International Risk

Assessment for
RamlY in China
SIMPLE MINDS

Muhammad Ashril Amri B Abu Saharudin (1526375)

Nurfatin Nabila Bt Mohd Rozi (1527470)
Balqis Bt Salleh (1527224)
Nur Farah Liyana Bt Abdul Latif (1528154)
Siti Hajar Bt Abdul Hamid (1522086)
Muhammad Azmir B Amir Hamzah (1419635)
Sukainah Hayati Bt Adzmi (1513372)
 2)
1) LANGUAGE
POPULATION
70% speak
1.415 Billion mandarin
People

4) HALAL

Introduc
3) MUSLIM FOOD
1%-3% Shenzhen,
Muslim
tion
Guangzhou
Population and Hong
Kong

5) REGION 6) ETHNIC
6 regions 18 ethnics
Xinjiang Mostly
Zhuang
(Northwest
China) Hui (Muslim)
 Country Risk

Laws and Regulations for Foreign Business

• Exporting process requires a company to comply on different

kinds of legal procedures.
• Food Safety Law, Import-Export Commodity Law & Inspection
Law.
 Cross-Cultural
Cross-Cultural Risk
Risk
DAILY FOOD FROZEN FOOD
• Carbohydrate source or starch, • Mainly dumplings that consists of
known as zhǔshí or main food meat and vegetables.
e.g: typically rice, noodles, or
mantou (steamed buns).
• Dishes of vegetables, fish, meat,
or other items, known as cài or
vegetable.
 • Trademark Infringement was the most
common form of Intellectual Property
violation in China.
• The Ministry of Commerce says China is a
Commer developing country and does not have a
perfect system to protect IP, acknowledging
cial Risk that there’s much work to do.
• Trade relationship with China
• East-Coast Rail Line (ECRL) cancellation
has affected the trade relationship
between China and Malaysia.
 Currency Risk

• The yuan has fallen sharply since trade tensions

Exchange rate have begun to rise
( 1 USD = 6.88 CNY) • Trade war between China and US – possibility to
increase tariffs from 10% to 25% (on $200 billion)
( 1 MYR = 1.66 CNY)

Purchasing Power • Local Purchasing Power in Beijing is 7.24% lower than

in Kuala Lumpur
 References
1. Hao Zhou. (2018, September 4). As China’s central bank props up yuan, the risk of
depreciation falls. Retrieved from
https://www.scmp.com/comment/insight-opinion/united-states/article/2162465/why-yuan-de
preciation-shouldnt-be-concern
2. Anneken Tappe. (2018, August 7). What China’s central bank’s latest move means for the
yuan. Retrieved from
https://www.marketwatch.com/story/what-chinas-central-banks-latest-move-means-for-the-y
uan-2018-08-06
3. Retrieved from https://tradingeconomics.com/china
4. Retrieved from
http://www.a-louie.com/acatalog/index.php/the-challenges-of-doing-business-in-china
5. Retrieved from
http://tradecommissioner.gc.ca/china-chine/market-facts-faits-sur-le-marche/153381.aspx?lan
g=eng
6. Jane Li. (2017, February 2). Why foreign companies are shutting shop in China. Retrieved
from
https://www.scmp.com/business/china-business/article/2067470/why-foreign-companies-are-
shutting-shop-china
7. Grant Clark and Shelly Hagan (2018, March 22). Bloomberg In What’s Intellectual Property
and Does China Steal It? Retrieved from
https://www.bloomberg.com/news/articles/2018-03-22/what-s-intellectual-property-and-does
-china-steal-it-quicktake