Transcript How China Will Change Your Business

How China Will Change
Your Business
Ted C. Fishman
Kaihao Zheng
Ye Zhang
Current Situation of China’s
Economy
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The GDP in 2011 was 7.497 trillion USD,
increase 9.2% in this year.
The grossimport in 2011 was 1.7435
trillion USD, the total export in 2011 was
1.898 trillion
The inflation in 2011 was 5%
Effect’s of China’s Economy growth
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Positive
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low cost make products have low price.
Huge import and export brings lots of benefits
for both country.
Promoting global economic integration.
Enhance the global economic development
Effect’s of China’s Economy growth
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Nagative
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Pollution : The industrialization of China is
producing more pollutants and using more
raw material.
Unemployed: low labor price competitive edge
make lots of people lots their work and lots of
company bankruptcy.
China’s economy is much larger
than the offical numbers show.
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In 2003, China’s official GDP was $1.4
trillion but that measure is suspect.
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Because of government measures only
China’s legal economy, illegal business is
enormous but uncountable.
China uses the massive power of its foreign
currency reserves to keep the world price of
the yuan marching in lockstep with the dollar.
The growth of China's economy
has no equal in modern history.
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The country is closing in on a 30-year run
during which its economy has doubled
nearly three times.
Since China set about reforming its
economy a generation ago, its GDP has
expanded at an annual rate of 9.5%.
China is winning the global
competition for investment
capital.
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According to Japan's Research Institute of
Economy, Trade and Industry, one-third of
China's industrial production was put in
place by the half-trillion dollars of foreign
money that has flowed into the country
since 1978.
More than half of China's trade is now
controlled by foreign firms.
China can be a bully
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China now makes 40% of all furniture sold
in the U.S.. Because of the competition in
price and quality the work force at
America's wooden-furniture factories
dropped by 35,000, or one of every three
workers in the trade.
China's economy is an
entrepreneurial economy.
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For a world fretting over Chinese
economic competition, the entities to fear
are not government planners but
enterprises that spring on the scene lean
and mean, planned and financed by
investors who want to make money
quickly.
The most daunting thing about
China is not its ability to make
cheap consumer goods.
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As the Chinese developing, China can not
only processing low technology products,
but also high-tech products like Manned
spaceship can be built.
China is closing the research
and development gap -- fast.
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Last year, China spent $60 billion on
research and development. The only
countries that spent more were the U.S.
and Japan, which spent $282 billion and
$104 billion, respectively. But China still
has a long way to go.
China now sets the global
benchmark for prices
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For now China has set the benchmark for
prices of products just like the Wal-mart,
price and quaily is the key that make
consumers have a better value and life.
“live better and save money”
High consumer demand make the low
price as possible, hard to find competitors
for short period.
China's growth is making raw
materials more expensive.
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As China's economy has been expansion,
the world of raw materials is also facing a
shortage in the states of affairs.
Constantly competition make the price of
raw materials had increase a lot. Acctually
China is not the only country who needs
raw materials.
There are hidden costs
associated with doing business
in China.
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Companies that engage with China have to
expect pressure to transfer their technology
which causes them to create their own
competition in the country.
More than 40% of the Chinese domestic
handset market now belongs to local
companies.
Piracy is a problem
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Foreign companies have little defense
against even outright theft of their
technology in China.
Microsoft is a good example in China,
China have over 1.4 billion population and
less than three people every have a
computer but legal copy of Microsoft
software no less then 1/5.
China's heavy buying of U.S.
debt has lowered the cost of
money in the U.S.
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In the first half of 2004, China had a foreign
exchange reserve of $460 billion.
China’s heavy buying of U.S. debt on the other
hand has remitted the negative effect of
subprime crisis in U.S.
Americans and Chinese have
become reliant on each other's
most controversial habits.
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Without the U.S. to buy Chinese goods, China
cannot sustain its growth; without China to lend
money to the U.S., Americans cannot spend.
Without the twin engines of the U.S. and China
stoking the fortunes of other nations, the rest of
the world might also sputter
The Chinese need a low-priced currency to keep
their export machine going and create jobs. But
maintaining the yuan's low price also means that
Chinese consumers are stuck with a currency
that would otherwise buy more for them on the
world market.
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http://www.inc.com/magazine/20050301/
china_pagen_7.html
http://iask.sina.com.cn/b/4768124.html
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http://boyichayuan.blog.hexun.com/28675
628_d.html
http://www.afinance.cn/new/gjcj/201012/
308079.html