When focusing on China for the Global Business Cultural Analysis, I understood the importance of China not only to the world but to the United States. In developing my five research items, I was a bit surprised by some of the research.
The first analysis was the impact of doing business in China. In the first research aspect, I saw that not all foreign investment was particularly good for China. China attracted a lot of investment that was bad for the country. It attracted inefficiency, outmoded industrial processes that were 30 years out of date in the West let alone China, industrial polluters, poorly treated work forces. Foreign investors were largely free to bring to China, especially in manufacturing, old processes long discredited elsewhere. The true cost of conducting business in China is now levied.
My research took me to why China chooses certain countries to trade with. From time to time, China is selective about who it chooses or rejects as a “trade buddy”. Ultimately, Beijing’s priority is maintaining the Communist Party’s domestic control. To do this, its current economic growth rates must be sustained, and additional raw materials must be acquired from outside its borders. Furthermore, as Beijing continues to suck up energy resources around the world, it will need to counter any critics’ fears or resistance. Striking up FTAs and free trade zones is China’s attempt to make its purchases seem more bilaterally beneficial, and less imperialistic.
My research then took me to who is Chinas major trading partners? The list of countries talking or lining up to talk trade with China is seemingly endless. In Australia, China gains access to mineral riches, and an indirect means to influence the emerging Australian, Japan and US alliance ...