Comprehensive Analysis of China: Political, Economic, Social, and Tech

This report provides an analysis of China's business environment, focusing on the political, economic, social-cultural, and technological influences. The political factors discussed include government regulations and legal issues, particularly concerning the development of e-commerce and the need for improved legislation. Economically, the report highlights China's significant GDP growth, potential for further expansion, and the impact of factors such as high property prices and inflation. Social and cultural aspects, including demographic changes, education levels, internet usage, and e-commerce trends, are also examined. Finally, the technological factors influencing the business environment, such as new production technologies and distribution mechanisms, are addressed, along with the challenges in online payment systems. The report concludes that analyzing these external macro-environmental factors is crucial for companies operating in China, emphasizing the attractiveness of the e-commerce industry to foreign investors, while also noting the need for improved legal protection.

Running head: ANALYSIS OF CHINA
ANALYSIS OF CHINA
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Author note:
China is one among the most beautiful and attractive locations present in the globe. It
has developed in a way to become one of the strongest powers as well. Such a massive rise of

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China has boosted up the international business of it. The political and legal system of China
too has improved with the change in time (Deresky 2017). They international investors seek
to do business with China because of the three main reasons and they are- its market size, its
growth potential and the so low cost of labor in the China. Today, China has increasingly
integrated along with the other parts of the world. This paper will assess the political,
Economical, Socio-cultural and Technological influences in China.
The political factors that have an impact on China are government regulations and
legal issues in the country. Both the formal and the informal rules that the companies must
abide by, influences the country. There are many people who claim that political factors are
the most disturbed force. The government in China has focused on developing the e-
commerce (Subramanian et al. 2014). The legal framework for the e-commerce in China is
still not developed to its fullest. The country has no so much of experience in drafting the e-
commerce legislation for tax and intellectual property rights protection.
The economic condition of China has experienced a notable GDP growth in the last
eight years. Some of the factors that might help China in surpassing the US GDP soon
include the sigh level of savings, the potential urban growth, the skilled labor that are present
in abundant number and the more export business (Anyanwu 2014). However, some of the
economic factors that tend to work as factors to worry about are high property price and high
inflation rate in the country.
Both the social and the cultural aspect of China play a very vital part. This is because
the demographic constantly changes. Like, for example fluctuation in the age distribution and
growth of population. Along with this, the family size as well as the social behaviors often
influences the way people take decision. Some of the other social factors include education,
emigration, religion and lifestyles. The rate of literacy in China is 90%, which shows that the

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country emphasizes on education (Moon, Ohk and Choi 2014). Also, there are about
425million internet users in China and most of the people shop online. The largest e-
commerce website in China is Taobao.
The technological factors that influences the business environment of China include
new production in technology and products, introduction of new mechanism in distribution
(internet) and purchasing process (intranet/ extranet). However, the major issue in the field of
technology in China is that the development of B2C industries does not have a proper online
payment system that is both safe and stable (Xianglian and Hua 2013).
Hence, it can be said that China is a developing market with a need for some minor
changes. Analyzing these external macro-environment factors will help the companies in
China. Stable political situation and rapid economic growth make the e-commerce industries
lucrative to the foreign investors. Also, it is also to note that there is not proper legal
protection.

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References:
Anyanwu, J.C., 2014. Factors affecting economic growth in Africa: Are there any lessons
from China?. African Development Review, 26(3), pp.468-493.
Deresky, H., 2017. International management: Managing across borders and cultures.
Pearson Education India.
Moon, C.S., Ohk, K. and Choi, C., 2014. Gender differences in financial literacy among
Chinese university students and the influential factors. Asian Women, 30(2), pp.3-25.
Subramanian, N., Gunasekaran, A., Yu, J., Cheng, J. and Ning, K., 2014. Customer
satisfaction and competitiveness in the Chinese E-retailing: Structural equation modeling
(SEM) approach to identify the role of quality factors. Expert Systems with
Applications, 41(1), pp.69-80.
Xianglian, C. and Hua, L., 2013. Research on e-commerce logistics system
informationization in chain. Procedia-social and behavioral sciences, 96, pp.838-843.