- What are the rough dimensions of the country in miles?
China is situated in the eastern part of the Asian continent. Its area in miles is around 3,696,000 square miles). Country is surrounded by other countries i.e. Nepal, Pakistan, North Korea, Bhutan, Tajikistan, Vietnam, Russia Afghanistan, Burma, India etc. according to area China is considered third largest country in the world after Russia and Canada.
- What is the population? What percentage lives in the 3 largest cities?
China is considered world’s largest country according to the size of its population. In 2014 it has been estimated that its population is 1,393,783,836. Around 20% of the population of the world belongs to China. Shanghai is largest city according to population which is having around 23,000,000 inhabitants. After shanghai Beijing is considered seconded most populated city of the country. 18,079,000 inhabitants of the China belong to Beijing. Guangzhou is third most populated city of the China after shanghai and Beijing. 12,385,000 people are living in the city. Over all these countries are used to have around 5% of the total population of the country.
- What is the predominant language? How widely used is English in business?
In China official language is Standard Mandarin. This is language of Chinese and it is widely spoken by the people of China. This is main language which is used by the government of China, their media and in their education system for the instructions. Standard Mandarin has got the status of official Chinese language long ago. After English it is considered most famous business language all across the world. As for English is concerned, it is not getting much attention in China because; government is trying to protect their language from the foreign impact.
- What are the principle cities and political divisions which would have an impact on transportation?
Major cities i.e. Beijing, Shanghai, Tianjin etc and 23 different provinces of the country all are having their impact on the transportation system overall. Similarly, autonomous administrative regions and special administrative regions all have their own importance on the transportation system.
- What are the principle products for the country (top 3-5 in each of the following categories)? *Overall (produced in the country) *Exported to the world *Exported to the US *Imported from the world *Imported from the US
China is becoming one of the major economies of the world and it is producing the products in every field. The products which are produced by the China include; machinery, electrical equipments and vehicles etc. country is generating lots of revenue with the help of its exports. Major products which are exported by the China contains Electronic equipment making around 25% of the total exports, Machinery is making around 18% of the exports and furniture’s, lights and signs etc which is making aroun4 % of the total exports of the country. Along with exports China also have to import many products and usually it imports crude oil, integrated circuits soybeans and LCDs. China is used to import cars, computer and broadcasting equipment from the United States.
- In the last three years have there been any instances of political instability?
Political instability is low in the China as compared to other markets in the region. This is one of the major reasons of development of strong economy of the China. Even for the foreign investor political stability of the China is one of the charming factors which are helping them to start exploring a new marker. In last few years China didn’t witness any major political instability.
- What is the currency? What is the exchange rate to US dollars? How has it changed in the past two years?
Currency of the China is Renminbi Yuan. 1 Yuan is equal to 0.16 of US dollar. In last two years exchange rate has faced changes but those changes were not significant. Rate of US dollar has increased over the time.
- What time zones exist in this country? What time is it in the capital when it is noon in Cambridge, MA?
Time Zone is UTC+ 8:00. In capital city of China time will be 4:00 am when it will be noon in the Cambridge MA. Beijing is capital of China and its time will be 4:00 am at noon in the Cambridge.
- What unique requirements exist for products sold in this country? (E.g. testing, packaging, language, safety, etc.)
Products used to need the certificate of inspection which is given by relevant authority to the products. Once company receives certificate of inspection only then it can sell its products in the market. This is very important requirement of the selling goods in China. This is used to link with the safety of the buyers.
- What regulations or limitations exist regarding freight transport?
Freight transport is system of transport which is used to transport the goods among different parts of the country it used to involve rails and roads etc. freight transport has increased over the period of time. It has been divided into two sections general and special freight transport. Those who are managing the freight transport business they must have certificate from the government for their working.
- Are there saltwater ports which can handle large ships? How far are the major population centers from those ports?
Saltwater ports are considered important for the trade of products to international community. China has number of ports for the trade and it has 12 out of 20 most busy ports of the world. Rizhao Port, Tangshan port, Qinhuangdao ports, Shanghai port and Tianjin port etc. these areas are also falling under the category of most populated area of the country. For instance, shanghai and Tianjin is considered most populated areas of the China.
- What business terms and financial instruments are typically used for import commercial transactions?
International terms and conditions are applicable for the business in China and for the imports and commercial transactions etc.FOB (Free on Board), CIF (Cost insurance and freight) along with the other major terms and conditions businessmen are used to have Letter of credit to do their business. For the transactions etc USD is valid currency in the China. Imports are largely regulated by the government and need of the country.
- How large is a typical supermarket or retail food store (square feet or meters)?
There are lots of super markets and retail stores in the China in order to cater the needs of world most populated country. Usually there are supermarkets and retail stores which vary in their size from 500 to 2000 square meters. Now there are many stores and super markets which are exceeding this usual size of the market.
- Do any of the large US discount retailers (Wal-Mart, K-Mart, Toys ‘R Us) have stores in this country?
Discount retailers are not appreciated by the Chinese government. Only Wal-Mart is performing its functions in the China. In the form of joint venture Wal-Mart enter into Chinese market and now it is having major stake in the joint venture. Other retailers didn’t enter into Chinese market up till now.
- Describe the highway and rail infrastructure. Are they: extensive, moderate, or primitive nationwide?
China has got the status of a strong economy in the world so; it is encompassing a good infrastructure. Up till now country is stands second in terms of its rails and highway infrastructure. China is having wide and extensive system of roads and railways throughout the country to connect the different parts of the country with each other. Eastern part of the country is more densely populated and have more advanced infrastructure but now government is trying to expand its working towards the west side deliberately.
- How bad is the traffic congestion in the major cities?
In major cities of the country traffic congestion problem is emerging and getting a serious status with the passage of time. As mentioned above, traffic population of China is increasing it is creating the issue of traffic congestion in major cities i.e. Shanghai, Beijing and Tianjin. Infrastructure of highways and railroads is becoming insufficient for the people.
- Which countries are the primary trading partners? For each partner, in which direction is the balance of trade (import or export)?
Trade of Chinese goods is throughout the world but with some countries China is having more strong business ties. Primary trading partners of the China in terms of exports are United States of America, South Asian countries, European countries, Canada, Australia and Hong Kong. In terms of imports major trade partners of the China are Japan, Russia, South Korea and Taiwan. These countries are considered major trading partners of the China.
- Is security an issue in logistics? Why?
Security is not a major issue in the China. For instance, freight through air and sea ports is very easy as compared to transportation of goods on ground. In distant part of the country cargo products are used to have insecurity of robbery and theft. Overall the security level of the country is good and it is not an issue for the traders because they can do their business easily.
- How reliable is the phone system? How long for a consumer to get a phone line installed? How extensive is the mobile phone network?
Telecommunication of the China is reliable because major state owned companies are operating the telecommunication sector in China. They are providing quality services to the people although they are charging high prices from the people. Time for the telephone connection varies according to the size of the country usually it takes 1 week for the functional telephone connection. Cellular phones are being manufactured in the China and it is becoming one of the largest markets for this product. This network of cellular phone is increasing with the passage of time.
- How many people have Internet access?
Internet access for the people is increasing with the passage of time. Although government is regulating the internet service and censor the content. According to one report in 2013 about internet users suggests that “China ended last year with 618 million Internet users and 500 million mobile Internet use”. This means that numbers of users of internet are increasing with each passing day. Access to internet through mobile is also increasing.
- What is the price of regular gasoline, $ per gallon?
Rate of gasoline in the China recently is $1.17 as compared to international price of $ 1.25.
- What trade restrictions exist? What are the highest import duties – which products and countries of origin? What embargoes exist, if any?
In terms of trade now businessmen are not facing problem because now according to the requirements of the World trade organization government of the China is reducing its duties level in China. Before government was used to put heavy duties on imported products especially vehicles etc. but now government is following the terms and conditions suggested by the WTO. In terms of imports media equipment, weapons and any material which is illegal can’t be imported. Likewise, major business ideas, genes of precious species and animals etc are not exported to other countries.
- What customs documents are required for an import shipment? For export?
Traders are used to have LC (letter of credit), certificate of inspection shipping slips and documents along with the certificates from the country origin when they are importing products to China. Traders are used to have same documents when they are intended to export the products to the other countries.
- How common is “bribery” (US definition) in trade transactions? (Normal, infrequent, very rare). What are the legal ramifications?
China is trying to increase the control over the issue of bribery in the different sectors and after becoming the member of WTO legal system for the business is getting stronger. Regardless of all these efforts still many sectors are facing problem of bribery so China still need improvement in its legal system.
- How strong are the unions? In what industries are they an important factor? Are they predominantly national or local? What impact do they have on logistics?
Unions in all government sectors are very frequent and they are having symbiotic relationship with the government because they are helping the government in performing their functions. Unions are formulated by the government and one ministry is used to take care of activities and issues of these unions. As these unions are not by the industries so; they are having no impact on the logistic system.
- Be sure to include any current news articles or other current factors that might impact supply chain management now and in the future in your assigned country.
In his article Michael Zakkour notes that domestic consumption is increasing in the China and this increased demand of the products will have its impact on the supply Chain in the Chinese market. China is needed to “reassess their supply chain infrastructure in China for both selling and making goods”. This means that trends are changing in the Chinese market which must be assessed by the government of the China. Business industry in the China needs to revamp itself in order to make the system and industry more efficient. For instance, Steven H. Ganster in his article suggested that Chinese business enterprises should reduce their costs to make the supply chain more efficient and enhance the value of the business in international market otherwise industry will face major issues in the future. As he notes that “The downturn is driving companies all along the supply chain to cut costs. Lower demand for goods and intense competition are forcing companies to reevaluate their operations, with some leaving China altogether”. This means that in order to be sustaining the long term presence in the market there is strong need for the reassessment of the operations and costs of companies .
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