Diverse landscape and massive size help make China a major player in international businessChina is the world’s 4th largest country, as it is spread across 3,691,515.4 square miles, covering much of eastern Asia. Xi Jinping is the country’s 7th president since the People’s Republic of China Constitution was established in 1954. The country’s capital is Beijing, which is the country’s 2nd most urbanized area with a population of 15.6 million people. China’s population density is 104.36 people per square mile. The country has a population growth of 0.46% and birth rate of 12.25 per 1000 people. Also, the country is rapidly moving towards urbanization. In 1980, 81% of the population lived in rural areas, but today 51% reside in urban areas with 49% remaining in rural areas.
As one of the largest countries in the world, China has a large population over a vast terrain. The modes of getting across the country vary from air, water, and land. Many of the improvements to China’s transportation infrastructure have been built in the past few decades.
Railways, railways, and more railways are being constructed. China now has the largest railway system in the world, just recently passing the U.S. in 2012. However, they differ in the matter of what they are transporting. China has very few subway systems and commuting by rail is not as common as it is in major U.S. cities. The majority of rail transportation in China is reserved for freight transportation of goods.
Air travel and water travel have also boomed since the early 1990’s. China has now a total of 2000 ports and is still constructing and planning more. These ports provide major points of access for international trade and are among the largest ports in the world. Airline traffic has jumped with new international airports being built. Beijing currently has the world’s future in air travel under construction. The Beijing international airport will be the largest airport in the world and have the largest amount of passenger traffic.
As China’s industrial growth continues at a rapid rate, you can expect their transportation infrastructure to continue alongside.
Resources & Land Features
China has a diverse geographic landscape with approximately 70% of the topography comprised of mountainous or hilly terrain. China generally is mountainous towards the western side of the country and flat towards the eastern coast. Due to the mountainous terrain, infrastructure can be costly and troublesome to maintain in the western portions of the country. China is also home to 50,000 rivers which have been utilized as a tremendous source of hydroelectric power. This vast system of rivers causes China to be regarded as the country with the highest hydropower potential in the world.
Approximately 15% of China’s land is considered arable, with a vast majority of that land dedicated to rice production, causing China to be the world’s largest producer of rice.
In terms of natural resources, China also has a large cache of valuable mineral reserves. China is the largest producer of antimony, graphite, tungsten, and zinc. Other minerals that China has vast reserves of include aluminium, coal, crude petroleum, Diamonds, Gold, and Iron among others. One massive environmental issue that China is encountering relates to their massive coal consumption, which numbered 3.7 billion tons in 2013, the China National Coal Association reported. China is fortunate to have such massive reserves of minerals, however, if consumption continues to grow the country may be energy poor soon. In summation, China has vast reserves of many key natural resources as well as a diverse landscape with abundant sources of hydroelectric power.
China is growing rapidly with their communication infrastructure, providing widespread accessibility to the internet and modern media. They have the largest number of cell phone users in the world, with over one billion Chinese citizens owning mobile devices. These numbers have been increasing rapidly, while the number of landline users is decreasing due to the use of cell phones. Internet use is also increasing with the growth of technology, as China is also the number one country for internet users. Even though they have so much growth in these areas they only have three telecom service operators. Interestingly enough, however, when it comes to television and radio China has no privately owned TV or radio stations. With all this growth in internet and communications, China accounts for about 24% of the world’s internet-connected devices.
Competitive Advantages of Business in China
China has been governed by the Chinese Communist Party for the past 55 years. In the time that they have been the sole political party in China, the country has witnessed an average annual growth of about 10% for nearly two decades. Similarly, China’s merchandise trade has been growing at about 14% per year which is three times faster than the rate of world trade. Even when the world is in an economic crisis, China has been able to remain stable. But what gives China the competitive advantage that keeps them as one of the world’s powerhouse countries? China uses a number of different strategies, resources, and characteristics to help keep their competitive advantages. There wealth of natural resources, massive land size and population, and dedication to providing tools such as transportation and technological infrastructure to support their massive economy have led companies that invest in China to reap many benefits.
Benefits of China’s Geography outweigh Issues
While there are certainly issues associated with the geography of China, such as its massive size and mountainous topography, the benefits that its phenomenal water system and drastically improved transportation systems are enough to make China a very geographically suitable country for business. China’s major geographical issue is related to the massive amounts of pollution that China’s booming economy and energy demand has caused. If China can continue to shift to renewable energy sources, such as hydroelectric and solar, then she can hope to curb their strong reliance on coal production/consumption. Due to abundant natural resources, improved transportation, and most importantly the technological boom that has occurred in the past decade allowing internet access to most of the Chinese population, China sets itself up as one of the most promising markets in the world today.