Multinational Business in China

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Multinational business in China
30 years ago, “China” was a well-knowing name that had entered people’s life all over the world, by the images of “Made in China”, “Factory of world”. China is the oldest country which has long history, lot of tradition, and multicultural heritage. Also China is the third largest land nation with rich natural resources, and the largest population about 1.3billions people. About the geography of China - located east Pacific coast of Asian mainland; northern border on Mongolia and Russia; western China expand to the Tibet highland, Pamir and border to, India, Bhutan, Nepal, Pakistan, Afghanistan, Tajikistan, Kyrgyzstan, Kazakstan; southern to the south China sea, southwest border to Vietnam, Laos, Burma; China expand continental shelf to east China sea close to Japan, and Korean peninsula lies the east of China. Even though China has rich natural resources, large amount of manpower, good geographical position, and so many good profile surfaces, China still a developing country because China had go through a hard time during the 20th century. Early 20th century, China had been though two main wars, first China fight for Japanese aggression; and the civil war. Although, China get the peace time after 1949, the new Republic of China have been found; China still in the situation of the social disturbances, economic depression and large amount of people loss because of the wrong policy. Until the 1980’s, the government had quickly reform the country, China had canvass many foreign company to make an investment to the new market. By the more than 30 years efforts, China is the awaken giant that the economic boost in unthinkable speed; moreover, China is the second largest economic system which after US and pass Japan.

Nowadays, China is becoming the most competitive battlefield where world class successful companies are interested. Some companies succeed in expanding multinational business in China by creating competitive advantages, but some companies fail to survive in China market. (Galvin, 2010) Before the company setting business in new country, company must have a well knowledge about the dimension of distance (in Culture, Admin, Geographic, Economic areas) between China and the country which the company original found. China has particular culture that combines 56 group ethnic’s different cultures, and brew in a long history. Each of 56 ethnic groups has own different language; moreover, each of different district with geographical dialect. Therefore, Chinese government officially uses mandarin as language speaking, and use simplified Chinese characters as Chinese writing. Tradition Chinese characters still continuous to be used in Hongkong, Macau,Taiwan, and oversea. Cantonese language is popular in the southern Chinese, mainly use in Guangdong province, Hong Kong, and Macau. For the publishing, media companies should correctly translate their product in different part of China. China is a religion pluralism country that allows people to choose different religions. Taoism and Shenism, Buddhism, and Atheist or Agnostic, such as above are the three big groups of Chinese religion. Islam and Christianity are in small sizes. Since 1980’s the top leader of China, Deng Xiaoping put forward a reform policy; China tried to open the market for foreign product, fetch the foreign investment in the market. At the same time, many new cultures, different ideas would bring into the new market. Chinese government successfully conducted foreign affairs that always insist on “Respect for each country’s dominion”, “Peace and Develop”, and “Win, Win policy”. In the other words, China always keeps the good relationship to the foreign countries by follow the diplomacy principle. After more than 30 years effort by China government pursue Reform policy, China‘s modern culture has become broader and more flexibility; as result of, China was developing traditional good culture and integrating the western advanced...
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