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Grahams Analysis of China
Strengths
• China is continuing to open up various sectors of its economy to foreign investment
...
Grahams Analysis of China
Strengths
• China is continuing to open up various sectors of its economy to foreign investment
...
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Chinese market data SWOT analysis

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With over 1 billion connections 80 percent of which are prepaid with a SIM penetration of 89 percent China is a market opening up for new investment and opportunities.

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Chinese market data SWOT analysis

  1. 1. Grahams Analysis of China Strengths • China is continuing to open up various sectors of its economy to foreign investment • With its vast supply of cheap labor, the country remains the top destination for foreign direct investment in the developing world • The Communist Party of China, which has governed for over 60 years, remains secure in its position as a sole political part in China • China’s expanding economy is gradually giving it greater clout in international affairs, which will allow to build politically important ties, especially with the developing world. Weaknesses ▪ Foreign companies continue to complain about the poor protection of intellectual property in China • Foreign companies continue to complain about the poor protection in intellectual property in China • Chinese corporate governance is weak and non-transparent by western standards.There is a considerable risk for foreign companies in choosing the right local partner • As with any other one-party state,China’s political system is unstable and unable to respond to the wider changes taking place in society. Opportunities ▪ China’s ongoing urbanization and infrastructure drive will provide major opportunities for foreign investment in landlocked provinces as well as the transfer of skills and know-how ▪ The Chinese government is giving more protection and encouragement to the private sector, which is now the most dynamic in the economy and accounts for most of the country’s job growth ▪ China is actively expanding its political and economic ties with major emerging markets such as Africa and Middle East Threats ▪ China’s government will block attempts by foreign firms to take over assets of national importance ▪ China is experiencing rising labor costs, promoting some investors to turn to cheaper destinations such asVietnam ▪ Growing corruption, widening inequalities, increasing rural poverty and environmental degradation have lead to an increase in social unrest in recent years.
  2. 2. Grahams Analysis of China Strengths • China is continuing to open up various sectors of its economy to foreign investment • With its vast supply of cheap labor, the country remains the top destination for foreign direct investment in the developing world • The Communist Party of China, which has governed for over 60 years, remains secure in its position as a sole political part in China • China’s expanding economy is gradually giving it greater clout in international affairs, which will allow to build politically important ties, especially with the developing world. Weaknesses ▪ Foreign companies continue to complain about the poor protection of intellectual property in China • Foreign companies continue to complain about the poor protection in intellectual property in China • Chinese corporate governance is weak and non-transparent by western standards.There is a considerable risk for foreign companies in choosing the right local partner • As with any other one-party state,China’s political system is unstable and unable to respond to the wider changes taking place in society. Opportunities ▪ China’s ongoing urbanization and infrastructure drive will provide major opportunities for foreign investment in landlocked provinces as well as the transfer of skills and know-how ▪ The Chinese government is giving more protection and encouragement to the private sector, which is now the most dynamic in the economy and accounts for most of the country’s job growth ▪ China is actively expanding its political and economic ties with major emerging markets such as Africa and Middle East Threats ▪ China’s government will block attempts by foreign firms to take over assets of national importance ▪ China is experiencing rising labor costs, promoting some investors to turn to cheaper destinations such asVietnam ▪ Growing corruption, widening inequalities, increasing rural poverty and environmental degradation have lead to an increase in social unrest in recent years.

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