China’s Global Position
People’s Republic of China (PRC) is commonly known by the name China (Yueh, 2012). PRC is a sovereign state in East Asia, it has been noted that PRC is the most populous nation in the world, with the current population estimated to stand at over one point three five billion people. Communist Party is the current party governing PRC, since PRC is a state with a single party system of governance (China Economic Outlook, 2012). Chinese Civil War has remained unresolved, a model that provides controversial information on Taiwan being part of PRC. Taiwan is under Republic of China (ROC) and has a different political entity and status.
PRC is among the largest nations considering land area taking position two and also takes position two or position three reflecting on the total area of the nations. The landscape of PRC is diverse and vast. PRC is at the first lane in terms of developments, and PRC is the second in power after the United States (Naughton, 2006). It has been noted that PRC has diverse opportunities for growth, a model that makes it very difficult to predict the future of PRC. It is believed that the new government, PRC as the king in Middle East has began new growth and vigor towards the economic lead in the world (Chow, 2007).
Chinese civilization is one of the most ancient in the world. The political system of PRC was mainly dynasty or hereditary monarchies. History indicated that the dynasty was initiated by Xia, who was semi-mythological in the basins of Yellow River; it is believed that Qin Dynasty overthrew the Chinese empire. ROC in 1911 overthrew the last ever dynasty that existed, ROC took control of the Chinese mainland for years till 1949, this was after the World War II (WWII) during which Empire of Japan was defeated. Nationalist Kuomintang was defeated by the Communist Party in the Chinese mainland which led to the formation of PRC in 1949, October 1st. Kuomintang shifted its governance system to Taipei, now known as ROC. The jurisdiction of ROC is not wholly recognized in the world and has powers in Taiwan, Kinmen, Penghu and Matsu (Lin, 2011).
PRC introduced reforms in the economy in 1978, making it one of the fastest growing economies in the world. Surveys done in 2013 indicated that PRC has 2nd largest economy in the world reflecting on nominal total Purchasing Power Parity (PPP) and Gross Domestic product (GDP) (China Economic Outlook, 2012). Reflecting on importation and exportations of goods and services, it has been noted that PRC is the world’s largest. PRC is a nuclear weapons nation and is recognized in the world. It has also been noted that the standing army in PRC is the world’s largest, with the defense budget taking position two in the world. PRC is an active member of the United Nations since 1971.
PRC is a member of diverse informal and formal multilateral organizations some of them identifying with Shanghai Cooperation Organization, World Trade organization (WTO), National economies that are emerging Brazil, Russia, India, China and South Africa (BRICS), Asia-Pacific Economic Cooperation (APEC), Group of Twenty Finance ministers and Central Bank Governors (G-20, Group Twenty or G20) and Bangladesh China India Myanmar Forum for Regional Cooperation (BCIM) among others. It is estimated by military analysts, academicians, economic analysts and public policy analysts among others that PRC is the superpower in the making in the near future (Lin, 2011).
PRC has its economy in transition, and that the State has become the factory of the globe. PRC has one of the largest consumer markets with diverse economic centers being established in the nation. The restructuring of the PRC’s economy was initiated from the rural areas and later introduced in the urban centers (Rawski, 2011). It was noted that the restructured reforms were in form of price reforms, ownership reforms and the development of market oriented economy. PRC has big cities depending on municipality and SARs cities, county level cities and the prefectural level cities. China has six hundred and fifty eight cities, and the list is ever increasing (Chow, 2007). The largest cities in PRC identify with Chongqing, Shanghai, Beijing and Tianjin. Other cities are Chengdu, Guangzhou, Harbin, Shenzhen, Wuhan, Qingdao, Hangzhou, Xi’an, Shenyang, Nanjing, Changchun, Ningbo, Jinan, Dalian and Xiamen. Most of the cities are homes to millions of people.
People in PRC are taught in childhood how to live within their means and limits, this unlike people in the Western world that suffer from consumerism, this is a clear indication that people in PRC rarely runs into uncalled for debts. People in Western World in most cases find themselves in debts due to credit spending. Chinese people are mindful of the future, an indication that they spend what they have earned and also save (Yueh, 2012).
Recent surveys indicated that only five percent of the Chinese population is under credit facilities by the financial institutions. Socialization and globalization has led to diverse changes in the habits of the consumers. PRC over time has become closer and open to the outside world, an indication that global commercial activities are ever increasing. It has been noted that a significant portion of people in PRC have initiated traits of valuing their personal time and encourage on efficiency (Lin, 2011). The move has encouraged the Westernized frozen food and fast foods among the activities done by busy people in the community.
Busy workers are opting for slip on shoes; clothes with zippers are referred in opposition of clothes with buttons, increased usage of disposable table clothes and the employment of electrical gadgets that make life easier and fast. People on the move are always in preference for personal cars, taxis and fast public transport system. Internet has replaced the letter writing (Chow, 2007).
Chinese people has valued better life in terms of quality, it has been noted that the initial Chinese community was concerned of getting a shelter. The concept has changed with the current generation sorting for comfortable, spacious and nice places to rest after a day’s work. Chinese people have been concerned on modernizing and decorating their homes as they sort high satisfaction (Rawski, 2011). Chinese people especially those at the urban centers are sorting social equality, fresh air, ecological balance, tidy and clean environment and fun and dignity of life.
Individuality and diversity in china is taking new shapes, it has been noted that commodity economy has facilitated the processes. Consumer goods are easily available in diverse designs and varieties, an indication that the Chinese consumers are ever facing choices in their purchase patterns. It is argued that clothing in PRC has moved from something to keep warm or cover the body to something of design and feeling a sense of identity.
Chinese people initially valued Mao suits that were dull colored; this has changed to different body frames, different fabrics, various choice of colors, styles for different age groups, different genders, different tastes and different seasons (Yueh, 2012). Chinese people in the past two decades has been concerned on quality and design of the clothing they wear, this is addition to convenience, comfort and practicability. Chinese people are also concerned on individuality, taste and style; this is an indication that the consumer market has been concerned on brands in the durable consumer goods and in the choice of clothes. People are concerned on quality irrespective the prices of the products and services.
Chinese people in the recent decade have been concerned on personal development, it has been noted that consumers in PRC are aware on the attributes of culture and education, an indication that the Chinese people has developed an urge for science and education. Education upsurge in PRC has taken a new dimension (China Economic Outlook, 2012). Enrolments in the technical schools and higher institutions of education have experienced an increasing number of students seeking to further their education. PRC has also encouraged adult education in making sure that the whole community is educated.
Chinese culture is relationship based, an indication that people must be friends first in order to transact any business. Chinese people have a general believe that if relationships are first cultivated, then commercial transactions are possible. Chinese people belief that time is important for any business negotiation. In that deadlines are not taken with much seriousness as in the Western world. Chinese people have adjusted to both the fast and slow business processes depending on the type of business transaction (Morrison, 2013).
Westerners have linear logic of thoughts, which does not apply in PRC. Philosophers of PRC are influential in the way the people PRC look at things. It has been noted that paradoxical balance is common where people look at issues in opposites. Chinese negotiators in business are therefore not straightforward; some Westerners argue that Chinese negotiators are devious, illogical and evasive (OECD Economic Surveys CHINA, 2013).
Business contracts in PRC and from the Westerner side takes different shapes, in that Westerners approach business contracts from a standard point of view, which is then adjusted to fit diverse situations. In traditional PRC, commercial contracts never existed, and the ancestors viewed it as a ‘bad faith’ business process (Naughton, 2006). Chinese people do not fully integrate foreigners in their culture, an indication that people doing business in PRC must find a local Chinese person to carry out sensitive business processes in the best way possible.
SWOT analysis on PRC focused on the strengths, weaknesses, opportunities and the threats. The strengths of PRC are characterized with biggest population in the world, an indication that consumer market is readily available; PRC has a stable infrastructure; PRC has influenced the economy of the African nations; PRC has vast natural resources identifying with core, petroleum, iron ore, mercury, natural gas, tungsten, tin, lead, uranium, zinc, manganese, antimony, vanadium, molybdenum, aluminum, lead and magnetite among others; and by the fact that PRC is a source of cheap labor in the world (Lin, 2011).
The weaknesses with PRC are pegged on poor policy risks, irregular power supply, weaknesses of the economy, high population, scientific and academic misconduct, high corruption in some economic sectors, regulation of the gas prices; nation has a political risk, poor enforcement of Intellectual Property Rights and environmental pollution.
Opportunities with PRC identifies with high population that provides a boom in the consumption of commodities, Chinese people are ever learning English language which is the global business language, the current government is ever increasing the economic freedom and PRC has embraced renewable sources of power generation mainly with solar energy and wind energy. The treats with PRC identify with massive cases of scientific and academic misconduct, strikes directed at eliminating multinational companies, currency manipulation, aging population due on one child policy and high cases of environmental pollution (Naughton, 2006).
Predicting the future if PRC is very difficult, in that the analysts are concerned in defining the power and wealth of PRC. There are a number of theories explaining on how PRC may use it power and wealth in international relations, diplomacy and affairs; in that whether PRC will enjoy nationalism, democracy and human rights. There are possibilities that PRC is the next superpower in the world. Sustainability of PRC is questionable and only time will tell (Chow, 2007).
Tourism in PRC is not well defined, but it is improving with time. It has been noted that reforms and openings have contributed significantly in the tourism industry. PRC has many middle class people who are rich and ready to spend cash on luxuries. In the past decade, PRC is one of the hottest outbound and inbound tourist markets. PRC is one of the third visited nations, with most people having a business orientation (Morrison, 2013).
Service industry in undeveloped considering the average levels in the world. There is a need for the PRC to develop models of addressing the service industry, in making sure that the rapid development is sustainable. Service industry is critical in economic upgrading and job creation as way of improving service qualities and supplies (Naughton, 2006). Service industry offers structural optimization and stable economic growth. It is expected that PRC will invest in the service industry in enhancing an economic system that is upgraded with the current developments in the world (OECD Economic Surveys CHINA, 2013).
The current Chinese government is facing diverse challenges, it has been noted that Chinese economic growth was contributed by the high labor productivity. The current working age population is ever decreasing, a model that present a challenge in the future. Evidence obtained from a number of nations that have experienced rapid economic growth like what is happening in PRC proves that sustainability is not possible, and that the economic growth will take a downturn as times passes by. The four main challenges that PRC is facing is dealing with the economic performance, Leadership cohesion, social stability and the foreign policy (China Economic Outlook, 2012).
The economy of PRC is export driven and more of consumption model. China has low wage rates. There are challenges that if the other nations start producing their goods and services, PRCs economic power might disappear since it is based on exports. There is a need of redefining the export market and focus on the local market for sustenance. There are indications that the leadership of the Chinese market is geared towards market rationalism (OECD Economic Surveys CHINA, 2013).
Globalization and socialization in PRC has contributed to issues of social stability, in that more and more people in PRC are contributing to the economic growth of the nation as people enter into the workforce and enjoy better lives. (Morrison, 2013) PRC in the recent decade has experienced street protests, labor unrest, anti-foreign populism and anti-elite populism which have been fuelled by the global models of information flow. The government and politics of PRC must be ready in dealing with these issues as they come in enhancing social stability. An example of well known protest was the NIMBY protest (Not In My Backyard) which targeted the Americans. The Chinese government must be ready in making regular reforms to accommodate the changes happening in the world (Naughton, 2006).
The third challenge is dealing with the leadership cohesion, it has been noted that issues of leadership cohesion came up after the Xilai scandal, after a police chief sort political asylum in American consulate. It was noted that Bo Xilai and his wife were arrested and convicted of murder. Cases of malfeasance and corruption have been on the increase in PRC, a model that is raising questions on the integrity and caliber of people in top management positions (Chow, 2007). The Chinese government must develop ways of dealing with cohesion, by best defining reforms.
The fourth challenge is dealing with foreign policies, it has been noted that PRC has developed a status quo power model, an indication that PRC does not embrace revolutionary power. The government of PRC and other institutions in the land face high levels of bureaucracy in decision making. The national interest of PRC is not as clear as the national interest of the Western nations. There is a need for the PRC to increase its national interests through clear and defined policies on foreign policy (Morrison, 2013).
PRC has huge growth prospects although the nation is facing diverse challenges that are ever increasing in frequency and size as the economic development takes shape. There is a need of developing green environments in enhancing sustainability, through development of appropriate policies, technology, engagement campaigns and awareness (China Economic Outlook, 2012).
References
China Economic Outlook. (2012). International Monetary Fund (IMF) , 1-10.
Chow, G. C. (2007). China’s Economic Transformation. Hoboken, New Jersey: Wiley-Blackwell.
Lin, J. Y. (2011). Demystifying the Chinese Economy. Cambridge, England: Cambridge University Press.
Morrison, W. M. (2013). China’s Economic Rise: History, Trends, Challenges, and Implications for the United States. Congressional Research Service (CRS) , 2-35.
Naughton, B. J. (2006). The Chinese Economy: Transitions and Growth. Cambridge, Massachusetts: The MIT Press.
OECD Economic Surveys CHINA. (2013). OECD 2013 , 2-53.
Rawski, T. G. (2011). The Rise Of China’s Economy. Foreign Policy Research Institute (FPRI) , 1-7.
Yueh, L. (2012). The Economy of China . Northampton, Massachusetts: Edward Elgar Publishing Ltd.
