Trend in Business in China
Wendy He
ENG 211D
JLU University Lambton College
April 5, 2012 2
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 to join as a developing country. The right decision brings a watershed situation for Chinese business. There was a huge financial crisis was sparked by the US subprime crisis in 2008. China also was influenced a lot and many private enterprises were bankrupt. Chinese government has made some useful adjusting policies to deal with these troubles in national business and in the end of 2008 the economic growth rate of China was also had 9%. We can know that the business in China is going to be more and more global and luxuriant. 3
New Business in China All of counties have its own business around the world. This economic interdependence relationship brings both challenges and opportunities to these countries. Because economic globalization becomes a trend, Chinese business also presents its own energy and characteristics under the global economy. Since China joined the World Trade Organization in 2001, the business in China has generally become global and rich. And it also has suffered some setbacks in 2008 that growing in the undulate financial environment.
Business Start Ups The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations and it helps a lot that sets Chinese business on the right track. 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.

4 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.
Suffering Setbacks 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.

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Turning Over a New Life Chinese government adopts some necessary measures to help its national business. For example, the total amount of 4 trillion RMB has been invested for the infrastructure construction and increase the bank credit, adjusted export-import policies to deduct uncomfortable business in the open coastal area and so on. These policies help the frustrating business in China a lot and Chinese government also have confidence to solve this financial puzzle. It should be noted that China's optimism and confidence has its own objective basis. In the article “China's Model or The US', Which Is More Effective in Coping with The Financial Crisis?” the author conclude that “ to cope with the financial crisis, the US and other Western governments have only financial leverage but not economic leverage to turn to, while the Chinese government has both” (Zheng, 2009).

In addition, the Chinese government has good financial condition but the United States and some western governments are operating budget deficit. Favorable economic environment brings more useful opportunities that help the business in China out of stuck and Turning Over a new life.

Conclusion

Powerful adjusted policies give the business in China great help as well as keep the 9% GDP growth rate in the end of 2008. China has a good

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momentum of economic growth when we make a general survey on trend in business. It develops its own national business that many Chinese companies appeared on the foreigner countries. On the other hand, the way to communicate with other countries also brings a big amount profits in Chinese market. And we would expect the business in China will become global and luxuriant.

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References

Beijing Review. (2008, October 25). Subprime mortgage crisis. Retrieved from http://www.bjreview.com.cn/World_Financial_Crisis/2008-10/25/content_191141.htm

Wikipedia. ( n.d.). Subprime mortgage crisis. Retrieved April 5, 2012, from http://en.wikipedia.org/wiki/2007_Subprime_mortgage_financial_crisis

World Trade Organization. ( n.d.). What is WTO? Retrieved April 5, 2012, from http://www.wto.org/english/thewto_e/whatis_e/whatis_e.htm
Zheng Yongnian. (2009, May 12). China's model or the US', which is more effective in coping with the financial crisis? People’s Daily Online. Retrieved from http://english.peopledaily.com.cn/90001/90780/91344/6655878.html