Ethics: Business in China
In the current world economy, China is force to reckon with as it is the fastest growing economy, with the largest levels of imports and exports in the global business platform (Dobbs, Leung, & Lund, 2013). China’s enormous population and adoption of current technology, as well as their relaxed entry rules for foreign direct investments are some of the reasons that can be cited for this rapid growth. This paper champions the thesis that the Chinese situation is very fluid and represents an unstable structure that will leave many investors counting their losses in the near future.
As a short-term business strategy, foreign companies should comply with China’s terms only to a certain extent. The current trend that has seen many corporations setting up magnificent businesses in China should, however, stop. Instead, companies should agree to importing goods and services to the country to enjoy its populous market. One of the negative impacts of China’s invasion of the global market is the killing of smaller and weaker economies with their ubiquitous products (Resmini & Siedschlag, 2013). Thus, this traffic should be controlled to avoid a situation in the future where China will be the controller of world economy.
While it is imperative that countries share and transfer technology for a better global growth, China is popular for copying and inheriting superior technologies, and then producing almost similar products at a lower price (Dobbs, Leung, & Lund, 2013). It is thus a clear manifestation of the complying with China’s rules of setting up a production in their country is not taken in the good spirit of global technology sharing, but is used to advance individual growth that will see the country become the next world’s superpower. It is certain that China, however rich in population, cannot exist as an island. Refusal to set up production in the country would in the long-run yield better results as the economy is likely to revise her stand on foreign investments.
References
Dobbs, R., Leung, N., & Lund, S. (2013). China’s rising stature in global finance. Mckinsey Quarterly, (3), 26-31.
Resmini, L., & Siedschlag, I. (2013). Is foreign direct investment to China crowding out the foreign direct investment to other countries?. China Economic Review (1043951X), 251-16.
