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China Case Analysis

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The Business Environment of China: Challenges of an Emerging Economic Superpower
The most important issue in this case
This case provides a brief history of China and explores China’s current status in the global business environment. Throughout the reform of political structure and the economic system, the development of China was impressive. However, the potential problems due to the reform also surfaced and became the inevitable challenges of the continuous development of China. The case focuses upon an analysis of the significant challenges faced by China in society and culture, markets, technology and institutions. First, challenges in society and culture. Although China was still a comparatively young country (with a median age of 30), China’s huge population determines some of the inevitable problems during the country development. China was one of the world’s most rapidly aging nations by consequence of the country’s “one child” policy. More elderly dependents than children also cause problems in health care and retirement. The poverty and income were not equal in society. People in China still face the problems of discrimination and corruption. Second, challenges in markets. In product and service markets, local companies were often not pushed to produce high-quality products that would be competitive in the global arena. In factor markets, the size of China’s workforce and the corresponding availability of low-cost workers meanwhile caused the shortage of skilled managers, the substandard of management school, the large number of unemployed migrant workers, and worker rights and workplace protection issues. China’s rapid industrialization and its historic attitude toward the environment created a serious risk to China’s natural resources. The government also needed to address the poor financial control, corrupt lending…...

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