People’s Republic of China

• Amy Curran• Henna Miettinen• Ioana Savu• Sander Eilander

Demographics• Population: • 1,338,612,968 (July 2009 est.)

• Age structure: • 0-14 years: 19.8% • 15-64 years: 72.1% (aprox 1 bil. target consumers)• 65 years and over: 8.1% (2009 est.) • Population growth rate: • 0.655% (2009 est.) • Urbanization: • urban population: 43% of total population (2008)

Economy

• 2nd largest in the world (after the U.S.) – PPP basis

• 3rd largest (after the U.S. and Japan)- exchange rate terms

• developing country• economy type: Socialist Market Economy• highest GDP growth rate in the world over

the last 10 years.

Economy

Economy• GDP - per capita (PPP):

• $6,500 (2009 est.)• $6,100 (2008 est.)• $5,600 (2007 est.)

• Unemployment rate: • 4.3% (September 2009 est.)• 4.2% (2008 est.)

• official data for urban areas only; including migrants may boost total unemployment to 9%; substantial unemployment and underemployment in rural areas

• Inflation rate (consumer prices): 1.5% ( Jan 2010)

Economy

Economy

• Beijing 2008 Olympic Games:• Boosted China’s economy (Beijing)• GDP/capita (Beijing): doubled, reaching $6400• the financial, insurance, IT and telecommunications

industries earned revenues and developed• 1.8 million new jobs (2001-2008)

Economy

• No2 in exports• Export partners: US 17.7%, Hong Kong 13.3%,

Japan 8.1%, South Korea 5.2%, Germany 4.1% (2008)

• No4 in imports• Import partners: Japan 13.3%, South Korea

9.9%, Tawian 9.2%, US 7.2%, Germany 4.9% (2008)

Economy

• No1 in foreign direct investments• Coastal areas attract the foreign investors• Cheap labor force• Permissive regulations for the foreign

companies• High level of consumer confidence

Socio-cultural

• increasing gap between – rich and poor people– rural-urban areas– coastal and non-coastal areas

• lack of strong relationship between state-funded research and the private sector– e.g. poor commercialization and technology

transfer of university research

Socio-cultural

• lack of critical scholarship and monitoring of research quality

• lack of multi-lingual abilities to compete in the globalized economy (35% - Beijing)

• new generation of Chinese embracing anything Western (pop music, western clothing, going to Starbucks, etc.) ==>losing Chinese culture

Technological

• Telephones - main lines in use365.6 million (2007)

• Telephones - mobile cellular634 million (2008)

• Internet users384 million (2009-December)

Technological

Technological

• Doubles its spending on R&D

• 2.5% of China's gross domestic product by 2010, approaching

• $100 billion annually. China wants to have more research scientists and engineers than any other country by 2015

Technological

Ecological

• China has three major ecological issues

1.coexistence of water-shortage and waste2.soil erosion3.wind erosion and desertification

Ecological

• The Chinese Gobi desert threatens to take over China’s capital city of Beijing.

Ecological

• China is either first or second in emitting CO2.• 16 of the 20 most polluted cities in the world

are Chinese.

• 10 of them are:Linfen, Shanxi Province / Yangquan, Shanxi Province / Datong, Shanxi Province / Shizuishan, Ningxia Hui Autonomous Region / Sanmenxia, Henan Province / Jinchang, Gansu Province / Shijiazhuang, Hebei Province / Xianyang, Shaanxi Province / Zhuzhou, Hunan Province / Luoyang, Henan Province

Politics

• A framework of a single-party socialist republic – Communism

• The PRC is in a number of international territorial disputes (Taiwan, Japan, Russia, North Korea, Vietnam)

• Lots of undercover workers for the government

• Media control

• Protectionism

Trends in China

• China has quickly become the leading nations of the world’s population

• New youth has come out• China's youth are spending freely on digital

products and the trend will continue to rise with the growing middle class

• They are creating a multi-billion dollar market for digital products, media and services

• China's globalization linkages have intensified, and China has begun to help to bear the responsibility for sustainable development both at home and abroad.

• China has changed of low-priced products to exporters of high technology exporter

• All the businessmen wants to invest on China• China’s political and economic system have

helped China to cope with the global financial and economic crisis

• The Growth of Small- to Medium-Sized Enterprises

• Expect more growth in China’s of second-tier cities

• Rich people come even more richer• China Mobile's growth rate and size will

further increase• 3G has begun to take shape with substantial

growth potential in China

Issues in China

• 1. Pollution

• 2. Corruption

• 3. Black Market

• 4. Child Labour

Questions

• Do you think the politics and laws in China represent a threat or an opportunity for the foreign investors?

• How do you think Nokia should deal with the black market?

• How do you think China can eliminate the child labor?

Thank you for your attention!!