The brief demographics overview of China
Business activities play significant roles in the growth and development of most countries in the world today. Business activities range from both local and international levels where there is an exchange of goods and services hence raising revenue for the government. The majority of the people today depend on the business rather than government jobs since self-employment is more reliable and has a greater reward, therefore, solving the problem of unemployment. Business activities do not only solve the problem of unemployment but also facilitates the stability of a particular country in terms of resources, infrastructural development, and as well as strengthening the international relationship between the trading partners. Most developed countries today have dominated the world market due to the various business activities that they do involve in, and thus making them dependent on their own. This paper provides an overview of China as a country; Her demographics, political and legal environment in terms of political stability and legal issues, her economic and cultural issues that exist within the country, and how these factors affect her growth and development as clearly outlined in the paragraphs that follow.
The brief demographics overview of China
The Chinese empire involved population count in 2 A.D. and as well as at irregular intervals. China’s population is traced based on the census and registration counts done over the last two millennia. The disgusting feature of China’s demographic history is due to the apparent fluctuation of the population between 36 to 61 million that existed for a thousand years, hence indicating a lack of consistency in the population trend. The first sustained record instance of population growth of China occurred in the last half eleventh century under the dynasty of Song. This population trend under the regime of Song later reversed by the subsequent centuries marked by struggling of various families, Mongol invasion, bubonic plague, and civil wars. In the late fourteenth century, China witnessed six centuries of population growth as a result of the influence and activities that existed under the dynasty of Ming. Don't use plagiarised sources.Get your custom essay just from $11/page
The current statistics of the demographics of China indicates a more significant population that is compost of relatively small youths due to the policy that was adopted and advocated for one-child. In 1982, China’s population had reached a total of one billion. China has a country having the largest community in the entire world. According to the census conducted in 2010, about 91% of the population comprises the Hans Chines, about 8% made up the minority. According to the population growth of various countries in the world, China ranked at position 159, following her population growth rate, which stood at 0.59%. The historical population of China under Mao Zedong indicates a growth rate of nearly 104 billion between the periods of 1960-2015.
The political and legal environment of China
The People’s Republic of China is among the stable communist states. China is a single-party state governed by the Communist Party of China (CPC0). Even though China is a single-party state, there exist other eight political parties but restricted in their operation, such as challenging the Communist Party of China. There is a belief in China that single party ruling enables them to be more organized, hence allowing the efficient reaction to the market trends. Although many countries may not agree with the political system in China, then it has led the country to become the second-largest economy worldwide and also estimated to be in that position for the coming next decades. Even though china occupies the second-largest economy in the world, there still exist some hereditary, environmental factors such as the crippling corruption problem and an evident lack of business regulations, among other factors.
China is exploding due to the larger population that amounts to over 1.3 billion people, that is, about 20% of the total population worldwide. China’s economy grew seven times compared to that of the United States of America over the past decades, marked by rapid economic growth, thus becoming the second-largest economy. This larger population may facilitate the welcoming of foreign investors to tap the growing market of China. Today the chines business culture exists everywhere in the world; hence international companies need to have an insight understanding of the significant three areas to face to succeed in china. These three areas include business laws, political environment, and the legal environment.
The economic environment of China
There are three business law trends that a foreign investor or expatriates should be aware of in China; the legal representative of a company gets to make a decision, the chopping system, and china cracking down on corruption. The legal representative represents a person having the most significant individual authority in a company that operates in China. The PRC law requires that one individual should represent the company on its behalf, unlike other countries. This law applies to all business enterprises; Greenfield, joint venture, and acquisition, among others. This individual is entitled to access and to take control of the capital and assets of the company. It is, therefore, crucial for the foreign companies to understand not only the liabilities but also the powers transferred to the position. Consequently, the legal representative executes supreme authority in the daily operation of the company since he/she expected to act on behalf of the company and as well as entitled rights of making decisions regarding the assets of the company, confirming transfers, and authorizing legal representation of the company.
The chopping system, on the other hand, under Chinese law, focuses on any entity that is legally registered in China and must pose an official company chop as well as a financial chop and a red stamp, which acts as an official seal. These chops act as a form of a signature that also represents legal binding. The holder of an official chop plays an essential role since he/she can bind a company or business organization in critical transactions, even in the absence of the authorization from the legal shareholder. Subsequently, China cracking down on corruption is a move geared by the General Secretary of the communist party of China, Xi Jinping, cracks down on the foreign companies intentionally hence favoring domestic competitors. The anticorruption forces in China have been trying to root out supposed corruption that exists within the international companies that operate in China. China has frequently witnessed the multinational corporations which have become aware of the Chinese government in investigating corruption cases or rather issues.
The cultural issues in China
China has a long history traced back to over 500 years ago. Chinese culture has a profound influence on the entire continent of Asia. Traditionally, under their control of the faith of Taoist, Buddhist religion, and Confucian, the culture generates a rich and profound system of values that have evolved uniquely in the various regions of China. Culture exists as distinguished norms, values, rules, behaviors, psychological, and systematic assumptions within multiple groups of people in a particular area. Cultural differences between numerous countries measured through cultural distance measures. There exist lesser subnational cultural dissimilarities in China. There exists a subnational variation in terms of culture in mainland China. This happens through the differences in subnational cultures that exist between Taiyuan (middle region of China) and Shenzhen (Southern part of China). A foreign subsidiary outcome in China brings this dissimilarity. Limited studies carried out have explored the consequences of within-country and cross-country cultural differences. Consequently, the within-country and cross-country cultural disparities may affect the subsidiary staffing and as well as cultural friction that exists in local subsidiaries of foreign companies that operates in China.