Political

China has been under the governance of the Communist for more than 60 years, and the
governance has been able to execute its decisions in the country without going through
negotiations. With increasing economic might, China has also been able to forge ties with
most countries, and its area of influence is evident in Africa. However, China's association
with Vietnam, the Philippines and Japan remains a matter of concern owing to tensions in the
East China Sea and South China Sea. Internally, the province of Xinjiang, which is home to
the Turkic-speaking Muslim Uighur cultural group, remains susceptible to the outbreak of
culturalaggression due to the Islamic separatist movement. Media censorship and intolerance
by the government against criticism are areas of concern; however, the government is
forming efforts to reinforce the rule of law in the country through judicial reforms.
(MarketLine, 2014)
Economic
The backbone of the Chinese economics is divided into three parts, Primary,
secondary and Tertiary.
Primary

- Farming, Forestry, Animal Husbandry, and Fishery -accounts 9 % of GDP.

Secondary

- Industry and Construction Accounts 40 percent & 9 % of GDP.

Tertiary

- Wholesale and Retail Trades; Transport, Storage, and Post; Financial

Intermediation, Real Estate; Hotel and Catering Services and Others
accounts 44% of GDP.

For 2016, the Chinese government is targeting the economy to increase between 6.5
to 7.0 percent. A year before, the economy expanded by 6.9 percent, the weakest since 1990.
On a quarterly basis, the GDP expanded by 1.8 percent, equaled to an upwardly revised 1.2
percent growth in the first quarter.(World Bank, 2015)
However, looking at the China Gross External Debt there is been a steady raise in the debt
obtained globally since 2006. External debt is the portion of a country's debt that was
borrowed from foreign lenders including commercial banks, governments or international
financial institutions. These loans, including interest, must usually be paid in the currency in
which the loan was made.In China, External Debt in China is reported by the State

Administration

of

Foreign

Exchange.

GDP
12

10.87

10
8

Trillion

6
4
2
0

Population growth.

China's "one-child" policy is universally acknowledged as having effectively kept as a

result its fertility ratio has fallen in between 1.2 to 1.6 (Trends Magazine, 2015, p.11).
However, China is home to about 1.37 billion people over one-seventh of the planet's people
live in the nation. Working Population of china rose to 37% from the past years and the
population of age group between 15-64 fell to 73% from the last year and 10% of total
papulation fall under the catogery of above 65 age group. (World bank, 2015)

Demographics.

According to the world bank (2015) population of china with the age group of 0-14
years there is asharp fall of 17% in 2015 from 25% in 2000. This is the result of One- Child
policy. With the Age group of 15-64 is comprised 73%. However the people above 65 and
above rose to 10% from 8% in 2010.
80
70
60
50

40

0-14

15-64

65 and Above

30
20
10
0

Social
The socialist market is the model employed by the People's Republic of China. It is
based on the supremacy of the public sector and an open-market economy, and has its origins
in the Chinese economic reforms introduced under Deng Xiaoping.(Tisdell, 2009)
The tastes and fashions are a great example of this change. One of the most important
differences is the growing popularity of social media. Social networking sites like Facebook
have become very well-liked among the younger people. The young consumers have grown

used to mobile phones and computers. The younger generation favors to use digital
technology to shop online. Older people will perhaps stick to their traditional methods. The
effect of changing society is an often discussed. You must also understand that these changing
factors have a toll on businesses too. Changes in the social factors can influence a firm in
many dissimilar ways.(PricewaterhouseCoopers, 2015)

Legal
National legal systems vary dramatically for historical, cultural,
political, and religious reasons. The rule of law, the role of lawyers, the
burden of proof, the right to judicial review, and, of course, the laws
themselves differ from country to country.
Chinese bureaucracies have sometimes been accused of selectively applying
regulations. China has many strict rules that are usually ignored in practice until a person or
entity falls out of official favor. Governmental authorities can wield their discretionary power
to crack down on foreign or disfavored investors or make special demands on such
investors simply by threatening to wield such power. (United States. Congress. House.
Committee on Financial Services. Subcommittee on Oversight and Investigations, 2006,
p.151)

Environmental
China's environmental crises seem to arise on a scale as sweeping and epic as the vast
nation itself, Thousands of dead, bloated pigs floating down the river that supplies Shanghai
with its drinking water. (Wang, 2014)
China has a history of intensive agriculture going back millennia, so it's perhaps
unsurprising that much of the nation's 3.7 million square-mile (9.6 million square kilometres)
territory has been subject to deforestation.Population pressure, the conversion of forests to
farmland, and hydroelectric and other infrastructure projects have placed China's remaining

forests at risk. This prompted the United Nations Environment Programme to list the
country's forests as threatened and in need of protection.(Otsubo, 2008)

Technological Factors
With the declared goal to become a global frontrunner in science and technology,
China introduced a landmark programme in 2015 for mass entrepreneurship and
innovation, to nurture grassroots entrepreneurship throughout the country. This vision is
aligned with the countrys economic goal to shift from labour-intensive manufacturing to
innovation-driven growth, and China is dedicating resources and policy support to promote
value chains, better technological advancement and encourage innovation in manufacturing
and service industries.(The People's Republic Of China, 2016)
However, limiting factors include weak intellectual property rights enforcement, a
route learning-based education system, internet censorship, forced technology transfer
policies and a top-down innovation model may hamper Chinas grassroots entrepreneurial
and innovative forces. China also needs to overcome a perception issue about the quality and
reliability of its products and that Chinese firms receive an unfair advantage in the global
marketplace through subsidized government financing and other policy tools.