Case Study

CASE STUDY SOLUTION

China Vs the World; whose technology is it?

Question 1

Do you think that China will prosper in the global environment? How might the

business environment in China change over next 10 years?

Solution

The story of prosperity is continuous and prosperous for those nations who are struggling

every step to move on at the greater pace than its competitors while maintaining the

nation’s or the country’s sovereignty. In case of China, its internal base is so strong

economically, technologically and in case of business that it is impossible to even assume

that whether it would be prosperous in standing globally in the global environment or not.

China and the international Enterprises

China has been a very intelligent host towards the foreign businesses and enterprises that

are standing in the China. The Chinese policies renders the possibility of two way interest

in which foreigner earns the checked profits and the Chinese government uplifts its own

state at the higher level of prosperity every time they negotiate. In China the best thing is

that the foreigners are not entirely free to move rather there is a proper check and balance

to render them proceed in the favor of the country in which they are moving. The keen

interest of the country is to fully grasp the technologies of other states and develop their

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research and development to that extent that there would be no chance of a set back; in

the whole story of success of being the second largest economy and emerging super

power, as systematic line of action always works more than just the political approach.

China’s approach of hybridization of private or foreign sector is extremely commendable

and earns the unchallengeable sovereignty for the country.

Global prosperity of China

The economic uplift of the country through the extreme economic growth of 9 % in the

past years is a proof that China is in the least possibility to fall a victim to global

recession. China claiming to be the biggest manufacturer moves its way to over ride the

America’s position of being a super power. In fact the industrial revolution that over took

Britain over China in1850’s has now turned the other side to support China’s prosperity

that it has been enjoying being the biggest manufacturer for one and a half century before

that revolution.

The global prosperity of China is obvious as it has been opening a new chapter of

development since past few years by sharpening the average technology to the unbeatable

one by forcing the western manufacturers, entrepreneurs and businesses to share their

technologies with the governmental sector of China to make them strong not merely

economically but technologically as well. This condition for working in the China often

fuels the socialists and capitalists but the adversities are of mild extent as the foreign

investors feel more feasible to share technology rather packing up and with drawing their

share from such a big economic monster.

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The prosperity of China in the global environment is quite safe because America which is

biggest rival of China is receiving more than 1600 percent imports from there and is in

turn exporting 415 percent of the materials to China. So, when there is a security in the

export market then it is obvious that the global prosperity is also obvious. The poverty

rate in china is declining by 100 percent each decade proving the people of China to be

inhabitants of the world’s strongest economy.

The business in China is at an extreme uplift and its industrial production has been

extremely associated with China being responsible for rising gas prices as well, because it

ranks second among the world manufacturers for the consumption of energy being the

top third oil importer in the world. The economic stability of the country is also because

of its accumulated wealth mainly dollars. Globally China is extremely prosperous

because of its intelligent moves in every required areas, may it be technology, business or

the politics.

Business in China in the Next Decade

China has been spending the huge amount of its GDP on research and development to

make its business and technology unbeatable. The China industrial and economic rivals

America has been subsequently cutting down the research and development expenditure

for the past few years and the trend is still continued. The continuity of this trend will

definitely equalize China to America in different spheres of business and technology.

Owing to the desire of world’s biggest economy China is touching those spheres of

development that are sensitive enough to aside and threaten the rival. The policies

regarding this matter are changing continuously and demand the foreign entrepreneurs to

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