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CHINA FUTURE SUPERPOWER China remains to be one of the fastest growing markets in the world. It has even become the worlds factory floor because of the variety of resources it possesses. (Doing Business in China). China is presently positioning itself to become a formidable player in the international market. However, there is a complicated legal system that has to be reckoned with, as well as a lack of information knowhow on international patents so that American companies are taking a great risk in doing business in China. Added to this are the complex business partnerships that it may encounter which may make it hard to change sales gains in China into profits. (Morath, 2006). Yet, China is still a rich country with an emerging middle class of 200 million with a big potential market to buy cars, computers and other wares.
Administrative-wise, the nations 1. 3 billion population represents a low-cost labor. The domestic market is also expected to grow 18 percent a year. The country allows sourcing of parts of cars for its car manufacturing. There are partnerships that offer entry into the rich market (Morath, 2006). Moreover, training programs shall be supplemented with the design of performance appraisal that will allow individuals to examine their behaviors that may be in conflict with the corporate goals. (Gooderham).
Geographic distance is not much of a concern because China is now in a position held by Japan years ago. There are many possible opportunities for Chinese companies to set up businesses in the country. The geographical distance does not seem to be a setback because even those who are not exporting to or from China can see advantages between the different countries, serving potential Chinese customers. Economically, Chinas economic reform program has had huge impacts on business competition in the nation. The Chinas economic reform program has had huge impacts on business competition in the nation.
The entrance of foreign competitors can manifest several "strategic investments" that must be implemented if it is to soar high (Business Library: Doing Business in China). China is an emerging giant in the world economy today, contributing 5. 8 % of the total world exports in 2003. The banking system in China started to become organized shortly after the Revolution of 1949, as a measure to halt inflation. In the 1980 s the banking system became more diversified in terms of services and activities. During the period 1979 - 1985, deposits tripled in size and bank loans rose by around 20 %. The Peoples Bank of China or PBOC is the Central Bank of China, which acts as the governments treasury, and supplies credit to all Chinas economic unit.
It also is the center for all clearing operations. The Bank of China, on the other hand, is the repository of all foreign exchange, and the Agricultural Bank is responsible for financial operations in the rural areas. Until 1980, there were limited interbank activities, and the number of checking accounts was quite low. The first Chinese credit card, the Great Wall Card, was introduced only in 1986 (The Banking System of China, 1996).
Internet banking in China began in 1997 when China Merchants Bank began offering Internet payment services. According to an AC Nielsen survey, as of 2002, there are approximately 2. 5 million Chinese internet users, and it is estimated that approximately 23 % of these are likely to use e-banking services. Around 100, 000 internet surfers use online banking services everyday, and furthermore, the survey states that the majority of Chinas 11 million internet users want to try internet banking services, but are not ready to try it at the moment. 30 % of these want to try it now (China. Org 2002). All of this information point out to the fact that there is a great potential for e-banking in China in the very near future. In fact, the opposition to internet banking has dropped from 14 % in 2000 to 6 % in 2002.
Although the potential is immense, so is the responsibility. Banks involved in e-banking will have to make their products and services more competitive so as to attract the most number of customers. WORKS CITED Business Library: Doing Business in China. Retrieved August 15, 2008 at: web Chinas E-Banks Set for Golden Age. (2002). [Online]. China. Org.
Com. Retrieved August 15, 2008 at: web Gooderham Paul. Enhancing knowledge transfer in multinational corporations: a dynamic capabilities driven model. Retrieved August 15, 2008 at: web Morath, Eric.
China: Land of opportunity? Nov. 2, 2006. Retrieved August 15, 2008 at: web The Banking system of China. (1996). [Online]. Country studies.
Com. Retrieved August 15, 2008 at: web
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Research essay sample on Chinas Economic Economic Reform
