China Country Profile Term Paper Example | Topics and Well Written Essays - 1250 words

China Country Profile - Term Paper Example China’s political system is very much in the hands of bureaucrats and government officials. One has to rely on them to get business done- this is due to the tradition of ‘guanxi’ (Tian n.d) which is about maintaining good relations with the Chinese. In China, it is not the law that matters but the people in power and their interpretation of the law. Due to this very practice, free trade agreements and ease of starting business in China still rests in the hands of bureaucrats and how well one maintains terms with them. Due to government interferences, tariff rates are high but recently, due to globalization, tariff rates have been lowered down in China. Strengthening the ‘reform’ policy (Tian n.d), rates of applicable taxes have also been reduced which has created a favorable environment for new business in China. Economically, China is growing at a rocketing speed and is soon coveted to be the world’s biggest economy beating the US. The average income of Chinese is increasing which signals growth in the demand of consumables and house-hold products. Due to housing subsidies introduced, real estate sector is also booming in China. Socially, China is a very business-favorable nation. Its population reduces doubts of shortage of customers and target markets. Literacy rate is also high in China which means upscale products can easily be produced and marketed. Chinese people prefer products and items carrying the first-mover advantage with them. Urban population in China emphasizes on brand while the rural population is more inclined towards price and quality of products. Due to fast paced urbanization, trend of stylish and high-priced products has picked up in China. It is also a proven fact that due to corruption in China, people tend to report lower income levels than what they actually possess (Tian n.d). Hence, the actual income levels are higher than expected in China thereby highlighting greater disposable income and spending power. China