China: A Look at the Powerful New Force on the Global Business Scene

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China:

A Look at the Powerful New Force on the Global Business Scene

(Extra Credit Essay)

By Cheng (Katherine) Li

MKT 321 International Business

Dr. Ivan Vernon

December 15th, 2005

        These days, China is mentioned in almost every business newspaper journals at least once every single day. The world has its magnifying glass on China. The growth of this nation has astonished the world. From a backwards, communist country to one of the most powerful and fastest growing economies, the “new” China is surpassing most of its competitors and accomplishing this at lightening speed. Here are some staggering statistics about the formidable force of New China - a far cry from its bleak past:

  • China is the world’s fastest-growing large economy.
  • It is the second largest holder of foreign-exchange reserves, mainly dollars.
  • It has the world’s largest army consisting of 2.5 million men and the fourth largest defense budget, which is rising by more than 10 percent each year.
  • It is now the world’s largest producer of coal, steel, and cement.
  • The second largest consumer of energy.
  • The third largest importer of oil, which is part of the reason why gas prices had been souring.
  • China’s exports to the U.S. have grown by 16,000 percent over the past fifteen years.
  • Exports to China have grown by 415 percent.
  • In just three years, there will be more Starbucks Cafes in China than in the United States.
  • China manufactures two thirds of the world’s supply of copiers, microwave ovens, DVD players, shoes, and all of the world’s toys.
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Perhaps the most surprising example if the country’s growth is Shanghai. Fifteen years ago, Pudong in east Shanghai was only an under-developed countryside. Today, it is Shanghai’s financial district, and it is eight times larger London’s financial district and only slightly smaller than the city of Chicago!

To get a idea of China’s dominance in low-cost manufacturing, consider the power conglomerate of Wal-Mart. Wal-Mart is the United State’s and the world’s largest corporation employing over 1.4 million people, and whose revenues make up 2 percent of America’s entire GDP. In 2004, Wal-Mart imported $18 billion worth of goods ...

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