Research Paper on Political Stability in China: Impact on Infrastructure Development

Introduction

The Chinese republic comprises of a socialist political power under democratic dictatorship depending on the working class and alliance of peasants and workers. The government of China has experienced political stability since the 1978 reform, which consequently leads to the creation of a favorable environment for local and international investments.

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The concept of political stability in China has contributed significantly to the rise of infrastructures, such as roads, railways, and even air transport (Ambler et al. 2016). The improvement in infrastructure leads to a more natural movement of goods and services across the country and in the foreign markets. The growth in support lured many international banks and other financial institutions to venture into the country, which consequently leads to current flow and the exchange rates going down.

Cultural Factors Affecting Business Operation in China

The people of china share several cultural characteristics despite the complexity of Chinese culture. The typical features of culture among the chines constitute religion, ethics, and language groups. These distinct aspects of culture comprise of factors that can alter the operations of any business in the chines economy. The concept of religion constitutes another cultural factor affecting business operations in China.

Business Ethics in China

Business ethics means a code of conduct employed in the business arenas which help in the examination and guidance of the rules and guidelines the entities of the economy need to follow, thus ensuring a smooth flow in transactions. Business ethics influence the operations of the business positively or negatively. There exist various business ethics mismatches in the past years experienced in China. Some of the notable cases of unethical business practices that dominate china include

The China Milk Scandal

The toxic milk scandal hit the airwaves in 2008 after the disclosure of infant milk formula produced by Sanlu containing melanin that acted as a risk factor of kidney failure among the babies who consumed the infant milk formula (Crane, Matten, Glozer, & Spence, 2019). This ethic breach affected the Chinese economy greatly as the companies that sourced their infant baby milk form the company had to recall their products. The actions that followed the scandalous baby milk led to adverse effects on the individuals and milk suppliers in the company.

Samsung Illegal Labor Practices

The investigators nubbed the Samsung company for the application of unlawful labor practices in the company's enterprises in the states, which called for further investigations. The scandal alleged that the workers in the Chinese firm worked for more than sixteen hours a day, which proves an unethical form of practice (Craneet l. 2019). The Samsung firm tried to manipulate the workers into working extra hours to maximize profit at the expense of the workers' welfare.

The China Meat Supply Scandal

The scandal occurred the Shangai Hushi food company owned by an American investor for an allegation of using chlorine as a cleaning agent for the meat in the company. Wong Donglai hit the corridors of justice, claiming to forced extra hours work and also claimed that the employers forced him to do unethical jobs that failed to meet the quality assurance control(Craneet l. 2019). The complainant sought compensation for unethical business practices.

These and other undocumented codes of ethics behavior present a severe impact in the economy as well as the attitude of the business enthusiasts and investing countries that seek to invest in the chines economy. The Chinese government, however, struggles to devise standards in which the business can operate and consider the practices ethical. The need to scrutinize the ethics in the market ensures that the country brings measures and legal actions that will help to tackle the concept of unethical behaviors. The standards and regulations appear extremely adverse to individuals and business persons. Still, the main aim of the ethics regulations entails the protection of investors and the individual from losses arising from the unethical practices.

Chinese Government Policies on International Trade and Free Trade Agreements

The chines government has dramatically reduced the trade barriers since joining the world trade organization and led to liberalizing the global trading systems. The Chinese government, in this effect, reviewed the trade policies by its government, and the country continues to implement the trade policies with the aims of achieving more investors into the country (Mueller, 2019). The Chinese government reviewed export and import policies such as the trade description and labeling, product standardization, customs and quarantine laws, quota and licensing, and the reduction of the import duties. These policies ensured a luring factor in venturing into the Chinese economy by the investors.

Geographic Factors Affecting the Economy in China

The Chinese republic constitutes two different regions, namely the buffer and the mainland regions. The concept of the geographical positioning of a country represents a significant factor in business influence (Nwogu, 2019). The Chinese republic boasts of better ports in the heartland, which ensures a smooth flow of goods and services in the market and lures more investors in the Chinese economy. The natural roads od silk also constitute a factor that contributes to the smooth flow of goods and services in the country, leading to booming business experience.

The Forms of Economic Integration in China

The republic of China currently takes the lead in various types of international economic integration. The achievement of the significant stride in economy arises from the countries quest to rebuild its financial reputation. The initiative by the Chinese economy constitutes a framework to penetrate markets across African and other continents. The Chinese government projects to achieve the initiative by investing in financial institutions and the provision of interest loans to foreign nations.

Regional Trading Blocks of China

China constitutes a bilateral agreement in trade with alignment to free trade agreements and regional trading blocks. The Chinese economy boasts of free trade agreements with over one hundred countries and economies, including Korea, Spain, France, Canada, Germany, and the united states of America. Chine republic also posses membership to regional economic blocs such as COMESA, CEMAC, CARICOM, ECO, CAN, and other commercial blocks (Li, Wang, & Whalley 2017). The membership of china in this economic blocs continues to impact positively on the business activities.

Trends Affecting the Global Stand of the Chinese Economy

The current trends posted by the Chinese economy majorly lie in various aspects, which has led to the Chinese economy becoming a threat to the economic giants in the world. The trends receive much influence from different steps employed by the Chinese government's aim to achieve unmatched industrial standards. Some of these trends include the supply chain movement away from the united states of America, vigorous inventions in the technology and agricultural industries, significant foreign investment in African nations and Asian countries, and ignorance of Chinese threats (Devonshire-Ellis, 2019). The Chinese government also hits the limelights for continued disagreement with the united states of America and poses a danger to the supper power. These trends act as indications of a robust economy ready to conquer the world.

Conclusion

In conclusion, the concept of trade needs a serious analysis before one can decide the economy they wish to venture to at any given time. The Chinese economy continues to be a fast-growing economy with privileges of political stability, a comprehensive market base, and the best destination for foreign investors.

The economy of China will continue thriving, and the more the economy thrives, the government will threaten other superpowers. This concept will lead the republic becoming a superpower in the predictable years. Any investor who reads the trends in the market or follows the economic trends from whatever source needs to know that the economic trends posted by china suggest the best country to set up a business. Before backing on investing in any given country, an investor needs to focus on various aspects that will contribute positively or negatively to business success.

References

Ambler, Tim, Morgen Witzel, and Chao Xi. Doing business in China. Routledge, 2016.

Crane, A., Matten, D., Glozer, S., & Spence, L. (2019). Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press.

Devonshire-Ellis, C. (2019). Changes in China's Purchasing and Import Trends between 2019 and 2024. Retrieved 28 November 2019, from https://www.china-briefing.com/news/changes-chinas-purchasing-import-trends-2019-2024/

Li, C., Wang, J., & Whalley, J. (2017). China's regional and bilateral trade agreements. In THE ECONOMIES OF CHINA AND INDIA Cooperation and Conflict: Volume 1: China and India-The International Context and Economic Growth, Manufacturing Performance and Rural Development (pp. 175-194).