china final1

8/8/2019 china final1

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Group-3

oAlok Anand WMP 6067

o DishaAgarwal WMP 6080

o Nilabha Dev WMP 6093

o Rishi Bhutani WMP 6106

oVikesh Sethi WMP 6119

o Praveen Khanna WMP 6100

o Svetabh Kaushik WMP6113

oAbhay Gupta WMP 6132


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OutlineOutliney Introduction

y History

y Culture

y

Politics, Forms of Government and Policiesy State of the Chinese economy

y Business Protocols

y Conclusion


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IntroductionIntroductiony One of the worlds leading

civilizations

y Major unrest and

backwardness in 19th and

20th century

y Turned Communist in 1948

after civil war

y Economy opened up in 1979

y Tremendous economic

progress since then

y One of the world major

powers today


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HistoryHistory


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HistoryHistory

Contd..

Dynasties:

The Shang Dynasty (1766 BC) was the first verifiable dynasty

and ruled China for 600 years.

The Shang dynasty was overthrown by Zhou who established a

dynasty and introduced the idea of the Mandate of Heaven.

The Han dynasty centralized the Chinese government and

established a bureaucracy.


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HistoryHistory

1911-1949 The Republic of China was established under the

leadership of Sun -Yat-sen

1949- The Republic of China moved to the island of Taiwan

1949 The Peoples Republic of China came to powerunder the Communist leader Mao Zedong.


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CultureCulture


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CultureCulture

Contd..

Confucius - Addressed as The Masterall over China.

Confucius believed that the past tells

us how to live in the present.

His sayings were recorded in a bookcalledThe Analects.

Other Chinese philosophies

includeTaoism ( Daoism)and Legalism


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CultureCulture

y Filial piety

The Five Bonds

1. Ruler to Ruled

2. Father to Son

3. Husband to Wife

4. Elder Brother to Younger Brother

5. Friend to Friend

Contd..


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CultureCulturey Relationship

Juniors owe their seniors reverence and seniors haveduties of benevolence and concern toward juniors

y Gentleman cultivate themselves morally;

show filial piety and loyalty where these are due;

cultivate humanity, or benevolence.

y Governance

In order to govern others one must first governoneself.


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EconomyEconomy


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Chinese EconomyChinese Economy-2nd Largest of the World

Since 1978, Chnese economy has grown at a high rateSince 1978, Chnese economy has grown at a high rate

Economic history recalls that this situation is not new: in 1820 China represented a

third of the world GDP (Maddison,2001).

Share of world GDP(%)

2,6

3,9

6,2

4,3

0

1

2

3

4

5

6

7

1980 2003

China LatAmSource: BBVA, FMISource: BBVA

0

2

4

6

8

10

12

14

16

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

p

Average growth

rate = 9,5%

Real GDP growth rate 1978-2006f (%)

Contd..


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ChineseChinese EconomyStructureStructure

Agriculture

industry

Service Sector

Agriculture Manufacturing/Industrial Service Sector

AGRICULTURE (13%)

INDUSTRY (50%)

SERVICES (37%)

Contd..


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Chinese EconomyChinese Economy

Infrastructure

y Electricity consumption: 3.438 trillion kWh (2008)

y Oil imports: 4.393 million bbl/day (2008)

y Railways: 77,000 km of lines added from 1948 onwards

(3rd in the world)

y Average freight traffic density 15 million tons/route

kilometer (three times that of India)

Contd..


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Chinese EconomyChinese Economyy Roadways

Total: 3,583,715 km (includes 53,913 km

of expressways) (2007)

y Waterways 110,000 kms

y Airports 502 airports

y Telecom Largest number of telephone and

internet users in the world


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AgricultureAgriculture


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Contd..

y China is the world's largest producer and consumer of

agricultural products

y Only 15 % Agricultural land is available

y More than 300 millions people in china are related with

agriculture (almost 50 percent of the total work force)


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y One of the most important sector of economy

y Contributes around 13% to the total GDP

y Leading producer of wheat, rice, potatoes, peanuts,

millet.

y In Animal Husbandry- Cotton, Pigs, Chickens, and Eggs


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ManufacturingManufacturing


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ManufacturingManufacturing

Around 8% of the total manufacturing output of world

comes from China

China ranks 3rd worldwide in industrial output

Manufacturing Sector provides approx 50% of the total

GDP

Contd..


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ManufacturingManufacturingChinas low-cost labor has led various multinational

companies to shift their manufacturing facilities to China

This process has lowered prices for consumers, boosting

their purchasing power

Also helped in lowering costs for firms that import and use

Chinese-made components, boosting their competitiveness.

Contd..


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Some Manufacturing factsSome Manufacturing facts

about Chinaabout Chinay Produces 50% of the Worlds Cameras

y 30% of Air Conditioners and Televisions

y 25% of Washing Machines & 20% of Refrigerators

y One Chinese company Manufactures 40% of all

microwave ovens sold in Europe.

Contd..


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IMPEX (ImportIMPEX (Import--Exports)Exports)

China is largest exporter and second largest importer of

goods in the world.

Main export partners: US 20.0%, Hong Kong 12.0%,Japan

8.3%, South Korea 4.6%, Germany 4.3%

Main import partners:Japan 12.3%,Hong Kong 10.1%, South

Korea 9.0%, US 7.7%, Taiwan 6.8%, Germany 5.6%

0

100

200

300

400

500

2003 2004 2005 2006 2007

import exportUS$Billion

Year


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Service SectorService Sector

China's services output ranks fifth worldwide

Higher density of Power and Telecom densityhas ensured high-growth trajectory

Still Tourism is the major contributor

Services sector produces 37% of China'sannual GDP, second to manufacturing

However, its proportion of GDP is still lowcompared to other developed countries


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Business ProtocolsBusiness Protocols


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Business cards: On accepting or giving abusiness card use both hands & show

interest by taking some time to read the

details of the card.

No surprises: Make sure that what is to be

discussed is made clear in advance.

Dont be late: Punctuality is considered a

virtue; Hosts are expected to be in placebefore guests arrive.

Names: Names are very important to the

Chinese Chinese surnames comes first


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Saying No: Never say NO Directly

Saying Yes: Don't take your Chinese

counterparts saying "yes" literally to mean

affirmative

Colors: Avoid White; it is the color or

mourning. Red, suggests power, prosperity and

authority.

Numbers: 4 and 14 are very bad. 3 means

longevity and 8 means wealth/prosperity


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Chinese prefers to keep business

dealings at a professional level

Business Relationships in China arevery formal and take time and several

transactions

The more you share your personallife, the closer you are in your business

relationship and that can be success

Business Relationships


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In China, negotiators are highly trainedin the art of gaining concessions

Chinese do prefer relationship than thesubstantive matters like money,pressure & competition

Chinese Negotiate in teams but

leaders decision would only matter

China is a one-leader oriented cultureand Chinese expect exactly the sameapproach from foreigners.

Negotiation


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ConclusionConclusion


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ConclusionConclusiony Only 15% arable land

y Han Chinese account for 91% of the Population

y One party government

y 5 trillion $ economy

agriculture 13% industry 50%

services 37 %


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ConclusionConclusion

One of the ancient Civilization

Manufacturer for the World

50% of work force in china is related with agriculture

Scope of improvement in Services Sector

Good negotiators but prefer relationship too

One-leader oriented culture-Centralized Decision


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china final1

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