vendredi 28 juin 2013

Strengths and weaknesses of China

Today and even more in the coming years, China is a key of the international trade. So it’s important for foreign companies to participate in this development and this dynamism. We will what are the strong points of this country and also its weaknesses.

Strong points of China

·         China is one of the countries receiving most foreign direct investments
·         The implementation of the socialist economy of market: liberalization and opening of the Chinese market
·          The French brands have a good image in China. For many they evoke a guarantee of quality, luxury, refinement and exoticism.
·          A huge economic space: the Chinese market because of the number of its consumers and its vast territory is still a country which can be conquered. It is the opportunity to exercise its creativity to distance itself from competitors and established durably.
·         The diversity of markets by sector and by segmentation.
·         A society beginning to consume in a" Western way "

Weak points of China

·         China depends many of the American economy, the United States is one of its most important buyer. A slowing down of their economy would have visible consequences on the GDP of China.
·         A strict sector control: to avoid any foreign monopoly on key sectors as the energy, the Chinese authorities limit the investments and try to preserve certain independence. They can oppose to an investment in the name of the «national economic security".
·         The social situation is not stabilized in spite of the undertaken measures. These internal problems can slow down the long-term economy.

·         The question of human rights: although China made efforts these last years, the authorities still control some elements of the population.