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The purpose of this report is to outline the opportunities and threats for Australian businesses considering expanding international trade into China.

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Introduction

PEST ANALYSIS – CHINA ________________ Name: Jerry Li Date: 25th May 2012 Business class: 10 A Word Count: 1452 words Contents 1 Introduction 2 Main Findings and Analysis 2.1 Political Opportunities and Threats 2.2 Economy Opportunities and Threats 2.3 Social Opportunities and Threats 2.4 Technology opportunities and Threats Conclusion 4 Bibliography 1 Introduction China is the third largest country in the world occupying an area of 9,600,000 km² with an enormous population of 1.347 billion (2011). The land of China is located at middle and East Asia, bounded on the east by the Pacific Ocean. There’re 23 provinces, 5 autonomous regions, 4 municipalities, and 2 Special Administrative Regions, and has approximately 55 different ethnic groups living in different parts of China. (General Facts about China, 2011) China has been known as the largest economy country, it has the world’s fastest growing economy. China is considered to be the most important country in importing and manufacturing industry as almost 70% of the world’s everyday needs are made in China. (The World's Largest Economy 2012, 2012) PEST analysis examines the external environment and global factors that might affect a business on its globalization. ...read more.

Middle

Construction workers are losing jobs in droves and retail sales grew at the slowest pace. The most striking feature of the slowdown is that it extends beyond the coastal provinces, which depend on exports and are closely linked to the global economy, to the country?s far more insular interior. (Chinese Economy, 2012) GRAPH ONE: CHINA?S GDP CHART (Thompson, 2012) This is a great opportunity for businesses willing to expand into China?s real estate industry as the downturn of the China economy has caused properties price to drop majorly so investors are able to purchase properties at a very low price. Also, many workers and builders has lost their jobs because of the downturn, this means businesses can hire workers at a lower rate, which decreases the company?s expenses. As well as the opportunities, the treats of economy in China are that weak businesses owners in China are likely to face a test on their survival this year. Overseas investors can put themselves in a dangerous situation if they invest in the wrong company. Many businesses in the real estate industry are having a hard time as they are forced to drop the property price to as minimum as possible in order to attract more buyers in order to survive in the downturn. ...read more.

Conclusion

Business owners can even buy goods online without wasting time to go out and shop. Some of the possible threats from technology can be internet and technologies isn?t always secure to use, people can hack into business owner?s private network and see a business?s classified information. Also, viruses and Trojan horses on the internet can cause PC to crash and possibly loose important files, even loosing or dropping a PC can cause the computer to break and loose everything saved on the computer. ________________ Conclusion This thorough analysis into China?s political, economy, social and technology has outlined many potential opportunities and threats for businesses wanting to expand their business into the Chinese market. The laws that support importing, the rapid growing economy, the Chinese culture and the use of technology are great opportunities businesses should consider when globalizing the trade. As well as the opportunities, business owners should always consider the possible threats when making decisions so the risk score is reduced to minimal. These factors give an overall idea for a business owner?s decision making, the opportunities and the welcoming spirit Chinese people have towards of foreigners make China an excellent country to begin trading with. ...read more.

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