China
China, officially known as People’s Republic of China, is one of the world’s first civilizations. Located in East Asia, China has grown to become the largest of all Asian countries and has the largest population of any country in the world of more than 1.4 billion people (WorldOMeter, 2021). Since China began to open up and reform its economy in 1978, GDP growth has averaged almost 10% per year and more than 800 million people have been lifted out of poverty (The World Bank, 2021). There have been great improvements in essential services such as healthcare and education. The Chinese government has made innovation a top priority in its economic planning through a number of high-profile initiatives such as the “Belt Road Initiative” and the “Made in China 2025”, which is a plan to upgrade and modernize China’s manufacturing sector (EveryCRSReport, 2019). Below is an infographic summary of the Chinese economy:
China is experiencing a major manufacturing boom. The country is the world's largest construction market, accounting for 20% of all construction investment worldwide. By 2030, China is anticipated to spend roughly USD 13 trillion on construction (Mordor Intelligence, 2016). China has surpassed the United States as the world's largest building market. China's construction sector is expected to be worth $1,049 billion USD in 2020 (Slotta, 2021). Because the government intends to focus on improving infrastructure in small and medium-sized communities, the construction industry is expected to increase at a rate of roughly 5% each year.
Based on the study, several recommendations for the Chinese government were made. Firstly, the linguistic diversity of Chinese society is impressive, but the only common language is Mandarin, which makes the connection between commercial audiences a barrier. Therefore, the use of dual common language can make it easier for more business audiences to connect, and also make it easier for foreign enterprises to enter and cooperate with China and foreign countries. Secondly, compared with the international level, China's architectural design code is still lagging behind, so it needs to update the architectural design code for reference by new entrants. And lastly, China has its own development model, which makes its development different from any other country, but to occupy a more favorable position in international cooperation, it still needs to adopt more international rules and methods to promote the integration of new entrants.
After thousands of years of accumulation, China's rules, culture and tradition have made it more profound and complex, which requires foreign enterprises entering the Chinese market to have a diversified management team, including Chinese locals, which is the most direct way to reduce communication and connection costs. Moreover, China's economic market is unique, so new industry entrants, especially foreign ones, need to formulate and implement sound development strategies. This makes it imperative for foreign businesses to localize their operations by adapting local practices or cultures.
Team
Fatoumatta Wadda
Jennifer Sharon
Hui Luo
Chitiz Sahani
Jaimin Padia
