factors that led Chinese family-owned businesses to the recession and the entry of the government to control such firms after the 18th National Congress of the Communist Party of China
Based on the research topic, it tends to explain various factors that led Chinese family-owned businesses to the recession and the entry of the government to control such firms after the 18th National Congress of the Communist Party of China. Three main methods were applied in collecting the relevant data, which included interviews, questionnaires, and related documents. The data were then analyzed through both quantitative and qualitative technique methods to come up with pertinent information that can rely on.
In relation to the analyzed data, it can be noted that family business in China has faced a lot of challenges due to western influence by the young generations of whom the majority, approximately sixty percent, are not willing to step in as the new business owners. By undertaking their studies abroad, they gained the interest of getting involved in a more fashionable career like banking and technologies related careers. This action is considered as a risk to the family business since most of the current business owners also do not trust in the young generation; they really doughty if they possess the relevant skills, interest, and knowledge to run the family businesses to prosperity. The communist party of China played a significant role in ensuring major economic development in which they had to gain control of their own private companies. This move was substantial since those private companies contributed to more than half of the country’s GDP. By getting control of these companies, the government was able to gain full control of the economy regarding pricing strategy.
Additionally, the government was also able to boost the economy by ensuring that financial capital is easily accessible by both small and large business organizations or enterprises within the country. This was made possible through the upgrading of the four major banks. Previously, the Chinese business community faced several challenges in accessing financial assistance from some of the western commercial organizations due to certain cultures like their languages.
Lastly, the government was able to ensure the economy is developed to the extent that they recorded an improvement of 7%, a percentage that is even higher than the world’s estimated average growth rate of 2.6%. Concerning the country’s GDP, the Chinese government, through the Communist Party of China, achieved an improvement in growth rate from 54 trillion renminbi in 2013 to 82 trillion renminbi in the year 2017. This made them be to rank the second globally after the United States.