Doing Business in China For Dummies®

Chapter 3. Getting Acquainted with the Powers That Be: China’s History and Leadership

In This Chapter

Getting to know China’s history and rise as an economic superstar Discovering how the government encourages business Understanding the Communist Party Looking at China’s entry into the World Trade Organization

China has had a long and colorful history over many thousands of years, and knowing a few of its key elements can help you better understand today’s general business practices in China. By showing that you know some Chinese history, you can also demonstrate to the Chinese business community that you’re serious about doing business there.

The rise of the Communist Party made a tremendous impact on modern China. The party still sets policy and controls the future direction of China, so you want to understand how the government works. This knowledge is especially important as China moves from a centrally planned economy to a market-driven one. And with China’s entry into the World Trade Organization, the country is taking a big step forward as a major player in global business and trade.

In this chapter, we give you an overview of China’s political and economic history and explain how it affects China’s business climate today. We also go into China’s current government setup as well as the government’s relationship with state-owned companies, private businesses, and foreign-owned enterprises. Finally, we wrap up with the impact of China’s entry into the World Trade Organization. ...