StockX in China
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Part I Summary of Aspects of culture
There are important components of Chinese culture that are crucial for the establishment of this business that includes the literature, visual arts, philosophy, politics, business etiquette, religion, history and the extent of their influence globally. Demographically, China being one of the country’s with highest population in the world has the majority 92% represented by the Han Chinese. Sichuan province is considered the most densely populated region in China with a majority of those falling under minority group living within the periphery or outside China with the population changing over the years. Mandarin Chinese represents the official national language and in other terms also referred to as Putonghua as per the dialect in Beijing dialect. However, the current spoken language in Chinese is referred to as Bai Hua. At the same time, the system applicable in writing remains the same for the different language dialect however complicated they are to learn. The written language consists of close to 60,000 characters whereby only 5,000 characters are applicable currently. The Chinese language is written on pictographs, symbols replacing sounds in representing concepts.
The country’s symbol is represented by the powerful dragon that is believed to have the capability of changing sizes at will. The other patriotic symbol of China is the Great Wall. The Chinese identify so much with the national dominant culture that follows their traditions and history. China is considered a homogeneous society that comprises those sharing one language, culture and history. The population figures reveals that a good percentage are staying within the rural amidst the growth of many cities with forty cities having populations of close to over one million owing to rural-urban migration. The architectural designs of China vary depending on the diverse climate, for instance, people spend their nights on a platform known as a Kang in the north while the Mongolians dwell within structures known as the yurts. In the southern region, there are houses built out of straw and erected on stilts.
The language of communication also provides an important aspect of consideration. The aspect of breaking into the Chinese market requires that the company’s websites are all in Mandarin. The company needs to identify an agency experienced in the creation of Chinese sites and appropriately understand the means of promoting effective information through mandarin by utilizing both images as well as layouts. The populations, as well as the distribution of economic activities, are all important aspects of consideration.
The Chinese are not considered deeply religious since they show some comparative indifference towards metaphysical speculations. They were the first to develop some controversial intellectual skepticism concerning divine order. In this case, the conception of the imperial power considered the land to be under the emperor and the people subject to the emperor. Considering the religion as an ideological system requires that it must be recognized by the monarch. The Chinese people are concerned with the human person and society at large. Religious practices have been closely linked with the aspect of ownership of the land.
The business customs and culture are also crucial since the Chinese always prefer doing business face-to-face with the clients rather than through phone and prefer those Western partners who appear informed concerning the Chinese norms and culture. This move enables the business partner to gain their confidence since their culture appears more closed but very unique. The approach to Chinese firm requires an introduction by a third party who is familiar with you and the people the company wishes to involve in the business. Importantly, entertainment presents a good percentage of the business in China and quite often is organized following events such as banquets.
Part II Summary of the major economic points in China
The rapid industrial development in China could be associated with increasing technological advancements, massive foreign direct investment as well as an increase in productivity. There are notable trends that influence to a greater extent China’s market economy alongside the future development which in this case include regional integration as well as world multi-polarization. Concerning Foreign Direct Investment China is seen as one of the few primary recipients of the world’s destination of FDI in recent years with FDI accounting for approximately 27% of the value-added production, and 58% of foreign trade as well as 4% of the total national tax revenue. The majority of the companies from the United States have investments in the Chinese economy that serve the Chinese local market and not exporting back to the mother country. The Chinese economy is affected by extensive malpractices such as corruption, bureaucracy and large-state-owned companies that are unable to keep with the pace of the economic expansion. Despite the appearance of the seemingly economic improvement, the standards of living within rural environments are still poor. The government faces challenges in the collection of taxes especially within regions associated with increasing level of autonomy such as Shanghai as well as Guangzhou.
The nature of the communication networks in China is a key perspective that should be put into consideration. This involves especially the use of the internet as a major tool for communication. Since the business venture is online, the understanding of the various search engines and Apps and applicable in China should help the business in capturing a significant market within the Chinese economy. The nature of the labor force is recorded at approximately 700 million people whereby 50% work within the Agricultural sector, 24% within the industry and 24% works within the service sector. In this case, the rate of unemployment stands at approximately 10% especially within the cities and the percentage even higher within the rural set-up. The national currency currently used is referred to as yuan. In terms of trade, China imports machinery alongside plastics, chemicals, iron, steel, equipment, mineral fuels from countries such as the US, Japan, Taiwan, as well as South Korea. The exports from China include machinery and equipment, including shoes, toys, mineral fuels, textiles, and clothing as well as chemicals.
The knowledge on the current GDP status is key with quarterly GDP growth rates averaging approximately 9% within the past two decades and is powered majorly by the massive exports. The economy is recorded to have transitioned from the previous centrally-organized system to a more market-oriented economy. China’s household income per capita stood at $ 4,805 by the year 2013. From the official statistics, the real national income per adult has grown significantly over the decades with the average national income per adult exceeding 1000 sterling pounds per month by the year 2015. Much of the commercial activities in China revolve around agriculture with products varying from region to region. However, there is also a massive black market in electronic products, alcohol as well as cigarettes. The main economic activities in the capitalist economy of Hong Kong remain to be banking alongside high-technology products as well as services. Concerning the division of labor, the wages and firings are determined by the level of productivity with people being encouraged towards developing entrepreneurial skills and engagement in community work as well as projects.
Part I: Introduction to the culture of the country
Business customs and practices
Chinese people value personal relationships as one of the most integral part of performing business activities within their country. There is the concept of working together within the Chinese culture that is contrary to the American nature of considering the basic foundation before individuals as well as problem-solving through litigation and not personal contact. The Chinese people place more faith in personal contacts and not contracts, in this case, the signature to a contract is considered only as of the first step towards the negotiation process. The aspect of seniority in terms of age is highly regarded that skills amongst the Chinese and they tend to do business with people above the age of fifty as the representatives of the company. This is since, per Chinese culture, they have much respect for the age of individuals (Kroeber, 2016).
V.Religion and aesthetics
China is a country that has a multi-religious system comprising of Islam, Buddhism, Taoism, Protestantism as well as Catholicism. These religions have contributed to the shaping of Chinese culture over the years. The concept of the freedom of belief is one of the government policies that allow normal religious activities as enshrined within the constitution.
Religion and other belief systems
Three main belief systems are popular in China which include Daoism, Buddhism as well as Confucianism. In this case, Daoism is considered as a religion and a school of thought that shapes people's ideologies and beliefs. Confucianism refers to a patriarchal religion that emphasizes the belief in heaven and ancestors. They usually do not have any actual religious beliefs but base their activities on philosophy. On the other hand, Buddhism refers both to religion as well as a philosophy. In the traditional aspect, Taoism and Confucianism were considered as the source of ethical guidelines towards proper behavior amongst individuals. Taoism associated with the promotion of inner peace of individuals as well as ensuring existing of a harmonious environment. On the other hand, Confucianism provided the ethical system that provided proper teaching on how people should behave within society (Lee, 2017).
Aesthetics
China is identified as having diverse alongside ancient traditional aesthetics where in early years art was integrated with metaphysics, political philosophy, ethics as well as a social philosophy. Early in the traditions, aesthetics were considered to have primacy over various rational discourses. The various distinct features of Chinese aesthetics relate to its deep integration of the interdisciplinary approach mechanisms and a firm foundation in the sociopolitical realities. The music comprises of artistic performance style entailing instrumental music, song as well as a dance that are realigned to sacred rites as well as ceremonies. The nature of Chinese art is visual art that can easily be seen in the design of ceramics, constructions and different paintings. The Chinese create music that represents their complex cultural requirements. Some of the currently popular music in China includes C-pop, rock, heavy metal hip-hop as well as opera (Qiao & Zhang, 2017).
Chinese theater is considered to have developed into some of the integrated dramatic wholes with vital elements playing vital roles such as text, music, song, action, dance, storyline, make-up, costumes as well as acrobatics. Shadow puppets are considered one of the most popular forms of entertainment. There are many different forms of Chinese operas such as the Beijing Opera that has gained popularity beyond the Qing Dynasty (Qiao & Zhang, 2017).
The Chinese folklore includes the various aspects of songs, poetry, puppetry, tales as well as dances. These portray the stories of human nature, various legendary events, supernatural and love. Such folklore has for some time inspired visual imagery, for instance, the silk funerary banner containing some stories and traditions from early China. At the same time, folklore inspires Chinese writers and poets (Qiao & Zhang, 2017).
VI.Living conditions
Diet and nutrition
The dietary guidelines in China as provided by the Chinese Food Pagoda provide people with motivation on the consumption of plenty of cereals, whole grains, legumes, vegetables, fruits, poultry meat and products, tubers, dairy products in moderation with limited addition of oil and salt. The people of China now consume food having high energy levels, fats-free of sugar and less of whole grain, enough fruit or vegetables. The per capita consumption of meat products in China in 2015 was projected at an average of 48.3 kilograms per individual with the 2020 projections standing at 55 kilograms of meat per person. Some of re-known Chinese dishes that are associated with the majority include fried rice, Jiaozi, potsticker, noodles, Kung Pao chicken, Zongzi as well as hotpot amongst others. According to statistics by the Chinese government, approximately 150 million citizens are considered malnourished with 25% representing the overweight population. The Chinese people are known to eat all animals’ meat with Chinese Cuisine presenting an important food consumed by the people (Qiao & Zhang, 2017).
Housing
China is a communist society with a high population of over one billion of which approximately 50% live within the urban areas. Statistics reveal that there are close to over 400 million households which gives an average household size of around 3 people. Most of the housing in China is currently privately built with most blocks having 6 floors which are the maximum height allowed by the government without lifts (Qiao & Zhang, 2017).
Clothing
The Chinese clothing could be described as ancient as well as modern and varied depending on the region and time of the year. The shaping of Chinese clothing is attributable to dynastic traditions and also has foreign influences. Red is a popular color in the clothing and apparel industry owing to the belief that the color symbolizes good luck and fortune. The Chinese people pay much attention to the nature of suits since they emphasize the importance of etiquette, therefore, wear decent dresses. During festivals, the middle-aged women are identified with such attire as Cheong-sam while men adore suits (Qiao & Zhang, 2017).
Recreation, sports, and leisure
The Chinese enjoy activities such as hiking, swimming, skiing, gymnastics, Taijiquan and other forms of martial arts, and other indoor games including cycling since the use of bicycles seem to be the main means of travelling for many Chinese nationals. Some of the leisure activities associated with Chinese people include ping pong and badminton, public dancing, walk in the park and karaoke. Mahjong is the favorite activity for the elderly in China which is a gambling game (Qiao & Zhang, 2017).
Social security
The current social security system in China is the creation of the Chinese government that is based on the individual contracts of employment that make employers responsible for subscriptions to pensions, medical and other insurances. The China social security system comprises of the mentioned mandatory insurance schemes that include a housing fund that is only applicable to Chinese employees.
Health care
The healthcare system comprises of both public as well as private medical institutions that also encompass insurance programs. The Chinese government provides the public with free healthcare services that are covered under the country’s social insurance plan. The health care system caters to close to 95% of the population with a focus on basic coverage that covers the majority of the native population depending on the region. The average cost of hospital bills is approximately $ 119 as per 2019 research (Li & Tong, 2020).
Language
In China the official national language is referred to as the Mandarin or commonly known as the “Putonghua”. Research reveals that over 70% of the Chinese population is familiar with the Mandarin language. However, other different major dialects include Yue, Xiang, Min dialect, Wu dialect, Kejia and Gan dialect. The Chinese written language is considered more formal than spoken Chinese which has made it difficult for many Chinese learners to carry normal conversations in reading newspapers or writing business letters.
PART II: The Economic Analysis of the Country
The GDP of China has significantly grown since 1978 when the country opened up to reform its economic status. The GDP has recorded an average growth of 10% annually with more than 800 million people being lifted from poverty. The current statistics show that China is one good example of an upper-middle-income country and presents the second largest world economy. However, the statistics show that the country still lags in areas such as labor productivity as well as human capital (Li & Tong, 2020).
Population
Current China’s population is appr...