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Pestel Analysis of China

In: Business and Management

Submitted By ShaggyOne
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PESTEL analysis for China
Outlined below is the PESTEL analysis for China as a whole. 1) Political Factors i. Constitutional System
China or People’s Republic of China adopts socialist system or communism in their political system in their decision-making processes in governing the country. The country’s sole political party in power is known as the Communist Party of China. The government have the sole power to control all activities done by their citizen as what have been describe in how communism system worked in governing a country. In other words, the purposes of working in China are to contribute to the nation and also to the government as the government control on all activities in the country.

ii. Stability of Government
The stability of the China government is quite moderate and stable because the administration of the government are not publicize to the public either through the press or on the internet. So, the degree of the citizen involvement in the politics is low because of the heavy restrictions impose by the government. However, the policies impose and the law regulations are quite effective in terms of economy where China is one of the leading countries in the world. In the recent years (2001), China has joined the World Trade Organization and results rapid growth in industrial and manufacturing sectors because of the cheap labor in China. But still problems such as managing environmental degradation, demographic pressure and the extreme immigration from rural to urban area must be faced by the government.

iii. Business Freedom
The business freedom in China is quite tight because of the regulation impose by the government where they restrict businesses from other countries coming in. But recently, China government open their gate to the outside world to set up business in their country. It takes 37 days to start anew…...

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