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Course: International trade and doing business in China
China is the world's biggest market with more than 1,300 million potential consumers (25% live in cities). In terms of
Gross domestic product (GDP) is the 2th biggest economy (ahead of countries like Japan, Canada and Brazil).
According to World Bank, is expected that by the year 2020, China will be the 1st economic power of the world,
representing nearly 40% of World production.
China produces more than half the world's cameras, 30% of air conditioners
and televisions, 25% of washing machines, 20% of refrigerators and 70% of toys.
"Galanz" produces 40% of microwave ovens sold in Europe. The Brand "Haeir" is
recognized worldwide.
In China, there are cultural and sociological issues extremely
different : the influence of Confucianism, customs and habits, ancient culture
or language difficulty. Personal relationships ("Guanxi" in Chinese),
will be decisive, since under the Confucian ethic Chinese negotiator will want to
guarantee that we are honorable, and therefore we will keep our Commitments. If we fail to develop "Guanxi" it's difficult to do business in China. This means that negotiations can be made very slow and therefore
expensive.
Therefore, we will analyze the case of Chinese firms (Haier, Galanz,
Huawei, Cosco, Lenovo, SAIC, Founder, Chinalco, Sinochem ...), allowing us to
better understand the organizational Culture of Chinese companies and the influence of Confucian values in the management of these corporations. | We will study the major economic regions of China:
- Beijing, as China's political, cultural and International exchange center, is a dynamic city with a
broad range of industries. High
tech and modern manufacturing industries have become the leading forces of
Beijing's industrial growth.
- Since 1992, Shanghai has sustained a double-digit Gross domestic
product (GDP) growth
rate. The city has seen fast growth in its modern service industries. The pillar industries in Shanghai refer to manufacturing of electronic and
information-technology products, auto making, petrochemical and fine
chemical processing, fine steel products manufacturing, production of Complete equipment, and biomedicine. Shanghai is biggest port on the Chinese mainland and one
of the biggest entrepots of the world.
- Guangzhou has become one of the wealthiest Chinese cities. Its
proximity from Hong Kong has allowed its development, and the one of the whole Guangdong region. Guangzhou has such 3 pillar industries as
automobile, petrochemical and electronic information manufacturing. Shenzhen is a link between the Chinese mainland and Hong Kong and a
transport hub in coastal southern China.
- The region of the Greater Pearl River Delta comprise Hong Kong, 9 municipalities of the Guangdong Province in the mainland of
China and Macao. Many multi-national companies already enjoy the benefits of
this multi-jurisdiction, cost efficient business model and have established
there. Companies can source or manufacture competitively in China and use
Hong Kong's logistical, financial, legal, design and marketing services to
export their products to the world.
- Hong Kong has a prime location at the geographical and Economic center of Asia. Business executives in Hong Kong have fast and easy access
to all the major markets in the Asia Pacific region. This central position
is one of the key reasons for the city's popularity as a location for
regional operations.
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