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Political and Economic Environment China

A fascinating picture of the political and economic environment may be found in China.

Manufacturing and its accessible labor resources are crucial to its economic viability.

This dependence has caused overinvestment and overcapacity in some key sectors, including cement, steel, and oil.

Additionally, China’s communist banking strategy has made an already complex economy more complex.

Because of this, the country’s ferocious economic growth has caused inflation and deflation in other countries by driving up the cost of commodities that are traded internationally, such as steel, cement, and other metals.

China’s previous economic strategy, which relied on cheap loans and infrastructure spending, has peaked.

On the global economic scene, China has made enormous strides.

As a result of new laws enacted to raise the maximum number of children per household to one plus, changes in policies, as well as Xi Jinping’s (the leader of China) announcement to support a more sustainable consumer-driven expansion in China, allowed the private sector and global competition that were previously under government surveillance to gain momentum (Silverstein, 2013).

The goal of China in the Jinping period is to build a technology-driven economy that performs well in terms of quality and productivity.

Their objective is to become the leading Superpower.

Rebooting the political system’s worldview, which has encouraged confidence in economic growth, has taken time.

China’s aim, according to Fox (2013), is to become a revisionist power rather than a revolutionary one. Revolutionaries seek to overthrow the government, whilst revisionists want more for themselves.

There are 120 Chinese companies on the Fortune Global 500 list as of 2018. The percentage of people who recognize a brand is quite low.

Product branding in this area is a top concern in order to maintain a competitive advantage.

The 1987-founded Huawei makes its 2019 100 Best Global Brands debut at number 68. Huawei is a company that conducts basic research and focuses mostly on technology advancements and solutions.

Its employees control the entire company.

China has had a difficult time overcoming the negative reputation associated with its production standards.

A number of issues need to be addressed in order to repair China’s damaged reputation: first, the country needs to switch from low quality, low value to high quality, high value; second, cyber espionage, xenophobia, and increased tariffs need to be addressed; and third, China needs to address country-related political issues.

Historically, the private sector has surpassed the state sector in terms of China’s gross domestic product (GDP). Joint ventures have been made possible as a result, facilitating the growth-critical transfer of worldwide communication, technological know-how, and cultural acceptance.

Studies claim China’s workforce is a major factor in the country’s progress (Yueh, 2015).

For more than 30 years, China has enjoyed double-digit economic growth (Mangus. 2018). The rate now has decreased to roughly 6% in the following 20 years.

China needs to rectify its financial misconduct over the past 20 years, it wants to be a more significant player in the global monetary system, there is a substantial aging population, and there is a middle-income trap, according to Mangus (2018).

Looking at China, we may say that the key external components that make up a company’s economic environment are economic conditions, economic policies, and economic systems.

The economic circumstances of a nation, such as its character, level of development, economic resources, amount of income, and how assets are distributed, all play a significant role in determining company strategy.

Only plans that are specific to an industry and to the capabilities and assets of a firm thrive since there is no universal strategy that works in all industries.

Discussion Points

How do you define an economic system? What are the fundamental issues with an economic system?

What characteristics distinguish a mixed economic system?

Describe how government plays a part in resolving issues brought on by various economic systems.

Describe privatization and follow its historical development.

Describe the various privatization paths.

Describe your defense and defense against privatization.

What distinguishes China’s privatization?

Describe the nature and reasons behind business globalization.

Describe the steps that make up the globalization of the economy.

Assess the economic effects of globalization in China.

Describe the methods utilized to expand a business internationally.

A nation’s economy is based on its natural resources. Describe the main resources in China.

Please write a paper of at least 3000 words that incorporates the material below. Your essay should be formatted according to the APA style, which calls for a cover page, an abstract, citations, and a reference page.

A minimum of five references are required. The essay should address the questions indicated above, but they are not listed.

No lists or bullets, please. Please discuss China’s plan of action using game theory.


Fox (November 2013). Already sputtering is the Chinese steamroller. International Business. Digital Article from the Harvard Business Review

Red Flags: Why Xi’s China Is in Danger, by G. Mangus (2018). Academic Press

Ten Predictions for China’s Economy in 2014 by M. J. Silverstein were published in November 2013. Harvard Business Review on the economy. electronic article

Yueh, L. (December 2015) China’s Development: A Quick History. Economics in Business; Harvard Business

Last Updated on September 19, 2022

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