The Growing Relationship Between China and America

2021-05-13 14:13:44
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As the world is growing rapidly, the world trend has connected countries trade affairs not only in business, but also in culture. It is more characteristic of China and America. In this paper, I will talk about the relationship between China and America in different aspects based on the book Superfusion, the new element called the World Wide Web in 1993s and 1994s. People at that time had their personal computers but they could only operate it using software they bought. All service users were less than 200 million at that time. Today, the World Wide Web has changed peoples life. The glee that met the commercialization of the Web and the new technologies for accessing it could be compared only to earlier revolutionary inventions such as the light bulb and the airplane (Karabell, 2009). Because of the World Wide Web, many capitalists and bankers investment inspired the wave of financing and initial public offerings. This wave led to the accelerated business development that in turn inspired more investment that is known as New Economy. New Economy had accounted for the central space in America social culture. From my perspective, the invention of the World Wide Web is an incentive to inspire not only economy in US but also the development of the world. People could only use a complicated way to trade worldwide before but now replace it by the Web which is convenient and fast. It is amazing that people could search and get what they want just by a click on the icon of computer screen.

Then, after reading the success issue about the Kentucky Fried Chicken (KFC), I felt like it is so important to know the local culture of international companies. As the first KFC shop opened in Beijing, China, most people were excited and confused about this mysterious store from western countries. Notably, the store had a big challenge in having stable customers. Moreover, people generally did not agree with the idea that this store had the best location in the world by Tony Wang, who was the regional vice president of the store. Within few years, KFC became the most popular foreign brand in China unlike before when it was just an ordinary brand. What makes it outstanding than other famous brand such as McDonalds? The most important reason can be its management pattern. First, they used people who were local and familiar with the local market as their mangers and gave them full rights to manage the store. Thereafter, they added more Chinese culture into the menu that caters for Chinese appetites. Equally important, they welcomed the popular trend in China that they intended to make KFC to be a place that teenagers could meet and uphold togetherness. All in all, as the lecturer stated, Companies must analyze the competitive environment in order to come up with an appropriate strategy for marketing its products or services in different countries. Most companies compete based on cost efficiency or product differentiation. Some strategies work best in certain countries where others does not (Liu, 2016).

The third issue that I learned, I think it was also a classic issue about how American companies got successful in China. Chinese government first did not approve Avon when it decided to develop in China because they felt confused about their business pattern. Avon finally got through into the Chinese market but changed their target from Beijing to Pearl River Delta. Years after years, Avon gradually reverse the poor performance in the market despite the challenges that always existed. Its worth noting that many other western competitors also grew rapidly into Chinese market. Jung, who was the new face of company, had brought Avon into a new era. She was multicultural in thinking. She led Avon in investing in many small subsidiaries based on Chinas geography. I have learned from this issue that no matter people, companies or even countries resist change, we all need to change ourselves to adapt to the new environment. Though we would meet many difficulties at the beginning, changing with the environment was inevitable. Because everything was so fluid, prior rules didnt apply. What should have been a death knell was instead a blip. What should have derailed a company not knowing for its nimbleness or creativity became an opportunity for a new way of doing business (Karabell, 2009).

From the case of Federal Express (Fedex), it costed them much to invest in the airline in order to expand their Chinese market. For the CEO of Fedex, His company had made substantial commitments and investments on a hope and a dream and had yet to see return on its capital (Karabell, 2009). Fedex had made long term investment not for the benefit at the present but for the future hope. Time had proved that they are correct. Moreover, in another aspect, they pushed the development of China. They had changed its potential need into real. Because of the western capitals, China grew rapidly in the world market and therefore their entrance into the Chinese market was a win-win situation. Western companies greatly benefited but also created more job opportunities in China. With increasing need to the products, the rapid input and output had helped complete Chinas fundamental infrastructures thus justifying that it is a win-win.

I would also like to talk about how Chinese company Huawei became a worldwide company. I have heard Huawei so many times before because of its good working environment and high quality but relatively low price products. People who worked for Huawei had better benefits than other Chinese companies despite having bigger working pressure than others, and that is one of the important reasons why Huawei could create high-tech things. Huawei did very well in cooperating with foreign companies. This is seen in proper working relations with the foreign companies. Through working with foreign companies, Huawei could adopt and absorb good management patterns and also communicate in a technologically. The success of Huawei originated and benefited from wisdom and creativity. Worth mentioning is that they could develop their technology worldwide.

After reading the issue about Nike Company, I believe Nike really did a lot of detailed research about Chinese market. Notably, infringement was always a serious problem in China, some people would rather choose a product that is similar to the famous brand but going for a really low price. This posed a challenge to Nike but it managed to sharpen this question by understanding and clearly developing the trend in China market. It seized Chinese consumers desire to brand name. Nike also set its position as it is a special brand and makes people feel they can reach their dream. So they invited Yao Ming, who was a famous basketball player in China and even NBA game. They used a clever way to strengthen brand their reputation because they noticed that Chinese consumers had one of the most brand awareness in the world.For the word twin and symbiotic relationship stated by Karabell, I would like to discuss its opportunities and challenges based on the PESTLEEG of its economic and political aspects. After reading the book, I have learnt a lot of issues concerning how America companies succeed in Chinese market. In the economical perspective, we all know that when China opened its market, the opportunities for both side was they can acquire benefits from each other. They both can push their countries in rapid increase in their economy. It is believed to be a win-win situation. But as for the challenges, through reading the book, even though China and America were symbiotic as described by author, he still mentioned the rising distrust and suspicion, however, was in almost inverse proportion to the increased interdependence. As the economies of the two countries became more intertwined, public opinion became more nationalistic and tended to view the other with a wary eye. (Karabell, 2009). It was also a big challenge in the social culture. I think this kind of relationship is not beneficial to trade in the market.

For the opportunities and challenges in Political aspect, China had a totally different law compared to America. It can be seen as a good chance to two foreign companies to communicate to each other and find the good things from each other. While for the challenge, different rules fit to different countries. Sometimes, companies cannot make an agreement because of the trade rules in different countries.

The table below shows countries with different trade rules and how they operate.

Political Legal Economical Technological Social culture Ethical Environmental Geographical

China One party rule, dictatorship Socialist Mixed economy High technology in process Relationship oriented Hierarchy, Corruption Regional polluted East Eurasia

US Democracy, rule of law Common law Mixed economy High technology Individual oriented Integrity Regional polluted North America

Then, I would like to compare China and America in PESTLEEG. Political system refers to the rules of the game on how a country is governed politically (Liu, 2016). America is a country with high democracy. Democracy can be referred to political system in which citizens elect representatives to govern the country on their behalf (Liu, 2016). American choose who they want to be their leader after they watched the elections between candidates. The candidates would always present in public to state their plan of how to make America stronger. Then people vote for the candidate they want to be their leader. From their way of selecting a leader, I think it is a fair way to choose someone that can really transform the country. Unlike China, China runs dictatorship which is one person or party exercises absolute political control (Liu, 2016). In a political perspective, it is good for a country making difficult decisions by using this political system. It keeps high independent of political systems.

Legal system refers to the rules of the game how a countrys laws are enacted and enforced. China uses the socialist law that requires most property to be owned by state or state enterprises. And it continues with its influence regulations in former communist countries. While for US, it uses common law, which originates from English law, and also a foundation of legal system (Liu, 2016).

Economic systems refer to rules of the game on how a country is governed economically (Liu, 2016). China and America are all mixed economy. They both had welcomed world trade and fully had a relatively high active market to trade. For the worlds largest economies in 2011, United States and China ranked the first and second position (Liu, 2016).

Technological aspect is so important to countries. Without technology, it loses the competitive advantage in the world. Technology had the types of transportation, internet, genetic engineering and etc. (Liu, 2016). America is a country that absolutely has high technology. It had exported many products worldwide. As for China, after reading the book Superfusion, Huawei and Lenovo are the classic example of Chinese companies getting into the world market. But I think China is now advancing in high technology as it is in process, and it still needs to explore this way.

Environmental aspect is crucial to peoples health. But I think China did not do well in it. Based on the table of top 15 most-polluted cities, 8 out of 15 cities were in China (Liu, 2016). I know that America now had done their best to focus on the environmental problem.

In the geographical aspect, America is famous for farming, land and 3 chips (Computer, movie and potato). Because America was in the north of America, so it is a good location for their farming. China was in the...

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