Analysis of International Business Opportunities in the Chinese Market

This report delves into the realm of international business, with a specific focus on the Chinese economy. It begins with an introduction to international business, emphasizing cross-border transactions and globalization. The main body of the report explores the benefits of investing in emerging economies like China, highlighting favorable government policies, growth opportunities, resource availability, and economic development. It then examines barriers to trade and foreign direct investment (FDI), such as tariffs and quotas, providing insights into China's trade regulations. The report also presents recent progress within the Chinese economy, including GDP growth, population, and income levels. Furthermore, it analyzes businesses that could be successful within the Chinese market. The report concludes with recommendations for businesses seeking to expand into China, supported by economic data and analysis.

International business
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Table of Contents
Introduction...............................................................................................................................................3
Main body..................................................................................................................................................3
1 Benefits of investing in emerging economy..........................................................................................3
2 Barriers to trade and FDI as tariffs and quotas......................................................................................4
3 Recent progress within the Chinese economy.......................................................................................5
4 Businesses that could be successful within Chinese market.................................................................6
Conclusion..................................................................................................................................................7
REFERENCE............................................................................................................................................8

Introduction
international business refers to the trade of technology, gods so this is an capital across
national borders and at the global or transactional scale. it can also involve the transactions that
are across the border of the goods and services between the two and more countries. It can also
be considered as a globalisation. Companies also expand their business within the other countries
that is known as globalisation where they meet with the different environmental conditions and
factors that affect the company strategies and I also have to follow these standards of the
particular country where they are expanding their business.
This report will cover benefits of expanding business within the emerging economies like
China. it will discuss what are the benefits of investing an expanding business within the China.
it will also identify the barriers to trade and FDI Within the China. This report will also include
the economic data that are used to show the progress within the China in recent history. In the
end of this report well analyse the kind of business that could be successful within the Chinese
market with the recommendation and reason.
Main body
1 Benefits of investing in emerging economy
There are many economies in the world that are emerging day by day and creating value based
investing for the companies. One of them is China which is continuously growing their economy.
Without any kind of doubt, China is the key global economic leader and this country has opened
their market for the companies to expand their business and for the international trades. its
economy has rapidly transfer from the being agriculture dependent to the tech driven (Yuan, X.
And et.al., 2020). If any of the company want to be successful within the Chinese market then
they should understand the needs of the customers and there are many opportunities for the
businesses if they invest in the China and if they are able to understand the needs and demand of
the customers then there chances of getting the success increase and they can take advantages
and get better returns on their investment. here are some benefits of investing in China-
Favourable government policies

The policies made by the government of China has very polite and soporte measures for
the both international and local businesses. some of the major support from the Chinese
government is that they are helping the young people who are having be creative an innovative
ideas by giving that business a subsidies. the taxation and the investment policies within this
country are the unparalleled worlds over. The inland regions of this market have very low tax
rates for the Companies from the foreign market then the coastal reasons as a way of
encouraging the multinationals to open shop in rural China.
Growth opportunities
The China’s business policies and the rules and regulations are continuously changing
within some of the sectors an it created opportunity for the companies within those sectors. it is
very easy to operate the business within The Chinese finance and digital health sectors as
compared to the any of the other developed economy within all over the world.
Availability of resources
China is the world number one trading nation and the manufacturer by outputs it means
that the all of the resources are available within this country. whenever any of the business look
to expand their business in economy they always look for the availability of the resources within
the target country.
Economic development
In the year 2018 the Chinese GDP was estimated to be around 13.41 trillion USD And it is the
second only to the United States (Haini, H., 2020). it means that the companies have huge
benefits if they are thinking to expand their business within the China because GDP is the key
indicator of showing the growth of economy. With China’s GDP growth rate is over the past
three decades has often bypassed 10% and constantly accident to the 7% which isn’t high growth
for any of the economy.
Population and level of income
The Chinese population is world number one which means that international companies
will have more customers who can buy their products. it is highly populated economy still there
middle class urban people are about to be rich 70% that means there are very less people in the
world who are poor and most of the people are earning a good salary from their jobs so they have
more to spend on they’re living.
2 Barriers to trade and FDI as tariffs and quotas
China is one of the emerging market where they are providing a various benefits for the foreign
direct investment. on the other side there are some tariffs periods that affect the trade an FDI. A
Tariffs is Essentially attacks or the duty that has been imposed upon the particular class of
exports and imports. the tariffs are increasingly being exposed again against goods from the
China. Here are some tariffs and non tariffs barriers Anne beauties that China takes (Jian, J. And
et.al., 2020). China non tariffs and trade barriers- Firstly the quotas are effectively become the
rescinded Within the Chinese market. It is mostly an import related China trade barriers an it is

seek to impose the quantity limits on a product to protect within the domestic industry of the
country. Currently The Chinese imposed quartos is applied to the mining’s of rare earth minerals.
According to the investment report of the 2020 world investment let's watch published by the
UNCTAD , Every I flows continued to increase between the year 2018 to the 2019 And it has
been seen 2% of the growth from the one three add billion two 141 billion. China was ranked 31st
out of the 190 countries in the world banks 2020 doing Business Report. The major improvement
has been seen And year 2019 when it was ranked 46th out of the 190 countries and the China
was one of the top 10 economies to improve the most between 2019 to 2020 On the basis of
foreign direct investment.There are dramatically increase in the trade between the China and UK
the last year you gave us the 6th largest exporter for the China and they trade around 13.7bn
Pound As for the onset which was the higher as compared to the 2018. the policies related to the
tariffs on the foreign investment of the China is currently veryleniant for the UK foreign
investors (The Benefits of Investing in China in (2020)). The export is being done by the China
within the UK market is most favourable nation in terms of which is under the World Trade
Organisation rules. It is also expected from the China on the basis of trade policies will not be a
barrier to the UK businesses unless the UK businesses make sure that it complies with all the
regulations beginning to the carry out business with business.That is also getting a push by the
bccc to implement the free trade agreement between the China and UK, it will be beneficial for
the both countries on the basis of their relationship and it will also help British economy to gain
higher growth through the free trade agreements. it will be increase trade between both the
countries which is not only beneficial for the British economy but it will also help Chinese
economy to grow on the higher scale within the market (Li, J., Han, Q., Liu, P. and Zhang, J.,
2020). There is no such barriers off establishing business within the China but it might be a
impact of Brexit on the FDI of China. It is because Chinese government was having good
relationship with the European Union where most of the trade are dependent on this union to
make it successful. After the Brexit memorandum it has huge impact on the British foreign
investment within the China. Otherwise there are very less barriers for the foreign investment
within this country an companies from the foreign can invest in the Chinese market without
affecting highly from the Chinese barriers.
3 Recent progress within the Chinese economy
China is fastest growing economy in all over the world. And currently China is the world
largest manufacturing economy and they are exporting their goods within all over the world and
they are the second largest goods importer after the US. This market is trending nation globally
and place the prominence role in the international trades an agreements Anne has increasingly
engaged in the trade organisation an treaties in the recent years.
As of the 2019 Chinese public sector has announced their 63% of the total employment.
According to the reports of IMF which shows that the per capita income based on the rank China
hold 73rd by the GDP per capita and year . 2019 China’s GDP was around 14.4 trillion USD. Not
only this but this country also had the natural resources and their estimated cost is around 23
trillion US dollar, 90% off which are rare earth materials and ColesChina’s Economic Rise:
History, Trends, Challenges, and Implications for the United States. (2019). This market has the

one of the largest banking sector asset it means that the banking sector of the country also has
huge contribution on their economy to grow rapidly and their assets are around 45.838 trillion
dollars with the 42 1000 trillion dollars are only deposits and other liabilities. when it comes to
foreign direct investment this country is the second largest invert foreign direct investment at
around 141 billion US dollars in year 2019 and it was their alone investment and the foreign
market and that is also has huge contribution to grow their economy and bring back other
currencies within there country. It makes their currency more strong and make their economy
grow rapidly (Wang, Q. and Wang, S., 2020). As of the 2018 China was the alone market in all
over the world in total numbers of billionaires and millionaires. in this simple words China is the
only country who is producing most number of entrepreneurs who are making money in billion
and millions. There are around 658 Chinese billionaires and more than 3.5 millions I recently
millionaire’s.
As of the 2020, China is home to the largest companies in the fortune global 500 an 129th
are headquarters present within the Chinese country. this country also have the world's largest
foreign exchange reserves in 2020 but worth around 3.1 trillion USD. But if the foreign assets of
the China state owned commercial banks I included, the value of Chinese reserve rises to nearly
4 trillion USD.
The Chinese government has played most important role to develop an increase the
research and development investment Ann governing the innovation market. China was the only
country who continued their year long run of double digit percentage increase in speeding on the
rnd in year 2019. It was the main reason to grow the Chinese economy rapidly on the scale. the
total number of technology and private science expenditure in year 2019 rose 12.5% over the
previous year two 2.21 trillion Chinese renminbi(322 billion) , Amounting in total of 2.23% of
the GDP. In the comparison of United States they have spent around two point eight 3% of their
total GDP, Ireland and Korea has spent 4.9% and 4.5% of they’re total GDP. The Chinese
governments goal to spend 2.5% of GDP on their research and development by the end of year
2020 and it was spelled out in China’s most recent five years plan an in the 15 years medium and
long term programmes and science and technology development. Contribution of the technology
and development has huge for the China and it is necessary for the other economists to also
spend huge amount on their research and development to grow their economies rapidly.
4 Businesses that could be successful within Chinese market
There are different different kinds of businesses that have higher chances to be successful
within the Chinese country. it is necessary for the businesses to be aware of way of doing work
with the Chinese government. If any of the business want to expand their business within the
China then they should always careful about customers demand, Chinese culture and policies
related to the government it easy some kind of businesses like retail, hospitality, technology and
automobile companies can we successful but they also have to bring some changes within their
way of working and they also have to collaborate with the Chinese government to expand their
business rapidly and grow.
Retail industry

Foreign investors like IKEA which is an UK based company who has able to establish
their business within the China. they work according to the Chinese rules and regulation and they
also applied Chinese culture to sell their goods and product. No doubt it was an good idea to
make their business according to the Chinese peoples demand and needs (Chaurasia, A. R.,
2020). They become a part of Chinese culture and they have created their business in the China
in different ways it is like a theme park. This is how they develop their stores where people can
take naps on the bed, snaps wedding pictures in the kitchen an evil go the first data at the IKEA.
Automobile companies
Automobile companies are mostly failed to take their entry within the China what one of
the famous auto mobile company called Tesla Was successful to expand their business in China.
it is because this companies is making technology based cars And their cars are both eco friendly
and luxury. this may Tesla are most popular brand within this market and most of the people are
buying car from this company. not only this but China also having a Tesla manufacturing plant
within the country.
Technology company
China is pushing their country toward the technology development and they are spending
trillions and millions of dollars to increase and master within the technology. there are some
companies like Apple who are successfully expand their business because of technology used
within their products. it shows that technology companies have more chances to expand their
business within the Chinese country and they can become successful Expanding their
business.Other companies who want to expand their business can come up with the technology
based cars an eco friendly cars because Chinese government is allowing companies who are
highly dependent on technology and making a cars that are good for the environment. China is
the highly populated and pollution level within the country is also very high so companies who
are making product and services that are eco friendly can take easy entry within the country and
take competitive advantages and expand their business successfully within the China.
Conclusion
As per the report has been cover benefits of expanding business within the emerging
economies like China. It has been discussed what are the benefits of investing an expanding
business within the China. it also has beenidentified the barriers to trade and FDI Within the
China. This report has been include the economic data that are used to show the progress within
the China in recent history. In the end of this report has beenanalysed the kind of business that
could be successful within the Chinese market with the recommendation and reason.

REFERENCE
Books and journals
Yuan, X.And et.al., 2020. Economic transition and industrial sulfur dioxide emissions in the
Chinese economy. Science of The Total Environment, 744, p.140826.
Haini, H., 2020. The evolution of China’s modern economy and its implications on future
growth. Post-Communist Economies. pp.1-25.
Jian, J. And et.al., 2020. Business creation, innovation, and economic growth: Evidence from
China's economic transition, 1978–2017. Economic Modelling.
Li, J., Han, Q., Liu, P. and Zhang, J., 2020. Institutional quality, financial friction, and sustained
economic growth: The case of China. Emerging Markets Finance and Trade.
56(14). .3270-3293.
Wang, Q. and Wang, S., 2020. Is energy transition promoting the decoupling economic growth
from emission growth? Evidence from the 186 countries. Journal of Cleaner Production.
p.120768.
Chaurasia, A. R., 2020. Economic growth and population transition in China and India 1990–
2018. China Population and Development Studies. pp.1-33.
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