Comparative Analysis: Business Environment in China and Saudi Arabia

This essay provides a comparative analysis of the business environments in China and Saudi Arabia, examining global, ethical, political, and societal indicators. It delves into the economies of both nations, their relationship to capitalism and democracy, and the impact of internet censorship. The analysis covers China's shift from low-tech manufacturing to an innovation hub and Saudi Arabia's move towards modernization. The essay also explores the role of economic reforms, foreign investments, and the influence of free markets in shaping the business landscapes of both countries. Desklib offers a variety of resources, including past papers and solved assignments, to aid students in their academic pursuits.

Running head: BUSINESS ENVIRONMENT IN CHINA AND SAUDI ARABIA
Business Environment in China and Saudi Arabia
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1BUSINESS ENVIRONMENT IN CHINA AND SAUDI ARABIA
Global, ethical, political and the societal indicator in China and Saudi Arabia
The society in China is greatly influenced by that of the traditional values that helps in
promoting strict norms in relation to norms along with the propriety. It has however been
found that the framework of the corporate governance within China has been found to be
weak on account of the planned economy1. There is a large amount of interference of the
parties that acts like an obstacle in the path of the business in China. The business in Saudi
Arabia thinks that sensitivity in relation to the ethical standards can help a business in
achieving success. The organizations of Saudi Arabia conform to that of the ethical standards
that helps the various business of Saudi Arabia in making profits. China has moved towards
authoritarianism that has acted like a barrier in the path of growth of the different business.
Saudi Arabia on the other hand is an open and the modern state that has helped the different
business in flourishing in Saudi Arabia2. China has been found to be detached from that of the
society and this has made the society alienated in relation to the ideology along with the
belief system of that of the state. The people of Saudi Arabia have a favourable attitude
towards that of science along with the technology that has helped in making the lives of the
people healthy within Saudi Arabia.
Economy of China and Saudi Arabia and its relationship ship to capitalism and the
democracy
The country has become the powerhouse of Asia that is involved in importing a large
amount of aluminium, copper along with nickel from the rest of the world. China has been
1 Geng, Yong, Joseph Sarkis, and Sergio Ulgiati. "Sustainability, well-being, and the circular economy in China
and worldwide." Science 6278, no. Supplement (2016): 73-76.
2 Niblock, Tim, ed. State, Society and Economy in Saudi Arabia (RLE Saudi Arabia). Routledge, 2015.

2BUSINESS ENVIRONMENT IN CHINA AND SAUDI ARABIA
able to transform itself from global center of the low tech manufacturing into a hub pertaining
to innovation. IT shows the relationship of the economy of the country with the tenets of
capitalism3. The economy of Saudi Arabia does not have any relationship with democracy as
the government of the place involves itself in controlling the institutions of the country. The
people in Saudi Arabia lack the basic rights like the freedom of the speech and the association
that does not conform to the principles of democracy. Saudi Arabia does not involve itself in
privatization but they are focussing on the aspect of modernization.
Impact of the internet on Saudi Arabia and China
The internet censorship in China has an adverse impact on the economy of the
country. It has put a curb on the aspect of creativity in the country. The government of China
wants to place restrictions on what the people are reading in China4. The ban on the internet
is preventing China from that of intellectual along with the artistic exploration. The global
technology companies do not want to invest within China that has negative consequences for
the economy of the country. Saudi Arabia involves itself in censoring various forms of the
media like the books, newspapers along with the magazines5. The government monitors the
usage of media and restrictions are placed under that of the state law.
3 Kirkby, Richard JR. Urbanization in China: town and country in a developing economy 1949-2000 AD.
Routledge, 2018.
4 Breslin, Shaun. China and the global political economy. Springer, 2016.
5 Presley, John R., and Tony Westaway. A guide to the Saudi Arabian economy. Springer, 2017.

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Capitalism and China and Saudi Arabia
China has launched various kinds of economic reforms that has helped the private
sectors in the operation of their own business. It attracts the foreign investments that shows
its inclination towards capitalism. The country has embraced the property rights along with
that of free market competition that helps in revealing traits of capitalism. It defines
capitalism with the help of their policy of free market competition. Shanghai Stock Exchange
has emerged to become the third largest within the world owing to the help of market
capitalization. Saudi Arabia is moving away from the model of that of passive state
ownership to the one that wants to compete in the international arena6. There exists a
relationship in between the economic growth and that of personal freedom in relation to
China along with the Saudi Arabia. It has been found that the countries that are free have
grown to be rich in the world. The citizens expectations being fulfilled in a country can set
the stage for economic development of a nation. The countries that are politically free rank
higher in relation to the economic freedom that helps in the creation of open markets. It
facilitates the process of globalization and the liberal industrial policies can set the ground for
the prosperity of a country. The greater participation of the people in the government can give
rise to a wealthier population.
6 Albassam, Bassam A. "Economic diversification in Saudi Arabia: Myth or reality?." Resources Policy 44
(2015): 112-117.

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References
Albassam, Bassam A. "Economic diversification in Saudi Arabia: Myth or
reality?." Resources Policy 44 (2015): 112-117.
Breslin, Shaun. China and the global political economy. Springer, 2016.
Geng, Yong, Joseph Sarkis, and Sergio Ulgiati. "Sustainability, well-being, and the circular
economy in China and worldwide." Science 6278, no. Supplement (2016): 73-76.
Kirkby, Richard JR. Urbanization in China: town and country in a developing economy
1949-2000 AD. Routledge, 2018.
Niblock, Tim, ed. State, Society and Economy in Saudi Arabia (RLE Saudi Arabia).
Routledge, 2015.
Presley, John R., and Tony Westaway. A guide to the Saudi Arabian economy. Springer,
2017.