GEOGRAPHY OF CHINA

China, officially the People's Republic of China (PRC), is a unitary sovereign

state and the world's most populous country, with a population of
over 1.381 billion.
It is the world's second-largest state by land area, Covering 9.6 million square
kilometres (3.7 million square miles).
Governed by the Communist Party of China.
China's landscape is vast and diverse, ranging from the Gobi and Taklamakan
Deserts in the arid north to subtropical forests in the wetter south.
The Himalaya, Karakoram, Pamir and Tian Shan mountain ranges separate China
from much of South and Central Asia.
China has the longest combined land border in the world, measuring 22,117 km
(13,743 mi) from the mouth of the Yalu Riverto the Gulf of Tonkin. China borders 14
nations, more than any other country except Russia, which also borders 14.
The territory of China lies between latitudes 18 and 54 N,
and longitudes 73 and 135 E.
 PESTLE Analysis of CHINA
POLITICAL FCTORS
China Government attempts to promote rule of law.
After the Cultural Revolution, a legal system to restrict of official authority and
revolutionary excesses has been developed.
In 1982, the National People's Congress issued a new state constitution that
emphasized the rule of law under which even party leaders are theoretically held
accountable.
Since 1979, when the drive to establish a functioning legal system began,
Legislation designed to modernize and professionalize the nation's lawyers,
judges, and prisons was issued.
The Chinese constitution and laws provide for fundamental human rights,
including due process, however in practice these are often ignored.
In addition to other judicial reforms, the Constitution was modified in 2004 that
include the protection of individual human rights as well as the legally-obtained
private property, but it does not clear about how some of these provisions will be
implemented.
China Government has taken strict measures to prevent and stop riot situation
that creates safe environment for foreign investors.
ECONOMIC FACTORS
Since the introduction of economic reforms in 1978, China has become one of the
world's fastest-growing major economies.
As of 2016, it is the world's second-largest economy by nominal GDP and largest
by purchasing power parity (PPP). China is also the world's largest exporter and
second-largest importer of goods.
China has transformed its economic into the market-oriented that positively
impact not only on China but also on the world.
An average economic growth has been sustained over 9.5% for 26 years.
In 2009, its economy reached to $4.814 trillion was about one-third the size of the
U.S. economy.
The combination of central planning with market-oriented reforms were tried to
implement in order to increase productivity, living standards, and technological
quality but not lead to negative effect on inflation, unemployment, and budget
deficits.
China's central bank set the Yuan exchange rate at higher level after committing to
increase the flexibility of exchange rate of its currency.
The government promoted more self-management for state-owned enterprises in
order to increased competition in the marketplace, and create opportunities for
China's domestic enterprise directly contact with the foreign ones.
SOCIAL FACTORS
With a population officially over 1.3 billion and an estimated growth rate of
0.494%.
China is very concerned about its population growth and has attempted with
mixed results to implement a strict birth limitation policy.
The government's goal is to stabilize the population in the first half of the 21st
century.
The trend of employment with relation to the unemployment level. The current
unemployment rate in China is 4.3%.

TECHNOLOGICAL FACTORS
Chinese science strategists realize China's greatest opportunities in technology
fields such as computers and biotechnology, where creates a chance for China to
make innovation in these areas.
China's small but growing space program is national pride of China .
Technology Agreement is the model for bilateral cooperation between The U.S and
China in science field.
Chinese have mastered the art of reverse engineering and their mass production
and manufacturing capabilities have made the Worlds largest exporter.
LEGAL FACTORS

In order to encourage foreign companies to invest in China, China Government has

gradually set up a relative complete law system.
The Chinese government has promulgated and issued a series of laws and statutes
about the establishment, operation, termination and liquidation of foreign-invested
enterprises.
In 1979, The Law of the People's Republic of China on Chinese-Foreign Equity Joint
Ventures was published. These were amended 20 years later and new set of laws
giving rights to the investors has been added to Chinas constitution.
These provide legal bases from which to guarantee the independent operation
rights of foreign-funded enterprises and to protect the legitimate rights and
interest of both domestic and overseas investors.
the China's government is considering its existing laws and statutes in accordance
with the model of the WTO. It has abolished certain obsolete laws and regulations,
and will gradually revise the laws and regulations that are incompatible with the
rules of the WTO.
ENVIRONMENTAL FACTORS
Along with China's rapid industrial development are the serious negative impacts
on environment these include increasing pollution and decreasing natural
resources as well.
China is the world's largest emitter of carbon dioxide and other gases leading to
greenhouse.
WTO conducted a report on the quality of air in 272 cities worldwide, pointed out
seven out of the ten cities that are the most polluted in the world were in China.
Water scarcity also is considered as an issue; taking severe water scarcity in
Northern China as an example that is actually a serious threat to sustained
economic growth.
Some research estimate pollution costs hold the Chinese economy from 7% to 10%
of GDP per year.
China's leaders are increasingly paying attention to environmental problems in the
country. Realizing the importance of environmental protection, The State
Environmental Protection Administration was officially upgraded to a ministry-level
agency, the Ministry of Environmental Protection.
China has signed the Basel Convention about transporting and treating hazardous
waste; the Montreal Protocol about the Ozone Layer Protection and other major
environmental agreements.
 Top 10 Industries in China
(with GDP contribution in %)
TOP 10 FIRMS OF THE CHINA
(with Market Value in USD)
 BUSINESS OPPORTUNITY & RISKS IN CHINA
The great rebalancing
Chinas number-one economic question is how to increase consumption while
reducing reliance on exports and investment.
Infrastructure advances
Over the past 20 years, an incredible 8.5 percent of Chinas GDP has been
ploughed into infrastructuretwice the level of India and more than four
times that of Latin America. Chinas stock of infrastructure as a percentage of
GDP is well above the global average, but still ranks only 48th in a survey of
factors contributing to global competitiveness.
The green challenge
A thick and severe smog overwhelmed almost all of Chinas east coast earlier
this year, demonstrating the urgent need to address environmental issues and
green the economy. By 2020, an additional 300 million Chinese will become
urban residents, who consume as much as four times more energy and two-
and-a-half times more water per capita than rural Chinese do. While
environmental challenges create demand for green products and services,
they dont guarantee profits.
 Manufacturings makeover
Besides playing a part in helping to solve Chinas environmental troubles,
manufacturing faces a range of new challenges: rising wages and other factor costs,
growing consumer sophistication, more complex value chains, and heightened
volatility.
Rise of the upper middle class
By 2022 more than 75 percent of Chinas urban consumers will earn 60,000 to 229,000
Yuan ($9,000 to $34,000) a yearin purchasing-power-parity terms, somewhere
between the average income of Brazil and Italy.
E-tailing extraordinaire
Almost overnight, China has become the worlds second-largest e-tail market, a
development that is accelerating the broader shift from an investment- to a
consumption-led economy.
Innovations new spark
The e-commerce revolution has helped rev up Chinas surprisingly well-oiled
innovation engine.
Cultivating human capital
Chinas potentialand the billions spent on its physical infrastructurewill remain
underexploited without efforts to develop its human infrastructure.