Country Analysis China
...and performance 3
GDP 3
Political situation 5
Opportunities and threats 6
Conclusion 7
Company Analysis 9
Sources 10
Economic Analysis of China
Strategy
It is commonly known that economy in China has been booming for the last two decades. The question that remains to most people is how China went from a closed, communistic country, to a country that is thought to be of the highest economic importance in the 21st century. Open-door policies and encouraging foreign investment were not in China's dictionary until the 80s. Only then, the government felt the need for change.
The radical change in China was directed by an important metamorphose of government policies in all sectors. The government did not only alter its fiscal and exchange rate policies but also made important progresses in the field of trade and investment policies. They did this to obtain higher growth rates and ensure the country's autonomy.
Fiscal Policy
Two important factors in a country's economy are the fiscal and monetary policy. In China the Nation's People Congress, the NPC, manages the fiscal policy, which is the country's parliament. The People's Bank of China, the PBC, is in charge of the monetary policy.
The NPC started to restructure China's economy over 25 years ago. They created a fiscal policy that gave more freedom to the market forces. They first applied this restructuring in the agriculture, later in the industry and finally to large parts of the service sector. By 2000 they completely dismantled all price regulations. The NPC also introduced new laws that allowed private individuals to own limited liability corporations. Competition laws were used to unify the internal market. In addition to this, they sharpened the business environment by allowing foreign direct investment, reducing tariffs, abolishing the state export trading monopoly and ending multiple...
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