Pest Analysis

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PEST Analysis


Deccember 2010
PEST Analysis
Potical Factors
• China is a communistic country, and it is steadier than some country which always has some war, anarchy and so on, which is adapted to the development of car companies. • Chinese goverment encourage overseas company to operate in China, such as derating, lower lending rate… • Chinese rule is strict for car purchaser and owner. For example Beijing government claim that the amount of new licenses issue will be limited to 240,000 next year. This may reduce the sales volume of car. Chinese goverment encourage overseas company operate in China, such as derating, lower lending rate… • Chinese employment legislation is pretty integrated. China's Tenth National People's Congress Standing Committee of the twenty-eighth meeting passed the PRC Labor Contract Law. The New York Times, the Associated Press and other mainstream media to comment that the law further to emphasize the Chinese labor contracts labor laws. It gives the state-owned trade unions and other organizations on behalf of workers with employer bargaining power, which is the Chinese labor management system the most significant changes for 20 years. • Chinese export tax is low, which is good for car export. • Chinese has Environmental Protection Law and Consumer Protection Law, but the administration is not good. Economic Factor

• Chinese economic is developing very fast nowadays.

|Month |CPI upticking comper with last year | |Jan. |1.5% | |Feb. |2.7% | |Mar. |2.4% | |Apl. |2.8%...