Trend in Business in China
JLU University Lambton College
April 5, 2012
Trend in Business in China
China joined as a formal member country of World Trade Organization (WTO) in 2001 and the way to join it also had many hardships. Chinese government knows that it is very important to join it for Chinese business to have some brand new opportunities. The only problem is joined as the developed country or as a developing country. China is a developing country has not enough ability to afford the responsibility of the developed country. For fear of too many extra duties, Chinese government decided ...view middle of the document...
The individual economy in China began to grow since Chinese policy of reformation and opening had been established and implement in 1978. From then on the business in China no longer only has state-owned business. Some Chinese began to have his own business and earned the first pot of gold which is lawless on before. Chinese people find that they can choose more a variety of commodities in the markets as well as have a new choice in many occupations which helps them get rid of poor life. More and more Chinese businessmen have started a business with their country together.
But these informal businesses can not make the business in China blend in the world economy in 20 years from beginning to end. The trouble has been solved when China joined in the WTO. Well communications with other countries make the business in China more richly than before. A new platform gives more opportunities for this rising market economy country.
Such as a financial storm which has swept the global, the subprime crisis also made a huge shock on Chinese business. In Beijing Review the article “Subprime mortgage crisis” explains “The weak housing market of the United States as well as a number of personal and corporate debts has caused multiple adverse effects on the world economy”(2008). The subprime crisis, which has roots in the closing years of the 20th century but became more apparent throughout 2007 and 2008, has passed through various stages exposing pervasive weaknesses in the global financial system and regulatory framework. Many Chinese companies tried their best to keep the business balance but had little success.
Because source of this financial crisis is real estate bubble, the first business which was influenced is real estate and bank. Housing loan is one of most common credit in bank. Some mortgagees can not repay their loan to bank and caused the capital chain in bank has been broken. It made some small companies which had financial relationship with bank have to bankrupt. The business in China has suffered a biggest challenge that seems can not be solved.
Turning Over a New Life
Chinese government adopts some necessary measures to help its national business. For example, the total...