Investing in China

Assessment:

In the recent years, China has played a significant role in the world market. Most U.S corporations and international companies try to set their main branch offices in Beijing or Shanghai to earn more money. No doubt that China has a great potential to be developed better. However, the corporation should consider more about the drawbacks. Do not rush in China market, but think about the culture differences and some aspects that are worth investing, because the labor in China is not so cheap as before, at least in Vietnam or India the labor costs are lower. So figuring these problems out for the international companies is the first step to invest in China.

Analysis:

In the perspective of a Chinese, I wonder if it is good for companies to invest in China. Now in the society in China, most Chinese are regarded as xenocentric, who love buying foreign products. What’s more, except offering a lot of jobs, the corporation are also producing a lot of wastes and pollutions in China, which may hurt our health and environment. Moreover, the increasing competition leads the local firms hard to survive, which hurts our own companies’ growth and development.

Actions:

As a Chinese, I think our local firms should have a global view about our market. So many foreign companies rush in China, we have an advantage over them so we should do better. Except developing the manufacture industry, we should focus on some emerging industries to form a better strength. What’s more, learn from the foreign big companies. When it comes to the environmental-friendly problem, I hope that the government should take some actions to prevent the pollutions and restrict the companies to develop in a environmental way. However, thanks to the enter of many international corporations, Shanghai has been an international financial center. So combine the experiences from foreign companies with our own strength, we can develop our own country with the investing by other firms.