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Current trend in china.

Current trend in china.. Contents Recent Facts about China GDP growth in China BRICS Economies Why China, A favorable Environment for Multinational Business.

Jan 12, 2016



Regina Walker
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Current trend in china.ContentsRecent Facts about ChinaGDP growth in China BRICS EconomiesWhy China, A favorable Environment for Multinational BusinessMNCs Success stories In ChinaCurrent changes

Recent Facts about ChinaChina current population 1.36 billionChina has more than 170 cities, with population of average 1 million, Beijing has 20 million populationA huge market for MNCsIn 2010, China became the world's largest single-country new-car market, surpassing the US. But the percentage of Chinese who own cars is still only 7%.An enormous market for the MNCs to expand their business (National Bureau of Statistics of China, 2012)

GDP growth in China China joined WTO in 2001Slowdown after 2008 financial crisisEven though, China maintains growth of average 10% Still there was 62% growth between 2008 and 2011

BRICS EconomiesBRICis a groupingacronymcoined byJim O'Neillin 2001, that refers to thecountriesofBrazil,Russia,IndiaandChina, which are all supposed to be at a similar stage of newly advanced economic developmentAccording to Silk Road Associates, Chinas economy is larger than the economy of combined Russia, India and Brazil Chinas economy has grown by $1.5 trillion in past two years.

China, A favorable Environment for Multinational BusinessHighly favorable environment that offers low labor costsStrong infrastructureA rising level of educationIncreasingly skilled laborGovernment incentives to attract FDI in the country

Red represents data of 2005Grey Represents data of 2010

According to the 2012 China Business Confidence Survey conducted by Roland Berger and the European Chamber of Commerce in China, 74% of European MNCs view China as increasingly important to their company's strategy,

MNCs Success stories In China

Volkswagen opened two new plants on 2013 (both financed by revenues from its China ventures) and Ford will open three by 2014.Coach, a premium US accessory maker that saw its sales in China double in 2010 to US$100m, says it aims to raise its revenue in the country to US$500m by 2014 and secure a 10% market share in its sector.Unilever is aiming to boost sales five- fold to US$10bn by 2020Coca-Cola is just finishing up aUS$3bninvestment program and is planning to spend US$4bnmore over the next three years and many more.

Success Stories

The current changesChina seems nearing end of unlimited labor from rural areas at low costsLabor shortage as a result it will increase in industrial wagesRegulatory constraints in areas such as labor law, standards, and environmental protection are becoming increasingly comprehensive and more strictly enforced.China is transforming from emerging market to mature marketDomestic market are growing stronger and MNCs have to compete with them