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Personal Reflection Report

- China Business Trip -

To my surprise. it sometimes appears to have two opposite aspects at the same time. though there is no perfect market economy in the world. Toyota. Honda and especially Audi running on roads with Chinese local brands’ cars. In my understanding. Like Yin Yang(陰陽). It has also high level of diversity thanks to its large population and territory. When I first hear this word in a China finance class in the last semester. What I knew about it came from my second-hand experiences such as books. news and conversations with Chinese classmates. socialism economy is controlled by the government and capitalism economy is controlled by open markets. I got to have some understandings about China and China business. Hyundai. I saw Volkswagen. I was wondering how much China is socialist and how much China is market friendly. China is basically socialist country. Generally. I thought I had found out a clue to grasp what “Socialist Market Economy in China” means. however. Some of its technologies are as much advanced as many developed countries while some part of the society is still remaining same as developing countries. For me. Benz.Preface I had never been in mainland China before the China business trip. might be confusing to other people because I concluded that China is difficult to define as one word. Through the trip. Socialist Market Economy One of the words explaining Chinese economic system is “Socialist Market Economy”. though 8 days were not enough to apprehend all aspects of them. They are good sources for information. I would make an argument about what makes me think like this and in the end I would add my opinion about cultural conflicts. It is a socialist country while it has harshly competitive market. the foreign automobile brands seemed to account for a lot of portion in cars . but I wanted to see and feel how it is with my own senses because I hope to work in mainland China after the graduation. I felt as if it is a kind of contradiction though I knew China was doing well in terms of “Market Economy”. My understandings. On the way to the Hotel from Beijing International Airport on the first day of the business trip.

more important things in this report are business aspects and in that viewpoint. However.com. has not given a much opportunities to foreign brands in its automobile industry. POSCO. I think the Chinese government is doing well because many Asian countries have achieved their economic success being led by governments. Local companies were supported by South Korean government in the beginning of the business and have been protected de facto more than companies in other industry by it. the biggest player in the industry takes up 60% of the production. there are ten major players in the steel industry and they account only for slightly more than 50% of the production. In South Korea. Market economists believe that planned economy would damage function of markets and consequently harm overall efficiency of the society. it is not the case that there is no competition in the market. and therefore offers efficiency to a society. although it has defined itself as a market economy county. On the other hand. I have strongly felt that Shou Gang is also trying to improve their productivity and technology to provide customers with high quality products so that it can survive in the harsh Chinese steel industry1. Considering that South Korean market is relatively very small and a lot of foreign brands’ cars are produced in China by a kind of joint-venture companies. I have felt doing the business in China in is not so easy in contrast with the belief that China is the land of new 1 According to a chinaknowledge. competition in markets seems to be vivid even though economy is planned by the Government. South Korea.on roads. I have heard that most of big steel companies are state owned and their reform is made by the Government. I have found Chinese automobile market more open and free competitive than that of South Korea. and state-owned companies contributed a lot to a nation’s fast growth. Personally. The company seemed apparently controlled by the Government. However. A market is important in market economy because it causes competition. On the contrary to their beliefs. I made a question to the speaker whether its move to Tangshan in Hebei province has to do with a national plan to develop north eastern China and he replied it does. in China. During the visit to Shou Gang (Capital Steel). .

Between a developed country and a developing country China’s GDP per capita in 2009 is 3. For example. still keeps its office in China in spite of the censorship issues and Lenovo has acquired IBM PC division.opportunity seeing a myriad of foreign and car makers. Xin’Ao ENN shows advanced technologies in Green Energy industry and BNBM also shows its technology is not so far behind its global competitors from developed countries. but it seemed a big general hospital. Google. 2 Actually. It was around four in the morning. my roommate was seriously sick and I went to a hospital with him and the professor. It was very surprising to me that hospital’s sanitary was not enough good to protect patients’ health. it is relatively less than several developing countries. I could understand it because I have used extremely dirty toilets many times in South Korea. sanitary status was not so good. I also could find out some aspects in which China needs to make improvements. I felt that a private company cannot compete with companies controlled by the Government. One day. However. If it is a normal building.648 US Dollars. most brilliant internet company. I felt extremely competitive free markets and extremely government-leading industries coexist in China. In business. In conclusion. I was so flustered that I couldn’t see whole hospital. China is one of a few countries that have succeeded in launching a manned space ship and a lunar probe. hospitals should be different from other buildings in sanitary because they must do their best to avoid secondary infection inside hospital 2 Korean National Statistics Office . I have heard that Shou Gang sometimes provides its products at low prices to boost the other industries. At the same time. Mr. I felt that China had already become a developed country. Fu Qiang also said during his presentation that big companies in terms of revenue are almost Government related companies and a private firm should get into the area that they don’t exist. Nevertheless. In contrast to its size. Especially. which owns a high technology in manufacturing laptops. Seeing these companies. a bathroom was worse than I expected. During the visit. However. Besides the darkness.

faith to basic rules saves a lot of cost in doing business. China has over 1. In addition. it is the true that China is one homogeneous market? One country is one market. I’ve heard that in human history. .buildings where more germs and viruses are hanging around than normal buildings. One part of the lecture was that life style in Chinese cities are not the same. low quality products would harm the reputation of the firm some day and it should be a great amount of cost in the future. driving habits of drivers in Beijing is different from those of developed countries. has around 370 million of population. therefore management have to spend much money on watching its employees. I don’t think that hospital managers have not set up proper sanitary policies. if workers do not abide by security policies of a company. This was my basic idea and I had never thought about it in depth before the lecture about China marketing in Qing Hua University. I was almost hit by a car a few times when I was crossing a street at a crosswalk because drivers didn’t care about pedestrians though it was a stop light for them and there was no traffic jam. These experiences of mine make me think that many people are not faithful to the basic rules. which has been the biggest single market. Admittedly. Diverse markets in one country As everyone knows. I believe that it is highly likely that the policies are not obeyed well due to systematic flaws or insensibility of hospital workers. The United States. For example. And if workers do not much care about standards of the product quality for their convenience.3 billion of population. As for China. On top of the professor’s explanation about it. It is very interesting to me because South Korean cities are usually not considered the different market though there are some differences between them. business secrets of the firm could leak to its competitors. However. I think basic factors like extensive territory and big population make distinct marketing strategy worth conducting. we have never seen this kind of single big market emerging. European Union has around 900 million but it consists of several countries. and therefore marketing should different.

One of my Chinese friends who comes from Chengdu has told me that women in Chengdu have elastic skins because of high humidity in Sichuan province. On the other hand.wikipedia. Moreover. Foreigners like me who knows only about western economic system might have trouble understanding it because this concept has never been tried in other countries. Beijing is vey arid because of the winds coming from innerMongolia and Siberia. it has been working very well and I think one wanting to do the business in China must understand it to survive there. However. I think it is not the case in China and even if it is not efficient right now. However. It is highly likely that the needs of women in two cities for cosmetics are different and if I were a marketing manager of a cosmetic company.physical distance between cities is not comparable with that of South Korea. As with economic system which has characteristics of Socialist economy and market economy. I think Deng Xiaoping made a totally brand new “Socialist Market Economy” concept based on this idea. the competition in China is as harsh as a capitalist economy even though some industry is under the government control. China has characteristics of developed countries and developing countries simultaneously. Conclusion It is often said that there is no competition and efficiency under the planned economy. However. but businessmen need to consider where China 3 http://en.3 If they are small markets.org/wiki/List_of_cities_in_the_People's_Republic_of_China_by_population . I think China would make a fast improvement in a lot of aspects. distinct marketing is not efficient.5 million in Beijing. so it could cause clear differences of natural environment and people’s way of thinking. I would have to conduct different marketing strategy in two cities. I’ve watched a documentary about Chinese history and I heard from it that Deng Xiaoping said that there is no capitalist economy without planning and no socialist economy with markets. the population of each city is significantly big and there are living 12 million people in Chengdu and 17. I anticipate it would be in the near future as GDP per capita of Chinese cities are rising more.

media tend to deal with bad news about other countries and they are likely to make a judgment about them in their viewpoint. Chinese people seem to be proud of their country. culture and history. We are easily affected by the media.currently stands in aspects relevant to their business. So. wherefore even if unbiased questions in the view of foreigners are asked. I think I need to take much care about this kind of cultural confliction. . A great diversity that comes from the history and regional features of each province should be considered as well. and therefore we are likely to have biased information in the viewpoint of Chinese. In addition to what I have mentioned. On top of that. Usually. I’d like to say foreigners like me should be more careful when they say something about China. in business situation. sometimes they could look like aggressive questions to Chinese.