The Most Promising Emerging Structure of China

The Most Promising Emerging Structure of China

Emerging structures or markets is a relative concept which refers to the evolving regions, countries, or an economic body compared to the developed or mature structures in the world. There are several emerging structures such as China, India, Brazil and Russia (BRIC). Low costs of labor, and plentiful natural resources are usually characteristics of the emerging structures. On one hand, the general lines of production can be moved from the developed regions to emerging structures for promoting competitiveness with cheap labor. However, the emerged regions and countries can import low-cost raw materials from regions that are rich in natural resources and developing markets. 

Similarly, the developing structures can also gain the improved technological production, enhance revenues, raise the capacity of consumption, and improve economic development through collaboration. As the greatest and most rapidly-growing economic body among the developing markets, China is a classic investment market. The country has maintained an incessant fast growth and the consumption level is also increasing continuously. It is certain that China is a developing country and an emerging market, and its environment still needs to be enhanced. Therefore, the researcher will give an in-depth analysis with regards to the emerging structure in China.

Political Environment

China’s political environment consists of a number of elements. Setting and factors affecting the political system are essentials of the political context. They may include cultural, geographical, ethnic, economic, and interest groups. The political surrounding influences the provisions of fundamental circumstance of the political structure and direct the process of its development. As the greatest communist country in the universe, China has gone through the period of closed-door procedure in the Qing dynasty. 

The agonizing history explanations make the region understand that there is no way of segregating. With the effect of geographical situations, national situation and doctrine culture historical convention, an exclusive system of state anatomy is entailed in China. The country’s political system guarantees the durability which is crucial for investing. The economic structure reform in the country will improve the extensive changes of its political system, the national economic ownership framework, and the industrial system. Hence, the self-improvement of China’s political system will greatly influence investing in China.

Market/ Economic Environment 

Despite the fact that China is a communist country, the market economy structure has been recognized as the primary economic system transformation and opening-up. The constant enhancement of the reform has enabled the market in the country to be more exquisite (Marukawa, 2017). Regardless of the state-owned corporations have developed a distinguished level of monopoly in most crucial industries, for instance, oil, hydropower, and transport, it does not imply that investors have no space.

As a matter of fact, the government appears to be more welcoming to foreign investments and imports than most developed regions and countries. The general situation of the country’s economy is good and differing consumption levels and structures have been formed already from the mainland to the coast. The plentiful natural resources and sufficient labor is another significant force that drives economic development. In addition, the infrastructure composition has made immense achievements. According to Marukawa (2017), the emerged transportation and suitable information are import stimulants for China’s economy.

Resources

China is known to be a country with massive territory great resources. The region is one of the universe’s critical energy countries with complete traditional energy resources. In addition, China is among the few regions to be self-reliant in mineral which are broadly distributed and have immense reserves. The country boasts of having massive water resources and forest reserves (Marukawa, 2017). It is also rich in botanical resources as the country has an extensive variety of economic plants that provide various foodstuffs, fibers, medicines, and different industrial raw materials.

Apart from massive natural resources, China has a population that is constantly increasing as well as the education level, particularly higher education. Consequently, there are abundant labor resources whose quality is improving continuously (Williamson, 2015). Additionally, the potential dissemination of funds is great as the country’s saving rate has consistently remained above forty percent. The quality of supply will also be enhanced for the advancement of the industrial system. 

Competitive Advantage

China has a competitive privilege in labor-intensive undertakings coupled with broadening of its manufacturing and export baskets which has resulted in an enhancement of the investment climate (Santos-Paulino & Wan, 2011). In addition, the economic reforms adopted by the country have greatly influenced its economic development. The industrial policies have been the core of development procedures and strategies. China’s industrial procedures have encouraged drivers of change such as knowledge investment and innovation undertakings as well as the growing connection between local research and high-tech corporations. 

China has welcomed multinational companies to invest in knowledge-developing pursuits such as R&D in their country. Foreign countries are known to be attracted to the country as a great destination for overseas R&D expansion due to their favorable international policies. As a result, the country has experienced massive development in scientific research, exceeding all countries, whether developing or developed (Santos-Paulino & Wan, 2011).

References

Marukawa, T. (2017). The economic nexus between China and emerging economies. Journal of Contemporary East Asia Studies, 6(1), 29-41. doi:10.1080/24761028.2017.1312755

Santos-Paulino, A. U., & Wan, G. (2011). Learning from the Southern Giants: China and India. Retrieved from https://unu.edu/publications/articles/learning-from-china-and-indias-development-strategies.html

Williamson, P. J. (2015). The competitive advantages of emerging market multinationals: a re-assessment. Critical perspectives on international business, 11(3/4), 216-235. doi:10.1108/cpoib-02-2014-0008