The Rise of China Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

The Rise of China Case Solution

The Chinese Century is a neologism that refers to the rise of China as a major player on the world stage. If this is true, then the 21st century may be dominated by the People's Republic of China.

Problem Statement

The rise of China has been a cause of much awe and apprehension among the rest of the world. While some have praised the country for its remarkable accomplishments, others have pointed out its weaknesses. This paper examines the challenges and opportunities that China's rapid rise presents. It looks at the geopolitical landscape in Central Asia, the diplomatic reach of China, and the country's military capabilities.

It also looks at the potential for a peaceful rise, as well as the pitfalls that come with it. For example, the article discusses China's impressive rise in foreign reserves, its growing economy, and its influence on world affairs.

In addition to China's influence on the global stage, it has been a significant economic player in the region for several years. As the OECD projects, China's PPP will surpass that of the United States by 2025.

One of the biggest questions to be addressed by this paper is how much of a positive impact can China's economic power have on the United States? The article outlines some of the major issues in this regard, and offers some suggestions for how the two nations can better coexist.

A recent study by Harvard University's Kennedy School of Government found that China's economic success has caused the United States to lose ground in terms of trade, a loss that is not merely temporary. Moreover, China has been engaged in currency manipulation, a tactic that has become an increasingly important part of the Chinese economy.

Case Study Solution

China's rapid rise as an economic power has raised concerns about its implications for the United States and its neighbors. The issue has triggered significant media attention. While the problem is complex and multi-layered, a case study suggests a strategy for accommodating China's peaceful rise.

Since 1978, China has enacted a comprehensive economic reform program. These reforms have brought about an upsurge of entrepreneurial activity in the country. This resulted in the formation of a large number of individual enterprises and foreign-owned companies. However, these changes have also posed significant social challenges.

Although state-owned enterprises are an important part of the Chinese economy, their competitiveness has weakened considerably. They have lost their advantages in manufacturing production and domestic sales channels. In addition, their management skills are lagging behind those of foreign-owned enterprises.

The government has embarked on a series of reforms to modernize the state-owned enterprises. These include the introduction of a joint-stock cooperative system, the conversion of large state-owned enterprises into joint-stock companies, and the restructuring of loss-making enterprises.

However, the negative effects of the reforms have become more evident over time. For instance, the introduction of a decollectivization process has led to the departure of many workers from agricultural fields. It has also led to increased wealth disparities between the coastal and inland regions.

Another concern is the rise in inflation. Although the rate of inflation has been largely contained, it may pose a serious threat to Chinese growth in the future.

Porters Five Forces

Originally conceived by Michael Porter, the Five Forces model is a strategy tool that examines the competitive landscape of an industry. Its goal is to determine how strong an industry is, how it can compete against other industries and what potential there is for profit.

The five forces model was first introduced in 1979. Although it originated as a theory, it is now one of the most widely used strategic planning tools. While it may seem like a simple tool, it is surprisingly complex.

The five forces model is based on the idea that there are five key forces that determine the profitability of an industry. They are the threat of new entrants, the threat of substitute products, bargaining power of buyers, the bargaining power of suppliers and the attractiveness of the industry.

This paper explores the relevance of Porter's Five Forces in the contemporary business environment. To do so, it contrasts two contrasting industries: the mining industry and the IT industry. These industries are resource and knowledge based, respectively, and are vital for economic development. However, in today's globalized world, their relevance is debated.

One of the most important aspects of Porter's five forces is its metaphoric high wall. A high wall serves as a defensive strategy. Industry players, including MNCs and host countries, have different goals and resources. If you are planning to enter an industry, be sure to understand your own barriers to entry and the constraints of your host country.

PESTLE Analysis

The PESTEL analysis of the rise of China is a tool for understanding the influence of environmental, technological, legal, economic, and social factors on a country's business. It is often used in marketing and management.

While the PESTEL analysis of China focuses on the factors that affect the economy, there is also a need to understand the underlying reasons for this growth. Some of these factors include the growth of the population, the introduction of a mass entrepreneurship and innovation program, and the launch of the Internet.

The Chinese market is expected to undergo major growth in the near future. However, the high inflation and the upcoming economic depression will pose risks to the Chinese economy. A careful study of the macro-environment will allow companies to minimize these risks.

The first factor that companies should consider when analyzing the macro-environment of a country is political. Government regulations and taxes will impact a firm's ability to do business in a certain country. Likewise, the laws that govern a country's safety and health will be important to any company.

Another important factor is the technological advancements. While the Internet may not have completely replaced the brick and mortar shop, e-commerce is a viable business model because it produces less pollution and is easier to transport than a brick and mortar store.

Finally, the legal aspect of the PESTEL analysis of the rise of China should be examined. Countries have put in place strict visa policies, and border controls. Companies must take these steps to ensure a secure market position.

Financial Analysis

This report describes the rise of China and the challenges it faces to continue to achieve economic growth. It also looks at the implications of the rising economy for the United States.

China's economic rise is dependent on investment spending. However, the structural slowdown and trade tensions have weighed on the economy. In addition, political reform has lagged. The government must address the latter issue.

Growth in the property sector has been a key driver of China's recent economic expansion. Yet, rapid credit expansion led to unintended consequences.

The property sector accounts for nearly a quarter of the country's GDP, and has accounted for a third of China's total credit. While the shadow banking system contracted in early 2018, the credit-dependent property sector continued to expand.

Beijing is trying to rein in the credit expansion. Credit growth in the overall economy has slowed down. This slowdown will also weaken the growth of investments.

In addition, Beijing's implicit guarantees on assets have contributed to the stability of the Chinese financial system. But these guarantees will erode the confidence of borrowers and investors.

As the credit bubble unwinds, defaults are expected to increase. Defaults on multiple asset classes have sparked questions about the intentions of the Chinese government.

Although Beijing is trying to clamp down on so-called shadow banking and WMPs, the risks of high leverage are looming large. The real estate collapse has ignited widespread discontent among the middle class.

Recommendations

The resurgence of China is no surprise, but it is not the end all and be all. As a result, policymakers in the United States and its key allies must reshape the regional balance of power to avoid a China shaped hole in the sand. To do this, the United States must engage in a concerted effort to build the capacity of its key partners and encourage the development of power projection capabilities by its military services. This is not an easy task, and trend lines indicate that the current state of affairs will only get worse with time.

The United States should take the time to devise a layered defense against Chinese aggression while strengthening its military ties to its allies and friends. In the process, the country should reassess its priorities in the international community. It should also be more aggressive in reinforcing its role as an international economic and trade powerhouse. And of course, the United States should not be lulled into complacency by a sprightly economy. Those who doubt this should be put to the test.

For starters, the country should do more to improve its security posture against China's espionage operations. This would be in the form of improved intelligence sharing, a more coherent policy of cooperation, and a higher level of coercive diplomacy. The United States should also augment its military's operational concept with the ability to project power to key allies in the event of a calamity.

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The Rise of China Harvard Case Solution & Analysis