Introduction
China’s rapid development over the past half-century continues to impress scholars and economists from around the world. While being the fastest-growing major economy in the globe, this country attracts many investors and creates multiple opportunities for the global corporations. Breslin in his book points out that China’s market demonstrates an apparent tendency for the steady growth expanding by 7% annually (44). However, alongside the excellent opportunities there are challenges that the country is forced to overcome to maintain a selected course aimed at the speedy economic advancement. In their attempts to build a global giant, the governmental machineries exert every effort to respond to the occurring challenges. Changes that currently take place within the country create a favorable environment for international businesses to expand their capacities.
Opportunities within China’s Market
Among the opportunities that investors worldwide consider the most appealing low labor costs take the leading position. Scholars estimated that moving business assets to China could reduce operating expenses for the international companies by 30% to 80% (Breslin 72). However, the cheap workforce is not the only advantage corporations receive when entering the Chinese market. The fact that above 30% of the country residents are aged above 50 leads to the assumption that the index of labor capable age is increasing (Breslin 153). This occurrence forms favorable conditions for creating additional workspaces and keeping wages at an acceptable level for both inland and foreign organizations. In its turn, it ensures that human resources continue to arrive. To add more, Asian economic region is at the forefront of the technological revolution, which creates extra opportunities for companies to compete with each other successfully.
Challenges to Overcome
While the Chinese market provides multiple opportunities for doing business, there are challenges that companies cannot neglect when entering a given sector. Among them, one can highlight the product quality assurance. The cheap workforce often leads to the occurrence of a reverse effect, which is the low quality of produce. Unless organizations designate quality control managers to monitor the process of production, there is a considerable risk to fall below the established standards (Breslin 160).
Another challenge is the anti-monopoly legislation provided against foreign organizations. China has a planned economy, and government conducts a strict “local control over the financial system” (Breslin 32). Fully equipped state-owned enterprises arrive as the strong market players and are in direct competition with external corporations. Also, the high level of pollution tracked across the country creates additional obstacles for full-fledged company operation. As stated in Breslin’s book, “reports from Chinese and international agencies point to a depressing array of environmental problems” (161). The massive amount of exhausts results in an increasing rate of diseases and thus, in a poorer employees’ performance.
Summarizing the research findings, China’s economy has reached the point at which the country is forced to overcome economic and environmental obstacles created by its rapid advancement. The Chinese market offers a number of attractive opportunities for both internal and external enterprises, making emphasis on the cheap workforce and the latest technology innovations. However, the benefits that businesses receive from staying within the market are always accompanied by challenges that may seriously affect the volumes of produce. Therefore, it is highly recommended for companies to consider these disruptive factors and provide changes aimed at the elimination of possible decline in production.
Work Cited
Breslin, Shaun. China and the Global Political Economy. Springer, 2016.