China: history, geography, culture and economy
- Industry analysis
- The intensity of competitive rivalry
- The bargaining power of the suppliers
- The bargaining power of the customers
- The threat of the entry of new competitors
- The threat of substitute products or services
- SWOT analysis
- The internal analysis
- The external analysis
- The financial analysis
- The strategies
- Conclusion: Kuchen's opportunities and objectives
The policy of reform and opening-up initiated by Deng Xiaoping (one of the founding fathers of modern China) in the late 70s has been largely beneficial: For twenty years, economic growth in China has averaged around 9.5%, a rapid pace that should continue for some time. Its economy is booming again and the living standards of its people stood out in an obvious way. However, the march goes on. The rise of China is evident in recent decades, this country is sometimes presented as the great power of the future, especially economically.
In 2006, China was the fourth world power with a GDP of 2,228 billion (representing about 6% of world GDP). On the industrial front, it has become the world's factory, sucking greedily at all the traditional industries in the five continents. China produces 40% of the global textiles, 35% of mobile phones and 45% of electronic goods. Today, there are countless industries of western countries that have been relocated due to its cheap labor. China has become an industrial power. China has sent sixty rockets into space, including two cabins inhabited, and speaks for the coming years, with a mission to the moon. Technologically, it launched its own nuclear power plants, and started this year in the construction of the TGV train linking Beijing to Shanghai. Similarly, the number of Chinese Internet users connected to the Internet continues to grow. Today, China has 137 million.
The number of products 'Made in China' continues to grow. For proof, one need only to look at the significant growth of exports to foreign countries for manufactured goods. It is a leader in the following areas: 1st world agricultural producer (producer of fruits, cereals, meats, vegetables, peanuts, cotton, etc.), 4th global industry (after the United States, Japan and Germany), No. 1 producer of steel, coal, cement, fertilizer,No. 1 toy maker (70% of the toys are 'Made in China'), television (25%), shoes, clothing, 3rd in the cars (and second for trucks and buses the first) and 3rd in computers (and 2nd for PC only).
China is a country that attracts the most foreign investors (9.4% of Foreign Direct Investment in the world behind the U.S. and the UK), with 60.3 billion dollars received in 2004. Foreign investment has played a key role in China's economic take off.The foreign-funded enterprises now account for 30% of the industry, 55% commercial, 70% of sales in some areas.
China is a member of the WTO (World Trade Organization) since December 2001. Indeed, its leaders have realized the importance of foreign investment in China's growth. In addition to having a huge export market, China has great potential on the domestic market. The country attracts only for its low cost in labor and production, but also for its huge domestic market of 1, 3 billion Chinese.
In addition, the rapidly increasing purchasing power in cities has led to the emergence of a middle class, which is now 130 to 400 million Chinese who can afford to consume. China is continuously improving its facilities and services. According to the government plan, China will become the fourth most visited country in the world in the years to come.
Tags : China; history; culture; economy of the country; foreign investors in China