International Marketing - China-1221208

7/28/2019 International Marketing - China-1221208

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COUNTRY ANALYSIS OF

BhageshKumar

1221208

MBA,

Marketing

Christ

University

Institute of

Managemen

t

PEOPLES REPUBLIC OF CHINA


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PEOPLES REPUBLIC OF CHINA: AT A GLANCE

Full name: People's Republic of ChinaPopulation: 1.35 billion (UN, 2012)Capital: BeijingLargest city: ShanghaiArea: 9.6 million sq km (3.7 million sq miles)Major language: Mandarin ChineseMajor religions: Buddhism, Christianity, Islam, TaoismLife expectancy: 72 years (men), 76 years (women) (UN)Monetary unit: 1 Renminbi (yuan) (Y) = 10 jiao = 100 fen;Main exports: Manufactured goods, including textiles, garments, electronics, armsGNI per capita: US $4,940 (World Bank, 2011)Internet domain: .cnInternational dialling code: +86


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1. HISTORY:Chinese civilization originated in various city-states along the Yellow River Valley in the

Neolithic era.

A history of 4700 years since Yellow Emperor during the period of the Three Sovereigns and

Five Emperors; the written history of China begins with Shang Dynasty 3600 years ago when

turtle shells with ancient Chinese writing were carbon dated in 1500BC

China traces its culture back to a blend of small original tribes which have expanded till they

became the wonderful country we have these days.

China's history has seen some extremely important inventions emerge, most noticeably:

Gunpowder, Paper making, Printing Compass.

China's four great ancient inventions made tremendous contributions to the world's economy

and the culture of mankind. They were also important symbols of China's role as a great

world civilization.

Apart from the four great inventions, porcelain is perhaps the invention most significant to

the world. That is why today's westerners call porcelain "china", which means that porcelain

is China's unique invention.

Silkwas invented by China. As early as 2,100 years ago, the country had mastered the

sophisticated technique of silk weaving, merchants or inhabitants from West were willing to

pay gold of the same weight for the silks. The road used to transport silk called the Silk Road.

Today, China is still the largest producer of silk.

Tea was discovered in China. The history of China's ancestors' drinking tea goes back as far

as some 4,000 years. Admiring tea, tasting tea and discussing tea are all the embodiments of

the unique philosophy of China's everyday normal life. China is a big country in tea and the

tea culture.
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Chinese medicine has also contributed greatly to the world. Acupuncture and massage

treatments from Chinese medicine are becoming more and more recognized by the world.

With every emperor and every single dynasty it only seems to have more complex. It truly is

also hard to mark its beginning. It is recorded that Yuanmou man could be the oldest

hominoid in China as well as the oldest dynasty is Xia Dynasty. From the long history of

China, there emerge a lot of eminent men and women which have contributed a lot for the

development in the entire country and to the enrichment of her history.

Following are some main dynasties in Chinese history:

a) Hsia Dynasty

The Xia Dynasty of China will be the initial dynasty to become described in ancient historical

records like Sima Qian's Records with the Grand Historian and Bamboo Annals.

b) Shang Dynasty

The Shang king had the authority to construct and order massive armies for warfare and

construction projects. The Shang dominated the land in what is now central China, and its

successful military campaigns brought even more land below its control.

c) Zhou Dynasty

The Zhou kings were very similar to individuals with the Shang dynasty. The Zhou dynasty

was a time in China where family values had been one of the most crucial concentrate in life.

d) Qin Dynasty

The Qin dynasty had only 1 emperor, the evil and tyrannical Shi Huangdi. He increasingly

looked for assassins everywhere he went. He was the very first particular person to force his

people built the wonderful wall, to guard him from his enemies.

e)Han Dynasty

The Han dynasty was developed once the common Liu Bang seized the throne in a coup. The

Han steeply lowered taxes, repealed useless and burdensome laws, and brought stability back

to the empire.


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f) Tang Dynasty

It was a golden age of Chinese civilization with substantial developments in art, literature,

particularly poetry, and engineering. Buddhism became the predominant religion for frequent

folks. Lands progressively fell into the hands of private land owners.

g) Song Dynasty

The Song emperors created a strong beauracracy to rule China. The civil service was

tremendously expanded. There were state schools in China where men could study in order to

sit exams for the civil service. Beneath the Song the number of schools was drastically

enhanced. China came to become ruled by elite of scholar-officials.

h) Yuan Dynasty

The Yuan Dynasty represents a low point in Chinese political history as feuding warlords

gave approach to Mongolian rule. Kublai Khan led Mongolian forces through Chinese

provinces, executed or imprisoned Han Dynasty officials and brought order to this war-torn

region.

i) Qing Dynasty

Qing tried to isolate China from foreign influences. China was kept inside a semi-feudal state,and was utterly unable to defend itself against modern countries in Europe and Japan. Below

the Qing China attained its greatest territorial extent, including Tibet, Mongolia, Korea,

Taiwan, parts of what are now Russia and Kyrgyzstan and controlling Nepal, Southeast Asia,

Burma and the Ryukyu Islands.

Modern Era:

Republic of China (19121949)

Slavery in China was abolished in 1910. In 1919, the May Fourth Movement began as a

response to the insult imposed on China by the Treaty of Versailles ending World War I.

In the 1920, Sun Yat-Sen established a revolutionary base in south China and set out to unite

the fragmented nation. With Soviet assistance, he entered into an alliance with the fledgling

Communist Party of China (CPC).


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The CPC forces embarked on the Long March across Chinas most desolate terrain to the

northwest. During the Long March, the communists reorganized under a new leader, Mao

Zedong.

Chiang Kai-shek seized control of the Kuaomingtang (Nationalist Party or KMT).The bitter

struggle between the KMT and the CPC continued, openly or clandestinely, through the 14-

year long Japanese invaders in 1937, during the Sino-Japanese War (1937 1945) portion of

World War II

The war between the two parties resumed following the Japanese defeat in 1945. In 1949, the

CPC occupied most of the country. Also in 1949, Chiang Kai-shek fled with the remnants of

his government to Taiwan.

Peoples Republic of China (PRC) founded since October 1, 1949 after a near complete

victory by the Communist Party of China in the Chinese Civil War

Mao Zedong proclaimed the Peoples Republic of China from a top Tiananmen. Socialist

transformation under Mao Zedong (19491976) .Mao laid heavy emphasis on class struggle

and theoretical work

In 1953 began various campaigns to suppress former landlords and capitalists. Foreign

investment was largely wiped out.

Mao believed that socialism would eventually triumph over all other ideologies. Mao began

the Cultural Revolution in May 1966. Red Guards terrorized the streets as many ordinary

citizens were deemed counterrevolutionaries. Education and public transportation came to a

nearly complete halt.

Deng Xiaoping embarked China on the road to Economic Reforms and Openness, policies

that began with the de-collectivization of the countryside, followed with industrial reforms

aimed at decentralizing government controls in the industrial sector

Deng championed the idea of Special Economic Zones, areas where foreign investment

would be allowed to pour in without strict government restraint and regulations. Supporters

of the economic reforms point to the rapid development of the consumer and export sectors

of the economy.


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Creation of an urban middle class that now constitutes 15% of the population, higher living

standards and a much wider range of personal rights and freedoms for average Chinese as

evidence of the success of the reforms.


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2. COMPETITION:The emergence of China as a major player in the global trade of goods and services has

undoubtedly delivered benefits primarily by enhancing the value of its exports of natural

resources and related products. But Chinas growth as a commercial power has also c reated a

major competitor in the markets of Latin Americas trading partners, especially in the United

States, the European Union and the domestic markets of Latin American countries. In many

of those countries, national manufacturing industries are already starting to suffer because of

Chinese imports.

In the U.S. market, Chinese competition has affected a large group of domestically produced

goods, especially electronics and electrical machinery, radio and television transmitters,

telephone equipment, radio receivers, recording and reproduction equipment, insulated wires

and cables, motors, electrical generators and transformers, and chemicals.

The principal Chinese imports eroding domestic products: textiles and garments, rubber and

plastic products, metal products, machinery and equipment, and motor vehicles and parts.

The difference in growth rates between the consumption of imported goods and the explosive

expansion of Chinese products led to a rise in the Chinese share of imports in apparent

consumption from 1.3 percent to 2.9 percent between 2005 and 2010.Imports from China

increased by twice the rate of those originating in other countries (39 percent versus 18

percent).

By 2010, approximately 22 percent of the combined industrial exports of the four selected

countries to the two major regional markets (U.S. and Latin America) were threatened by

competition from China.

Chinese imports have made serious inroads in the market share of domestic industries in

Latin Americas largest economies, as well as in their share of industrial exports to third

markets.


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3. CulturalThe teachings of Confucius which stress obedience and deference to elders and responsibility

to community are a dominant part of the Chinese culture. The country is extremely large, so

customs and traditions vary by geography and the more than 50 ethnic groups that reside in

this country of 1.35 billion people. Below is a brief overview of Chinese culture.

3.1 Religion

Because China is a communist state, there is no official religion and more than half of the

population claims no religious affiliation or identifies as atheist. About a quarter of the people

practice Taoism and Confucianism and other traditional religions. There are also small

numbers of Buddhists, Muslims and Christians. Although numerous Protestant and Catholic

ministries have been active in the country since the early 19th century, they have made little

progress in converting Chinese to these religions.

3.2 Language

There are seven main dialects of Chinese Mandarin, Cantonese, Hakka, Wu, Min, Xiang

and Gan. Mandarin in the capital Beijing is the official national language of mainland China.

Many Chinese are also fluent in English. The written language is symbol-based.

3.3 Food

Like other aspects of Chinese life, cuisine is heavily influenced by geography and ethnic

diversity. Among the main styles of Chinese cooking are Cantonese, which features stir-fried

dishes, and Sezchuan, which relies heavily on use of peanuts, sesame paste and ginger and is

known for its spiciness.

The Chinese word for rice isfan, which also means meal, and it is a staple of their diet, as are

bean sprouts, cabbage and scallions. Because they do not consume a lot of meat occasionally

pork or chicken, tofu is a main source of protein for the Chinese.


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3.4 Arts

Chinese art is greatly influenced by the countrys rich spiritual and mystical history. Many

sculptures and paintings depict spiritual figures of Buddhism.

Many musical instruments are integral to Chinese culture, including the flute-like xun and the

guqin, which is in the zither family. The countrys musical history dates back to the

beginning of its existence.

Eastern-style martial arts were also developed in China, and it is the birthplace of kung fu,

which translates to human achievement.

Ancient Chinese were avid writers and philosophers especially during the Ming and Qingdynastiesand that is reflected in the countrys rich liturgical history.

3.5 Customs and celebrations

The largest festival also called the Spring Festival marks the beginning of the lunar

new year. It falls between mid-January and mid-February and is a time to honor ancestors.

During the 15-day celebration, children receive money in red envelopes for good luck and

people thoroughly clean their homes to signify a fresh beginning. The holiday is marked

fireworks and parades with dancers dressed as dragons.

Many people make pilgrimages to Confucius' birthplace in Shandong Province on his

birthday, Sept. 28. The birthday of Guanyin, the goddess of mercy, is observed by visiting

Taoist temples. It falls between late March and late April. Similar celebrations mark the

birthday of Mazu, the goddess of the sea (also known as Tianhou), in May or June. The Moon

Festival is celebrated in September or October with fireworks, paper lanterns and moon

gazing.


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4.0 EconomicInitiation of reform and opening to the outside world, China's economy has undergone a

fundamental change from planned economy to market economy. The economic strength of

the country was intensified constantly. The standard of living of the people improved

gradually.

In 2010, China became the world's largest exporter. China in 2012 stood as the second-

largest economy in the world after the US, having surpassed Japan in 2001.Economicdevelopment is the basis on which foreign trade grows. At the same time, the growing

foreign trade also constitutes a major element in promoting economic development.

Economic development has progressed further in coastal provinces than in the interior, and

by 2011 more than 250 million migrant workers and their dependents had relocated to

urban areas to find work.

The countrys legal and regulatory system is vulnerable to political influence and

Communist Party directives. The partys ultimate authority throughout the economic

system undermines the rule of law and respect for contracts. Although leaders occasionally

embrace market principles that could enhance efficiency and ensure long-term

competitiveness, genuinely liberalizing economic reform has largely stalled.

China liberalized parts of its economy in the late 1970s and early 1980s and has achieved

impressive GDP growth through greater integration into the world trading and financial

systems. It formally joined the World Trade Organization in 2001, and the size of its

industrial and manufacturing sector now rivals that of the United States.

Some quick facts are:

GDP: $11.3 trillion 9.2% growth in 2011 5-year compound annual growth 10.5% $8,382 per capita Unemployment: 6.5% (registered urban) Inflation (CPI): 5.4%


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5.0 Technology

China can make anything. Yet it makes goods not only at low cost, but now also of high

quality, and this constitutes a particularly Chinese brand of innovation that enables China

increasingly to shake up global markets. After coming of age in Chinas domestic markets,

Chinese firms are now replicating their domestic success in global markets by competing on

price and quality. The success of the likes of Huawei and Lenovo are indicative of an

emerging trend of Chinese technology and innovation, yet Chinas emergence is only just

beginning.

Chinas exports rapidly started moving up the value chain away from low -tech products.

Between 1992 and 2005, Chinas medium- to high-technology exports grew 22 per cent

annually, while high-technology exports grew by 32 per cent. By 2008, 43 per cent of

Chinas exports were directly related to machinery, mechanical appliances and electrical

equipment, and China now dominates the global markets for these and other types of

machinery.

In 1988, Chinas first high-technology zone was established in the Zhongguancun (ZGC)

suburb in north-western Beijing with government support. The type of governance

implemented in high-technology zones like ZGC was based on a model called sma ller

government, more services.

China has set out its ambitious vision to become a global technology leader in its medium to

long-term science and technology (S&T) strategic plan 2006-2020. It aims to reduce Chinas

reliance on foreign technology to less than 30 per cent by 2020; to increase GERD (gross

domestic expenditure on R&D as a percentage of GDP) to 2 per cent by 2010 and to 2.5 per

cent by 2020; to have S&T and innovation contribute 60 per cent to GDP growth, and for

China to be among the top five worldwide contributors to domestic patents and international

citations in scientific papers.

Chinese patent applications to the World Intellectual Property Office (WIPO) increased by 44

per cent in 2005 and by a further 57 per cent in 2006. From a total of about 20,000 in 1998,

Chinas output of scientific papers has increased fourfold to about 112,000 as of 2008,

moving China to second place in the global rankings, behind only the US. In the period 2004

to 2008, China produced about 400,000 papers, with the major focus areas being material


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science, chemistry, physics, mathematics and engineering, but new fields like biological and

medical science also gaining prominence.

Chinese companies are now becoming very successful at replicating their low-cost

manufacturing prowess on a global scale, but at good quality and with constantly improving

technology. There is no way of telling how far China will go as a global leader in technology

and innovation Chinas global emergence in technology is just beginning.


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REFERENCES:

Consulate general of The People's Republic of China. ((n,d), (n,d) (n,d)).

www.chinaconsulatechicago.org/eng/sw/t31992.htm. Retrieved June 26, 2013, from

www.chinaconsulatechicago.org: www.chinaconsulatechicago.org/eng/sw/t31992.htm

History today. (n.d.). http://www.historytoday.com/asia/china. Retrieved July 02, 2013,

from http://www.historytoday.com: http://www.historytoday.com

http://www.cultural-china.com/. (n.d.). Retrieved July 02, 2013, from http://www.cultural-

china.com/

(2013).Index of economic freedom. China: Government.

Malik shabaz. (2013). http://en.wikipedia.org/wiki/Chinese_culture. Retrieved from

http://en.wikipedia.org.

New York Times. (2013, June 06). http://www.nytimes.com/2013/06/06/world/asia/wide-

china-push-is-seen-to-obtain-industry-secrets.html?pagewanted=all&_r=0. Retrieved

July 02, 2013, from http://www.nytimes.com.

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International Marketing - China-1221208