Introduction of China

China is situated in Asia. China is the largest country by population. Beijing is the capital city of china. It touches sea waters also. China mostly consists of plains. It touches the great Himalayas. It neighbors with thirteen countries like Russia, India, Pakistan are of main importance. The official religion of china is atheist. Other religions in china are Daoism, Buddhism, Christian 3%-4% and Muslim 1%-2%. There are seven languages that are spoken in the country. Mandarin is the language spoken by the 70% population. While the other six languages are spoken by the remaining population. China is an industrial and agricultural country. The products are china are used the entire world. This is achieved by the small level industrials units. These units are set up in the houses and produces products at low cost. These products are then exported. Approximately 39.5% of the labor force is connected with agriculture and forestry while 27% of the labor force is connected with industry. China has the largest population in the world. It provides great labor force needed for any industry. It also has a very lager area which gives it a diversity in the temperature and culture.


The GDP of china is 10.PEST Analysis Political Analysis: China is communist country but it is transforming into democratic form of government. There is only one party in china which is communist party of china. The laws are a bit complex for the new investors. As there is only one party ruling the country so there is stability in the country which is very necessary for business activities. Both the industry and agriculture sector provides opportunities to the investors to invest. But if the new investment Is approved then it will be a successful business. The stability in the country attracts foreign investments in the country.1% which is very strong indication of the strong economy of china and it is a good indicator for the foreign investment 2 . Economic Analysis: China is a very good market for the investors to invest and earn profits. For example government can declare certain area tax free and thus attracting new investors in the country. The government also provides different incentives and securities to the new businesses.

This is due to difficult procedure of approval of FDI. Central bank discount rate: 2.79% (December 2009) 3 . Inflation rate (consumer prices): The inflation rate in china is 5%. The main reasons for FDI in china are like low labor cost and big consumer market. It has been fluctuating but it has been increasing overall which is a good sign for the investors.that the economy is growing and the investments would earn profits and businesses would flourish. But FDI in china has been fluctuating in china. The prices of commodities are low in china. The inflation is very much low and it is in single figure. The following table shows the trend in the FDI inflow of china. And this figure is also a controlled one.

Mobile users : 4 . Technological Factors: The china is very much advanced in the technology. Social Factors: The population growth of china is high and government is taking steps to control this growth of the population.1% of the population is 15-64 years which is the main target population for the businesses. of telephone and mobile phone users. It has very huge internet usage.251 million hosts in the country. Internet users: China has 389 million users of the internet. The 72. Telephone lines in use: 313. As the rate is very lower so the expected inflation rate is also low which means that more employment.68 million telephone lines are in use in china. The population growth rate of the country is 0. Internet hosts: China has 15.494%. China has a very large no.This is a very good sign for the investors as the financing would be easy and funds can be generated if needed.

The broadcasting network is controlled by the government in china.  Real estate  Energy  Information technology  Tourism  Environment  Manufacturing and production  Education and training  Healthcare  Education sector 5 . Investment opportunities in China There are whole a lot of investment opportunities for the FDI.There are 747 million users of mobile phones in china. Following are the different sectors in which investment can be made and profits can be earned.

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