China has the second largest economy in the world with a GDP of $12.61 trillion. It has a population of over 1.3 billion people and is a communist country led by the Chinese Communist Party. Culturally, China is influenced by Taoism, Confucianism, Buddhism, and other religions. While China has improved living standards and economic growth, it still faces issues with censorship, corruption, human trafficking and forced labor. Due to its large population and fast growing economy, China represents an important market opportunity.
2. Economical
National GDP: $12.61 trillion
Stage of Development: Drive to Maturity
Population size: 1,349,585,838
Geographical size: 9,596,961
Population Density: 365 per sq mile
Personal GDP: $9,300
China is in the best economic status compared to the majority of the world.
China is also ranked first in current account balance ($213.8 billion) and stock of
broad money ($15.49 trillion as of December 2012. It is ranked fourth in stock of
domestic credit and market value of publicly traded shares.
It is rated second in the world for exports at $2,057 trillion and third in the world
for imports at $1.735 trillion.
Their purchasing power parity is third in comparison to the rest of the world, with a
GDP rate at $8.227 trillion. Its GDP growth rate is twentieth in the world, at 7.8%.
China is ranked first in labor force in comparison to the world, 29.5% in industry
and 35.7% in service and 34.8% in agriculture.
The unemployment rate is 6.5% as of 2012, and is ranked 68th in comparison to the
world. Percentage of population below the poverty line is 13.4%.
3. Geopolitical
Type: China has a communist political system.
There are 23 provinces, five divisions, and four
municipalities. China also has a civil law legal system
influenced by Soviet and European law.
4. Societal
World View:
• Taoism ( Emphasizes harmonious
development of the self and balance
• Confucianism (Strict order of all things;
Filial piety; The gentleman scholar)
Religion: Buddhism, Daoism,
Christianity and Muslim
Family: total dependency ratio: 36.8 %
• youth dependency ratio: 24.7 %
• elderly dependency ratio: 12.1 %
Healthcare:
• Health Expenditures: 5.1% of GDP (2010)
• Ranks 138th in the world
• Physician Density:1.42 physicians/1,000 population (2009)
• Hospital Bed Density: 4.2 beds/1,000 population (2009)
Education:
• Literacy definition: age 15 or up with the ability to read and write
• 95.1% of total population literate (of which 97.5% are male and 92.7 % are female)
• School Life Expectancy (Primary to tertiary) average : 12 years (males and females)
5. Societal
Language and Dialects: Standard Chinese or Mandarin (Putonghua), Yue (Cantonese),
Wu (Shanghainese), Minbei (Fuzhou), Minnan (Hokkien-Taiwanese), Xiang,
Gan, Hakka dialects
• note: Mongolian is official in Nei Mongol, Uighur is official in Xinjiang Uygur, and
Tibetan is official in Xizang (Tibet)
Rural vs. Urban: urban population: 50.6% of total population
• rate of urbanization: 2.85% annual rate of change
• Major Urban Areas: Shanghai 16.575 million and BEIJING (capital) 15.594
million
Historical Transition: sexual exploitation; forced labor; human trafficking; heroin and
synthetic drug trafficking
China was officially established as an atheist country in 2002. The male to female
ratio is 1.06 males to every female.
China has a tier-3 rating in human trafficking because it doesn’t fully comply with
the minimum standards for the elimination of trafficking. The government hasn’t
demonstrated significant efforts to comprehensively prohibit and punish all
forms of trafficking and to prosecute traffickers. China is a major source, transit
and destination country for men women and children sexual exploitation and
forced labor trafficking. It also is major transshipment point for heroin produced
in the Golden Triangle region of Southeast Asia.
6. Logistical
Rule of Law: Civil law influenced by
Soviet and continental European civil
law systems; legislature retains power
to interpret statutes
Ingress / Egress (visa, entry, exit):
• Major seaports: Dalian, Ningbo,
Qingdao, Qinhuangdao, Shanghai,
Shenzhen, Tianjin
• Major airports: Beijing; Int’l Guangzhou Baiyun Int’l; Shanghai Int’l
Logistics:
Water Boundaries: East China Sea, Korea Bay, Yellow Sea, South China Sea
Major Land Boundaries: North Korea and Vietnam
Tariffs and fees:
• TARIFF RESOURCE: China Tariff Schedule. WTO Tariff Database, use the applied
rates. Requires registration. e-to-China (Registration required). Applied on CIF.
• TAX: 17.0000% Applied on CIF+DUTY. Provincial tax may also apply.
China is ranked first in waterways in comparison to the rest of the world; third in
roadways, railways and merchant marines; fourteenth in airports.
7. Why China?
•Since the early 1990s, China has increased its global outreach and participation
in international organizations. According to CIA Word Fact Book, for much of the
population, living standards have improved dramatically and the room for
personal choice has expanded, yet political controls remain tight.
•Along with China’s massive population of over 1.3 billion people, China’s GDP is
ranked 3rd in the world making it an extremely desirable market.
•Although China has a communistic government and other undesirable
attributes we believe that with the fast-paced emerging economy and power
that the country has to offer, as well as the availability of resources and
transportation, allow us to believe that China represents a great market for
business.
