Download Kellogg on China: Strategies for Success by Mark Finn PDF

By Mark Finn

An in-depth examine easy methods to do enterprise in China because it turns into a world fiscal strength on account that 1979, whilst China emerged from its lengthy isolation and introduced the 1st of its fiscal reforms, the rustic has long gone from generating low-quality exports to creating subtle high-technology items and is now an important participant on the planet financial system. China has turn into the hot engine of world growth.As China keeps to enforce its commitments agreed upon with club into the area alternate association (WTO), the surroundings for multinational companies is altering quickly. This booklet examines the various adjustments WTO accession is bringing to the industry surroundings and diverse sectors of the economic system, and the ensuing demanding situations and possibilities for firms doing enterprise in China. The booklet attracts on broad box learn with chinese language company executives, govt officers, and representatives of nongovernmental agencies. in keeping with the findings from those interviews, the authors supply insights and techniques for corporations trying to identify a sustainable aggressive virtue within the country's evolving industry. Kellogg on China is the outgrowth of a collaborative student-faculty attempt throughout the worldwide projects in administration application on the Kellogg university of administration.

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A 2001 report by the accounting firm Andersen notes that in the near future the Chinese authorities are likely to set a common national tax rate of 25 to 30 percent and completely eliminate the preferential tax holidays and incentives for foreign investors. qxd 3/2/06 2:51 PM Page 33 T HE C HANGING N ATURE OF C HINA’ S E CONOMIC Z ONES 33 How does the dismantling of these incentives affect China’s EZs? Some argue the loss of various incentives will cause foreign firms to locate in other parts of the country or, even worse, in other parts of Asia.

For instance, the auto, aluminum, petrochemical, cement, light industry, and steel industries are plagued by excess capacity and inefficiency. The ability of the industrial sector to restructure successfully will be critical in ensuring continued growth in a stable environment. qxd 3/2/06 2:50 PM Page 25 C HINA’ S G LOBAL I NTEGRATION AND WTO A CCESSION 25 owned enterprises are edged out of their markets, rising unemployment could lead to social disruption and the possibility of policy reversals.

To minimize confusion, we use the term economic zones (EZs) to refer to all special preferential zones in the Chinese economy, including SEZs, new areas, ETDZs, and all other zones. qxd 3/2/06 32 2:51 PM Page 32 WTO E NTRY AND A C HANGING C HINA discussions, however, focus mainly on the five SEZs and Pudong, where the bulk of economic activities within China’s economic zones takes place. WTO IMPACT ON ECONOMIC ZONES Real estate prices, substantial congestion, and significant wage pressures relative to other parts of China have increased the cost of operating in an EZ.

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