APPENDIX NO.

SWOT analysis of China

Strengths:

1) Accelerated economic growth, including GNP, export growth and comprehensive

national strength. (Marilyn M. H, 1999 pg 2)
2) Rapid rising of educational acquisition.(Lecture notes)
3) Leads very high investment – attractive to FDI(Lecture notes)& (Marilyn M. H,
1999 pg 2)
4) Can integrated into Global economy easily.(Lecture notes)
5) Due to cheaper labor and lower wages in China, it will continue dominate light
and medium-tech industries(Marilyn M. H, 1999 pg 2)
6) More and more relatively developed infrastructure(Lecture notes)
7) Plenty of natural resources. (Marilyn M. H, 1999 pg 2)
8) Large population create incredible opportunity and future potential buying power.
(Marilyn M. H, 1999 pg 2)

Weakness:

1) Disorder financial sector(Lecture notes)

2) Slowly increasing of energy, transportation and important raw materials.(Marilyn
M. H, 1999 pg 3)
3) It is inequality increasing in rural &urban, coastal &western provinces, production
in cities has displaced rural workers, surplus labor lead to rising unemployment
and inequalities in income distribution.(Lecture notes)
4) Growth of average inflation but wage growth has not kept pace with
inflation(Marilyn M. H, 1999 pg 3)
5) More dependent on imported components and there are half exports done by
MNEs(Lecture notes)
6) Lots cities are jammed and China should invest enormous money in infrastructure.
(Marilyn M. H, 1999 pg 3)
7) The education level just reach the middle stage than other developing countries --
180 million illiterates or semi-illiterates over the age of 15. (Marilyn M. H, 1999
pg 3)

Opportunities:

1) Provide advanced technology as sole owner of China. (Marilyn M. H, 1999 pg 4)

2) Easy-to-target bottleneck industries of energy, communication, and transportation.
(Marilyn M. H, 1999 pg 4)
3) China has plan a lot of financing infrastructure projects, such as increase available
electricity to rural citizens, construct more than 30,000 km rail lines and
expressways. (Marilyn M. H, 1999 pg 4)
4) More trade relations with other countries and some nervous relationship has been
remission. (Marilyn M. H, 1999 pg 4)
5) As a leader of APEC(Asian Pacific Economic Cooperation Forum) will create the
world’s biggest free trade region for developing countries in Asia by 2020.
(Marilyn M. H, 1999 pg 4)
6) Tariffs were cut by telecommunications equipment that can boost competitiveness.
(Marilyn M. H, 1999 pg 4)

Threats:

1) Specially Chinese environment could hinder growth.(Lecture notes)

2) Reporting and accounting standards fall behind Western requirement and China is
lack of modern financial reporting which makes the economy less attractive to
foreign investors. (Marilyn M. H, 1999 pg 5)
3) Cultural differences and tradition gap cause of many business conflicts, e.g. China
always advocate collectivism and not individualism. (Marilyn M. H, 1999 pg 5)
4) China’s increasing is inequality between the different places(Lecture notes)
5) A lot of political risk -- rapid internal changes of society, market-oriented reform,
lack protection of intelligent property. (Marilyn M. H, 1999 pg 5)
6) Some problems turn to protectionism because China is more dependent on trade.
(Lecture notes)