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Case presentationChina-legal growing pains in a land of opportunity.

Prepared by:

MD SHAFIQUL AZAMMajor in Marketing

Department of Business AdministrationInternational Islamic University Chittagong

Synopsis About china

Business condition (pre-post)

Opportunity of doing business

List of export & import

China: Export & Import Destinations

companies been flocking to china?

China’s Shares of Total World Trade

Bangladesh and china

Problems of china

Challenges

About china

Population: 1.3 billionLife expectancy: Women (73) Men (70)Birth rate: 14.5 per 1,000Death rate: 7.0 per 1,000Adult literacy: 91% GDP: $1.27 bnGrowth in real GDP 1992-2002: 9.3%GDP per capita: $980Origins of GDP (%):Agriculture (15), industry (51), services (34).Manufacturing (18)Employment(%):Agriculture (50), industry (23), services (27)

Collective22%

State-owned78%

Industrial Production by Ownership

Pre Business condition & Industrial Production by Ownership.

Under the direct control of the communist party from 1949 to 1979. Adhering to the notion that Contact with foreigners would corrupt. the nation’s political structure and pollute its cultural life. The government prohibited foreign investment and restricted foreign trade.

Chinese economic police has been characterized by step –by-step liberalization and gradual entry the foreign trade and investment. reduce monopoly business system Economic shaped by free market principle Higher growth of GDP (8%)China is now the world’s second largest economy and it s has joined the united states as one of the two locomotive powering the global economy

Business Condition after Liberalization

24%

14%

6%

56%

Industrial Production by Ownership

State-ownedCollectiveIndividualOther Types

List of exports and Imports

Apparel & clothingOffice equipmentTelecom equipElectrical MachFootwearOther

Electrical MachPetroleum prodOffice equipTelecom equipOther Mach

Principal ImportsPrincipal Exports

Why have foreign companies been flocking to china?

Market potential

Market performance

Infrastructure

Resource

Strategic positioning

China’s Shares of Total World Trade

Exports & Imports from Selected Countries

Bangladesh and china

Market potential

Market performance

Infrastructure

Resource

Strategic positioning

Legal system

Market access

Corruption

Political factors

Strong religions belief

Resource

Problems of Bangladesh for international business.

Standards/Codes/Licenses

Labor Contract Law

reliability of information

Customs ProceduresAcceleration of

urbanization and industrialization

CorruptionEconomic

Nationalism Anti-foreign sentiment

Problems of china for business

Maintaining and increasing employment. Implementing Chinese commitments under the WTO. Establishing a credible and sustainable social safety net. Reform of the state-owned enterprises (SOEs). Reform of the banking and financial systems. Integrating and unifying the domestic market. Controlling corruption.

Tasks Ahead for china

The need to understand the role of the government The constancy of change

Regulations and Standards Authorities Market conditions

Corruption and rule of law. Increasing economic nationalism Managing control and compliance across the board Need to deal with local competition and price pressure Pace and depth of localization The right organizational structure Corporate Engagement

Challenges for Foreign Businesses in china

“There will be no sustainable world without a sustainable China”

Thank you