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Pestel Analysis of China

In: Business and Management

Submitted By parmansidhu
Words 556
Pages 3
Political: * Corruption * Officials wellbeing is directly related to the impact of business in their area * Revenues are largely supplied in areas by private companies * They control opportunities and resources needed for big business to thrive. * The political responsibility of developing local economies creates corruption * Because they have their hands in building the business they want their share of its profitability (“Privatization with Chinese characteristics; Government and business in China,” 2011)
(Yang, 2012)

* More of an authoritarian Government – nationwide law making * Implementation by local areas * (Lo & Tian, 2004) * Political control by a relatively small group * Control on wage rates, money supply and inflation * Control of key sectors of the economy * (Cheng, 2014)

* Direct Political interaction with business * Policies to encourage local private companies * Companies owned by the government: hotels and trading corporations * Effectively local politicians become “partners” * (Yang, 2012)
Economic:
* low labor costs * relatively equitable distribution of income among the population * a long term goal of economic development * (Cheng, 2014) * Centrally planned to a market based economy * Increasing economic and social growth * Second largest economy – 1.3 billion people * GDP growth on average 10% * Goal in 5 year plan is 7% * Still considered a Developing country with 98.99 million still under the national poverty line (“China Overview,” 2015)
Social:
* Confucian Ethics (a basis to start) * The Basis it what sets apart china and other developing countries and the expansions that they have seen * Creates dedicated,...

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