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Gaurav Bagwe Yashasvi Sanghavi Apurva Kulkarni
Flow of Presentation
•History •Society •Education and Languages •National Anthem and Flag •Geography •Economic Policies and Reforms •Business Etiquettes and Customs •Growth and Development of Pharma Clusters
• The People’s Republic of China • Origin: First emperor “Qin” and Qin dynasty • Meaning: Middle country • Population: 1.3 billion • 2nd largest economy in the world • 23 provinces (incl. Taiwan), 5 autonomous regions, 4 municipalities and 2 special administrative regions
256 BC) 2.Present) .Modern China (1912 AD .Chinese History Three Eras: 1.Ancient China (2100 BC .Imperial China ( 255 BC – 1911 AD) 3.
221 BC • Han Dynasty .618 to 907 Silk route • Yuan Dynasty .1644 to 1911 Second foreign dynasty (Manchu) First Emperor Qin .Chinese History • Before 221 BC: state rivalry and battle for control • China united by Qin .1368 to 1644 The Great Wall •Qing Dynasty .206 to 220 AD Chinese majority • Tang Dynasty .1271 to 1368 First foreign dynasty (Mongol) • Ming Dynasty .
Chinese History • 1912 to 1949 : Republic of China Years Internal struggle for Power • 1st Oct 1949 : National Day People’s Republic of China • 1978 : Reforms. Democracy Movement Rapid Economic growth • 2001: China joins WTO • 2003: Hu Jintao becomes President • 2008: Olympic Games held in Beijing Mao Zedong Deng Xiaoping .
Consider family bonds sacred • Patriarchal • Elaborate wedding celebration culture • Recent One child Policy .Chinese Society • Family – Pinnacle of Society.
Stephen Perry President of the 48 Group Club. the Chinese are very pragmatic.) . If you have something they want. they'll do business with you no matter whether you can hold chopsticks or not. (an independent business network promoting business relations between China and the UK.” .Chinese Society "At the end of the day.
387) •15-64 years: 68.354.055.4% (male 452.834.3% (male 163.713) •65 years and over: 7.382. female 49. female 148.Age structure and Gender Distribution of the population •0-14 years: 24. female 426.428.3% (male 43.528.081.568) .821.855.
Power and Luck • Chinese as descendents of Dragon • Nine different types .Culture and Believes Yin and Yang Interconnectedness and interdependence of seemingly contrary forces in the nature Chinese Dragon • Symbol of Wisdom.
Religions 30 42 Folk religions and Taoism Buddhism Christianity Ethnic Minority Islam 18 2 Atheist 4 4 .
Education System in China The Compulsory Education Law – Nine years of formal education • Basic Education • Higher Education • Adult Education .
Languages • 292 living languages and 1 extinct language • Standard Chinese Putonghua – official national language spoken • Cantonese.Hong Kong and Macau • Tibetan – Tibet Autonomous Region •Mongolian– Inner Mongoli .
National Anthem March of the Volunteers • Tian Han (Poet and Playwright) • Music composition by Nie Er • Musical march • First performed as part of a 1934 Shanghai play • Official Status in 1982 .
March on! Màozhe dírén de pàohuǒ. March on! Wǒmen wànzhòngyìxīn. Our million hearts beating as one.National Anthem Chinese – Pinyin English Qǐlái! Búyuàn zuò núlì de rénmen! Arise! All those who don't want to be slaves! Bǎ wǒmen de xièròu. Every person is forced to expel his very last cry. Měi ge rén bèi pòzhe fāchū zuìhòu de Arise! Arise! Arise! hǒushēng. zhùchéng wǒmen Let our flesh and blood forge our new Great Wa xīn de chángchéng! As the Chinese people have arrived at their mos Zhōnghuá mínzú dào liǎo zuì wēixiǎn de perilous time. qiánjìn! March on! March on! On! Màozhe dírén de pàohuǒ. qiánjìn! Qiánjìn! Qiánjìn! Jìn! . Qǐlái! Qǐlái! Qǐlái! Brave the enemy's fire. shíhòu. Brave the enemy's fire.
2. four smaller stars: the four social classes 1. the peasantry. working class. the national bourgeoisie . 3.Flag • 5 Stars red flag • Red: Communist Revolution • Five stars and their relationship: the unity of the Chinese people under the leadership of the Communist Party of China • The larger star: Communist Party of China. The urban petit bourgeoisie 4.
9.6 million sq. .Geography of China 3RD LARGEST COUNTRY.
2 2.95 12 10 .15 0.Topography • China is divided into 5 physical macro regions1.5 1. km) 9.8 PERCENTAGE OF TOTAL AREA 100 33 26 19 PLAINS HILLS 1. and Southern hills) 2. Tibetan-highlands LAND FORMS CHINA MOUNTAINS PLATEAUS BASINS AREA( million) sq.6 3. north plain.China. Xinqiang-Mongolia 3. Eastern China-(Northeast plain.
• land is high in the west and descends to the east coast .
MOUNTAIN MT EVEREST K2 LHOTSE MAKALU CHO OYU GHYUCHUNG KANG GASHURBRUM 1 BROAD PEAK GASHERBRUM 2 GASHURBRUM 3 GASHURBRUM 4 SHISHAPANGMA HEIGHT( meters) 8848 8611 8516 8485 8188 7952 8080 8051 8035 7946 7932 8013 .• Eleven of the 17 tallest mountain peaks are located on China's western borders.
• 4 major rivers. totaling 420000 kms. • 2) Huang he (Yellow river).Rivers • 50000 rivers. • 3) Heilongjiang (Black dragon)-3101 kms .5464 kms .1)Yangtze-6300 kms . • 4) Zhujiang (Pearl)-2214 kms .
86% (about 1. Zink.580 km²) is planted to permanent crops and the rest planted to temporary crops .Major Cities Energy and Minerals • Worlds largest producer of Antimony. Natural graphite. Tungsten. Land use • 14. • China’s hydropower potential is largest in the world. Demographic geography The demographic occupation follows the topography and availability of arable lands.3% (some 116.4 million km²) of China’s total land area is arable. • About 1.
Energy and Minerals • Worlds largest producer of Antimony, Natural graphite, Tungsten, Zink. • China’s hydropower potential is largest in the world. Land use • 14.86% (about 1.4 million km²) of China’s total land area is arable. • About 1.3% (some 116,580 km²) is planted to permanent crops and the rest planted to temporary crops
Demographic geography The demographic occupation follows the topography and availability of arable lands.
Climate The climate of China is extremely diverse; Tropical in the south to subarctic in the north.
Environment • Air pollution (sulphur dioxide particulates) from reliance on coal is a major issue. • The eastern part of China often experiences smoke and dense fog in the atmosphere as a result of industrial pollution. • China is a party to the 1. Antarctic-Environmental Protocol. 2. The United Nations Convention to Combat Desertification. 3. The Hazardous Wastes. 4. Agreements on Marine Dumping. 5. Ozone Layer Protection. 6. China has signed, but not ratified the Kyoto Protocol. 7. Nuclear Test Ban treaty.
the Soviet Union.With Soviet Union • China signed an agreement with Russia on the delimitation of their entire 4. which had long been in dispute. • Other border disputes-Taiwan. and South Tibet. Pakistan. • Northeast.000 km² Pamir Mountains area.300-kilometerlong border. the Trans-Karakoram Tract.Boarder disputes • Western sector-41. Aksai Chin.With Afghanistan. .
China border dispute .India.
Lifting price controls protectionist policies. and regulations . • Economic reforms introducing capitalist market principles began in 1978 and were carried out in two stages. 1st phase Decollectivization of agriculture 2nd phase Privatization of SOEs Open door policy Permission for entrepreneurs to start up businesses.Economic Reform • Started in December 1978 by reformists within the Communist Party of China (CPC) led by Deng Xiaoping.
It doesn’t matter whether its is a white cat or a black cat. Science and technology. it is a good cat as long as it catches mice” • Four Modernizations: Industry. and National defence . Agriculture.
Cultural Revolution (1966-1976) Economic reform1978-1984• Decollectivizing agriculture • Household-responsibility system • Open door policy.Mao era.Economic Reforms • Economy prior to reform1949-1978.SEZs .Great leap forward (1958-1961) .
1993-2005 • Large scale privatization • Tariff reduction. • WTO . • Private sector surpassed the state sector in share of GDP for the first time in the mid-1990s.Economic Reforms 1984-1993• • Privatization of SOEs • Tiananmen Square protests of 1989 • Shanghai Stock Exchange reopened after 40 years.
Economic Reforms • 2005. . • Adoption of more egalitarian and populist policies.PRESENT • Reversal of some of Deng Xiaoping's reforms in 2005. • Halted privatization and adopted a loose monetary policy. • Increased subsidies and control over the health care sector.
(CNY) • Subdivided into 10 jiao or 100 fen • The renminbi is issued by the People's Bank of China. the monetary authority of the PRC.Renminbi (people's currency)-Yuan (¥). .Economy • Currency.
7% (CPI) $3.904 trillion $1.3% $299.4 billion $461.743 trillion 1.2% $457 monthly 91st 5.250 trillion(2nd) $6248 (90th) INDIA 1.4% $1.848 TRILLION(10th) $1514 (139TH) GDP GROWTH EXPORTS IMPORTS INFLATION FOREIGN RESERVES FDI POPULATION BELOW POVERTY LINE UNEMPLOYEMENT AVERAGE GROSS SALARY EASE OF DOING BUSINESS 7.8%( less than$2) 4.FACTORS POPULATION GDP( NOMINAL) GDP PER CAPITA CHINA 1.4% $1410 yearly 132nd .4 billion 9.9% (CPI) $295.3 billion $8.28 trillion $116 billion 29.29 billion $47 billion 68.21 billion $1.7%( less than $2) 9.
second largest trading nation in the world • China became world’s second largest economy in 2007 . second largest importer.China today • Considered Communist but acts Capitalist • No cult dictatorship like Mao • Government structure is still communist and there is only party. • GDP has grown at an annual average rate of 10 % for 30 years • Largest exporter.
Banking in Mao ERA In 1949 the Banking in Post Mao Era Bank of China (BOC) People's Bank Of China took over functions of central bank (regulation and monetary policy) functions of commercial bank (control on all banking business) Industrial & Commercial Bank of China (ICBC) China Construction Bank (CCB) Agricultural Bank of China (ABC) .
second largest trading nation in the world • China became world’s second largest economy in 2007 . second largest importer. • GDP has grown at an annual average rate of 10 % for 30 years • Largest exporter.China today • Considered Communist but acts Capitalist • No cult dictatorship like Mao • Government structure is still communist and there is only party.
•Business interactions between men and women are conservative. •Address a person using his or her family name only.Business Etiquettes and Customs The initial approach •Chinese business contacts are mostly referrals. .
ensure that you are stretching out with both hands with the card. it is assumed that the first person that enters the room is the head of the group. •Seniority is very important to the Chinese • When giving out a name card or receiving one. . •In China.Business Etiquettes and Customs •Chinese business relationship inevitably becomes a social relationship after a while.
Business Etiquettes and Customs •Giving Face or Gei MianZi •Do not underestimate the concept of losing face. . •Complimenting someone on their business acumen in front of their colleagues is an easy way to win points.
Lunch/Dinner in China •There is no business talk in China without at least one trip to a restaurant. •Frequent toasts are not unusual. •Take your shoes off at the threshold. importance and seniority. •Sitting positions in a meeting room or a dining table is accorded accordingly to rank. •Do not toast to a woman. . •Always bring a gift (fruit or flowers or something from your own country). •Try to master chopsticks before you arrive in China.
However. . •Women should avoid high heels and short sleeved blouses. jeans are not acceptable for business meetings. •Men and women can wear jeans.Business Etiquettes and Customs Dress Code • Conservative suits for men with subtle colors are the norm.
•Smile •Be professional •Giving face •Make friends •Bring a large supply of business cards. •Do learn a few words of Chinese .Business Etiquettes and Customs Controversial Issues in China •Don’t mention that Taiwan is an independent state or a country Always keep in mind •Don’t praise Shanghai in front of natives of Beijing and similarly vice versa.
Growth and Development of Pharmaceutical Clusters .
org OTC 27% Generic drugs 63% .Market profile and Structure (2012)* Total value of the healthcare industry : CNY 1691 Bn ($ 249 Bn)* (Growing at 22 +%) Total pharmaceutical industry .$ 52 Bn Patented drugs 10% Healthcare Expenditure – 4.6 % GDP (India – 4.who.2 %) Per capita expenditure .3) *www.$ 309 (India – 132) Govt expenditure on health as % of total govt expenditure – 12 % (India – 4.
000 3.000 3.5 lakhs Hospitals Health centres/clinics 30. www.065 INDIA 9.org.gov.6 lakhs * www.who. Chinese pharmaceutical guide .000 – 6.cia.000 58.000 1.3 lakhs 15.Pharma Stakeholders CHINA Pharma companies Retail pharmacies 5.
97 births 7.29 7. www. 50.9 No of adults with Diabetes Prevalence of HIV Prevalence of Tuberculosis 43.8 per 1000 * www.who.Health Profile Birth rate (per 1000) Death rate (per 1000) Under 5 Mortality rate (per 1000) No of Physicians (per 1000) Hospital beds(per 1000) China 12.3 % 3 per 1000 Chinese pharmaceutical guide .gov.59 0.4 4.2 million 0.cia.8 million 0.57 0.06 India 20.01 deaths 19 1.48 deaths 47.org.1 % 3.
5 tips to carry out business in china China is a mosaic of markets Business culture and etiquette Taking a market-based approach Build a strong local team Procedures in China take time. patience and money .
Domestic companies in china .
CRO OTC CHINESE PHARMACEUTICAL MARKET R&D TCM TAX .
g. or hot and cold). yin and yang.000 years ago. Chinese herbal medicines actually comprise a combination of herbs. minerals and animal products. . • It is based on the concept that one’s health depends on a constant struggle between various opposing forces (e. • Excesses or imbalances in the body cause sickness or disease. • Beyond their implicit meaning.TCM • TCM is a medical system developed in China about 3. with Chinese herbal medicines helping to restore balance and nurse the body back to health.
valued at US$7. Persistent and aggressive advertising as well as brand building may be two strategies that firms might use to distinguish their products.OTC • • • • China’s OTC market. Accounts for 22% of the overall pharmaceutical market Competition is expected to increase as more and more global players try to break into the OTC market.45 billion in 2011. Challenges for the OTC market • Need for more product quality •Packaging design improvements • Increased access to better distribution channels .
Chinas Rapid economic dev elopment . Talent pool 3.• Leading Chinese CROs are able to offer contract research services at costs significantly lower than that of Westernbased CROs. CRO Factors that have contributed in making it an attractive destination for outsourcing are 1. Cost and time saving 2. • At the same time. Patient pool 4. Animal resources 5. Chinese CROs have shown an increasing ability to meet Western standards in drug quality and safety.
Pharmaceutical and biotech clusters 5.R&D • CRO fuelled by a strong and steadily growing economy. Talent pool 3. Patient Pool 4. Lower cost 2. China has emerged as an increasingly attractive R&D outsourcing destination for foreign pharmaceutical companies trying to reduce their products’ time and cost to market China currently offers a number of key advantages for conducting domestic pharmaceutical research: 1. Government support .
TAX • High/New Technology Enterprise (HNTE) incentive • CIT super-deduction • Income tax exemption for the transfer of technology .
almost double the projections fromt hat of the US 840. cardiovascular .Chronic respiratory diseases China will have 38 million diabetic patients by 2025. .000 known HIV/AIDS victims are between 20 and 39 years of age .Disease acceleration in china 1/3 rd of the worlds smokers are chinese Lifestyle related diseases which are accelerating are – Obesity .Diabetes .
Stated strategy of: 1.Beijing (249 hectares). . It houses . Attracting Chinese biotech companies to undertake R&D 3. Establishing a SME business centres 4. Establishing an incubator to support new company growth.CHINESE CLUSTERS Chinese silicon valley The Beijing Zhongguancun Science Park (1988) . Attracting investment from within the top 500 pharmaceutical companies 2.6 biological research institutes as well as R&D centers for Novo Nordisk and Genzyme.
Beijing Zhongguancun Science Park .
It is the most successful of overall 54 state-level development zones in China. added value and tax revenues. It ranks first in terms of gross zonal product. .Guangzhou Development District Formed in 2002 .merger of four state level development zones in Guangzhou’s east. More than 2700 foreign invested companies from 60 countries are located in the district.
Shenzhen HTDZ 2. Wuhan HTDZ.3. Chengdu HTDZ 1. Zhangjiang HiTech Park (established in 1992) 4. Xi’an Hi-Tech Development Zone (established in 1991) Hi Tech development zones (53) 5. .
Guangdong and Hong Kong: focussed on medical devices & low cost manufacturing) Central cluster (includes Chengdu. Chongqinq and Xi’an: traditional chinese medicine (TCM).(includes Shenzhen. medical devices. medical devices) Pearl River Delta (South) cluster . Wuxi: pharmaceutical R&D. biomedicine and medicine) Beijing cluster (includes Tiajin: focussed on biopharmaceutical. bioengineering. Suzhou.Regional Life Sciences clusters Yangtze River Delta cluster (includes Shanghai. biomedicine . medical devices.
IN The FUTURE .
Key drivers for growth in China Quality Modernization of traditional Chinese medicines Innovation Focus on Biotechnology Affordability .
Future Potential Every big Company focusing in this region Changing the way Drugs are invented tested and even regulated Leaders In the Pharmaceutical World .
economist.com/news/finance-and-economics factsanddetails.org www.doingbusiness.References http://www.com www.economist.cc www.com www.nytimes.tradingeconomics.cnn.edu www.org www.com .com/topics/chinese-economy http://www.cleanergreenerchina.columbia.collectiveresponsibility.com afe.inchina.com edition.easia.
XIE XIE .
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