I.

INTRODUCTION
GEOGRAPHY
Total area: 9,596,961 sq. km. 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 sub arctic in north

PEOPLE
Nationality: Chinese Population (July 2010 est.): 1,330,141,295. Population growth rate (2010 est.): 0.494%. Infant mortality rate--16.51 deaths/1,000 live births. Life expectancy--74.51 years (overall); 72.54 years for males, 76.77 years for females. Education: Literacy--93%. Labor force (2009 est.): 812.7 million. Labor force by occupation (2008 est.): Agriculture and forestry--39.5%, industry--27.2%, services--33.2%.

HISTORY
Oldest continuous major world civilization with records dating back about 3,500 years Successive dynasties developed a system of bureaucratic control Further strengthened by the development of a Confucian state ideology and common written language that bridged the gaps among the countrys many local languages and dialects Last dynasty was established in 1644 when the Manchus overthrew the native Ming Dynasty and established the Qing dynasty with Beijing as its capital

TIANANMEN SQUARE is a large city square in the center of Beijing, China, named after the Tiananmen Gate (Gate of Heaven's Pacification) Tiananmen Square is the largest city square in the world. It has great cultural significance as it was the site of several important events in Chinese history. best known in recent memory as the focal point of the Tiananmen Square protests of 1989

TIANANMEN SQUARE PROTEST OF 1989 1) Students protest for democracy in Beijing, China, in June of 1989. 2) Chinese government sends troops and tanks to Tiananmen Square. 3) Student protesters are brutally massacred. The protests actually started in April of 1989, as public demonstrations of mourning for former Communist Party Secretary General Hu Yaobang.

LANGUAGE All varieties of Chinese are tonal. This means that each syllable can have a number of different meanings depending on the intonation with which it is pronounced. For example Mandarin has 4 tones, Cantonese has between 6 and 9 and Taiwanese has 7 tones. Mandarin (or Putonghua) the predominant dialect spoken by over 70% of the population. taught in all schools and is the medium of government. RELIGION Plays a significant part in the life of many Chinese 31.4% of Chinese citizens ages 16 and over are religious believers Buddhism is widely practiced. There are about 100 miliion Buddhists in China 20 million muslims 20 million protestants 5.3 million Catholics

II. POLITICO-LEGAL
INTRODUCTION Single-party socialist republic Constitution of the People's Republic of China State power is exercised through the Communist Party of China, the Central People's Government and their provincial and local counterparts COMMUNIST PARTY Dominates the government Also known as Chinese Communist Party is the founding and ruling political party of the People's Republic of China founded on July 1, 1921 in Shanghai the only party of the PRC, maintaining a unitary government centralizing the state, military, and media. Central Committee includes: The General Secretary The Politburo The Politburo Standing Committee The Secretariat

The Central Military Commission The Central Discipline Inspection Commission, which is directly under the National Congress and on the same level with the Central Committee, charged with rooting out corruption and malfeasance among party cadres. GOVERNMENT

Type: Communist party-led Constitution: December 4, 1982; revised several times, most recent: 2004. Independence: Unification under the Qin (Ch'in) Dynasty 221 BC; Qing (Ch'ing or Manchu) Dynasty replaced by a republic on February 12, 1912; People's Republic established October 1, 1949. Branches: Executive--president, vice president, State Council, premier. Legislative-unicameral National People's Congress. Judicial--Supreme People's Court. Divided among 3 bodies: - Communist Party of China - Central People's Government (State Council) - People's Liberation Army (PLA) created and lead by the Communist Party of China Power is concentrated in the Paramount Leader - controls all three bodies Primary organs of State Power: A. National Peoples Congress - highest organ of state power B. President C. State Council - Premier - Vice Premiers - State Councilors - Head and Ministers of the State Council LOCAL GOVERNMENT 4 different levels: A. Township B. County C. Prefecture or Municipality D. Province Party Chief or Party Secretary policymaker Governor/Mayor/Magistrate Head of the Locals People Government ONE CHILD POLICY one-child limitation applying to a minority of families family planning policy Restricts married, urban couples to having only one child Answer for overpopulation in China

Effects on population growth and fertility rate - birth rate fell - 300-400 Million people fewer with one-child policy Non-population-related benefits Impact on health care better health service for women Increased savings rate savings rate has increased Economic growth original intent of the one-child policy was economic

III.

ENVIRONMENT/ECOLOGY
INTRODUCTION

3.7 Million square miles different terrains including plains, deltas, hills, mountains, high plateaus and deserts climate varies from Tropical in the south to sub arctic in the north China's biological resources are among the worlds richest. greater than all of North America or Europe, and equal to one-eighth of all species on earth ANCIENT CHINESE ENVIRONMENT China's landscape as being like a staircase with three steps -First Step: Himalaya Mountains -Second Step: Gobi Desert -Third Step: Yangtze and Yellow Rivers Northeastern China has lots of forests Southernmost part of China, there's one more kind of climate, which is almost a tropical rainforest or jungle GEOGRAPHY China is located in Eastern Asia with its borders along several countries and the East China Sea, Korea Bay, the Yellow Sea, and the South China Sea. Divided into three regions: mountains to the west various deserts and basins in the northeast low lying valleys and plains in the east CLIMATE Because of its area and variations in topography, China's climate is also varied. In the south it is tropical, while the east is temperate and the Tibetan Plateau is cold and arid. The northern deserts are also arid and the northeast is cold temperate.

CHINAS ENVIRONMENT TODAY neglected as the country concentrates on its rise as an economic power cancer the leading cause of death in 30 cities and 78 counties Lead poisoning is one of the most common pediatric health problems in China China is the largest emitter of greenhouse gases ENVIRONMENTAL PROTECTION

Pollution Control Use of bicycles, usually electric bicycles Plastic Bag Reduction Efforts all supermarkets, department stores and shops are prohibited from giving out free plastic bags Protection of forests and control of desertification the country has some of the largest expanse of forested land in the world, making it a top target for forest preservation efforts

IV.

ECONOMY

INTRODUCTION world's second largest economy after the United States. world's fastest-growing major economy, with average growth rates of 10% for the past 30 years. largest exporter and second largest importer of goods in the world. China became the world's top manufacturer in 2011, surpassing the United States. The country's per capita GDP (PPP) is $7,518 (IMF, 93rd in the world) in 2010. The provinces in the coastal regions of China tend to be more industrialized, while regions in the hinterland are less developed. As China's economic importance has grown, so has attention to the structure and health of that economy. STATISTICS GDP: $5.88 trillion (nominal: 2nd; 2010) GDP per capita: $4,283 (nominal: 95th; 2010) : $7,518 (PPP: 93rd; 2010) GDP per sector: industry (46.8%), services (43.6%), agriculture (9.6%) (2010 est.) Labor force: 819.5 million (1st; 2009) Unemployment: 4.2% (July 2010) INDUSTRY The two most important sectors of the economy have traditionally been agriculture and industry

China is the world's largest producer of rice and is among the principal sources of wheat, corn, tobacco, soybeans, peanuts, and cotton. The country is one of the world's largest producers of a number of industrial and mineral products OTHER INDUSTRIES Energy and mineral resources, Mining, Hydroelectric resources, Coal, Oil and Natural Gas, Industry and Manufacturing, Automotive EXPORT

Exports: US$1.506 trillion (2010) Export goods: electrical and other machinery, including data processing equipment, apparel, textiles, iron and steel, consumer products including toys and electronics optical and medical equipment. Main export partners: US 20.03%, Hong Kong 12.03%, Japan 8.32%, South Korea 4.55%, Germany 4.27% (2009) IMPORT

Imports: US$1.307 trillion (2010) Import goods: machinery and equipment, oil and mineral fuels, metal ores, plastics, organic chemicals Main import partners: Japan 12.27%, Hong Kong 10.06%, South Korea 9.04%, US 7.66%, Taiwan 6.84%, Germany 5.54% (2009) Foreign reserves: $3.05 trillion (1st; 2011) CURRENCY The Renminbi "people's currency" is the currency of China, denominated as the Yuan Subdivided into 10 jiao or 100 fen. The Renminbi is issued by the People's Bank of China, the monetary authority of the PRC. The abbreviation is CNY, although it also commonly abbreviated as "RMB". Latinised symbol is . GOVERNMENT ROLE the government, under socialist political and economic system, has been responsible for planning and managing national economy.[ the foreign trade system was monopolized by the state. Nearly all the domestic enterprises were state-owned and the government had set the prices for key commodities, controlled the level of investment funds, and many more regulatory and controlling activities. When economic reforms were instituted, the government's role in the economy has lessened by a great degree.

While the role of the government in managing the economy has been reduced and the role of both private enterprise and market forces increased, the government maintains a major role in the urban economy. PROBLEMS

social strife environmental damage collect public receipts due from provinces, businesses, and individuals reduce corruption and other economic crimes sustain adequate job growth for tens of millions of workers laid off from stateowned enterprises keep afloat the large state-owned enterprises

V. SOCIETY AND CULTURE

PEOPLE there are 56 distinct recognized ethnic groups in China. (Zhonghua minzu a supraethnic concept ) Examples: Han, Zhuang, Manchu, Tibetans In terms of numbers however, the pre-eminent ethnic group is the Han Chinese. SOCIETY Ancient Social Class

BEHAVIOR, ETIQUETTE AND VALUES Chinese culture has traditionally prized the worth of the group over the worth of any one individual For the Chinese, failure to do one's duty is dishonorable, not only to the individual but to the entire family. Deference and obedience to one's elders are of the utmost importance, and so are ideas of hospitality and social ties. Several generations might live in close proximity and have contact with one another often

MYTHOLOGY AND SPIRITUALITY A large part of Chinese culture is based on the notion that a spiritual world exists. Chinese religion was originally oriented to worshipping the supreme god Shang Di. The Zhou dynasty oriented it to worshipping the broader concept of heaven. While many deities are part of the tradition, some of the most recognized holy figures include Guan Yin, Jade Emperor and Buddha. Many of the stories have since evolved into traditional Chinese holidays. LITERATURE AND THE ARTS Chinese literature began with record keeping and divination on Oracle Bones. The extensive collection of books that have been preserved since the Zhou Dynasty Concepts covered within the Chinese classic texts present a wide range of subjects including poetry, astrology, astronomy, calendar, constellations and many others. Many Chinese concepts such as Yin and Yang, Qi, Four Pillars of Destiny in relation to heaven and earth were all theorized in the dynastic periods.

VI.

TECHNOLOGY

INTRODUCTION The government has placed a stronger emphasis on science and technology as an integral part of the socio-economic development of the country. This has led to increases in investment, improved scientific structures, and more funding for research. These factors have led to many advancements, including in the fields of agriculture, medicine, genetics, global change and space science. DEVELOPMENT In 1900, China had no modern science and technology at all. Now, in the early 21st century, the gap in high-technology research and development between China and the world's advanced countries has shrunk; 60 percent of technologies have reached or are close to the world advanced level. The national strategy for developing science and technology shifted from following on the heels of others to making independent innovations and technological strides, aiming at the international sci-tech heights. China's development of science and technology and its system of granting science and technology awards are underpinned by the basic Law on Progress of Science and Technology. The Law on Popularization of Science and Technology makes a societal goal to popularize science and technology knowledge among all citizens. INFORMATION INDUSTRY The information industry has become China's economic mainstay. In 2004, the added value of China's information industry, the world's third largest, stood at 950 billion yuan.

Output value, sales and profits of electronic and telecoms manufacturing all outstripped those of traditional industries. By the end of 2004, China had boasted 74,429 MB export broadband capacity, 670,000 websites, 430,000 China-coded domain names, 41.6 million computers with Internet access, and 94 million Internet users, ranking second in the world. OTHER FIELDS Agriculture and Medicine, Genetics and Biodiversity, Space Science, Astronautics, Social Sciences

VII. BUSINESS TRENDS IN CHINA

GAME-HUNTING TOURISM fourth most important consumer trend in China popular among the wealthiest there are about 200 hunting clubs across China average price for one hunting trip is 1,000 yuan a big chunk of the earnings are used to maintain viability of the environment and wildlife DIAMOND INDUSTRY China is actively involved in controversial diamond mining activities in Africa. The Chinese government is on a mission to push the benefits of diamonds to its rich consumers (who still culturally favour jade) PLASTIC SURGERY FOR STUDENTS 80% percent of Beijing's plastic surgery market in the summer consisted of high school seniors and college students hoping to improve their appearance and land better jobs that proportion is expected to hit 90 percent in coming years Excessive employment pressures and higher beauty standards are the leading reasons for the popularity of the surgery RELIGIOUS TOURISM A growing interest in religion has boosted the country's fledging religion-related tourism market. Of 130,000 religious sites on the Chinese mainland, many have been turned into tourist attractions. Local governments have begun major campaigns to build or renovate temples and market them nationwide. CHINESE GOLD World's second-largest consumer market for gold after India World's biggest gold producer

Demand for it is driven by jewelry sales, private investment, industrial and central bank demand

VIII. INSIDE CHINESE BUSINESS

NATURE OF BUSINESSES The family is the foundation of Chinese organizations. In the West, one refers to family businesses. In China, the term business families is more appropriate. Family comes first and the business comes second. Business duties = responsibilities to the family FAMILY BUSINESSES The FAMILY is the foundation of Chinese organizations Business duties are responsibilities to the family 4 features of business families: 1. family-directed 2. dominant family head 3. enduring roles and family obligations 4. family-financed, family-accountable corporation WESTERN VS. TRADITIONAL CHINESE BUSINESS PRACTICES

Business Practice Main Company Purpose Financial Openness

Western Maximize shareholder value Public financial reports

Chinese Serve family interest Financial information is kept secret Family and friends of family Companies are not sold due to family obligations Without advertising, sales are made via the family network

Financing sources Transfer of Ownership

Public sale of securities Mergers and unfriendly acquisitions Brand is promoted by advertising

Advertising

Management

Professional management, recruited on qualifications

Senior managers are recruited from within the family Long-term family prestige is emphasized

Time Horizon

Short-term emphasis on bottom line profits and shareholder value

NETWORK AND GUANXI Chinese business culture is relationship-based. Successful business person = well connected Guanxi is CONNECTIONS with mutual obligation, goodwill and personal affection with emphasis on family and shared experiences. GUANXI Relationships: immediate family, extended family and close friends, shared experiences, strangers Results in favors that are expected to be returned Chinese will remember for a long time a favor that was given to them WESTERN VS. CHINESE NETWORKING Western Economic Chinese Economic and Social

Networking Attribute Motivation Formality

Formal and defined roles Informal and flexible roles Separate Impact one another

Individual and organization Networked organizations Governing authority

Independence

Mutual dependence

Contracts

Personal trust

WHEN MEETING THE CHINESE Show sincerity and commitment Remember that guanxi networks are among individuals not companies

Give symbolic gifts Maintain guanxi relationship through communication and favors Relationships are the focus of Chinese business

IX.

CHINESE BUSINESSES IN THE PHILIPPINES

TSINOYS Philippine national of Chinese ethnicity but born/raised in the Philippines largest group of immigrant settlers in the Philippines mostly business owners and their life centers in the family business attribute their success in business to frugality and hard work attribute their success in business to frugality and hard work COMMON BUSINESSES lumber and construction supply, hardware, sugar trading ,realty, electrical supplies, agricultural products, department stores, appliances, restaurants THE DOWNSIDE Low quality products, Fake, Low product safety, Faulty products

FENG SHUI ancient Chinese system of aesthetics believed to use the laws of both Heaven (astronomy) and Earth (geography) to help one improve life by receiving positive qi. The term feng shui literally translates as "wind-water" in English. FENG SHUI TIPS Always sit with a solid wall behind your back. Never sit with your back to the window for long periods of time. Do not face a wall neither while working at your desk, nor immediately as you enter the office. Position the office furniture to encourage a smooth flow of Chi, or energy. Be mindful of the quality of air in your office; improve the oxygen supply with feng shui air-purifying plants.

X. CHINA: BEST BUSINESS PRACTICES Americans quickly establish business relationships, but there relationships are generally shallow and not particularly long lasting. Throughout the Orient, it takes time to develop the relationship, but once it's developed, it tends to last for a very long time. 1. GUANXI 2. FACE

Roughly translated as 'good reputation', 'respect' or 'honour, It is critical that you give face, save face and show face when doing business in China. Body language and movement are both areas you should be conscious of . You should always be calm, collected and controlled. Body posture should always be formal and attentive as this shows you have self-control and are worthy of respect. 3. CHINESE BUSINESS FAMILY IN TRANSITION 4. I DO: THE NATURE OF CHINESE CONTRACTS 5. BATNA: Negotiating Best Alternative to No Agreement. Its your condition when the counter-party you are negotiating with gives you a final and definite NO. Chinese negotiators generally consider their BATNA to be fairly strong because they operate under the assumption that there is always another available counterparty.