Opportunities and Challenges in Chinas Emerging Market under Globalisation - Dissertation Example

China’s membership of the World Trade Organisation, or the WTO, made it possible for these business people to operate in China in an era of free trade. However, despite its attractions and potential, the Chinese market has not been a well-known market for the Western business people and the government of China has had to adopt a cautious as well as harsh approach to guide the country towards its future because of the unique problems that China has been confronted with due to its huge population.

Despite China’s future potential, foreign business people have to live with a strange culture, strict regulations, political interference, guanxi or a need for relationships to operate in the market and low disposable incomes of the Chinese consumers. Hence, China’s recently opened market presents both challenges as well as opportunities for the foreign business. China is a country with a population of 1.2 billion people, which is roughly about 21 % of the world’s population and this means that China has 1.

2 billion consumers who can not only produce and export to the rest of the world, but these consumers also need to import and require investments from outside China in the form of capital and know how to meet their needs. After the reforms introduced by Chairman Deng Xiao Ping and the efforts to liberalise the interactions between China and the rest of the world, the Chinese economy has shown a growth rate of 9.3 % per annum, with a per capita income that is growing at about 10 % per annum (Hoguet, 2004, Pp.

1 – 5).