Small Businesses in China

Small Businesses in China

If you are looking to start a small business in China, there are a few that my pique your interest. First off you could choose to provide Education. There are many opportunities for educators although the Universities in China control the U.S. education in the country. Vocational, management and language schools are some of the opportunities foreign educators have in the country. You might need to partner up with a Chinese national as you will require licensing by the Ministry of Education to educate Chinese national.

The second business that you may consider is that of a wine maker. Wine makers of Washington and Oregon are already making head way in the Chinese wine industry. There are openings for foreign wineries in this industry. You need to keep aware of the local palates and the local price points of the industry. You could just opt to import processed food instead. There is still a very large market with many openings in this industry that a small business could thrive on. The need for convenience in the food they eat and the desire to fulfill a 21st century type lifestyle has driven many Chinese to their cities. This along with their need for more professional jobs has created his need in the industry for businesses of this nature to not only survive but also thrive exceptionally well.

As one of the world's leading construction industries, China is a major player in the solar industry as well that still have meet a very rigid standard in its environment. There are plans in place to construct long lasting eco-friendly structures and this has created a need for renewable energy manufacturers and products from green buildings. There is a very lucrative market in China for foreign high-tech medical devices providers. The ageing population of the nation coupled with the reform in health care has created and ensure this niche in the industry. Western provider may face challenges as it related to registration of product, the pricing and also the intellectual property registration. The U.S. Commercial Service is the perfect source for information on contacts and other vital information.

Already the largest and still growing, China has one of the largest travel markets in Asia. The nation's government has expanded their holiday season in an attempt to create more travel opportunities. The UNWTO states that over a million Chinese visitors to visit destinations all over the world by the year 2020. This nation has a fast growing economy and may need some management help. Consulting firms were not a part of the nation's former economy but have now established multinationals in the market in the form of investment, legal and human resource.

The civil aviation of China as significantly grown over the years and has been predicted to purchase over four thousand new planes by the 2020 year. The nation is purchasing quality parts and industry reaching standard assemblies from suppliers not locally based. Chocolate is a big and expanding business in China. The consumers have desires on not just the unique products but on the gourmet product range as well. The sale of chocolate has now hit China's second-tier cities creating more opening for a successful business but you have to keep in mind that your competitors are entities such as Hershey and Cadbury.

It is believed and predicted that in the coming decade, China will have the number one economy in the world. The U.S and Europe's economy seem to have the feel of a flat fiscal future for the coming years. This is an economy that many businesses see has a source of stability and prosperity for the coming future. The ways and tradition of the country are different and you will have to be prepared to operate in a bureaucratic environment. This is a place that has done the same thing for centuries and there is no space for a cowboy attitude. You will surly fail if you try to operate by your own rules as they will not change their centuries old traditional methods. It will take time to get a proper foot hold in an industry such as this with so many new and challenging traditions. As a business owner it is important that you are a part of China's economy in the coming years. They will have the most stable and thriving one in the coming decades and this will be the place to rest your businesses hopes on.

Positive outlook for China markets

Positive outlook for China markets

Well with recent news about Huawei sales top USD $105.2 billion despite US-led pressure as revenue from the smartphone division increased by 45 percent, it proves Huawei is a massive consumer brand which many people love. Huawei is an independent, privately-held company that provides information and communication technology (ICT). They were founded in 1987, in the southern Chinese city of Shenzhen, with about 21,000 RMB in start-up capital. Since then, they've grown to become the world's largest supplier of telecommunications equipment and the second-largest manufacturer of smartphones. Huawei employs 180,000 people in more than 170 countries. They are a market leader in China and many countries across Europe, Asia, and Africa. More than 3 billion of the world's population uses Huawei's products and services to make calls, send text messages, or surf the internet.

Looking back over last few years financial markets point towards a simplified overview of the complexity of China markets. It is being accused of causing a coming recession and slump in stock markets. China has links to the global economy but it is not direct. China is trying to balance between its new growth plans and developing sound financial infrastructure. It is on the right track in order to have a more sustainable growth rather than continuing pumping out goods because there must be underlying demand to sustain economic growth.

China is getting sound progress by shifting its economy to more service based instead of traditional manufacturing. It is an important progress compared to GDP growth alone where people are mostly obsessed with. Most people have been reading too much on the GDP growth rate and trying to figure out the accuracy of the figures. The end of commodity super cycle caused pain to resource economies from Brazil to Canada. The countries were slow to react. It is obvious in fall in oil price even as China uses coal for 70% of its energy consumption. China used 40% of total oil consumption growth in 2014. The plunge in crude oil prices was due to China shifting to services having lower carbon usage. Same goes for metals and industrial materials. There are roadblocks to China's progress in financial reform and economy rebalancing. This is marked by the 2015 stock market crash which spilled over to 2016 and affecting global markets. Regulators had been slow to react to the market bubble in 1H 2015. They tried to stabilize markets by implementing equity purchases and circuit breakers. Many were confused. China had been trying hard to develop its bond markets but have not seen much success. Equity markets regulations were also not definite. A deeper problem is not the crash but an inadequate capital markets which has been heavily reliant on banking institutions. It is a huge letdown in terms of financial reforms.

China is facing a huge risk of capital flight. Beijing's policy of devaluing the renminbi against US dollar may spark currency wars similar of the Asian Financial Crisis that caused south East Asia countries to fall into a deep recession. However this scenario is unlikely as renminbi had been appreciating strongly over the past 10 years and is now trading around its fair value. Its current account surpluses had decrease, which eases the pressure of forcefully adjusting the currency. Renminbi has depreciated 6% against the US dollar in July 2015, but still at a high of 25% appreciation since 2005. China's currency is effectively up 50% against all major trading partners' currencies. China has reasons to slow down the appreciation of renminbi. Its impact will not be severe as the depreciation need to be of larger magnitude in order to spur exports. It is in direct conflict with Beijing's main objective of shifting export driven to consumption driven demand. IMF may decide to withhold inclusion of renminbi in the unique drawing rights scheme.

China has many challenges, ranging from excess leverage and property market imbalance as well as overcapacity for its industrial sector and deteriorating environment. Beijing leader are closely monitoring these issues in their policy debates. Beijing must take good care to balance the economic growth and financial reformation. Economic rebalancing cannot be achieved if capital markets restructuring are in disarray.

Markets need to cool down. There is no real risk of hard landing for China. Recovery in oversold markets could give investors a temporary sigh of relief. One bad news affecting markets is central banks have begun to remove the man-made support of monetary stimulus. That would be worse than China's reported dire situation.

Analysis and Reasoning of Economic Imbalances

Analysis and Reasoning of Economic Imbalances

According to the Father of Economics, Adam Smith, China is one of the world's most advanced, rich, fertile, industrious and prosperous countries in the world and it is one of the world's largest economy by nominal GDP. (Gross domestic product) Gross domestic product is a measure of value for all finished goods and services, which is measured quarterly or annually. This value is estimated to determine the economic performance of the country for a period of time. The nominal GDP does not show any differences in the living strategies of the people, but the fluctuations in the exchange rates may result in the countries ranking from time to time. A Comparison of the national wealth to that of other nations is made on purchasing power parity (PPP - estimates the exchange rate between two currencies) Through PPP the economy can solve its problems which arise from the exchange rates, even though it is not free from some drawbacks.

Based on the trade and economic reforms , China maintained poor and inefficient status in the global economy. But in the year, 1979 after implementing foreign trade and investment policies, china is the second largest among the fastest growing economies, maintaining a real average growth of gross domestic product of nearly 10% every year up to 2014. The economic crisis affected badly by the China's economy in 2008 and these trends which resulted in the decline in import, export and in foreign trade also. By this China's government responded and implemented some monetary policies to increase bank lending process. However, the statistics show that there is a decline in the China's economy in recent years. The GDP, which was 10.4% in the year 2010 fell to 7.8% in the year 2012 and a further decline i.e 7.3% in the year 2014.

Stock Exchange:

Despite of having two largest stock markets, China's financial system is restricted to market forces. The two china's stock markets are controlled by the domestic Chinese firms, which resulted a significant volatility in the global market. These stock markets were dominated by the speculators and to the greatest extent the shareholders have less influence to move according to the latest trends in the stock market within a short period. From January to June, 2015 these two stock markets bubbled and the investors were buying stocks on borrowing money. In the June 2015, the bubble blasted and there is a fall in the China's two stock markets by 32% to 40% respectively , resulting a major loss to the economy. With this the government entered into the scene and settled by relaxations in insurance policies and by offering public initials, restricting and selling all share and by buying all SEO (state owned organizations) stocks. According to a report, the government spent nearly $250 billions to standardize the stock markets and the government has certain measure to control the market.

Rise in Reserves in China

The latest release of an International Monetary Fund report says that the value of the dollar has declined in both developing and advanced economies. At last the multilateral reserve currencies are increasingly. The currencies other than dollars are gaining, the euro and yen. There is a drastic change in the 2015 Q2 and 2015 Q1. The value of the dollar depreciated in the Q2 increasing the value of nondollar holdings. Broadly speaking, a small depreciation in the exchange rate during Q2 increased the value share of the euro and yen.

Future strategies to restructure the Economy

The current economic trends of China say that again the Economy is strengthening. The 12th Five year plan of China contains about the economy restructure and the economy is targeting to emerge the industries which are going to play an important role in the future restructure of the economy. In the year 2014, China along with some other countries started a New Development Bank to assist the developing economies. Some financial analysts reported negatively on about China's economic slowdown, but it is the time for the global economy to face the new Chinese economic developments in the coming years.

Silk Road of China

Silk Road of China

As the title of the road might suggest, Silk Road of China is not a single road of some market where you can expect to find noteworthy shops lined up in continuity on the roadside selling unique goods to travellers and tourists. It is, in fact, a very old trade route dating back to around 1 B.C. The route connected China to other lands to the Mediterranean region facilitating trade between them, especially of silk when it came to China as China was the only source of silk in the earlier times.

Though with the coming of engines empowered airplanes and cruise ships, the importance of this route has faded today. But the natural beauty of the entire route, the mesmerising views of vast landscapes and the soothing journey that the route offers that is unaffected to date, has made the route a destination for tourism with UNESCO declaring its Tian Shan Corridor as a world heritage site.

It can be presumed that China as a travel destination to visit the Tian Shan Corridor and walk on the road that once connected Asia; it's worth a shot! And while you have decided to make a visit to this road, check some of our selected spots along the corridor that are surely worthy of dropping by.

Army of Terra Cotta Warriors: If you have ever taken an interest in world history or even studied it in high school then you'd have heard about the Terra Cotta Army. A literal army of warriors having archers, chariots, soldiers and every other human unit that constituted an actual Chinese army except that this army was inanimate and made of clay. The army was made to serve as warriors protecting the first Chinese emperor; Qin Shi Huang in the afterlife and so was buried along with him. Thousands of Terra Cotta warriors have been unearthed and are on display in Shaanxi province that is outside of Xi'an city. Terra Cotta army is indeed a vital piece of Chinese culture that attracts tourists from around the world.

Labrang Monastery: If Buddhism fascinates you; then you have to visit this place. It is one of the most important monasteries of Buddhism and was once home for 4000 monks through which the teachings of Buddha reverberated to the outside. The monastery is still occupied and used by monks who continue to practice Buddhism in the monastery's halls and corridors. It is located in Xiahe town within Gansu province.

Singing Sand Mountains and Crescent Lake: The landscape of desert, sand dunes stretching kilometres in length and a crescent moon shaped lake in the middle of the desert; doesn't that sound like fantasy locations taken out from a story book? A crescent moon shaped lake in the middle of a desert with towering sand dunes whose sand when blown by the wind makes an almost instrumental sound; yes this place is real! It is also situated in Gansu province not much away from Labrang monastery.

Tianchi Lake: Right on the border of China and Korea is situated a lake so beautiful that it literally translates to 'Heaven Lake' in English. Tianchi Lake is a crater lake surrounded by mountains and peaks on all sides. The surface of the lake amidst the white gleam of the high rising peaks gives the scenery of that of a mirrored blue disk. Also, other than its scenic excellence that's almost divine, Tianchi Lake is also quite famous for its monster sightings (good news for thrill seekers).

The list doesn't end here. There are many more places along the Silk Road that shouldn't be left to be visited. So take a vacation, hit the Silk Road and familiarize yourself with a beautiful culture and a multitude of soul-penetrating experiences.