Sample Research Paper on Chinese Automobile Makers

Abstract

Chinese people prefer to deal with people they know and trust. The heavy dependence on relationship means that western companies have to make themselves known to the Chinese before doing any business. China is a huge country in the east of Asia. It is the world’s largest country in population. They are known for becoming one of the world’s growing economies with their products being distributed in almost every part of the world. There are a lot of problems surrounding the business issues in China. One of them will be discussed in this paper.

Write My Essay Steps2.png

Administrative licensing, including difficulties gaining business licenses and product approvals

Doing business in China is really a hard work. It takes a long time for the license to be approved, including product approval, business operations, and investment review that slows down the pace of doing business.

People put up a business particularly to gain money and have something to pull money from. Having your own business will not only help your government but will also help in giving opportunities to people who needs to work for a living. Paying the right amount of tax proposed to you by the govern will be always be the right thing, the money that the government collects if no corrupt will go directly to the development of your country. Corrupt or not, your government will always be entitled to collect tax from every business man, company or establishment. But don’t mind them; doing business will also be a gain for you and your company. Doing business is about your own survival not theirs.

Business affects every part of our lives. From a simple candy to traveling, business provides an incredible selection of goods and services. For example, many people think of a car as the product of a congregation line. But the congregation line is only the final step of a long method relating many companies. These companies include producers of batteries, glass, steel, tires and many more. Building a car requires the services of such peoples as engineers, and tool and die makers. Business also includes marketing, selling and other advertising activities.

Business plays a leading role in countries that have an economy based on free venture. In a free enterprise system, the managers of businesses decide what goods and services should be produced and what their price should be.  Rivalry among the business firms affects the price and quality of their goods and services. Firms must maintain realistic prices to attract and keep customers. People are not likely to buy from a company if they are not satisfied with the product, or if they can purchase the product for less money somewhere else. Business firms contend for sales by using such techniques as promotion and by offering special discounts or bonuses.

Business in China 

Doing business with the Chinese people should have a lot of looking into, Chinese people are very cautious in doing business. People should always think on the customers of the Chinese people. They are not keen in making physical contact with people; they do not take jokes as humorous because when meeting with them on a business appointment, they only mean business.

This information about the automobile business industry below is a research study from the China statistic year book of 2007.

China’s automobile industry started to grow in 1998 where they produced 1.56 million automobile. It was only a part of the other competing automobile business but after some development, China became the fastest automobile producers in the market. Their sales increased more than 22.2% from 1998 to 2006.

In just a short time, China has made a huge progress that contributed to the economy of their country. They never stopped from achieving the goals they want. Then they started competing with other automobile producers in the world to show that they are for good and they could also be world class producers for vehicles.

The United states of America is one of the successful automobile dealer in the world but in 2006, China rise more than Japan and the U.S. Their sales rose from 25.1% with the equivalent amount of 7.2 million units. After some time, China’s growth in the automobile industry improved to the extent that they even exceeded Germany and became the third largest automakers the same time they overtook Japan and the United States. A chart below (Figure 2.1.1) from the website chinaknowledge.com, taken from the China Automobile Industry Yearbook 2007 shows the sales of the industry from 2001-2007.

Most cars produced by the Chinese automobile industry are passenger cars. The number they produced rose from the percentage of 18.4% to 53.6 (1994-2000). The passenger cars make up the 6.9 million units from commercial/ vehicles from 2001 to 2006.

In the year 2007, 6.4 million passenger cars was produced and 21.9% annual percentage. 6.3 million Units were sold and another 21.7 annual percentage. Summed even more, the total percentage of the companies’ production is 719%. A chart below (2.1.2) from the website chinaknowledge.com, taken from the China Automobile Industry Yearbook 2007shows their sale in 2007.

Because of the growing economy of China, a trend of a rising economy made a mark for several years. People who have permanent jobs easily owned a car/ private vehicles that again contributed to the rise of the automobile industry.

Most working citizens of China then felt the need of owning a private vehicle. The 20% rate of production from 2006 made a release of 23.3 million units became 26.2%. Then the passenger units increased from 31.8%, 18.2 million units of production to 78.2% in total of the yearly production of private vehicle. A chart below (Figure 2.1.3) from the website chinaknowledge.com, taken from the China Automobile Industry Yearbook 2007 the breakdown of the private vehicle possession.

The first automobile plant built in China was the First Auto Works (FAW) in Changchun. After gaining some profit. They developed 8 more bases for manufacturing automobiles. These bases include Hubei, Changqin, Guangxi. Guandong, Shanghai Motors, Beijing automobile works and Jilin first auto works. A total of 4.6 million units were produced from these bases in 2006 that made the 63.4% of the country’s total automobile count. A chart below (Figure 2.1.4) from the website chinaknowledge.com, taken from the China Automobile Industry Yearbook 2007 shows the output the industry made in 2006.

China’s richest production automobile plant is Guangdong, a base developed in the previous year. Guangdong is one of the largest automobile carrier/ producer in the country having produced 4.29 million units just in the year 2006.

Owning an automobile company means having wanted and unwanted customers, the only thing that matters is earning an income and satisfying your customer with your service. An example of a very important producer of automobile and a rising province is Sichwan. The vehicles produced from this place reached up to 1.28 million ranking seventh in the most successful automobile producers in the country. Another rising and a perspective rising company is in Yunnan that ranks ninth in the same category as Sichwan. A chart below (Figure 2.1.5) from the website chinaknowledge.com, taken from the China Automobile Industry Yearbook 2007 shows the leading automobile consumer in China.

Challenges tested the automobile industry last July 1, 2008. The government implemented the “Measures for the Administration of Import of Automobile Components and Parts Featuring Complete Vehicles” where the government will charge automobile machineries and will take at least 60% of the total amount of the vehicles value. All auto makers in China were affected by this, specially the foreign business establishment. Surely the profit gained from their business will not only be divided but also be cut in paying import parts from different parts of the country.

A business establishment will really need some work, I mean money work. China is located in Asia where most of the storms pass by so when hit by a calamity, funding for repair and maintenance will really cost a lot. Raw materials will begin to extinct; economy goes down because most of the Governments’ fund will be used in rebuilding destroyed infrastructures and used for relief goods to be given to the affected areas of the country.       Challenges tested the automobile industry last July 1, 2008. The government implemented the “Measures for the Administration of Import of Automobile Components and Parts Featuring Complete Vehicles” where the government will charge automobile machineries and will take at least 60% of the total amount of the vehicles value. All auto makers in China were affected by this, specially the foreign business establishment. Surely the profit gained from their business will not only be divided but also be cut in paying import parts from different parts of the country.

Another challenge to putting up a business in China is the banning of selling new cars to avoid air pollution. This was implemented in Beijing, China. Most vehicles made in Beijing are not eco- friendly so the government started to ban the production of new vehicles to concentrate and host the “green” Olympics. The government thought of this because of the unresolved issue of air pollution. Building the vehicles was not thought of properly because if so, they would consider the effects the vehicle might bring into the environment. China is really encouraging automobile makers to build an eco-friendly car that will not just reduce pollution but a car that has low energy consumption, and lower battery cost.

Recommendations in Starting a Business in China

The goal of entering a business is to gain profit with the right business, at the right time and at the right place. People make a lot of mistakes when not sure in what business to start. That’s what bankrupts a business. Starting up a business should be thought for a long time. A lot of sacrifices would be made but when planned the right way, it can easily make you a millionaire.

These are practical points to be taken when starting an automobile business in China:

  • Research about the business you want to start.

You should always do your own research and learn the basics on how to start a business. Relying on just someone you know would not be a valid reason to put up a business. The internet is full of much information, from starting a business to places highly recommended to start a business. Use it.

  • When putting up a business outside the country, learn the language.

It is basically reasonable to learn the language in the country you want to put your business up. How could you serve your customers when communicating with them is already a barrier? Make time to learn the language; there are a lot of tutoring schools that can help. Plus, talking with someone who actually knows the language will be a really effective way.

  • Learn the culture.

An important fact when doing business in other countries is learning their culture. People from different countries have different cultures. When starting a business, you should be cautious in what you are saying because sometimes, what we think won’t offend them will. Learn to blend in and respect their culture. This will be plus points for your business when customers feel you value and respect them.

  • Show interest in what you are doing. Love your business.

A customer will immediately feel if he/she is welcome in your establishment. Setting the mood for a business is a must. You should always show that you are ready to serve them, satisfy them with your service. That’s why going over to the first recommendation, you should really want this business. Not because it is what sells the most but because it is what you really desire the most. Starting businesses mostly depend on franchises but the downside is that even though your franchise is popular, without the proper service and motivation, you would not succeed.

  • Lastly, be environmental friendly.

A lot of critics usually look into the flaws of a business. Now, your job is to make them realize you are not there to destroy their place but to help them develop it. Usually, cutting down trees to build establishments takes a lot of criticism. Fighting them with weapons will not make it go away, instead come up with a plan to replace the trees you are about to cut. You can organize a tree planting activity. Having enemies without even starting your business yet will really make an impression to the public. So be smart and always think of alternatives. 

Conclusion

Knowing these facts from this research will be really helpful in what people have to deal with to start a business in china. There are a lot of procedures to go through, paper works to be done, a lot of considerations to prepare for and a lot of time to wait. Another basic thing is that China has a lot of business establishments, from making candies to foods, clothes, cars, furniture’s etc. So going up against skilled businessmen in a foreign country would be really challenging.

 

References 

Linette Lopez The 10 Problems in doing Business in China, Retrieved from: http://www.businessinsider.com/the-us-china-business-council-report-on-the-top-ten-issues-with-doing-business-in-china-2011-10

Zachary Wilson One of the Difficult Challenges of doing Business in China Rarely Discussed, Retrieved from: http://www.globalpartnersmba.com/one-of-the-difficult-challenges-of-doing-business-in-china-rarely-discussed/

Doing Business in a Changing China, Retrieved from: http://www.pwc.com/us/en/view/issue-13/doing-business-in-a-changing-china.jhtml

Doing Business in China, Kwintessential Ltd., Retrieved from:  http://www.kwintessential.co.uk/etiquette/doing-business-china.html

Business Registration in China, Retrieved from: http://www.pathtochina.com/regcompany.htm?gclid=CMmK4rzE8K4CFWOc4godhGwmIw

Investing in China, Retrieved from: http://www.chinaknowledge.com/Business/CBGdetails.aspx?subchap=5&content=26 

Price calculator

Type of work:
Service Type:
Number of Pages:

Turnaround/Level Bachelor Master Doctorate
10+ days $14.24
$18.99
$14.99
$19.99
$19.49
$25.99
7 days $17.09
$22.79
$17.99
$23.99
$23.39
$31.18
5 days $19.94
$26.59
$20.99
$27.99
$27.29
$36.38
4 days $22.79
$30.38
$23.99
$31.98
$31.18
$41.58
3 days $25.64
$34.18
$26.99
$35.98
$35.08
$46.78
48 hours $28.49
$37.98
$29.99
$39.98
$38.98
$51.97
36 hours $31.33
$41.78
$32.98
$43.98
$42.88
$57.17
24 hours $35.61
$47.48
$37.48
$49.98
$48.73
$64.97
12 hours $42.73
$56.97
$44.98
$59.97
$58.47
$77.96
8 hours $49.85
$66.47
$52.47
$69.97
$68.22
$90.95
* The prices are stated in USD. One page of an order is 275 words per page, Times New Roman font 12pt, double-spaced. Order Now