes

Figure 8 China in the Google Map today

Figure 7 The Forbidden City

Figure 6 Beijing, China. The Capital Figure 5 President Donald Trump & President Xi
City Jinping

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Figure 11 Baidu Company

Figure 11 Alibaba.com Company

Figure 11 Tencent Company

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