China- the next super power


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China- the next super power

  1. 1. 欢迎来到中国 Welcome to China Presented By:Muhammad Emad Khan (6233) Muhammad Ismail (7392) Muhammad Saad (6293)Syed Murtaza Rehman (6137)
  2. 2. 国家概况Country Profile
  3. 3. 中国国旗 Flag of China• The national flag of China was adopted in September 1949.• The color red symbolizes the spirit of the revolution, and the five stars signify the unity of the people of China.
  4. 4. 对中国国歌 The National anthem of China• The National Anthem of the Peoples Republic of China was composed by Nie Er and Tian Han in 1932.• On September 27th, 1949, March of the Volunteers was adopted as the temporary National Anthem.• In 1978 this song was readopted as the National Anthem, but the lyrics were changed.
  5. 5. 中国主席的 The President of China• Hu Jintao was elected president of the Peoples Republic of China on March 15, 2003.• He joined the Communist Party of China (CPC) in April 1964.• Hu became vice-president of China in March 1998 and vice-chairman of the Central Military Commission in September 1999.
  6. 6. 对中国总理 The Premier of China• Wen Jiabao was born in September 1942.• He joined the Communist Party of China (CPC) in April 1965 and began working in September 1967.• He graduated with a major of geological structure from the Beijing Institute of Geology.
  7. 7. 中国史 History Of China• China is a country with a very early civilization and a long and rich history.• China’s last dynastic rule began in 1644 with the Qing dynasty.• In 1840 the British imperialists launched the Opium War against China.• In 1919 the May 4th Movement broke out to spearhead against imperialism and feudalism.• The Communist Party of China was founded in 1921.
  8. 8. 在中国的机遇和威胁Opportunities and Threats in China
  9. 9. 提供给中国的机遇 Opportunities available to China• Strengthening the internal economy• Focus on quality industries• Economic powerhouse of the world• Gaining economically worldwide through friendship
  10. 10. 中国面临的威胁 Threats to China• Population• Income Distribution• Technological Growth• Wage rates• Inflation• Political Violence• Corruption
  11. 11. 过去10年经济指标Last 10 years economic indicators
  12. 12. • China’s economy today is almost three times as large as the economy of the entire former USSR, more than four times as large as the economy of Russia, and has overtaken Japan to become the world’s second largest. Few of the economic indicators are:• Gross Domestic Product (GDP)• Industrial Added Value• Consumer Price Index (CPI)• Fixed Asset Investment• Retail Sales• Foreign Direct Investment (FDI)
  13. 13. 根据1999-2009年国内生产总值的预测增长率 GDP projections based on 1999-2009 growth rates
  14. 14. 主要进口Major Imports
  15. 15. • Chinas top five importing countries or regions are: Japan EU ASEAN South Korea Taiwan.• The most goods imported from China are: Machinery Apparatus and electronics Textiles Apparel and shoes Chemicals and pharmaceuticals Precision instruments Watches Jewellery
  16. 16. Percentages rise in Imports of China• Semi-conductors US$5.9 billion (10.6% of China from U.S. imports, up 74.7% from 2005)• Civilian aircraft $5.3 billion (9.6%, up 39.7%)• Soybeans $2.5 billion (4.6%, up 12.5%)• Plastics $2.2 billion (3.9%, up 18.8%)• Raw cotton $2.1 billion (3.7%, up 47%)• Industrial machines $1.97 billion (3.6%, up 29%)• Copper $1.86 billion (3.4%, up 99.7%)• Computer accessories $1.82 billion (3.3%, up 27.5%)• Aluminum $1.7 billion (3.1%, up 90.3%)• Steelmaking material $1.69 billion (3.1%, up 11.9%)
  17. 17. 主要出口产品Major Exports
  18. 18. • According to the World Trade Organization, Chinas share in global exports rose to 9.6 percent by value in 2009.• China replaced Germany as the biggest exporter but this was achieved in the context of global economic downturn.• Exports have significantly contributed to China’s GDP growth in recent years.• Major export markets of China are: European Union United States Hong Kong ASEAN Countries
  19. 19. • The goods exported by China are: Computer accessories, peripherals and parts Miscellaneous household goods (e.g. clocks) Toys & sporting goods (e.g. bicycles) Computers Non-cotton household furnishings & clothing Video equipment (e.g. DVD players) Household furniture Footwear Cotton household furnishings & clothing Telecommunications equipment
  20. 20. Percentages Rise in Exports Of China• Computer accessories, peripherals and parts US$28.9 billion (10.1% of China to U.S. exports, up 12.4% from 2005)• Miscellaneous household goods (e.g. clocks) $26.5 billion (9.2%, up 17.2%)• Toys & sporting goods (e.g. bicycles) $22.2 billion (7.7%, up 10.2%)• Computers $17.4 billion (6%, up 20.2%)• Non-cotton household furnishings & clothing $14.6 billion (5.1%, up 11.3%)• Video equipment (e.g. DVD players) $14.5 billion (5.0%, up 34.9%)• Household furniture $13.2 billion (4.6%, up 14.3%)• Footwear $10.7 billion (3.7%, up 11.1%)• Cotton household furnishings & clothing $9.9 billion (3.4%, up 29.6%)• Telecommunications equipment $8.3 billion (3.0%, up 23.7%)
  21. 21. 进口限制和关税Import Restrictions and tariffs
  22. 22. • China’s import tariff rates are calculated based on the Harmonized System (HS) of Classification Codes.• The MFN(Most Favored Nation) Rates apply to those countries that have concluded trade treaties or a reciprocal agreement for preferential treatment with China, or more broadly speaking are member countries of the WTO.• The General Rate is applied to those countries that have not concluded a reciprocal agreement with China.• Tariff rate quotas are applied to some cereals, sugar, chemical fertilizers, and wool and cotton.• China continues to use state trading to manage trade of some products.• The domestic prices of some products are subject to "government-guided prices".
  23. 23. 出口限制和关税Export restrictions and tariffs
  24. 24. • Export duties, export quotas, and other forms of restrictions can be applied simultaneously so that the overall assessment of measures is necessary to understand their total implications.• For example, China removed an 8% VAT rebate for exports of primary aluminum and, in addition, imposed a 5% interim export tax.• Exporters of agricultural products are entitled to VAT rebates at the time of exportation.• Chinas main policy objectives in agriculture are to improve food security and to maintain stable domestic production and prices but taxing the export of such products in order to reduce domestic prices also reduces farmers incomes.
  25. 25. • Eight agricultural products are currently subject to export prohibitions.• Only state-trading enterprises are allowed to export for cotton, rice, maize, and tobacco.• China continues to impose global and destination-specific export quotas.• In 2009, global export quotas applied to cotton, grains such as maize, rice, and wheat and tea, some of which are subject to state trading.
  26. 26. 主要产业Major Industries
  27. 27. • Industry and construction account for about 48.6% of Chinas GDP.• The major industries in China are:1. Automobile Industry:• China was the top car producer in 2009 with a production of 13.79 million units.• It surpassed Japan at the top by a large margin.• China surpassed the United States to become the world’s largest automobile market in 2009.• In 2009 there were 52 foreign and domestic carmakers operating in China, compared to 15 in the United States.• China has had success in the auto industry because of: Its access to cheap labor and technology of foreign automakers. Its research and development costs are minimal because designs are borrowed or copied for foreign firms. Foreign car companies held 85 percent of the Chinese car market. China’s automobile industry consists mainly of local companies that have joint ventures with well- established multinational companies.
  28. 28. 2. Iron and Steel Industry:• The iron and steel industry is a very important pillar of China’s economy.• In 1996 China’s iron and steel output exceeded 100 million tones for the first time and it became the world’s top producer.• In 2008 the raw steel output of 500 million tones made china the largest steel producer in the world.
  29. 29. 3. Textile Industry:• China is the world leading country for the textile production and export.• With over years development, Chinese textile industry has been equipped with superior competitive advantages and has the most complete industry chain in the world.• Chinas exports of textiles in 2006, before the global economic downturn, soared 25.1 percent year on year and hit $147.1 billion.• Despite the global depressed economy and market, Chinese textile industry manages to grow.• East China is still the major area for Chinese textile industry with over 90% foreign investments and capitals from Hong Kong, Macau and Taiwan.
  30. 30. 4. Electronics industry:• Electronics has been a Chinese pillar of success and is now the largest industry in China with growth of nearly 20 percent annually.• China is now the worlds number one producer of : TVs, recorders, VCD players, telephones, calculators, refrigerators, and air conditioners. Is the largest PC producer.
  31. 31. 5. Petrochemical industry:• Petrochemical industry in China made a big leap in an era of high growth from 1985 to 2009 to become the second largest ethylene producer in the world after United States.• China, however, has been heavily relying on imports to meet growing demand of its expanding petrochemical market.
  32. 32. 6. Nonferrous metals industry• China was the largest producer and consumer of nonferrous metals with total consumption reaching at 25.17 million tones in 2008.• The countrys nonferrous metal industry received a severe blow from the global economic downturn after keeping high- speed growth for nearly a decade.
  33. 33. 搬运工模型中国的汽车产业Porters Model of China’s automobile industry
  34. 34. • Porters Five Forces evaluates the competitiveness and attractiveness of a given industry in a certain market. In any P5F analysis, one must examine the following:• The threat of new entrants: • this is very high in China and has many contributing factors. One of the reasons for the threat being so high is the number of new auto manufacturers entering the Chinese market in the past decade has been very high. • Secondly there are no policies set for securing intellectual rights. Chinese authorities do not recognize international patents or trademarks.• The bargaining power of buyers/customers: – The automobile industry in china is a very competitive industry with a wide variety of cars for the customers to choose from. The presence of Chinese and foreign manufacturers gives the customer the bargaining power and a good number of choices. – In China brand awareness and brand loyalty are still low with only 25 percent of the customers choose the same brand when they buy their next car, compared to almost 80 percent in western industrial countries.
  35. 35. • The threat of substitute products: – Chinese see cars as status symbols. The recent emergence of the petrol-electric hybrid passenger car has drawn attention as a potential mass-market environmentally friendly vehicle. – By combining power sources, a hybrid vehicle reduces emissions and is more energy-efficient than a conventional petrol-powered car. Therefore the threat of substitute products in China is favorable to the Chinese industry.• The amount of bargaining power suppliers have: – The Chinese automobile market is high on this factor. – The suppliers to the manufacturers have considerable bargaining power. They are not held ransom by one single manufacturer as they can market their products to any of the others in China.• The amount of rivalry among competitors: – All major car-producing nations experience this intense rivalry. – Same is the case in China where the competition between manufacturers such as Toyota, Honda, Suzuki, Daihatsu, Nissan, Fiat, Ford, etc. . This again is unfavorable for the Chinese automobile industry.
  36. 36. 文化背景Cultural Profile
  37. 37. • Family structure• Dress• Music• Religion• Food and Diet
  38. 38. • Attitude to illness and pain• Death• Languages: There are seven major Chinese dialects and many sub dialects. Mandarin is spoken by over 70% of the population. Other spoken languages are: Mongolian, Tibetan, Uygur, Turkic and Korean.• Ethnic Groups: The largest ethnic group is the Han Chinese, who constitutes about 91.5% of the total population . The remaining are Zhuang , Manchu ,Hui , Miao , Uyghur , Yi , Mongol , Tibetan , Buyi , Korean and other ethnic minorities.• Education
  39. 39. 企业文化Business Culture
  40. 40. • The Chinese are generally more comfortable working in environments where job descriptions and lines of reporting are clearly defined, and where relationships between superiors and subordinates are formal and distant.• Seniority is very important in business meetings .• Punctuality is vital when doing business in China.• Giving face is a very important concept in China.
  41. 41. • Gifts are always appreciated and play an important part in any developing business relationship.• The Chinese are big drinkers.• Communicating in China can be a slow activity in terms of misunderstanding.• The Chinese are not keen on physical contact.
  42. 42. 谈判风格Negotiation style
  43. 43. • Networking and building strong relationships is a very important and useful negotiation tactic the Chinese use for successful negotiation.• Business negotiations with the Chinese occur at a slow pace.• The Chinese will do anything to prevent shame, embarrassment, and dishonor, even if it means lying and denying.• The Chinese usually do not say, “No” to reject your Idea or your proposal; instead, they will use answers that sound like yes, but actually mean “No”.• The Chinese people believe in collectivism and the decision taken by they are mostly collective with everyone putting in their input.
  44. 44. Eight important elements of the Chinese negotiation style• Guanxi: The Chinese consider human capital as the most useful resource. Their decisions will be centered on their relationships with their friends, associates and even their relatives.• Zhongjian Ren: The Chinese have distrust for any foreigner. They usually require an intermediary in order to come to some sort of understanding with the foreigners. The Chinese need to identify with members of the opposite team in order to be effective in the achievement of their objectives.• Shehui Dengji: The Chinese have a deep respect for social status. They think that authority has a very important part to play in society and must not be undermined. The Chinese negotiators usually behave in a very formal manner.• Renji Hexie: The Chinese are quite friendly to their counterparts on the negotiating table. The Chinese negotiators are welcoming in nature with a good sense of humor. Even when Chinese negotiators may be unhappy with certain decisions.
  45. 45. • Zhengti Guannian: The Chinese negotiation style is such that they deal with all issues at ago. They are synchronous people who like to do multiple tasks at a single time.• Jiejian: The Chinese have a deep saving culture. This behavior is also seen in their negotiating styles as most of them tend to make decisions that will result in savings. Therefore the most important factor in most of their negotiations is based on price.• Mianzi: The Chinese are deeply concerned with maintaining their reputations so as to have strong social standing. . It does not matter whether the person who made them lose face did it intentionally or not. To them, all that counts is that they maintain their composure.• Chiku Nailao: The Chinese believe that work should not just be characterized by diligence. They believe that this should be topped up by endurance.
  46. 46. 谢谢您Thank You