PESTLE ANALYSIS OF CHINA

Noman Ghalib Azam Jahangir

Introduction

Capital:- Beijing

World's second-largest country by land area,and the third- or fourth-largest in total area.

Area:   14,500 kilometres

Population:(over 1.3 billion)

Currency: 1 chine's Yuan = 15.80 Pakistani rupees

Political factors Government type:

Nominally Marxist–Leninist single-party state. The People's Republic of China is a single-party state governed by the Communist Party of China.

• tariffs are high, but on decreasing slope.• stable political environment

Economic factors GDP:- $11.316 trillion

GDP growth:- 9.5%

Per capita:- $8,394

Unemployment Rate:- 6.1%

Inflation rate:- 3.2%

Population below poverty line 10%

Tax rate for foreign investments 30% national & 3% local rate for production business and 20% for others(interest, rent, license, utilization)

Current account balance : $296.2billion (2009) world’s largest Reserves of foreign exchange :$2.206 trillion (2009)

Economic Factors Labor force: 815.3 million (2010); agriculture 10.2%,

industry 46.9%, services 43% (2010 est.).

Labor costs are low

Exports: $1.581 trillion Imports: $1.327 trillion Revenues:$ 972.3 billion Expenditures:$ 1.137 trillion (2009)

The industrial production growth rate is 8.1%(2009).

Socio-cultural factors

51.27 percent male & 48.73 percent female of the total population.

Literacy rate:- 92.8%

Religions:Buddhism(50%), Taoism(30%), and Chinese folk religions & others(Muslim 1.5-2%,Christian 3-4%)

16.6

70.14

13.26

Age structure (Yrs)

0-14 15-60 60+

The average income in east china is 2.26 times then west of china

Chinese prefer first mover.

Environmental factorsOver reliance on coal which

produces acid rain.Water shortageClimate vary from region to

regionNatural disasters (floods,

earthquakes)Clean energy, low carbon

technology

Technological factors Internet users:-500 million (2011)

Airports :- 482(2009)

Railway worlds third largest system

Roadway 3583,715km(2007) world second largest

China Telecom alone serves 55 million broadband subscribers

Tianhe-1A world’s fastest supercomputer

In 2011, China unveiled a prototype train

Technology is becoming cheaper

Telephone system is on world’s number one