2.  PESTLE stands for Political, Economical, Social, Technological,
Legal & Environmental. These are the factors which need to be
considered while expanding business nationally or Internationally.
 PESTLE Analysis is a simple technique which can be used in a fairly
sophisticated way, particularly when it is combined with Risk
Analysis, SWOT Analysis and expert knowledge about the
organisation and its external factors. PESTLE Analysis is normally
used to help organisations identify and understand the external
environment in which they operate and how it will operate in the
future. I believe that a version of PESTLE Analysis can be used by
the individual for personal development planning.
 Here we are using this technique to expand our business
Internationally.

3. Political Overview of China
 China has been under single party leadership for past 60 years and
the leadership has been able to impose its decision on the country
without negotiation.
 China is one of the fastest growing economy in the world.

4. Trade relationship between Canada & China
 Trade relation between Canada & China seems to be
improved in past few years.
 In 2003, the import of beef product has been banned from
North America because of the disease named as Bovine
Spongiform Encephalopathy (BSE).
 In 2007, the World Organization for Animal Health officially
categorized Canada as a “ Controlled risk” country for BSE.
 On June 24, 2010, an agreement has been signed between
Canada & China to allow the market access for Canadian
beef.
Conclusion: Based on the information above, China
seems to be a favorable market for Canadian Beef.

5. Economical Overview of China
 The economic growth rate in China is 13.3 percent/annum.
 China encourage foreign companies to invest in
manufacturing & modern services.
 China ranked second after U.S. in the number of express
highway links.
 One of the drawback of Chinese Economy is that the
Unemployment rate in China is increased in 2008 however it
is expected to be reduced in 2011

6. Beef trading impact on Chinese Economy
 China is the third largest producer of Beef products in the
world but still the export of beef is less then 1 percent.
 Technological progress is not good as compare to developed
countries despite the continues growth in beef production.
 China is facing significant challenges to expand its cattle
sector as they are short of grass and foreign resources,
breeding stock, water and energy resources.
Conclusion: The information above mentioned the
current situation of beef industry in China, Which
makes it an ideal location for expansion of our
business.

7. Social overview of China
 Population is one of the biggest problem with China however
after adopting the one child policy, the growth rate of
population has fallen down.
 But every policy has its side effects, adopting one child
policy has raised another problem “Aging Population”.
Another reason for this is increased life expectancy.
 One of the biggest challenges for China is the Gender
Imbalance with male to female ratio of 128:100.
 Being one of the booming economy in the world, the decline
in poverty is one of the achievement for China. The
population below poverty line has come down from aound
64%.

8. Social aspect of Beef in China
 Beef products are socially accepted in China.
 Consumption of beef is very high in Winter.
 Chinese people prefer fresh meat instead of frozen
products.
 Beef consumption is expected to be increase in next 20
years.
Conclusion: As per the information mentioned above,
There are no such social barriers to enter into the
Chinese Beef industry.

9. Technological overview of China
 China has many R & D institutions which make them very
well equipped for advanced research.
 Chinese people don’t want to enter the field of research
because of the low compensation and no incentives.
 Another drawback in Chinese R & D, Government
interference in R & D with week enforcement of cyber law.
 Funding for R & D is very non optimal.
 Special Economic zone have been created for R & D centers.

10. Technological impact on Beef Processing
 There are two ways of Slaughtering equipments, first one is
very crude which has a poor quality & utilization ability for
beef cattle.
 Second slaughtering equipments is advanced the
slaughtering ability is very strong, but the beef cattle is fall
short of demand, which make these advanced equipment in
a shutdown condition in most time.
 Quality of Chinese beef product is low because of the
processing method.
 There is one technology named beef acid which refers to
carry out the quarantine system and cooling processes
rapidly of carcass after slaughtering. The Chinese technician
should learn the production process, western beef products
processing method.

11. Legal overview of China
 Favourable policies to attract foreign investments.
 Political involvement in legal matters is also another
important factor for future risks.
 China has a developed and organized judiciary.
 Because of a week implementation of corporate laws
companies are not in effective compliance.

12. Legal requirements for exporting to China
 To export frozen meat and poultry products to chine,
certification is required. FSIS form 9060-5 and form 9295-1
are the certificates related to meat and poultry products.
 Importers of beef should have a valid license for
entry of meat and poultry products into the
country.
 Beef meat and meat products should be certified by
WHO, FAO & OIE that the products are BSE infection
free.

13. Environmental overview of China
 Vast areas of land cover under forest.
 Evolving environmental policies.
 High pollution levels.
 Farmers shifted to Beef farming.

14.  China has biologically diverse environment and vast
land is cover by forest in China.
 In 2003 China has banned beef from Canada because
they were worried about the mad cow disease.
 China have increased the regulation on beef due to
diseases caused by it.
 Farmers shifted to beef farming in China because of
increase in demand of beef.
 Conclusion- Environmental conditions seem
favorable for Beef products in China.