After China’s admission to WTO in 2001, it has become as one of the most important destinations for international business. It seems that China is a big market that is supported by the central government and has a strong potential economic and financial. This was the reason behind many multinational companies seeking a piece of the country's resources. Despite there being a great opportunity for business by multinational companies, there are so many risks that international businessmen have to deal with in order to remain competitive in the Chinese market( ). The aim of this paper is to analyze these risks and the strategies that have been applied to manage them.
Introduction The banking and financial sector and the need for regulation have attracted attention and concentration both in academic and policy discussions. The question of how competition aﬀects system’s stability and regulation effectiveness is not well stated yet. The appeal of competition in the banking sector has been a matter for discussions for a long time. After the crises of the 1930s, antagonism was kept in low levels in order to protect system’s stability. There was a wave of deregulation in last decades which raised many restrictions on competition, and as a result banks were able to extend their investments in riskier actions and new locations.
Regular reports for which loans are paid and which ones are not are not being generated by the loan officers. Bad loan now account for 11% of the bank’s loan book (Engardio 208). Capital adequacy ration is at 2%, which is below the Chinese regulators 4%. The number one job for the SDB is to gain control over the bank’s branches in the major cities effectively. The cities include Shanghai, Beijing, and Chongqing.
Trade liberalisation and the reduction in bureaucracy has enabled overseas firms to enter the Chinese market to take advantage of cheap and vast labour, creating millions of jobs. However, the privatisation of state-owned enterprises in the face of international competition as well as economic restructuring has also simultaneously led to mass job losses, especially in rural areas, posing a challenge to the Chinese economy and the government. During the period 2009 to 2015, China’s urban unemployment rate averaged 4.8% which is lower than the world average of around 7%. However, the real unemployment situation is likely to be more serious as migrant workers and newly graduated students are not included in government statistics on unemployment. As well as this, China has had historically low levels of unemployment, thus, a trend of increasing unemployment levels indicates a worsening situation.
Examination Two Essay One HIS 1010-5 WB: World Problems China has redeveloped itself from past years to a point where they produce a large amount of goods needed by other countries. This new position is forcing other countries and the U.S. to adapt to China and tread carefully with China while China takes awkward stances on different areas affecting their own people and the world as a whole. China’s growth produces change and change allows for new learning. As long as China can follow the commitments it has set forth to the world and domestically, then the world can look at how China can help with world trade and economics and deal with the major responsibilities such commitments bring. Currently in the news was how China helped search for the missing Malaysia plane.
Asset management companies have been created to manage these nonperforming loans, but the situation is far from stable. A lack of corporate governance has also created an environment where management of banks is opaque and corruption widespread. The risks inherent in this industry are great. Midway through 2005, Citibank faced significant barriers to growth in China. It had worked hard to become the dominant foreign bank in the country in expectation that the country's banking sector would be opened to all compe... ... middle of paper ... ...s well as the first international bank to launch two new investment products, Premium Accounts and Market Linked Accounts, in China (www.citigroup.com/citigroup/press/2005/050304a.htm.)
While it seemed that china was coping with the effects from the International Financial Crisis fairly well, it is now being faced with additional problems as both Europe and Britain who make up for a vast majority of its clientele are also experiencing economic uncertainty. China’s exports, imports, and FDI inflows declined, GDP growth slowed, and millions of Chinese workers reportedly lost their jobs. China’s real GDP growth fell from 14.2% in 2007 to 9.6% in 2008, to 9.2% in 2009 and currently in 2013 is 7.6%. According to Wayne M. Morrison, China has the ability to maintain a rapidly growing economy in the long run but this will depend largely on the ability of the Chinese government to implement comprehensive economic reforms and a rebalance of the Chinese economy by making consumer demand, rather than exporting and fixed investment, the main engine of economic growth; boost productivity and innovation; address growing income disparities; and enhance environmental protection. The Chinese government has acknowledged that its current economic growth model needs to be altered and has announced several initiatives to address various economic challenges.
With wides roead corruption China had a full plate however they had another dish to add to it, inflation. Inlation was a problem faced by the Chinese econmony that, thanks to reforms and leaders,was able to be corrected. However it was until the mid1990’s that inflation stoped being a problem. Inflation decreased drastically from 1989 to 1990 to a tiny 2% and began to rise again in 1993 and reached a new high of 24.2% in the mid 1990's. The government again took action and reduced inflation to 14.8%, but until the middle of the 1990’s decade the inflation rate in Chinese cities was very high.
The rise of China and whether it is a threat to Asian stability When you read about China's development over the past 30 years and its statistics that impress by constantly increasing trends or the huge numbers that describe the vastness of China, the natural tendency is to give China a rightful place and status as a global superpower. For economists, politicians, military strategists and even the simple citizens this is a rare chance to see the rise of a superpower and to experience in real time all the effects of such global developments. The main catalyst for the rise of new powers, especially China, is the globalization process which began two decades ago by Western powers; and as we all know there are advantages and disadvantages of the globalization. Thus, reality forces us to think more and more in a comprehensive manner and to analyze the effects of globalization, especially for positioning each country and especially in defining future development policies. This paper aims to focus on the effect of the rise of China within the context of its neighbor states, to asses that China is not a threat to Asian stability and also, to highlight some of the challenges of China's ascension to what might be called a relatively foreseeable future.
By adopting democratic ideas they might be able to loosen up that tension. Based on recent political and economic reform, China is moving in the direction of democratization. These hopes have largely been quelled by the illegality of a civil society. However, a new challenge to the government is the growing population, the fractured economy and bureaucracy. The main challenge the Chinese government faces is the pressure to continue this rapid growth.