CHINA- Legal Growing Pains in a land of Opportunity
The People's Republic of China (PRC) commonly known as China, is the most populous state in the world with over 1.3 billion people. China is a single-party state governed by the Communist Party of China (CPC). Its capital city is Beijing. The People's Republic of China is the world's second largest economy after the United States by purchasing power parity($9.05 trillion in 2009) and the world's fastest-growing major economy, with average growth rates of 10% for the past 30 years. It is also the second largest trading nation in the world and the largest exporter and second largest importer of goods. Factors like these make it imperative for any MNE to invest in this country. China has history of nearly 4000 years and is one of the world's oldest civilization. China possessed one of the most advanced societies and economies in the world prior to 19th century ; but through successive dynasties it then missed the industrial revolution and began to decline. In 1949, after a major combat ended in the Chinese Civil War, two states calling themselves "China" emerged. By 2001, China became a member of the World Trade Organization, which has boosted its overall trade in exports/imports estimated at $851 billion in 2003 by an additional $170billion a year.
Annual inflows of foreign direct investment rose to nearly $108 billion in 2008.The restructuring of the economy and resulting efficiency gains have contributed to a more than tenfold increase in GDP since 1978. China in 2009 stood as the second-largest economy in the world after the US, although in per capita terms the country is still lower middle-income. China emerged as one of the worlds super power in this decade. The most significant evolution of the early 2000s in the economic landscape was the long-time predicted breakthrough of economic giant China that had a double-digit growth during nearly the whole decade. China (U.S. $4.98 trillion) went...
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