China

Chris FranceCindy Hobbs

Jennifer GrangerStefanie Aguilar

History• Chinese civilization originated in various city-states along the

Yellow river valley almost 10,000 years ago.

• The conventional view of Chinese history is that of a country alternating between periods of political unity and disunity and occasionally becoming dominated by foreign peoples, most of whom were assimilated into the Han Chinese population. Cultural and political influences from many parts of Asia, carried by successive waves of immigration, expansion, and assimilation, merged to create modern Chinese culture.

• The recent history of communist China begins with Chiang Kai-shek being forced out of the country by Mao Zedong. China was a closed society until 1978 when Deng Xiaoping encouraged a market economy and capitalist-like enterprises.

Location

InfrastructureChina is investing billions of dollars in its infrastructure.

• HighwaysThe government has added about 3,000 km of expressway a year to the existing network. China has already built a 30,000 km network of highways, second only to the U.S. in total kilometers.

• PortsChina has sixteen major shipping ports with a capacity of over 50 million tons per year. Combined China’s total shipping capacity is in excess of 2,890 million tons. By 2010, 35% of the world’s shipping is expected to originate from China.

• RailsPassenger rail traffic has priority over freight on the many single-track rail lines across China, extending trips which should last a few days to two weeks or more, and limiting investment interests in all but a few coastal regions. Rail tracks are now being doubled to alleviate freight train conflicts.

Demographics• Over 70% of the Chinese population is of working age

• More than 100 cities in China have a population of at least one million

• Every year ~10 million Chinese migrate to cities

• Chinese people are expected to own more cars than Americans by 2025

• By 2050, 1/3 of China’s citizens will be over 60

• Nearly 30% of Chinese aged 0 to 30 are only children

– Ratio of boys to girls (ages 0 – 10) is 121 to 100

• China supports 20% of the world population with only 7% of the worlds fresh water resources

Environment

• China's environmental record has become an issue for some in the U.S. labor movement who believe Washington should demand higher standards for environmental, worker protection, and human rights

• China suffers from water shortage and water pollution. About one-third of China's population lacks access to clean drinking water. Its per-capita water supply falls at around a quarter of the global average.

• In 2008, China surpassed the United States as the largest global emitter of greenhouse gases by volume

Income

Income Continued...

• China's impressive economic expansion in recent years has brought with it an emerging middle class

• Real GDP grew by 10.7% in 2006 over a year earlier. This is a ten-year high and a fourth consecutive year of double-digit economic growth

• In line with rising income, the country's middle class had risen to 80 million by January 2007, up from 65.5 million in January 2005

• The Chinese middle class is concentrated mainly in urban areas where greater jobs and business opportunities exist. It comprises of entrepreneurs and managers in high-tech companies, foreign firms and financial institutions as well as some self-employed private entrepreneurs

• The expanding middle class in China is indicative of the country's economic success and is extremely important to both local and international companies due to their significant purchasing power

Education

• Pre-school

• Primary Education

• Junior Secondary

• Senior Secondary

• Higher Education

• Vocational Education

• Private Post Secondary Training

• International Students

Life ExpectancyKEY FIGURES Population (2005): 1.3 billion

Life expectancy: Men 70.9 years, Women 74.5 years

Population over 65: 8 percent

Population under 15: 20.1 percent

Annual Births (2005 estimate): 16.7 million

Annual Deaths (2005 estimate): 8.49 million

Population Growth (2005 estimate): 7.68 million, a rate of 0.58 percent

Estimated net migration rate: -0.39 migrants per 1,000 population

Urban population: 43 percent (18 percent in 1978)

Workforce• Labor force: 781 million

• 44% Agriculture, Forestry and Fishing

• 18% Mining, Manufacturing and Construction

• 16% Service (banking, government, retail trade)

• The state assigns people jobs; no choice

• Jobs are guaranteed for a life time until retirement

Main Industries of the Workforce

• Mining

• Machine Building

• Textiles & Apparel

• Chemicals

• Consumer Products

• Rice

• Wheat

• Tobacco

• Peanuts

• Metals including coal, iron ore, tin

Economy/Trade• 2008 Exports – $1.40 trillion

• Principal exports

– Office machine & data processing equipment

– Telecommunications

– Apparel & Clothing

• 2008 Imports - $1.13 trillion

• Principal imports

– Electrical machinery

– Petroleum & related products

Conclusion• You have to do business in China

– 1/5 of the world consumers live in China

Concerns• Theft of intellectual property

• Product knockoffs

• Air Pollution

• Sanitation

• Water/Food

• Cost of doing business

– Car & driver

– Housing costs

• Utilities

• Monthly goods & services

– Cross culture training

– Language lessons

– Paid health care

– Children’s education

– Visas, passports, work permits

– House hunting trips

– Home leave/R&R leave