Cultural Profile

To: Professor Boyer
From: leo
Date: March 6, 2013
Subject: Cultural Profile of China

This report covers several important aspects of Chinese economic situation, political environment, and cultural influence. It not only can help our team have a deep understanding for doing business in China, but also we can use this report to make better strategies to help Macy’s enter the Chinese market and fight with local competitors.

Chinese economic situation
China is the biggest and best developing country, and it is currently the second largest economy in the world. In 2012, the GDP of china approached 51,932.2 billion yuan with 7.8% growth from 2011. Although Chinese economy was affected by the world economic recession, China’s economy has bounced back in the fourth quarter of 2012 (Trading Economics, 2013). Moreover, Chinese government announced the proactive fiscal policy to stimulate the economy in 2013 and expect to have 7.5% GDP growth in this year.

Chinese political environment
People’s Republic of China is a single party state governed by the communist party of China. In 1970’s, China started the policy of reform and open which was determined by Deng who was the second president of China. This policy not only greatly encourages the foreign investments to China, but also constructed a solid foundation for Chinese economic boom.   But political system in China has a great difference with that in US, because, in China, the political policies always give big influence on economy and business environment. Moreover, the relationship with government is a big factor to determine whether you can doing business successfully or not (Lawrence& Martin, 2013).

Policies and major laws governing foreign enterprises
In order to satisfy China’s fundamental principle of opening up to the outside world, and Deng Xiaoping Theory, China is always insist on absorbing the world wide successful enterprises making investments to China. And to better serve...