China Complicated Risks of Big Opportunity in terms of chines economy for marketing, sales, business startup, etc.

1. CHINA COMPLICATED RISKS
BIG OPPORTUNITIES

2. Introduction
Big Opportunities
Complicated risk
Conclusion
Outline:

3. People’s Republic of china
Capital: Beijing
Population: 1.404 billion
Surface: 9,600,000 sq. km
System of Government: Socialist People’s Republic
Language:
- Mandarin (High-Chinese)
- Chinese dialects
Basic Information:

4. Steady GDP growth
Booming Economy
Huge supply of natural resources
Availability of cheap labor force
Increasing consumer spending power
Improving business environment
Big Opportunities:

6. BOOMING ECONOMY
The socialist market economy of the People's Republic of China is the
world's second largest economy by nominal GDP and the world's largest
economy by purchasing power parity. Until 2015,China was the world's
fastest-growing major economy, with growth rates averaging 10% over
30 years.
The Chinese economy has been growing at an average of almost 10% –
three times the global average – since Deng Xiaoping became leader and
started to introduce economic reforms. In dollar terms, its GDP has
jumped from $147.3bn (£94.55bn) in 1978 to $4.9tn in 2009.
China is also the biggest market for new cars. Sales of new passenger
vehicles leapt by more than 50% last year, pushing up total sales to
13.64m. This saw it overtake the US, where sales fell by around a fifth to
10.43m.

7. INCREASING CONSUMER SPENDING POWER
 BEIJING - Consumer spending is continuing to grow at a healthy pace at present
as the country moves quickly toward a consumption-driven economy.
 Market observers estimated the country's consumption will grow at an annual
rate of 10 percent in 2017 and 2018, a key driver of overall growth eclipsing
investment and exports.
 Consumption has played an increasingly important role in stabilizing the world's
second-largest economy, with its contribution to GDP growth up from 50.2
percent in 2014 to 71 percent in the first three quarters of 2017.
 Li Yang, an expert with the Chinese Academy of Social Sciences, expected retail
sales in China to increase by 10 percent to reach 33.1 trillion yuan ($4.8
trillion) in 2016. Consumption has contributed 73 percent of GDP growth, the
highest level since 2001.

8. Political and legal issues
Intellectual property right
Sourcing Trends
Concerns in M&A
Economic Problems
Complicated risks:

9. POLITICAL RISK
Issue of provincial and municipal officials.
Difference inevitably creates unpredictability.
The Global credit crisis aggravates political risk in china
market.

10. PRIMARY TYPES OF POLITICAL RISK
 Systemic Risk
This affects the entire market or segment.
Interest rates, recession and wars all represent sources of systematic risk
because they affect the entire market and cannot be avoided.
 Procedural Political Risk
People, products and funds move procedural transaction between
companies or countries.
Political actions may cause frictions that slow or hold these transactions
back.

11. Distributive
Getting their “fair” share of the profits.
Investors take advantage and take a bigger share of the rewards.
Catastrophic Political Risk
Involves changes that affect directly the operations of every company in
the country.
Ex. ethnic discord, illegal regime change, civil disorder, etc.

12. ECONOMIC PROBLEMS:
The global financial crisis has strong influence on Chinese
market.
High unemployment, declining growth, and rising debt,
weakened democracy.

13. INTELLECTUAL PROPERTY RIGHTS
Intellectual property rights (IPRs) have been acknowledged and protected
in the People's Republic of China since 1979. This has led to the creation
of a comprehensive legal framework to protect both local and
foreign intellectual property.
This guide explains about IP in general, and gives guidance on how to
apply these principles in the Chinese market. It describes the issues you
may face with IP infringement in China, offers advice on how you can
effectively tackle these, and provides links to sources of further help.

14. THE LEGAL ENVIRONMENT
The legal system specifies the rules that regulate behavior, the processes by
which laws are enforced, and the procedures used to resolve grievances.
Legal systems differ across countries due to variations in tradition,
precedent, usage, custom, or religious precepts. Moreover, with the
exception of the members of the European Union, countries rarely
recognize the legitimacy of legal practices or court judgments from other
nations. Concluded a legal scholar, “Products move very easily across
borders.

15.  China has a growing market infused with rapid industrial
development and economic growth. As the world’s third largest
trading nation after the United States and Germany, China will
continue to be an important business partner of the United
States. US business people and organizations must understand
the differences in the economic, political, and cultural
environment of the country as these can be difficult to manage
and may hinder business development. Especially important is
to learn about cultural and political differences and their
impact on business practices and business conduct.
CONCLUSION

16. Thank You