GOODIES INC. INTERNATIONAL TRADE
CONFERENCE
I will introduce the advantages and disadvantages of
our investment in China from four aspects : Political &
Economic Information, Cultural Information, Marketing
Information.
A.General Information
The People's Republic of China, referred to as "China",
was founded on October 1, 1949, located in the east of
Asia, on the west coast of the Pacific. It is a socialist
country under the people's Democratic dictatorship led by
the working class and based on the alliance of workers and
peasants. “Since the change, China has been among the
world’s fastest growing economies, with real gross
domestic product averaging over 9% growth annually
through 2018.” (“China - The World Factbook”) China has
1.4 billion people and is the world's second largest
economy.
(“Awesome China Map Wallpapers!”)
China faces three major problems: soil erosion,
desertification and overpopulation. Soil erosion which
covers an area of 1.16 million square kilometers
nationwide. According to satellite remote sensing
calculations in 1992, the area of soil erosion in China was
1.794 million square kilometers, accounting for 18.7
percent of the country's total land area. The areas (from
north to south) in China where soil erosion is particularly
serious are mainly the upper reaches of the West Liaohe
River, the Loess Plateau, the middle and upper reaches of
the Jialing River, the lower reaches of the Jinsha River, the
Hengduan Mountains, and some mountainous and hilly
areas in the south. China is one of the countries most
affected by desertification in the world. Deserts, gobi and
desertification in northern China have exceeded 1.49
million square kilometers, accounting for 15.5 percent of
China's total land area. In the 1980s, desertified land
expanded at an annual rate of 2,100 square kilometers. In
the past 25 years, 39,000 square kilometers of land have
been lost, more than 2,000 kilometers of railways and
many towns, mines and villages are threatened by
desertification. (“Chinese ecological environment”) The
large population has always been one of the most striking
features of China's national conditions. Although China
has entered the ranks of countries with low fertility rate,
due to the inertia of population growth, China's population
will still increase at an average annual rate of 8-10 million
at present and in the next decade. According to the current
total fertility rate of 1.8, China's population will reach 1.37
billion in 2010 and 1.46 billion in 2020. The total
population will peak around 2033 at about 1.5 billion.
Beijing, the capital of China, covers an area of
16,410.54 square kilometers and has a permanent
population of 21.886 million. Three other cities joined
Beijing as first-tier cities: Shanghai with a resident
population of 24 million, Guangzhou with a resident
population of 18 million and Shenzhen with a resident
population of 17 million. (“China - The World Factbook”)
The han population of 1.28631 billion people, accounting
for 91.11%, the ethnic population of 125.47 million people,
accounting for 8.89%. The official language of China is
Mandarin. China is a country of many religions. The main
religions are Buddhism, Taoism, Islam, Catholicism and
Christianity, Chinese citizens can freely choose and
express their beliefs, and suggests that religious identity.
By the end of 2019, China had 139,000 kilometers of
railways in service, 5,012,500 kilometers of highways,
127,300 kilometers of inland waterways, and 238 certified
civil aviation airports.
B. Political & Economic Information
Politics and economics are huge considerations when
making investments. The People's Republic of China is a
socialist state under the people's Democratic dictatorship
led by the working class and based on the alliance of
workers and peasants. The socialist system is the
fundamental system of the People's Republic of China.
There are altogether eight democratic parties in China.
They are closely united around the CPC. China's current
top leader is General Secretary Xi Jinping. The level of
government corruption and transparency in China has
markedly improved since The Anti-corruption campaign
led by President Xi Jinping. China has territorial disputes
with India, Japan, Vietnam, the Philippines and Russia.
foreign policy is an independent and independent foreign
policy of peace.
The Chinese economic system refers to the socialist
economic system of the People's Republic of China, which
is based on socialist public ownership of the means of
production, namely, ownership by the whole people and
collective ownership by the working people. China's GDP
in 2021 will be 114 trillion yuan, up 8.1% year on year
from 102 trillion yuan in 2020. Trade cooperation between
ASEAN and China has skyrocketed in recent years,
surpassing the United States to become China's largest
trading partner. The European Union is in second place,
the United States is in third place, and the very
unremarkable country Japan is in fourth place. China has
a vast territory, diverse geological conditions and rich
mineral resources, 171 kinds of minerals. 157 species have
been found in reserve. Among them, the proved reserves
of tungsten, antimony, rare earth, molybdenum, vanadium
and titanium rank first in the world. Coal, iron, lead and
zinc, copper, silver, mercury, tin, nickel, apatite, asbestos
and other reserves are in the world's forefront. China's
legal tender is the RMB. Until 2022, with one Canadian
dollar equals to about five RMB yuan. As of January 2022,
the surveyed urban unemployment rate was 5.5 percent.
The minimum wage is 5 CAD per hour. China joined the
World Trade Organization in 2001. (“1 CAD to CNY Canadian Dollars to Chinese Yuan Renminbi Exchange
Rate”)
C.Cultural Information
These are the cultures we need to know in advance if
we go to China for negotiations. Chinese people tend to
shake hands on formal occasions. If the relationship is
very good, Chinese people will also use the hug etiquette.
Suits and ties or MAO suits are considered as appropriate
attire in the workplace. Chinese people exchange business
cards when they meet for the first time. But with the
development of technology, people are more inclined to
use electronic business cards. In China, because of the
fight against corruption, gifts of high value are not
generally given. It could easily be misinterpreted as an
attempt at bribery. Chinese people often choose to work
overtime to finish their work, and these habits have made
great breakthroughs in China's economy. In China, men
and women are equal in the workplace. Women enjoy the
same rights and wages as men, except for some manual
jobs where men are preferred. The minimum legal
working age in China is 16. Hiring anyone under the age
of 16 carries heavy fines.
D.Marketing Information
In January-February 2018, Chinese confectionery output
was 4 million tons, up 1.44 percent year-on-year. China's
confectionery output stood at 3.31 million tons in 2017,
and remained around 3 million tons from 2013 to 2017.
As a kind of leisure consumer goods, The international
competitiveness of Chinese candy shows a steady but
rising trend, and the gap between China and Brazil, the
world's leading sugar producer, is also gradually
narrowing. Relevant data show that among candy
consumers, 51 percent of respondents eat candy because
of "greediness"; 46 percent of respondents eat candy to
boost their energy levels; 41 percent of respondents ate
candy for "relaxing" at home while surfing the Internet,
playing video games or watching TV. And 35 percent of
consumers share candy with their parents, partner or
friends. In addition, the festival serves as a bond to
maintain relationships and is the perfect time for relatives
and friends to enjoy the "sweetness". (Taboola) In terms of
marketing, we can divide our products into adults and
teenagers. Adults focus on the health concept, while
teenagers focus on the shape packaging of products. At
present, a large number of Chinese people buy things from
Tiktok, and many anchors promote goods through live
broadcast. We can cooperate with them to share profits,
which can greatly reduce our advertising costs. Our main
competitors in the Chinese market are Telford, Warner,
Alps and so on. These companies have their own strengths
in various types of candy, but there are few enterprises can
integrate all kinds of candy at the same time. We can
mainly sell gift packages to let people know that our
products are delicious in all aspects and let consumers
form a habit.
E. Recommendations & Conclusion
As a conclusion, the cost of have a plant in China is
considerable low. China's labor cost is very low
compared with other countries; This has also become an
important reason for foreign investment in China in the
past 20 years. China has a series of foreign friendly
systems; In 2019, China will promote all-round opening
to the outside world and increase efforts to attract foreign
investment. Further relax market access, reduce the
negative list of foreign investment access, and allow
foreign-funded sole proprietorship in more fields. Any
foreign investor who is willing to invest in China must be
optimistic about the Chinese market. For example, the
supermarket industry includes Wal Mart, Metro and
Carrefour, the automobile manufacturing industry
includes general electric, Toyota, Honda, Suzuki,
Mercedes Benz and BMW, and the Internet enterprises
IBM, Dell, HP and Microsoft. There are also countless
well-known foreign catering brands, which undoubtedly
seize China's market share. With the golden development
period of China's economy, the above enterprises have
made a lot of profits in China. Therefore, if we invest in
China, we will make huge profits like the above-
mentioned enterprises. This is very good for the
development of the whole company
Reference page
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“Awesome China Map Wallpapers!” WallpaperAccess. Wallpapers are for
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<https://wallpaperaccess.com/china-map>.
“Chinese ecological environment” 1 Feb. 105AD. Web. 17 Mar. 2022.
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“China - The World Factbook.” The World Factbook. N.p., 3 Mar.
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WenZheng. “2020 Chinese Confectionery Output Bluebook.” chyxx, 13
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<https://www.chyxx.com/industry/202101/922829.html>.
Taboola. “China Confectionery Industry Survival Status Report.”
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<https://www.sohu.com/a/210744699_100038518>.