Global Business Management
The aim of this paper is to explore the implications of China economy's development. China`s transformation into a rapidly growing economy with a private- led sector along with its integration into the world economy have been recognized among the most impressive economic developments of recent decades. The extension of China`s role in the global trading system has demonstrated an outstanding pace, with China’s overall contribution in the world trade economy growing from one percent back in 1979 to astonishing 8 percent in 2011. There are stark prospects that China`s rapid economic development along with trade expansion could be maintained strong into the future. However, a vast array of both structural and macroeconomic drawbacks needs to be negotiated, in order for China’s potential to be realized.
Guanxi and guanxiwang concepts are significant to business in China. They are important mechanisms for building long-term business relationships with China successfully. A successful transaction will give businessman prestige and let him for lightweight access to other resources in the future.
The world monetary system is changing. These changes demand the reshaping of the regulations in favor of countries with emerging economies, including China. The Chinese yuan has the strong position, and this way China has an outstanding impact in the world monetary system.
Some tips for US businesspeople doing business in China pertain to making a market-based approach. Furthermore, procedures in China drag time, and require both money and patience; it is advised to build a strong local team. Western businesses should be consider local preferences and conform to them accordingly. For instance, McDonald's adapted its menu to comprise new items in an effort to match to local tastes. Western companies also need to show that their approaches are long-term. They have to prove that they are in the country to have a serious deal. Surrounding yourself with local talented people will help you to comprehend the culture and the intricacy of the market. Also it will break the language barriers for those who do not speak Chinese. The dynamic development of the Chinese economy has a particularly important impact on the economies of other developing countries.