Trade Mission Portfolio - China

8/11/2019 Trade Mission Portfolio - China

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ChinaBy: Priya Wadhera

Ms. Kedroe

BBB4M Period 3

Trade Mission :


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Introduction


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Political system:Communism (attempts tomove towards socialism)

Head of state: PresidentHU Jintao and VicePresident XI Jinping


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Economic system: Transitioning fromcentrally planned to free market

Currency: Renminbi (RMB) or Yuan (CNY)

$1 CDN = 6.7 CNY
http://www.google.ca/imgres?imgurl=http://www.liuzhou.co.uk/china/Chinese%20Currency/images/money.11.jpg&imgrefurl=http://www.liuzhou.co.uk/china/money.htm&usg=__Exmn4EHdXotIqvCMIt4g89ohjnI=&h=226&w=455&sz=23&hl=en&start=5&zoom=1&um=1&itbs=1&tbnid=M_dmbo3GWxSCSM:&tbnh=64&tbnw=128&prev=/images?q=currency+china&um=1&hl=en&sa=N&rlz=1T4GZAZ_enCA376CA378&tbs=isch:1http://www.google.ca/imgres?imgurl=http://www.liuzhou.co.uk/china/Chinese%20Currency/images/money.11.jpg&imgrefurl=http://www.liuzhou.co.uk/china/money.htm&usg=__Exmn4EHdXotIqvCMIt4g89ohjnI=&h=226&w=455&sz=23&hl=en&start=5&zoom=1&um=1&itbs=1&tbnid=M_dmbo3GWxSCSM:&tbnh=64&tbnw=128&prev=/images?q=currency+china&um=1&hl=en&sa=N&rlz=1T4GZAZ_enCA376CA378&tbs=isch:1http://www.google.ca/imgres?imgurl=http://www.liuzhou.co.uk/china/Chinese%20Currency/images/money.11.jpg&imgrefurl=http://www.liuzhou.co.uk/china/money.htm&usg=__Exmn4EHdXotIqvCMIt4g89ohjnI=&h=226&w=455&sz=23&hl=en&start=5&zoom=1&um=1&itbs=1&tbnid=M_dmbo3GWxSCSM:&tbnh=64&tbnw=128&prev=/images?q=currency+china&um=1&hl=en&sa=N&rlz=1T4GZAZ_enCA376CA378&tbs=isch:1http://www.google.ca/imgres?imgurl=http://www.liuzhou.co.uk/china/Chinese%20Currency/images/money.11.jpg&imgrefurl=http://www.liuzhou.co.uk/china/money.htm&usg=__Exmn4EHdXotIqvCMIt4g89ohjnI=&h=226&w=455&sz=23&hl=en&start=5&zoom=1&um=1&itbs=1&tbnid=M_dmbo3GWxSCSM:&tbnh=64&tbnw=128&prev=/images?q=currency+china&um=1&hl=en&sa=N&rlz=1T4GZAZ_enCA376CA378&tbs=isch:1http://www.google.ca/imgres?imgurl=http://www.liuzhou.co.uk/china/Chinese%20Currency/images/money.11.jpg&imgrefurl=http://www.liuzhou.co.uk/china/money.htm&usg=__Exmn4EHdXotIqvCMIt4g89ohjnI=&h=226&w=455&sz=23&hl=en&start=5&zoom=1&um=1&itbs=1&tbnid=M_dmbo3GWxSCSM:&tbnh=64&tbnw=128&prev=/images?q=currency+china&um=1&hl=en&sa=N&rlz=1T4GZAZ_enCA376CA378&tbs=isch:1


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PoliticalEnvironment


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Opportunities

Good relationshipbetween Canada andChina

Low crime rate


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Threats

Location: 18, 492 km Type of government: Communism

Corruption: EFI Score of 36/100.

Investment freedom: EFI Score of 20/100


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Socio-Cultural

EconomicEnvironment


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GDP (PPP): $8.748 trillion

Opportunities


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Trade freedom: EFI Score of 72.2/100

Fiscal freedom: EFI Score of 70.2/100

Bi-lateralTrade Agreement


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Overall Economic Position:EFI Score of 51/100

Non-tariff barriers

Threats

Main trade partnersare U.S., Hong Kong,

Japan and Germany
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Socio-CulturalEnvironment


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Large Population:1,330,141,295

Low populationdensity in ruralareas

Opportunities


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High literacy rate:

95.7% male, 87.6% female

Unproductive economy


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High population density in urban centres

Dissimilar Language

Low moderate standard of living GDP per capita : $6600

GINI Index Rank: 41.5

Threats


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Different business customs/practices
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Technological

and InfrastructuralEnvironment


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Opportunities

WEF rank: 29 of 133 countries

747 million users

19 117 airports/km2 298 million users


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Rapid growth in all industries is hard tomaintain

Lower number of customers in certaintechnology industries

Threats


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Recommendations


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Opportunity : Energy and Power

Since 2001, Chinas energydemand has grown 1.4 timesfaster than its GDP

Currently, 76% of energy comesfrom coal power generation

China wants to increase its useof clean energies by at least 4%by 2020

Primary Sector

Recommended for : companies specializing in Clean Coal Technologiesand nuclear power

VS


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Threat: Agriculture Intense competition

Lack of brand recognition

Bans on certain products (ex. Meat products since 2003)

Difficulty in exporting nationally

Not recommended for: companies specializing in exporting

food/beverage products

d d


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Opportunity: Telecommunications and SoftwareTelecommunications Worlds largest telecom market: 747 million subscribers Sales revenues from industry: $930 billion Dramatic growth: 12.5% increase, growth of 11% in 2010

Recommended for: Telecom companies willing to start a joint venture R&Dpartnership, FDI into established telecom company

Software 2001-2009: 9400% industry growth from $1.2 billion to $111 billion

Recommended for: Companies specializing in high end softwaretechnologies and products

Secondary and Tertiary Sector


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2ndlargest automotive market in the world

2008: Annual sales reached 9.5 million

Green technologies are expected to gain 10%of market share after the implementation

of fuel tax

Recommended for: Canadian firms that specialize in cleantechnology to partner with local auto firms

Opportunity: Automotive


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Opportunity: Railway transit

Government has allocated $330 billion towards railwayconstruction

Right now, industry accounts for 8.7% of GDP growth

Recommended for: Exports in railwayequipment and technical systems,consulting services that specialize in high

intensity rail systems that would reduceemissions


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Opportunity: Healthcare

Large aging portion of the population

In 2008, total industry output (drugs, medical devices etc.) wasup 25.7% at $126 billion

Recommended for:Long-term FDI into multi-national drug companies

T i S


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Tertiary Sector

Opportunity: Aerospace Grown at an annual rate of 18% since 1980

2ndcountry in the world with the highest air traffic

Government plans to spend roughly $62 billion to build/expand 100

airports

Recommend for: Training and support services for:Pilots

Airport management and technical training

Safety and security consultingConsultants to aid in design and functionality aspects of airports


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Threat: Education

National priority

Slowed growth (38% decrease)

FDI is not allowed

S


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Industry Opportunity Threat

Primary Energy and power Agriculture

Secondary

and Tertiary Telecommunications and softwareAutomotiveRailway transitHealthcare

Luxury goodsHealthcare

Tertiary AerospaceTourism

Education

Summary


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Conclusion

Documents

Trade Mission Portfolio - China