1. By -Akshat poonia , Aanchal bansal, Eshan
gambhir, Jasmine sahi , Arshpreet
University instt. of applied mgmt. sciences
(Chandigarh).
CHINA
2.
3. China is well known for …
Technical advancement
The Great wall of china
Large population
Giant pandas
Jacky chen and Bruce lee
One children per family
Mark zuckerberg’s Gf
4. China - An Introduction
An ancient and modern
civilization
A rich and complex history
Superb cultural legacy
The most populous nation
on Earth
Many nationalities
Socialist government
Very diverse landscapes
5. China - History
Origins of Chinese
Kingdom lost in mythology
First Emperor in Many
Imperial Dynasties were
chiness:
Xin, Han, Ming, Tang, Manc
hu
The Great Wall of china is
the biggest wall of the world
Republic founded in1949
6. China - Culture
Religions - Buddhism,
Taoism, Islam
Art - painting, sculpture,
furniture, fabrics etc.
Philosophy - Confucian
thought, etc.
Music - Beijing Opera
Kites - Wei Fang kite
making tradition
7. Who Are the Chinese?
The most populous nation
on earth
Population = 1.3 billion
20% of world population
Population was only 0.5
billion in 1950
One child per family policy
since 1979
Most Populated Province -
Henan (92.56
million, almost twice the
UK)
8. China - Landscape
Western area mostly
mountains, snow and desert -
very sparsely populated
Northern edge borders the
Gobi Desert
South-western part tropical -
dense forest
Remaining central and eastern
zones are very diverse - river
valleys, plains, mountains.
9. China - Government
China is governed by the
Communist Party of China
President Hu Jintao and Prime
Minister Wen Jiabao are the
leaders of China
The parliament currently has
25 members
There are 22 provincial
governments, as well as 4
major cities, 5 autonomous
regions and 2 special
administrative regions
12. POLITICAL ENVIRONMENT
People’s Republic of China
Communist party of China(CPC)
Fundamental framework of China’s political
system comprises of people’s
congresses, multi-party cooperation and
self governance
Cooperative relations between the CPC
and other political parties are based on
principle of long term coexistence and
mutual supervision
13. ECONOMIC ENVIRONMENT
World’s second largest economy
GDP growth rate:-7.8% (2012 estimate)
FDI accounts for 27% of the value added
production,4.1% of the national tax
revenue, and 58% of the foreign trade
Inflation rate:-2.7% as on 9-07-2013
Unemployment rate:-4.10%
Population below poverty line:-13.4%
14. • Acc to 2010 estimate labor force in China
was around 815.3 million, exports were
around $1.581 trillion and imports were
around $1.327 trillion
15. SOCIAL ENVIRONMENT
Population of china as on 22-09-2013
is 1,360,070,000
Highly skewed sex ratio:117.8 boys for
every 100 girls
Literacy rate:-95.9%
16. TECHNOLOGICAL
ENVIRONMENT
INNCH set sail on the world’s first and only nuclear
informatization forum--Nuclear Information Technology China
Forum 2013 (NITF2013) which will gather around 150 senior
experts and executives to analyze the trend of China’s
nuclear informatization industry. NITF2013 will target to
provide the high-end platform to promote the communication
between government, NPP & Nuclear IT companies in and
aboard.
On 18th April 2013 China Environmental Technology Acquired
Shenzhen Huaxin Zhongshui Protection Engineering
Company Limited to expand water projects.
On 13th July 2012 China Environmental Technology Signed
Strategic Co-operation Agreement with China Railway 25th
Bureau Group Co., Ltd to Mutually Diversify Business.
17. CONTD.....
Internet users:-718 million (2013)
China Telecom alone serves 55 million broadband
subscribers
Tianhe-1A world’s fastest supercomputer developed in 2010.
China has been pioneering the deployment of pebble bed
nuclear reactors, which run cooler and safer than
conventional nuclear reactors.
In 2011, China unveiled a prototype train capable of reaching
speeds of 310 mph (500 km/h), the first ultra-high-speed train
developed solely by its domestic railway industry.
In September 2011, the first Chinese space station
module, Tiangong- 1, was successfully launched, marking the
first step in a decade-long project to construct a large
manned space station.
made its first attempt at the robotic exploration of Mars in
November 2011.
China conducted a successful test of an anti-satellite missile.
18. ENVIRONMENTAL FACTORS
China has a variety of forest types. Hardwoods such as teak
and mahogany are cultivated as commercial crops, as are
pine and other softwoods. Bamboo is a very fast growing
plant which can grow up to one metre a day. An interesting
tree found in China is the ginkgo or maidenhair tree which is
used in Chinese medicine. It is one of the worlds earliest
surviving plant species and first grew 160 million years ago.
China has a wide variety of wildlife: tigers, snow
leopards, monkeys, yaks and giant pandas. The birdlife
includes peacocks, parrots, cranes and storks. Cormorants
are used by some fishermen on the rivers to catch fish for
them.
Chinas natural environment has been adversely affected by
human intervention in a number of ways. Deforestation has
gone on for many years. In 1978 steps were taken to protect
the environment.
There is now a programme of tree planting and a national
conservation organization looks at the consequences for the
environment of using pesticides and chemicals
19. CONTD....
On 26th July 2012 China Environmental
Technology Signed Co-operation Agreement
with The Municipal Government of Zixing City
in Hunan to Mutually Develop the
Environmental Protection Project of the
Dongjiang Lake.
On 29th April 2013 China Environmental
Technology Signed a Contract with the Beijing
Water Authority in Relation to the Project of
Empress Xiao River.
20. LEGAL ENVIRONMENT
Retail outlets in urban areas of China
normally open from 09.00 till
18.00, trading 7 days a week and 365
days a year including public holidays as
they are considered to be peak trading
times
China has a number mandatory laws
regarding foreign business entering the
country although access was made
complex in 2004 when China gained full
membership to the World Trade
21.
22. China’s Free Trade Agreement Strategies
• Trans-Pacific Partnership (TPP)
• has caused China some disquiet
• The agreement was signed among four
countries
(Brunei, Chile, New Zealand and
Singapore
• five additional countries
(Australia, Malaysia,
Peru, the United States, and
Vietnam) began negotiations to
join the group
• The TPP agenda is
considered by many a
force that could rip apart
East Asian economic
integration.
• The most important
strategy for China is to
actively push its own FTAs.
• China is also
considering joining TPP,
although it is still cautious
about this option.
• It will be difficult, if not
impossible, for China’s
FTA strategy to reach
its political aim.
23. • The Chinese Government deems Free Trade Agreements (FTAs) as a new
platform to further opening up to the outside and speeding up domestic
reforms
• An effective approach to integrate into global economy and strengthen
economic cooperation with other economies
• As well as particularly an important supplement to the multilateral trading
system.
• Currently, China has 14 FTA partners comprising of 31 economies, among
which 8 Agreements have been signed already.
24. Dividing China’s FTA into 4 parts:-
China's Free Trade Agreements
Free Trade Agreements under Negotiation
Free Trade Agreements under Consideration
Preferential Trade Agreement
26. China’s Free Trade Agreements under
Consideration
• China-India Regional Trade Arrangement Joint Feasibility Study
• China-Korea FTA Joint Feasibility Study
• China-Japan-Korea Joint Study
• China-Switzerland FTA Joint Study
China’s Preferential Trade Agreement
• Asia-Pacific Trade Agreement
27. CHINA-ASEAN FTA
• The leaders of both China and ASEAN Member (AMS) signed the
Framework Agreement on China-ASEAN Comprehensive Economic
Cooperation at the sixth China-ASEAN Summit in November 2002.
• In January 2007, the two parties signed the Agreement on Trade in
Services, which entered into effect in July of the same year.
• In August 2009, the two parties signed the Agreement on Investment.
• The establishment of China-ASEAN free trade area enhances the close
economic and trade relations between the two parties, and also contributes
to the economic development of Asia and the world at large.
29. No way to escape the
DRAGON!!!
Using the big Indian market – to dump their
products
Killing the Indian units
Example
Last year during Diwali, china made crackers were sold in
the Indian market. These crackers reportedly contained
Sulphur. Sulphur is more harmful than Nitrate. Since the
Chinese crackers were cheaper than the Indian crackers,
so they managed to attract innocent Indian lot. As a result
the Indian cracker industry saw a decline in the revenue.
29
30. No way to escape the
DRAGON!!!
Due to cheaper prices of Chinese products
– popular among the Indian masses
Negative effect on our own manufacturing
units
For instance
Data reveals that 60% of the Industrial units in the
region of Thane and Bhivandi near Mumbai have
been closed down. (Indian cottage industries i.e.
handicraft)
30
31. No way to escape the DRAGON!!!
Due to its cheap labor
◦ China offers low – priced imports
Also affected Indian export market
◦ China replaced Indian goods in the foreign
market
◦ Due to being cheaply produced
Fact to be noted:
◦ China manufactures both low as well as high
quality products
◦ Eg: the manufacturing of Apple iPhone, Nokia
Handset etc.
31
32. Made in China, Sold in
India
China is ruling in many markets
India is the hub of diverse business
opportunities
◦ Slowly yet steadily, Chinese products are dominating
similar Indian products
◦ Eg: Electronics, crackers, statues, apparels, etc
◦ Eg: In 2010, flooding of the Indian markets with Chinese
made statues - welcomed with open arms by the Indian
consumers
32
34. ITS BlueBerry not BlackBerry
Same design
Same colour shade
May be having advance features
Very cheap
Same has been done to various
products and brand
◦ E.g.: Apple iPhone
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35. Positive Aspects Negative Aspects
Relatively Cheaper than
the regular/known brands
Advanced features
Affordability, common
man can easily purchase
Widely available
Unsafe products
Non long-lasting
Resulted in closure of
many businesses
Outflow of capital
Increased in Imports &
decreased in Exports
37. Trade Relations
India considers China its largest trading partner
China & India export and import from each other in a huge
quantity
India scores only in resource based exports & low technology
based exports
China is no. 1 in low technology product, also scores well in
medium & high technology
BASIS INDIA CHINA
Export of Goods &
Services (% of GDP)
21% Over 40%
Imports of Goods and
Services (% of GDP)
24% Over 30%
38. Trade Analysis
Years India’s
Exports to
China
India’s
Imports
from China
Trade
Balance
Total Trade
1999 825.74 1287.18 -461.44 2112.92
2000 1353.44 1527.51 -174.07 2880.95
2001 1699.06 2057.85 -358.79 3756.91
2002 2273.82 2779.14 -505.32 5052.96
2003 4251.32 4004.50 246.82 8255.82
2004 7677.98 5994.59 1733.39 13622.57
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India’s exports to China in 2003 and 2004 were phenomenally high due
to a surge in exports of steel. This can be attributed to a record growth
in the iron and steel sector in India during this year.
39. List of Imports by India from
China
Electrical Machinery (47%)
Organic Chemicals and Inorganic Chemicals
Iron And Steel, Iron/Steel Products
Rare Earth Metals
Fertilizers
Impregnated Text Fabrics
Manmade Filament, Fabric
Silk; Silk Yarn, Fabric
Vehicles
Mineral Fuel, Oil
Aluminum etc
39
40. List of Import by China from
India
Ores, Slag, Ash
Metals
Organic Chemicals Salt; Sulphur; Earth, Stone
Inorganic Chemicals; Rare Earth Metals
Cotton and Yarn, Fabric
Copper and Articles Thereof
Hides And Skins
Artificial Flowers, Feathers
Tanning, Dye, Paint, Putty
Precious Stones
Fish And Seafood
Plastic
40
41. Companies
Indian companies in China:
◦ Reliance Industries
◦ Ashok Leyland
◦ Adani Power Limited
◦ Bank of India
Chinese companies in India:
◦ Lenovo
◦ Haier
◦ Industrial Bank
41
42. BUT
Senior Vice President and Chief Economist,World Bank
Professor of Economics and C Marks Professor, Cornell
University
44. Chinese Business
Practices & Etiquette
A nod or slight bow is also a widely used greeting
Avoid using physical contact, other than a
handshake, when greeting a new contact
In China the surname comes before the first name
For business purposes it is appropriate to address a
Chinese person by their business title and surname
(i.e. President Li)
Never underestimate the importance of the
relationship building process, as the Chinese prefer
to do business only with people they know
Maintain professionalism and formality at all times
45. Building relationships involves exchanging of gifts
and favors; always reciprocate gifts and favours as
appropriate
Meetings are very formal and must be scheduled in
advance
Arriving late is very insulting Be sure to arrive on time
or early
Meetings will begin with small talk. Keep the
conversation positive when speaking about any
experiences in China and avoid politics
Seating will be in descending order of rank with
senior people sitting opposite each other
The Chinese will not say “no” directly, an answer
other than yes could mean no
If you are planning to discuss legal or very technical
topics, bringing an interpreter is highly recommended
46. Conclusion
India & China together constitute 1/3rd of the total
world population and 1/4th of world’s skilled labour
force.
They are two future economies to TRADE with!
For sustainable trade relationship between the two
nations, its imperative that they move from
competition to cooperation.
As 20th century was US century, 21st century would
be Asian century where the two nations would lead
SO, IT COULD BE CHINA & INDIA IN THE FUTURE,
NOT CHINA v/s INDIA
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Notes de l'éditeur
They are using the big Indian market merely to dump their products and by doing so they are killing the Indian unitsFor example: last year during Diwali, china made crackers were sold in the indian market. These crackers reportedly contained sulphur. Sulphur is more harmful than nitrate, which is used in India to make crackers. Since the Chinese crackers were cheaper than the Indian crackers, so they managed to attract innocent Indian masses. As a result the Indian cracker industry saw a decline in the revenue.
3) Because of cheaper prices products made in China are becoming more popular among the indian masses. This has had a very negative effect on our own manufacturing units and as a result many of them had to shut shops.For instance, data reveals that 60% of the Industrial units in the industrial belts of Thane and Bhivandi near Mumbai have been closed down. (Indian cottage industries i.e. handicraft)
4) Due to its cheap labour, China offers low-priced imports such as textiles and clothing, electronic devices, machinery, etc6) It has also affected Indian export market, as China has replaced indian goods in the foreign market as being cheaply produced.7) But there is also a point that should be noted which is that china manufactures both low as well as high quality products. For instance: the manufacturing of Apple iPhone, Nokia Handset etc. is done in China only. But India only imports cheap products
China are ruling the roost in many markets. India is the hub of diverse business opportunitiesSlowly yet steadily, Chinese products are dominating similar Indian products3) Eg: electronics, crackers, statues, apparels, etc4) Eg: this year, there was flooding of the Indian markets with Chinese made statues which were welcomed with open arms by the Indian consumers.
Its blueberry and not blackberryIt has the same design, same color shade, may also have advance features, its very cheap, but its not the original cellphonePeople who can’t afford to buy the original blackberry, go for this cheap chinese blueberry cellphones available in the market.Like blackberry turned into blueberry, similar has been done to various other brands in the market, another example is the apple iPhone, which is Ephone in the chinese market
Positive aspectsChinese products are relatively cheaper than the regular or known brands in the market eg blackberry and blueberryIt has advanced featuresIts affordable, as a I mentioned earlier, common man can easily purchase chinese productsIts widely available, not only in india, but all over the worldNegative aspectsThey are unsafe productsThese are non long-lastingIndroduction on chinese products in the market has resulted in shuttin of other businessThere is also outflow of Indian capital into ChinaResulting into increased imports n decreased exports
Source: http://blog.made-from-india.com/Trade_relations_between_India_and_China-22.htmlToday India cosiders china its largest trading partner as the imports and exports beween two countries is going high and high.India mostly has the resource based and low technology based exports as India is not so advenced in technology as compared to China.But China is no.1 in low, medium as well as high technology exportrs.India’s exports of goods and services is 21% of its GDP and China has over 40% of its GDP. And in Imports India has 24% of its GDP and China over 30% of its GDP.
Here we can see that year after year trade between the two countries is continuously rising. Total trade in 1999 was $2112.92 million and in 2004 reached $13622.57 million.India’s exports to China in 2003 and 2004 were phenomenally high due to a surge in exports of steel. This can be attributed to a record growth in the iron and steel sector in India during this year.
Out of total imports by India from China , 47% are of Electronic products and machineries.Hence, there is huge potential in Indian market for other Chinese products.
Whereas, 76% to 80% of total exports by India to China consists of machinery, organic & inorganic chemicals, Cotton, Yarn, Fabric, Precious Stones, Metals, Artificial Flowers, Copper Articlesetc
Some of the India Companies which have their operations in China also are Reliance Industries, Ashok Leyland, Adani Power Limited, Bank Of India, etcSome of the Chinese Companies having their operations in India are Lenovo, Haier, Industrial Bank. Etc