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Research Papers on Business in China

Business in China research papers show that China’s potential is especially alluring to business people worldwide submerged in the throes of the current global recession.  Its continued aggressive growth path even in the face of this recession has been impressive, yet much of it comes from direct foreign investment.  For example, FedEx is working to double the number of Chinese cities it serves from 150 to 300 over the next five years.  Yet events such as last April’s collision between a Chinese fighter plane and an American spy plane – and the ensuing verbal war, the worst on record since the days of the Cold War – serve to remind the business community of how fragile the Chinese market remains.  David Shambaugh, author of the recently published “Is China Unstable?” claims that “China today is more unstable than at any time since the height of the Cultural Revolution

Socialism and Business in China

The frequency of labor disputes in this country has mushroomed 1500% from 1,200 in 1992 to 120,000 in 1999, as the number of unemployed has soared to as much as 20% in China’s big industrial cities.  Business in ChinaBut beyond social unrest, the country is still plagued by the economic side-effects of socialism:

  • Chinese Bureaucracy
  • Lassitude
  • Corruption

China has pursued reform, this has led to the creation of a sometimes unstable business infrastructure as old bureaucrats became overnight millionaires through windfall gains.  Over the years, this unstable infrastructure has sometimes caused Beijing to backtrack and retighten economic controls.  Finally, and perhaps paradoxically, the very size of the Chinese market presents a threat as well as an opportunity; for one, imagine if you will the environmental impact of a nation five times the size of the United States emulating American consumption standards?  Maybe that’s unlikely – but small shifts in Chinese demand for such imports as imported grains have already sent global prices into tailspins.  Undoubtedly, China provides an immense business opportunity, but one that must be approached with much planning and proper caution.

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