Pestle Analysis of China
A PESTEL analysis of Chinas current economy
With China economic growth rapidly, more and more business people like to invest on chinese market. Meanwhile, multinational investment is always a good condition for economics’ grow and prosperity as well. In order to attract foreign direct investment and run a successful business in China, it is important to analyzing the macro-environment, and identify the factors that could affect the organization’s economy, such as supply and demand and its costs.
A PEST analysis is one of strategic tools for analyzing the environmental influences including political, economic, social and technological factors on the business. (Porter, M., 1985) In this essay, it is going to explain about current china economy and analyze it with PEST tool, to see if there is a good business condition for running a business in China.
In addition, there are some recommendations for local or foreigner investors and business people, so that they can access chinese market and share information like high-technology, cultural and management skills with local business people, to create competition and stimulate chinese economy develop faster.
Main Aspects of PEST Analysis:
Political factors:
Political factors are related to law, regulatory, and government policy, which influence Economic factors, and government decisions.
After the economic reform in 1978, the economic is growing spectacularly in China. The reform comprises of motivating the development of private business, foreign trade liberalization, foreign direct investment, and industrial production investment as well as the employment profile. From 1979 to 1994, more than 42 percent chinese economic rate has been grown up. (Mohsin S. Khan, 1997)
In the labor law, government changes the structure of jobs and becomes less strict, which create opportunities for unemployment, such as for graduated students who have not found any jobs, and for some people with lower education, so that at least there is a
With China economic growth rapidly, more and more business people like to invest on chinese market. Meanwhile, multinational investment is always a good condition for economics’ grow and prosperity as well. In order to attract foreign direct investment and run a successful business in China, it is important to analyzing the macro-environment, and identify the factors that could affect the organization’s economy, such as supply and demand and its costs.
A PEST analysis is one of strategic tools for analyzing the environmental influences including political, economic, social and technological factors on the business. (Porter, M., 1985) In this essay, it is going to explain about current china economy and analyze it with PEST tool, to see if there is a good business condition for running a business in China.
In addition, there are some recommendations for local or foreigner investors and business people, so that they can access chinese market and share information like high-technology, cultural and management skills with local business people, to create competition and stimulate chinese economy develop faster.
Main Aspects of PEST Analysis:
Political factors:
Political factors are related to law, regulatory, and government policy, which influence Economic factors, and government decisions.
After the economic reform in 1978, the economic is growing spectacularly in China. The reform comprises of motivating the development of private business, foreign trade liberalization, foreign direct investment, and industrial production investment as well as the employment profile. From 1979 to 1994, more than 42 percent chinese economic rate has been grown up. (Mohsin S. Khan, 1997)
In the labor law, government changes the structure of jobs and becomes less strict, which create opportunities for unemployment, such as for graduated students who have not found any jobs, and for some people with lower education, so that at least there is a