Opportunities and challenges presented by external environment

Opportunities and challenges
presented by external
environment

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Contents
Introduction............................................................................................................... 1
Information related to China....................................................................................... 1
Key Industry Sectors................................................................................................. 1
Opportunities for company............................................................................................ 2
Challenges............................................................................................................. 3
Conclusion................................................................................................................ 3
References................................................................................................................ 4

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Introduction
China is another super power nation in the world both in terms of political power and
economic terms. This company provides an excellent opportunity to the foreign investors.
With low labour cost and highly skilled workforce available in the country it acts a perfect
destination for doing their business. Its political system is a centralised unitary state which is
totally administered by the Chinese Communist Party. They have a large national
bureaucracy that deals with every aspect and it is considered to be authoritarian in its
ideology and structure. China is the second largest economy in the world and the growth of
China was 6.6% of the GDP1. The transformation of the Chinese state started in the year 1978
when the communist government fostered dual economic structure which has originated from
a socialist, centrally planned economy to a socialist market economic system.
1 David Dollar, 'United States-China Two-Way Direct Investment: Opportunities And Challenges'
(Brookings, 2019) <https://www.brookings.edu/research/united-states-china-two-way-direct-
investment-opportunities-and-challenges/> accessed 22 July 2019.