Company analysis
China has been in the front line in investing and has recently ventured into the global market, competing with major companies. In recent years, it has managed to show if, given the opportunity, it can change the world through the technology already acquired. The main reason is to acquire technology and increase foreign exports through access and sales networking in the global market.
The Chinese government is encouraging large businesses and companies to invest overseas to find a way to counterbalance their economic reverses over their foreign lenders. The exchange rate will be expected to change shortly (Clarke, 2012).
For China to achieve this, it has to ensure that the number of exports out ways the number of imports with a huge percentage. Expectations are, both the economic and business agenda will contribute to the greatest percentage to invest in the global market investment (Gapper, 2012). Chinese economists have noted that according to how the economy is, the small and medium-sized enterprises that form over 90% of the chine firms, have the interest to invest in the global markets (Touwai, 2006).
China launched a major wave in the global market; in recent years china was listed among the best ten having been authorized to invest in the global market in a broad range of assets. China has invested in many countries; infrastructures, among them, are the high-speed railway lines, among others like the Chinese solar companies in North America (Randolph, 2011).
China is now shopping for global financial institutions’ investment. Though analysis shows that gaining solid profits will require careful understanding and preparation of what may be the return, the Chinese banks and insurance companies are fighting hard through the government of China to find the opportunity to invest globally (Ngai and Wang 2008). Chinese companies like many other global companies have searched for raw materials, potential manpower, techniques, new brands, and new markets for the companies either not known or virtually known by the global companies to become multinational (Barrett, 2012).
Research shows that 80% of Chinese companies show that globalization is a must priority. Most of these companies have taken measures to become multinational companies within the next ten years. Some of these companies include automotive, pharmaceutical, nuclear energy technology, and basic raw material for primarily basic goods (Meagan, Dietz, Orr and Xing, 2008).
The world financial current market trend has generated anxiety among executives and policymakers in recent years. They suggest that the world’s capital market may prove more important than the current fluctuations.
The research from McKinsey global institute (MGI) showed that: the continued widening and spreading in the global market as investors spend more finances into equities, securities, banking and other forms of assets globally, the high-ceilinged development of the capital market in the rising economies and the emerging fusion between the financial markets in the urbanized and the third world countries and the move of the financial burden in Asia from Japan moving to china and other fast-developing nations and the rapidly increasing role of oil rich in middle eastern nations as the sole capital donors to the world along with the rise of the new financial power (Farrell, Folster and Lund 2012).
In the years, 2000 to 2010 Chinese increased investments in Canada has raised many unanswered questions to the Canadians; the most asked question is in which sector they are concentrating in their investment and whether the Chinese companies have advantages and disadvantages when they are searching for investment opportunities in their country (Gunter, 2008). The Canadian also wonder what is the negative or positive interest that china companies have over Canadians.
Chinas interest for global assets continues to be manifested in the energy and natural resources. As the key aims, since the country aims to protect the assets it needs to stimulate its trade and industry growth. Syncrude Canada Ltd. the leading oil sand project bought by the Chinese. Though not the initial, this contract was the richest yet for Chinese companies looking for a grip in the oil sands, the world’s major oil reserves outer Saudi Arabia (Chen and Zhang 2011). This sale of the project was a major blow for the Canadians because the government did nothing to oppose the deal.
Chinese entry to the global market has seen it grow in counterbalancing the late at which they are importing to exporting. The late at which chine is exporting gradually increases over the years, and experiences the reduction in the late imports (Ma and Qu, 2012). Though China has gradually improved, the trade data shows some weak points in both China’s secondary and primary futures. China’s GDP growth rate averaged more than 10 percent in the recent few years (Swedroe, 2012). If ever there has been an analysis that would make clear that lofty rates of economic escalation transform into high asset takings, this should have been it if the U.S. dollar-based financier would earn depressing profits over the era.
Conclusion
Though Chinese companies have been on the front line to bring the country on top, there is a hot competition in the global market from all the developed countries. It is the China government to ensure that even the SMEs (small and medium-sized enterprises) are helped to enter the global market. Though many countries have entered into the contract with the china government involving large sums of money, still they have to check on the domestic trade which might be affected if they concentrate more on the global market.
References
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