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s1200129 Yuuki Suzuki
contents
1. Importance of doing business in China
2. Why is China so important in this market?
3. How do you think is the climate for foreign investment in China?
4. How does the Chinese market impact the world economy?
5. What are the five most important things one should know about doing business in China?
6. How is doing business in China different from doing business in Japan?
7. Summarize the growth of the Chinese economy, investment etc in your own words.
Importance of doing business in China
There is the market of the world's largest scale in China
↓
China recorded the GDP which became the second place of the world in 2010!!
Furthermore, china continue showing a high GDP growth rate in a world
recession. A household more than 10 million yen is beyond 200 million yearly
income in China in China.
Importance of doing business in China
Realization of a large cost cut
↓
The standards such as personnel expenses, prices, office charges are around one of
several minutes in Japan now in China
The business in China can hold down a cost price, and the companies of the
manufacturing industry and IT system will bring a good effect.
Importance of doing business in China
Preferential policy of the development ward
↓
The development ward is treated well in China.
EXAMPLE
It is paid business support iron of 20 million yuan a year than
every city finance.
exempt income tax for the profit to remit outside China.
Why is China so important in this market?
China is World’s fastest growing market for international
visitors, rapidly overtaking other key markets to become our
second largest source of visitor revenue and third largest in
terms of arrivals. In the year ended September 2012,
Chinese arrivals grew by 38 percent to reach 187,000,
while expenditure by Chinese visitors reached $555 million.
(figure)
※There is the figure on the next page
Why is China so important in this market?
Why is China so important in this market?
China’s top ranking today on a number of global scales indicates its importance to US
manufacturers:
in population (nearly 1.3 billion people)
“middle class” urban consumers, estimated over 200 million
destination for foreign investment (over $60 billion in 2004)
exporter to the US
world’s largest economy (will surpass Japan in next 5 years, the US in next 15)
consumer of steel and oil, soon to be the largest manufacturer in the world
How do you think is the climate for foreign
investment in China?
China attracted USD 124 billion in foreign direct investment
(FDI) in 2011, second only to the United States.
China's sustained high economic growth rate and the
expansion of its domestic market help explain its
attractiveness as an FDI destination.
How do you think is the climate for foreign
investment in China?
The Chinese government has stated that it
welcomes foreign investment. In particular,
China seeks to promote investment in higher
value-added sectors, including high technology
research and development, advanced
manufacturing, clean energy technology, and
select modern services sectors.
How does the Chinese market impact the world
economy?
The rise of China affects the world economy through trade and direct
investment mainly.
↓
As well as an income effect by the expansion of the demand, thereis a
price effect to bring a move and industry reorganization of the
substance income of the global scale through the change of the relative
price between one of primary products such as labor-intensive type
products such as the fiber, the technique collection type products such
as machines and the oil
How does the Chinese market impact the world
economy?
Degree of dependence upon foreign trade to China of each country
↓
example of degree of dependence on exports
Japan 18% Brazil 17% Australia 31% Taiwan 28% Korea 25%
example of degree of dependence on imports
Japan 21% Brazil 13% Australia 17% Taiwan 13% Korea 13%
How does the Chinese market impact the world
economy?
It should come as no surprise to anyone who has thought
seriously about the subject, that economic growth in China
that moves the country into the ranks of middle income
countries will have a profound effect on the world at large.
China, after all, has one-fifth of the world’s population, or
roughly twice the population of the European union, the
United States, and Japan plus a handful of other high
income nations
What are the five most important things one
should know about doing business in China?
A mosaic of markets
need people who've been in the market, you talk to trade associations,
you talk to trade promotion bodies, you talk to people and bit by bit you
get to understand the dynamics.
Business culture and etiquette
One key aspect of Chinese culture is the concept of "face.
Taking a market-based approach
Western businesses looking to tap the Chinese market should be
aware of local preferences, and adapt accordingly.
What are the five most important things one
should know about doing business in China?
Procedures in China take time, patience and money
Western companies looking to tap China also need to show a long-term
approach that will prove that they're in the country to stay, analysts say.
Build a strong local team
Newcomers wanting to crack China will need to move, get someone
from their organization to relocate or find an experienced group to
represent them, says Perkowski, who's also the author of "Managing
the Dragon: How I'm Building a Billion Dollar Business in China."
business in China different from doing business
in Japan?
Wealth disparity
There is a big difference in the wage of a regular worker and theillegal
migrant worker in coast industrial area in China.
There is not the difference of the big wage in Japan
↓
The considerable part of such a difference is related to corruption in relation to
sale of the land, development, and recognition that this causes pollution of
water and the air of the zone again opens among the people and has the revolt
of big things and small things in the country.
business in China different from doing business
in Japan?
Aspect of the company
The Japanese company considerably matured in the 1980s and came
to lead Toyota, Nissan, Hitachi, Toshiba, the company of the world top-
class such as Nippon Steel.
There are extremely few companies of the world level in
China, and the global brand is not born.
business in China different from doing business
in Japan?
GDP
The Chinese (72,981 hundred million dollar) ... world second place
Japan (72,981 hundred million dollar) ... world third place
In China, a basic factor to become the base of
the strength of a nation such as population, the
country area is big
Summarize the growth of the Chinese
economy, investment etc in your own words.
It is China which became the major economic power of the secondplace of the
world in GDP, but will just enlarge an urban area and the life difference of the
farm village part
Summarize the growth of the Chinese
economy, investment etc in your own words.
If the present and the politician ten years after this do not
do some economic measure when I guess because 60
generations or moreof the population increase, it may be
said that probably the Chinese economy is more likely to
fail with high probability.

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Doing Business in China: Market Growth, Investment, and Cultural Differences

  • 2. contents 1. Importance of doing business in China 2. Why is China so important in this market? 3. How do you think is the climate for foreign investment in China? 4. How does the Chinese market impact the world economy? 5. What are the five most important things one should know about doing business in China? 6. How is doing business in China different from doing business in Japan? 7. Summarize the growth of the Chinese economy, investment etc in your own words.
  • 3. Importance of doing business in China There is the market of the world's largest scale in China ↓ China recorded the GDP which became the second place of the world in 2010!! Furthermore, china continue showing a high GDP growth rate in a world recession. A household more than 10 million yen is beyond 200 million yearly income in China in China.
  • 4. Importance of doing business in China Realization of a large cost cut ↓ The standards such as personnel expenses, prices, office charges are around one of several minutes in Japan now in China The business in China can hold down a cost price, and the companies of the manufacturing industry and IT system will bring a good effect.
  • 5. Importance of doing business in China Preferential policy of the development ward ↓ The development ward is treated well in China. EXAMPLE It is paid business support iron of 20 million yuan a year than every city finance. exempt income tax for the profit to remit outside China.
  • 6. Why is China so important in this market? China is World’s fastest growing market for international visitors, rapidly overtaking other key markets to become our second largest source of visitor revenue and third largest in terms of arrivals. In the year ended September 2012, Chinese arrivals grew by 38 percent to reach 187,000, while expenditure by Chinese visitors reached $555 million. (figure) ※There is the figure on the next page
  • 7. Why is China so important in this market?
  • 8. Why is China so important in this market? China’s top ranking today on a number of global scales indicates its importance to US manufacturers: in population (nearly 1.3 billion people) “middle class” urban consumers, estimated over 200 million destination for foreign investment (over $60 billion in 2004) exporter to the US world’s largest economy (will surpass Japan in next 5 years, the US in next 15) consumer of steel and oil, soon to be the largest manufacturer in the world
  • 9. How do you think is the climate for foreign investment in China? China attracted USD 124 billion in foreign direct investment (FDI) in 2011, second only to the United States. China's sustained high economic growth rate and the expansion of its domestic market help explain its attractiveness as an FDI destination.
  • 10. How do you think is the climate for foreign investment in China? The Chinese government has stated that it welcomes foreign investment. In particular, China seeks to promote investment in higher value-added sectors, including high technology research and development, advanced manufacturing, clean energy technology, and select modern services sectors.
  • 11. How does the Chinese market impact the world economy? The rise of China affects the world economy through trade and direct investment mainly. ↓ As well as an income effect by the expansion of the demand, thereis a price effect to bring a move and industry reorganization of the substance income of the global scale through the change of the relative price between one of primary products such as labor-intensive type products such as the fiber, the technique collection type products such as machines and the oil
  • 12. How does the Chinese market impact the world economy? Degree of dependence upon foreign trade to China of each country ↓ example of degree of dependence on exports Japan 18% Brazil 17% Australia 31% Taiwan 28% Korea 25% example of degree of dependence on imports Japan 21% Brazil 13% Australia 17% Taiwan 13% Korea 13%
  • 13. How does the Chinese market impact the world economy? It should come as no surprise to anyone who has thought seriously about the subject, that economic growth in China that moves the country into the ranks of middle income countries will have a profound effect on the world at large. China, after all, has one-fifth of the world’s population, or roughly twice the population of the European union, the United States, and Japan plus a handful of other high income nations
  • 14. What are the five most important things one should know about doing business in China? A mosaic of markets need people who've been in the market, you talk to trade associations, you talk to trade promotion bodies, you talk to people and bit by bit you get to understand the dynamics. Business culture and etiquette One key aspect of Chinese culture is the concept of "face. Taking a market-based approach Western businesses looking to tap the Chinese market should be aware of local preferences, and adapt accordingly.
  • 15. What are the five most important things one should know about doing business in China? Procedures in China take time, patience and money Western companies looking to tap China also need to show a long-term approach that will prove that they're in the country to stay, analysts say. Build a strong local team Newcomers wanting to crack China will need to move, get someone from their organization to relocate or find an experienced group to represent them, says Perkowski, who's also the author of "Managing the Dragon: How I'm Building a Billion Dollar Business in China."
  • 16. business in China different from doing business in Japan? Wealth disparity There is a big difference in the wage of a regular worker and theillegal migrant worker in coast industrial area in China. There is not the difference of the big wage in Japan ↓ The considerable part of such a difference is related to corruption in relation to sale of the land, development, and recognition that this causes pollution of water and the air of the zone again opens among the people and has the revolt of big things and small things in the country.
  • 17. business in China different from doing business in Japan? Aspect of the company The Japanese company considerably matured in the 1980s and came to lead Toyota, Nissan, Hitachi, Toshiba, the company of the world top- class such as Nippon Steel. There are extremely few companies of the world level in China, and the global brand is not born.
  • 18. business in China different from doing business in Japan? GDP The Chinese (72,981 hundred million dollar) ... world second place Japan (72,981 hundred million dollar) ... world third place In China, a basic factor to become the base of the strength of a nation such as population, the country area is big
  • 19. Summarize the growth of the Chinese economy, investment etc in your own words. It is China which became the major economic power of the secondplace of the world in GDP, but will just enlarge an urban area and the life difference of the farm village part
  • 20. Summarize the growth of the Chinese economy, investment etc in your own words. If the present and the politician ten years after this do not do some economic measure when I guess because 60 generations or moreof the population increase, it may be said that probably the Chinese economy is more likely to fail with high probability.