Business, Government and Technology in China

Category: China, Taiwan
Last Updated: 10 Aug 2020
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China can be referred to as a cultural region and an ancient civilization with a national or multinational entity, and occupies a portion of land within the East Asia region ( Lynch, M .1998).

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Geographical location

China as a country has geographical features that range from the plateaus and mountains in the west, to the lower lands in the Eastern side.  Across the East Asian landmass, China stretches for 5,026 kilometers across and has a landmass that comprises of changing configuration of broad plains, mountain ranges, deserts and large areas of inhospitable terrain.  The fertile lowlands make up the eastern half of the country, plus the fringed seacoasts, deserts, foothills and mountains, steppes and the subtropical areas.

In addition, China’s location in East Asia enables it to border the East China Sea, the Korea Bay, South China and the Yellow sea.  China’s enjoys a central position due to its geographical location and has the geographic coordinates  35000’N, 105000’E. China has total area coverage of 9,596,960 square kilometers with total land area covering 9,326,410 square kilometers, while water covers 270,550 square kilometers.   This has made China rank third in the world in the category of countries with the largest total area, after Russia and Canada.  By land area, it ranks second.

Some of the physical features that China has included; rivers, mountain ranges, hills and deltas.  The rivers can be found from the west to the east and include; the Yangtze, Huang Ho, Pearl River, Mekong River and Brahmaputra.  The majority of China’s rivers flow into the Pacific Ocean, with two of China’s major rivers in the central east having deltas; the Huang Ho and Yangtze rivers.


China’s history can be traced back to the historical records of the Three sovereigns and five emperors back 5,000years ago.  All over the world, China is seen as one of the world’s continuous civilization.  China’s civilization was born from the establishment of the Yellow-River valley city states, and the year when China is seen as to have become united under a large empire being 221 B.C. The control of the large territory in China resulted from the bureaucratic system in China’s successive dynasties.

China’s first union was encouraged by Qin Shi Huang in the 221 B.C. Occasionally; conquests by foreign people plus China’s alteration between political unity and disunity periods were experienced.  The Chinese culture grew from the cultural and political influence from other Asian regions through successive waves of immigration, assimilation and expansion and some of the well known Chinese dynasties include, Xia, Western Zhou, Qin, Western Jin, Sui, Yuan and Qing.

The dynasty rule ended with the establishment of a republic in China, after many years of the Imperial rule. The Imperial rule in China ended in 1912, after the signing of the abdication decree by Empress Dowager Longyu.  China was then established as a republic on January 1, 1912 ending the Qing dynasty.

Culture, Language and Religion

In China, the Confucianism was used as the official philosophy, and is considered to have been the primary criterion for imperial bureaucracy and it even acted as the origin of China’s traditional values.  Examples of some of the Chinese culture included, music, cinema, paper art, Chinese painting and calligraphy.

China is estimated to have about 29 ethnic groups with most spoken languages originating from the Sino-Tibetan language family with the Mandarin dialect being the most spoken.  In ancient times, the panentheism system is said to have been the faith system and then later came the Confucianism and Taoism, and the introduction of Christianity and Buddhism.  Islam and Judaism can also be found in China.

Political overview

The Qing dynasty end led to the establishment of the Republic of China in January 1, 1912, and Sun-Yat-Sen proclaimed the republic’s provisional president and the implementation of full or multiparty representative democracy beginning in late 1970s. In the modern world, China has an active political participation in the society’s sectors.  The People’s Republic of China (PRC) represents China’s mainland, while Republic of China (ROC) still continues to exist in Taiwan.  The Chinese communist party which is the one party system in China governs the PRC.  On the other hand, the ROC has attempted to adopt a democratic government.

Thesis Statement

China apart from being considered as one of the world’s continuing civilization is seen by many as a modern business giant that leads when it comes to the fastest developing economy in the world. This business giant is seen to owe its success on the business industries, factories and cultural experiences in the country.

The government and technological advancements in China have no doubt influenced the growth of China as one of the world’s fast growing business giant.  The economic reforms in China which began in 1978 made China’s economy mixed and since then, the standards of living in China have been improving.  China’s fast economic growth can be seen when its Gross National Production (GDP) by 2030 is estimated to equal that of the United States.

A summer business study tour in China’s business and cultural sites was very crucial for me.  Being a business student, it was very beneficial to understand how China has grown into a business giant over a very short time.  In this report, China’s infrastructure and how its economy functions will be looked at and an in-depth discussion of how business, factories and cultural experiences have worked together to form the modern China will be given.  China’s government and technology as seen during the study tour have influenced greatly the making of China as a modern business success.  The paper based on the business tour will give an insight of modern China and how it has grown.

Main discussion

Business in China

China has managed to succeed as a business giant due to the great business opportunities it offers.  The traditional business practices in China in the nineteenth century are said to be one of the root reasons why China’s economy lagged behind which in turn made industrialization in China very slow.  Some of the reasons that hindered China’s business growth at that time included lack of China’s exports to compete effectively.  For instance, at that time, the Chinese sugar was out competed by the Javanese sugar in the market and China’s long-established silk-reeling industry could not compete well with the Japanese industry.

Other problems that China earlier experienced include, heavy foreign debt by the 1960s when the Chinese people were setting up factories within or near the major cities and the collapse of the Chinese currency system only made worse.  In addition to all the above stated problems, lack of an effective central government after the fall of the Qing dynasty in 1911 undermined the business growth in China since the warlords promoted constant internal wars in China.  The traditional business practices were observed in almost every part of China; in the local markets, through hawking and even rural produce- selling stores.

In the workshops, goods such as farm tools and electrical torches were produced by the 1930s and the modern business practices in China developed from the traditional practices.  New demands made it necessary for the Chinese labor force to adapt, which promoted the importation of new technologies.  China’s company law of 1904 was able to redefine the role of the state in business issues, since the previous legislation had made state policy towards business ambiguous and the Imperial regulations had monopolized the essential businesses in China.  However, the reforms that were brought by the introduction of the company law changed this.

The reforms aimed at overhauling the balance of power.  The merchants became favored when the imperial examination was abolished and the recognition of both commercial and agricultural associations, and the company law was made.  The World’s Depression in China made production to slump and the monetary system to come under attack.  In 1949, China’s new government was able to put inflation under control and the transition towards greater centralization of government authority was exerted on business.  The transition is said to have been encouraged by 3 stages; 1912 Republicanism, 1927 nationalism and 1949 communism.

In brief, the traditional Chinese business institutions had certain characteristics which included, the common employment of written contracts relating to land, patronage in all businesses, lack of a means to calculate capital, limited knowledge of capital and legal basis for business institutions.

However, to transform the nineteenth century Chinese institutions into twentieth century, it required China to adapt business to commercial law.  In the modern China, there is rapid growth of economy and business than all any other nations of its size.  Modern China business concepts have been adopted though several factors have influenced this (Murphy, R. 1996).

China has presented great business opportunities to individuals or other nations in the world and the attractive business opportunities have seen the influx of western companies in China.  For instance, the US has established companies in China, which has resulted to the introduction of the tradition of strict rules and procedures into China’s business operations.

Furthermore, the returning back of young Chinese business students to China, who has been educated abroad, has complemented the adoption of the new procedures.  The western companies in China have set code of conducts for their factories in China and other nations where high standards at the work place plus environmental responsibilities have promoted continued growth of business in China.  There has been a sharp decline in the importance of the SOEs (state-owned enterprises) which has promoted joint venturing of SOEs with the foreign based companies.

Business in China has been encouraged to grow by the high level of attraction that the country offers to the investors.  This has been made possible by the adoption of international accounting standards by many large state-owned enterprises in China while the joining of the World Trade Organization by China continues to encourage China-based companies to adopt Western business practices.

The Chinese business practices to some extent consider the Guanxi practice as a key factor in doing business.  The belief that establishment of a long-term relationship takes time and it’s based on friendship and trust, promotes maintenance and creation of healthy business relationships in China.  Those involved in various businesses have a tendency to avoid conflict which prevents direct conflict that may hurt the basic relationship with other parties.  This has created a stable business environment in China.  Herald Group

During the study tour, we visited some of the companies that are doing very well in China. The companies have been able to produce their products which are getting positive response from people all over the world. One such company is the Herald Group located in Hong Kong. The Herald Metal and Plastic works limited operates as a toy making division. It was established by George Bloch, Chang Dong-Song and Boris Freiman in the year 1969.  Since then, it has become a leading toy producer and has its factories on Dongguan, Shenzhen and Hong Kong.

The Herald Group in China is a company that manufactures house ware, toys, computer heads and time piece divisions.  The company is located in Hong Kong city of China’s mainland and in the United Kingdom (

The 1989 acquiring of a clock manufacturing factory by the Herald group led to the formation of Herald Electronics Limited which integrated the manufacture of watches and clocks. Herald Electronics Limited manufactures a very wide range of clock radios, watches and clocks.

This company has been growing since its establishment in 1969 and though it started off as a toy manufacturing company, Herald has managed to diversify into many other manufacturing fields.  Apart from toy and watch manufacturing the other divisions of Herald Group deal with house ware, manufacturing as well as computer storage devices.

The toys that are produced range from action figures, electronic games, pre-school toys, electronic radio-controlled toys and boats. The company ensures that the staff and company supporters adhere to the very crucial ICTI code (International Council for Toy Industries Code of Business practices). The adherence of the code of conduct by the Herald Company has earned it a place in the international market, which promotes its production and maximum gains which also continues to develop China as a business giant.

The company does toy licensing and manufactures high quality watches that enjoy world wide market.  The toy business has been growing and the development of toys that are recognized and received well in the market has created China’s good market in many areas of the world.   For example, the Herald Group has managed to produce over 400 million toy figures which include Superman, Batman, Aliens and Jurassic Park. The battery-operated toys, electronic toys and radio-controlled vehicles are also produced.

The tubing companies are also a business enterprise in China that has been manufacturing collapsible tubing and sells them in both the local and the international markets. China hosts several tubing companies that are involved in the making of collapsible tubing. The tubes are applied in the manufacture of other products that are also sold in the international markets. For instance, the aluminium collapsible tubes are produced in large quantities by various companies in China.  The produced tubes are used by other companies that are located in China while the others are exported to the various nations of the world. During our visit to one of the tubing company, the company was running a foot cream.

As discussed above, China’s ability to produce goods that are easily available and much cheaper to the other companies has made it become a favorable business location even to the foreign investors. This has continued to present China with the best business opportunities for fast economic growth, a situation that is only predicted to continue in future.

The formation of China as a modern business giant can also be attributed to the China’s change in policies that relate to business as well as to the internal business decision making. Greater access to the China markets by foreign companies has continued to encourage investors to conduct business activities in China, a situation that has encouraged China’s economic and business enterprises growth.  The elimination of import licenses and quotas for the foreign companies and the reduction of tariffs have created a favorable business environment for great investment and competition of business enterprises in China.

The business growth model in China has been so great such that its pressure has made China’s business industry to grow so rapidly.  China’s business industry’s direction has made people become interested in investing and operating in businesses. Furthermore, China’s interest to access other nation’s capital markets through Chinese IPO’s has led to the growth of business in small and large investors.

The Chinese companies are very innovative, counterintuitive and holistic in their approach to marketing, a factor that has created a good marketing network for the goods and services that they produce.  For instance, China is predicted to become the second largest auto market in the world, after the United States of America. The auto sales were estimated to hit 4m units in 2006, which shows the ability of the expanding market in China.  There was great improvement in domestic sales of Chinese auto domestic brands in 2006, which put China on a fast track in the race for domination of the market. For instance, about 982,800 sedans were sold which accounted for 25.67% of the total sales.

The rapid growth of business in China has consequently led to the growth of China’s infrastructure greatly.  For instance, the growth of the bicycle industry in China has necessitated the construction of road infrastructure to accommodate the cyclists.   The building of more and new roads has continued in order to cater for the transport needs of China’s huge population as well as for the transport of raw materials in factories or products to the market. Though in some instances, some city authorities have not been able to create comfortable infrastructure for the cyclists, efforts have been made to correct this.  The consumption of motorbike in the rural areas has increased due to the reduced taxes.

The Chinese government participation in providing infrastructure has no doubt attracted business in China (Politics, Economy and Society in Contemporary China. Paperback .1994).  The Chinese government has adopted an infrastructure strategy where it provides private investors with a world-class infrastructure.  The state provides infrastructure to the people with the government owned port authority building the infrastructure.

For instance, port infrastructure development has been the government’s initiative to encourage companies to operate efficiently and to attract more business.  The construction of efficient ports has made business activities much faster and efficient which has promoted more infrastructure development. The government has continued to promote competition between the ports, which they view as the only way to encourage ports to survive even in the world of full of business competition (Murphy, R. 1996). The need to acquire good business and to maintain it has made development of infrastructure in China compulsory.  For instance, the ports of Hong Kong and Shenzhen have shown great competition.

Both ports in the past adopted new port facilities where there was low-cost land and equipment at competing prices as well as disciplined labor. With such initiatives, productivity in the ports was encouraged, and still continues to be experienced.  The ports in China have been able to handle the vessels carrying large amounts of goods and can turn them around in the shortest time possible. Shipping lines can also go to the ports that offer cheaper services in China due to the building of more ports and terminals.

China as one of the world’s fastest developing economies has had a great appetite for infrastructural development due to its growth in business enterprises (both domestic and foreign).  China’s construction industry in 2006 was estimated at US$146. 40 billion.   Furthermore, the construction industry is predicted to grow at an average rate of 11.3% between the years 2008-2012.

China’s infrastructural growth has given a tremendous boost to both the industrial and tourism growth. The Chinese government through its 11th five-year plan period (2006-2012) made a commitment to continue supporting further infrastructure building.  The infrastructure building has included the new construction and upgrading of ports, roads, railways, oil utilities and water infrastructure. For instance, China’s major ongoing infrastructure projects include the US $35 billion Guangdong program (road and seaport development).  Another project involves the high-speed rail-link between Guangzhou and Nanning, costing US$29.5 billion.  Other two projects, Sichuan-Shanghai pipeline project (costing US$8.2 billion) and nuclear power project in Dalian (US$6.58 billion) are seen as great projects that will definitely improve China’s infrastructure.

Setting up of manufacturing units in China by companies and the Beijing Olympics in 2008 has encouraged more business through international enterprises.  For example, the construction of hotels and resorts, and construction of a state-of-the-art birds nest Olympic Stadium.  The Chinese major construction companies have worked hard to ensure good and effective infrastructure is in place where various department work to achieve this. The China State Construction Engineering Corporation (CSCES), China Railway Engineering Corporation (CREC) and China Railway Construction Corporation (CRCC), make up the country’s infrastructure sector.

China’s construction industry by 2012 is estimated to be worth US$315 .32billion which would make it contribute about 7.17% of China’s GDP (Gross Domestic Product)

The growth in business and infrastructure in China has been encouraged by technological advancements.  Over the last few years as earlier stated, business has been boosted by the establishment of both domestic and foreign companies in China.  This eventually encouraged and continues to demand the expansion and further development in infrastructure where construction is done using the most effective and easily available technology.  China’s technology has also been used for industrial output.

China has managed to raise into millions the units of high technology items such as refrigerators, air conditioners, cameras, video records and color TV sets.  China’s economic reforms which have made it a success have resulted from its focus on the technological manufacturing as well as the increased production of the raw materials.  In the ancient times, China is said to have made a range of inventions in science and technology.  Referred to as the “Four Great Inventions of ancient china” the inventions included printing, paper making, gun powder and compass.  Since then, China has integrated technology in the various aspects of its economy and industry.

The adoption of China’s reform and open policy was very instrumental in encouraging China’s rapid development in scientific and technological fields.  The establishment of the star program in China aimed to develop the agricultural field through the scientific progress support and farmer’s quality improvement.  The program has made agriculture in China to develop through science and technology.

China introduced the National Technical Innovation program to raise the competitiveness and innovation capabilities of the companies found in the country.  Through the program, the nation was also able to cultivate their technological advance mechanism.  Later on, China developed and examined hi-tech equipment projects and began to implement the high tech programs so as to catch up with the global developments in technology.

After ten years of hard work, China was able to make great technological development by the end of 1995.  Some of the achievements reached the international level; others received national awards while an estimated 244 were patented.  The successful implementation of the China’s 863 technology programs was very vital in promoting China’s high technology development by the year 1997.

The technology advancement in china has been through the domestic inventions as well as adoption from other nations.  For instance, foreign companies in China have played a huge role in introducing new technology in China. Since technology has been integrated in China’s all sectors of the economy and industry, the Hong Kong Stock Exchange has also adopted it.  The Hong Kong stock exchange acts as China’s market where shares are listed and traded.  It is seen as the Asia’s second largest stock exchange, after the first stock exchange Tokyo Stock Exchange.

In the Hong Kong Stock exchange, different companies’ shares are both listed and traded.  It is considered to be the exchange that monopolized the market from the year 1947 to 1969.  The Hong Kong Stock brokers Association was founded in 1921 and later in 1978, Hong Kong Stock Exchange (HKSE) in 1986 merged with other exchanges.  In year 2000, Hong Kong Exchanges and Clearing became the Holding company for the HKSE (

The Hong Kong stock Exchange integrated computer use in its system on April 2, 1986 so as to modernize the system.  The launching of “Automatic Order Matching and Execution System” (AMS) in 1993 was later replaced by AMSB in October, 2000.  These systems were introduced to meet the increased popularity of the HKSE stock trading and since its establishment; the HKSE has contributed greatly to China’s growth in business and continues to do so.

The HKSE has total securities market capitalization of HK $8,260.3 billion (US $ 1,063.9 trillion) and ranks 8th in market capitalization globally.  In 2005, HKSE market turn over was HK$4,520.4 billion (US $ 0.582.2 trillion) having increased from the previous years’ turnover by 14%.  The market turnover main contributors are the local, institutional as well as the retail investors.  From year 2004, HKSE has had a leading derivatives market in the Asia-pacific region.

HKSE trading system is order-driven.  The two trading platforms upon which the HKSE securities market operates are the Main Board and the Growth Enterprise Market (GEM). The two platforms have increased China’s profit requirements and have raised venue for high growth of companies and they   have each different set of requirements. The HKSE main board acts as the market for capital growth. This it does by the establishment of companies that are able to meet the profits requirements.

On the other hand, the Growth Enterprise Market offers a fund raising venue that promotes ‘high growth, high risk’ companies. The GEM component is very important in the HKSE since it promotes the development of industries related to technology and also encourages the venture of capital investment.

The HKSE has developed trading systems that has allowed investors to place their requests electronically since October, 2000 and the HKSE development of trading system (AMS13) consisted of four components.  They include, Trading Terminal, Broker supplied System (BSS), Multi-Workstation system (MWS) and the Order Routing System (ORS). The investors are provided with these systems so that they can choose what the best is for them amongst the many.

In the past, the Hong Kong Exchanges and Clearing Limited (HKEx), the listing of Lyxor ETF Japan Topix ® has been done.  This was the  first Exchange Trade Fund (ETF) in Hong Kong, which was based on Tokyo Stock price Index (Topix ®).The availability of Japans Topix ETF to investors in Hong Kong enabled the investors to access one of the world’s leading equity markets with much ease, convenience, as well as cost efficiency.

The Order Routing System is very effective in offering investors a good opportunity to place their requests through electronic means while trading can be done through the terminals in the HKSE Trading Hall. Trading in exchange participants is made easy by the enabled trading from their offices, which can be done through the installed off-floor terminals. The HKSE has used leading index the Hang Seng for shares traded.  The index was introduced in the year 1969 and has consisted of 33 largest companies that have been traded on the HKSE. To give an insight into both the HKSE and AMEX (American Stock Exchange), the AMEX will be briefly discussed. This provides a clear understanding on how both exchanges operate.

The American Stock Exchange has more liberal policies in relation to company listing, as compared to HKSE.  This is because the AMEX listed companies are generally of small size as compared to the New York stock Exchange and NASDAQ. The AMEX has managed to trade the majority of the US listed ETFS.In the United States, the major stock Exchanges are found in the nation’s various cities.

For instance, cities in the USA that have major stock Exchanges include, Chicago, San Francisco, Minneapolis, Kansas city, Boston, New York, Philadelphia and Washington D.C. Though both HKSE and the American Stock Exchange support listing and trading of shares in nations that have very strong economies for creating financial opportunities for both individual and institutional investors, they vary in the way they operate. For instance in USA, the stock exchange has innovative technology products and services that have made it to be a choice for many investors all over the world

The American Stock Exchange (AMEX) is situated in New York.  It was the only market that actively listed and traded securities through the ETF (Exchange Trading Funds) by the year 2002(  The ETFS means that the AMEX was able to list and trade securities across three business lines, which include, equities, exchange traded funds and options.  Through the equities, the AMEX would provide a well regulated auction market for both the small and mid-cap companies.  The AMEX have in the past been the most active equity option market and  was different from all other Stock markets in 2002, by its integration of the ETFS.  The ETFS were the most fastest in growth, and most innovative financial products.

The AMEX has integrated the Auction and Electronic market as a new automated trading platform. This enables the servicing of equities and Exchange Traded Funds (ETF) listings in the American Stock Exchange. The AEMI can then be integrated with the ANTE as the platform of trading options of the AMEX. The AEMI is very vital in enabling the exchange to allow the best bid to be offered. The BBO prices on both the AMEX and non-AMEX can be offered based on the listed issues.

The AMEX produces stock market indices. For instance, an index of stocks of Internet Companies (Inter@ctive Week Internet Index) and unique set of indices known as intellidexes have been developed in the AMEX.  The indices have attempted to gain alpha through the creation of indices that have been weighted on Fundamental factors.  On November 30, 2006, AMEX composite, a value-weighted index of stocks on exchange listed had a monthly record of close to 2,069.16 points. The New York Stock Exchange provides the price discovery through an auction environment where the environment is designed to provide both parties with the fairest prices where the stocks are able to be traded through the NYST electronic Hybrid Market.

However, a small group of very high-priced stocks cannot be traded.  The customers are able to send their orders for immediate electronic execution and the customers can route orders to the floor to allow trade in the auction market.  Through this system, over 50% of order flow can be delivered electronically to the floor.  To trade on the floor, a continuous auction format is used to trade in the NYSE with each listed stock trade having one specific location on the trading floor.

A specialist broker acts as an auctioneer in an open outcry auction market environment and has the responsibility of bringing together the buyers and sellers, as well as to manage the actual auction.  The NYSE member firm often employs a specialist broker who works together with the Exchange members who are either buying or selling stock on behalf of investors.  The brokers sometimes facilitate the trade by committing their own capital and a frenzied commotion of men and women can be experienced in the exchange.  The right of trade shares directly is one conferred to owners of the “1366” seats.

 On Hong Kong Exchanges and Clearing Limited (HKEx) the listing of Lyxor ETF Japan (Topix ® has been done.  This was first Exchange Trade Fund (ETF) in Hong Kong, which was based on Tokyo Stock price Index (Topix ®)

The availability of Japans Topix ETF to investors in Hong Kong enabled the investors to access one of the world’s leading equity markets with much ease, convenience as well as cost efficiency.

Infrastructural development in China has encouraged business and economic rapid growth. In Shanghai, China’s business centre, there is boom in the infrastructural development. Several reasons have led to this, even as the infrastructure construction has continues at a very high rate in China, especially in Shanghai.  Over five years ago, some of China’s Island experienced transportation problems.  For example, the Chongming Island has in the past experienced transport problems and the need to attach it to business centers like Shanghai has encouraged infrastructure development between the two regions.

Shanghai is China’s largest city in population and represents one of the world’s largest urban areas.  It has over 18 million people in the city and around the Metropolitan area.  By location, Shanghai is found in the Central Eastern Coast of China at Yangtze River’s mouth.  Shanghai has an advantage of a favorable port location, which makes it a good location for arriving and leaving of commodities.  Another advantage that Shanghai enjoys is the 1842 Treaty of Nanking which enabled it open to foreign trade. These factors have led to the growth of Shanghai as a business centre, which further continues to demand for more construction of the infrastructure.

These factors have made Shanghai flourish as a centre of commerce between the east and the west.  By 1930s, Shanghai became a finance and business multinational hub but the communist take over of Shanghai halted its prosperity after 1949. In 1990, Shanghai was allowed to make economic reforms which led to its booming again with great development and financing.  Shanghai due to this development became the world’s largest port by the year 2005.

There is no doubt that Shanghai is recognized worldwide as China’s most important centre for both the finance and commerce.  It is predicted to be a future global city and is usually seen as one of the world’s fastest growing economy, a prediction that has made China establish infrastructure construction programs that are ongoing.

Another factors have made Shanghai become what it is today are, its emerging tourist destination recognition due to its renown historical landmarks; Bund and Xintiandi.  Shanghai’s modern and ever expanding Pudong Skyline, Oriental Pearl Tower and its recognition as a cosmopolitan center that integrate culture and design have made it grow in relation to business and technology.

Shanghai became very significance for the trade with the west because of its strategic position at the Yangtze River Mouth, making it an ideal location for trade.  Its favorable location for trade has made it grow greatly economically, necessitating the development and construction of infrastructure to cater for the massive development it continues to enjoy and its important role as China’s business center has made it necessarily for the city to keep constructing the much needed infrastructure, to cater for the ever-growing economic development and other demands that come along with it.

Currently, Shanghai has a very extensive public transport system which includes buses, metro system and taxis.  The need to provide cost-effective and fast means of transport to its large population continues to encourage infrastructure construction. Shanghai is viewed as the birth place of everything in the modern China because it is seen as the cultural and economic center of East Asia, just like it was known for in the first half of the twentieth century.

A good example is the   driving of the first motor car in Shanghai, plus the laying of the train tracks and the modern sewers.  Shanghai is the center of film making in China, which has resulted to the development of Hong Kong film industry.  China’s regional and international recognition are found in Shanghai which makes it a great tourism attraction destination; the Shanghai Museum of art and history houses some of the best collections of Chinese history artifacts. Construction of tourism facilities have to be provided and hence infrastructure also.


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Business, Government and Technology in China. (2018, Jun 29). Retrieved from

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