CHINA

SUBMITTED TO: SUBMITTED BY:

SEEMA JAIN

RUDRA PRATAP SINGH

M.B.A 3RD SEM

…………………………………………………..
MAHARANA PRATAP COLLEGE OF TECHNOLOGY, GWALIOR
Putli ghar road morar Gwalior (mp) ph. (0751) 2346110
OVERVIEW OF CHINA

Total area: 9,596,961 sq. km. (about 3.7 million sq. mi.).

Cities: Capital--Beijing. Other major cities--Shanghai, Tianjin, Shenyang, Wuhan, Guangzhou,

Chongqing, Harbin, Chengdu.

Terrain: Plains, deltas, and hills in east; mountains, high plateaus, deserts in west.

Climate: Tropical in south to subarctic in north.

Nationality: Noun and adjective--Chinese (singular and plural).

Population (July 2010 est.): 1,330,141,295.

Population growth rate (2010 est.): 0.494%.

Ethnic groups (2000 census): Han Chinese 91.5%; Zhuang, Manchu, Hui, Miao, Uyghur, Tujia,
Yi, Mongol, Tibetan, Buyi, Dong, Yao, Korean, and other nationalities 8.5%.

Religions: Officially atheist; Daoist (Taoist), Buddhist, Christian 3%-4%, Muslim 1%-2%.

Language: Mandarin (Putonghua), plus many local dialects.

Education: Years compulsory--9. Literacy--93%.

HISTORY OF CHINA

China, one of the countries that can boast of an ancient civilization, has a long and mysterious
history - almost 5,000 years of it! Like most other great civilizations of the world, China can
trace her culture back to a blend of small original tribes which have expanded till they became
the great country we have today.

It is recorded that Yuanmou man is the oldest hominoid in China and the oldest dynasty is Xia
Dynasty. From the long history of China, there emerge many eminent people that have
contributed a lot to the development of the whole country and to the enrichment of her history.
Among them, there are emperors like Li Shimin (emperor Taizong of the Tang), philosophers
like Confucius, great patriotic poets like Qu Yuan and so on.

Chinese society has progressed through five major stages - Primitive Society, Slave Society,
Feudal Society, Semi-feudal and Semi-colonial Society, and Socialist Society. The rise and fall
of the great dynasties forms a thread that runs through Chinese history, almost from the
beginning. Since the founding of the People's Republic of China on October 1st, 1949, China has
become a socialist society and become stronger and stronger.
INTRODUCTION

This section covers the cultures of the People's Republic of China (PRC). Nomenclature and
spelling follow the standard forms used in the PRC. Materials on Overseas Chinese appear in
other volumes when applicable, and the mountain peoples of Taiwan are covered in the East and
Southeast Asia volume. Both the East and Southeast Asia volume and the Russia and Eurasia
section of this volume cover ethnic groups also found in China.

In 1990, the population of China was 1,133,682,501 persons, of whom 1,042,482,187 belonged
to the Han nationality, the people generally referred to as Chinese. The remainder were divided
among some fifty-five "minority nationalities" that are recognized officially by the state, at least
749,341 persons claiming membership in ethnic groups not yet accorded official recognition, and
3,421 naturalized foreigners. The recognized minorities range in size from the 15,489,630
Zhuang to the 2,312 Lhoba; at least eighteen groups have populations over 1,000,000.
APPEARANCE

National costume (also: regional costume, folk costume or

traditional garments) expresses an identity through costume which usually relates to a
geographic area or a period of time in history, but can also indicate social, marital and/or
religious status. Such costumes often come in two forms: one for everyday occasions, the other
for festivals and formal wear.

Following the outbreak of romantic nationalism, the peasantry of Europe came to serve as
models for all that appeared genuine and desirable. Their dress crystallised into so-called
"typical" forms, and enthusiasts adopted it as part of their symbolism.

In areas where contemporary Western fashions have become usual, traditional garments are often
worn in connection with special events and celebrations, particularly those connected with
cultural traditions, heritage, or pride.

In modern times there are instances where traditional garments are required by law, as in Bhutan,
where the traditional Tibetan-style clothing of gho and kera for men, kira and toego for women,
must be worn by all citizens -- even those not of Tibetan heritage; or in Saudi Arabia, where
women are required to wear the abaya in public.
BEHAVIOUR

Handshakes are popular in China, however, wait for your Chinese counterpart to initiate the
gesture. The Chinese will sometimes nod as an initial greeting. Bowing is seldom used except in
ceremonies. Visit to school, theater, or other workplace is likely to be greeted with applause as a
sign of welcome. In turn, you should respond by applauding back.

You should avoid making expansive gestures and using unusual facial expressions. The Chinese
do not use their hands when speaking, and will only become annoyed with a speaker who does,
so make an effort not to use your hands to illustrate your speech (talking with your hands).
However, some hand gestures are necessary. For example, to summon attention, you can turn
your palm down, waving your fingers toward yourself and use your whole hand rather than your
index finger to point.

Do not touch your Chinese colleague, do not even pat him on the shoulder. The Chinese,
especially those who are older and in positions of authority, dislike being touched by strangers.

RELIGION

Religion plays a significant part in the life of many Chinese. A February 2007 survey conducted
by East China Normal University and reported in state-run media concluded that 31.4% of
Chinese citizens ages 16 and over are religious believers. While the Chinese constitution affirms
“freedom of religious belief,” the Chinese Government places restrictions on religious practice
outside officially recognized organizations. The five state-sanctioned “patriotic religious
associations” are Buddhism, Taoism, Islam, Catholicism, and Protestantism. Buddhism is most
widely practiced; the state-approved Xinhua news agency estimates there are 100 million
Buddhists in China. There are no official statistics confirming the number of Taoists in China.
Official figures indicate there are 20 million Muslims, 20 million Protestants, and 5.3 million
Catholics; unofficial estimates are much higher.

Only two Christian organizations--a Catholic church without official ties to Rome and the
"Three-Self-Patriotic" Protestant church--are sanctioned by the Chinese Government.
Unauthorized churches have sprung up in many parts of the country and unofficial religious
practice is growing. In some regions authorities have tried to control activities of these
unregistered churches. In other regions, registered and unregistered groups are treated similarly
by authorities and congregations worship in both types of churches. The government represses
the religious activities of "underground" Roman Catholic clergy in large part due to their avowed
loyalty to the Vatican, which the government accuses of interfering in the country's internal
affairs. The government also severely restricts the activities of groups it designates as "evil
religions," including several Christian groups and Falun Gong.

Languages

Most languages in China belong to the Sino-Tibetan language family, spoken by 29 ethnicities.
There are also several major linguistic groups within the Chinese language itself. The most
spoken varieties are Mandarin (spoken by over 70% of the population), Wu, Yue (Cantonese),
Min, Xiang, Gan, and Hakka. Non-Sinitic languages spoken widely by ethnic minorities include
Zhuang (Thai), Mongolian, Tibetan, Uyghur (Turkic), Hmong and Korean.[50]

Classical Chinese was the written standard in China for thousands of years, and allowed for
written communication between speakers of various unintelligible languages and dialects in
China. Vernacular Chinese or baihua is the written standard based on the Mandarin dialect first
popularized in Ming dynasty novels, and was adopted (with significant modifications) during the
early 20th century as the national vernacular. Classical Chinese is still part of the high school
curriculum and is thus intelligible to some degree to many Chinese.

MARKETING STRETEGIES

The Chinese market offers great business opportunities due to its rapid economic growth and
huge market, however, it has its fair share of challenges, ranging from inadequate market data,
inappropriate entry strategy, lack of access to sales channels, difficulty in finding the right
partners and cultural differences etc ...

Over the years, Starmass International has developed a practical and systematic approach to help
our clients reduce these risks and maximize the return on their investment in Chinese market.
With our global vision, local experience and network, we can assist our clients to acquire
valuable market information, undertake comprehensive market analysis, draw up appropriate
entry strategy, establish best distribution channels and expand our clients' business effectively in
China, below are the services we are able to assist our clients:

1. China market research: in-depth market understanding

2. China market analysis: this will answer two basic questions:

   - are your products marketable in Chinese market?

   - if yes, what is its potential?

3. Market entry strategy: identification of the best distribution channels

4. Establishment of sales channels: implementation of market entry strategy

5. China market expansion: growth and increase of market share

As a professional full-service market research consulting company in China, Starmass is able to

conduct high quality customized China market intelligence, which includes industry research,
product survey, competitor study, consumer research, study on sales channels, due diligence and
investment investigation etc.
HUMAN RESOURCE PRACTICES IN CHINA
In china, human resources in the industrial sector were classified into two groups:

 Cadres-administrative staff or white collar employees such as managers, engineers and

seniors technicians in government organizations and in enterprises.
 Workers-lower level employees.
 Due to this division, there had been differences in-wage scale, performance appraisal.

Changes in traditional HR practices

 The responsibility for labour allocation has shifts from a centralized
planning authority to forecasting and planning department within enterprise.
 A contract labour system has replaced traditional lifetime employment.
 Production and reward system moved from emphasizing equality to rewarding
efficiency and performance.

Major HR practices in china

 Recruitment and selection
 Training and retention
 Motivation and reward system
 Work culture
 Expatriate management
FINANCIAL ACTIVITES

Between 1949 and 1978, China exercised a fiscal and taxation system adapted to a system of
planned economy. Financial policy thus covered every aspect of social life. But since the
introduction of the policies of reform and opening to the outside world, China’s finance sector
has broken away from the unified distribution of revenues and expenditures system that
complied with a highly-concentrated system of planned economy, and gradually carried out
reforms of the fiscal and taxation system. The reform is aimed at diversifying financial policy
and distributing mostly by coordinating benefits for the purpose of controlling economic
operations indirectly and guiding resource distribution. Since 1984, the Central Government first
practiced different responsibility methods for revenue and expenditure in different places, and
then shifted the national budget system from single entry to double entry. In 1992, in order to
meet the needs of micro-control, the financial system started to be greatly reformed.

By 1994, a structure of financial system meeting the needs of the socialist market economy, with
tax distribution as the core, has been primarily formed. Its major contents are: (1) on the basis of
the taxation system, to establish a multi-level financial system that rationally divides central
taxes, local taxes and taxes shared by the central and local governments; (2) in the aspect of
taxation policy, to set up a new system of turnover tax with added value as the mainstay, and
consumption and business taxes as supplements, and at the same time to establish and perfect the
income tax system; (3) to practice a double-entry budget system consisting of regular and
constructive budgets; (4) to promote the balance of total economic output and the economic
structure by means of comprehensively utilizing the budget, taxation, the state debt and
allowances.

TAXATION

Before the reform and opening, China exercised a single taxation system. Because taxation had
no connection with the economic activities of enterprises, this system lacked vitality. In 1981,
the Chinese government began to collect income tax from Sino-foreign joint ventures and solely
foreign-funded enterprises, taking the first step in taxation system reform. From 1983 to 1984,
the reform consisting of the replacement of profits by taxes was carried out in domestic
enterprises, and a foreign-related taxation system was set up. As a result, instead of a single tax
category, a compound taxation system in which turnover and income taxes were the mainstay
and other tax categories were in coordination with it was initially in place and promoted the
control of finances and the economy. In 1994, the reform of the taxation system was deepened,
and a complete structural adjustment of the taxation system was made by taking the market
economy as the norm. In 1996, China lowered the rate of Customs duties and export drawback,
and exercised import supervision.

Fiscal Solvency

Over the past 21 years of reform and opening to the outside world, with the rapid development of
the national economy and the deepening of the reform in finance and taxation, the goal of fiscal
solvency has been becoming nearer. In 1978, the state financial revenue was 113.2 billion yuan,
while it reached 1,137.7 billion yuan in 1999. Especially in 1999, the Chinese government
continued to implement an active financial policy, expanding the domestic market by various
means, including increasing state debt investment, which played a key role in stimulating the
economy.

Taxation is a major source of the state financial revenue. In 1978, all kinds of taxation brought in
a total of 51.93 billion yuan; in 1999,the figure was 1,031.1 billion yuan. The accumulated
taxation income was7,435.2billion yuan from 1979 to 1999. Since the reform, the distribution
relationship between the central and local finances has been gradually smoothed, a system of tax
distribution under which central finances are growing in a stable manner has been established,
micro-control over central finances has been improved, and a basis for standard transfer
payments has been set up. Among the state financial revenue, central finances accounted for
17.58 billion yuan in 1978-15.5 percent of the total; in 1999, the figure was 579.8 billion yuan—
51.0 percent of the total.