Executive summary
China is the world’s most populous country and a single party state in East Asia. The country has had a dynamic economic environment and impressive development becoming a key player in the global market. (Suzanne, 2012) With its economic growth rate ranging from 13% to 9% since 2007, the country has scaled to become the world’s largest exporter and the second largest economy after U.S. in 2012. China’s population in 2012 was 1.34 Billion with a growth rate of 0.48% and a gender ratio (men/women) of 1.06. In addition, 47% of the country’s population lives in urban centers with concentration in Shanghai and Beijing. However, the country’s population growth policy is making it a fast aging state with 73.5% of its population aged between 15 and 64 years and only 7.4% aged below 14 years. (China, 2013)
Ethnically, Han Chinese dominates being 91.5% of the population while the other ethnic groups accounts for 8.5% according to the year 2000 census. Culturally, there have been gender divisions in labor and entrepreneurial market sidelining women into household occupations leaving men to take charge of exterior and public affairs. However, this is changing with women increasingly venturing into businesses with a perfect example of the Tiger girls who are leaving their homes to become entrepreneurs in the urban centers. (Leung, 2012) In terms of natural resources, China has become a leader in gross value of mining & ore processing, aluminum, iron, steel, other metals and coal. In religious affiliations, Taoists and Buddhists dominate, Christians account for 3%-4% while Muslims account for 1%-2% of the population. (China, 2013)
Among the business opportunities are the changing demographics in terms of age groups and gender composition whose arising needs, businesses can seek to serve. There is also a new trend of increased spending by Chinese consumers replacing their renowned frugality culture. In addition, the country’s significant population provides adequate demand for products and access to cheap labor. The country is also experiencing increasingly conducive business environment favorable even for women entrepreneurs. (Suzanne, 2012) Finally, the growing urbanization at an estimated rate of 2.3% for the period; 2012 to 2015, presents new markets while the sustained economic growth streak promises sustainability. (China, 2013)
On the other hand, a possible businesses entry into the Chinese economy faces a number of entry barriers that include cultural differences and government’s regulation of the market as well as industry in a bid to protect the local businesses. In addition, lack of comprehensive policies for addressing some business formalities like intellectual property protection and high competition in the market are other challenges that a business would have to surmount to venture in China. (Suzanne, 2012)
In conclusion, there exist barriers to market entry as well as many business opportunities. However, China has demonstrated economic stability despite the face of the ongoing global economic challenges. A further consideration of the dynamic market factors which are increasingly creating a favorable business environment makes business opportunities in the Chinese economy worthwhile and viable. In addition, the barriers to market and industry entry are lessening with the government adopting liberalization policies towards a free market to accommodate global player’s participation in a growing international trade. (Arif, 2012)
References
Arif, D. (2012). The idea of a ‘Chinese Model’: A critical discussion. China Information, 26, 277–302. doi:10.1177/0920203X12446289
Suzanne, O. (2012). Book review: China’s Strategic Competition with the United States. China Information, 26, 384–386. doi:10.1177/0920203X12456264e
China. (2013). CIA: World Factbook. Retrieved 23 January 2013, from https://www.cia.gov/library/publications/the-world-factbook/geos/ch.html
Leung, W. (2012). Review of ‘Tiger Girls: Women and Enterprises in the People’s Republic of China’. The China Quarterly, 211, 865-866. doi:10.1017/S0305741012001002
