Country Report

Essay by PaperNerd ContributorUniversity, Master's November 2001

download word file, 11 pages 3.0

Introduction This is a country analysis report for assessing investment risk in China. Our company’s name is Coca-Cola, the largest manufacturer and distributor of soft drink concentrates and syrups in the world. One of the products we produce is Sprite, a popular soft drink. This product has harmonized system number. The purpose of this country analysis report is to evaluate the feasibility of establishing a Sprite production factory in China, with initial operations headed in Shanghai.

Political Environment Politically, China is still a Communist country. Communist party has been ruling the country since it seized power in 1949. President Jian Zhemin, who is 74 years old, has been the boss of Communist party for the last decade. Like other communist countries, President Jian is the paramount leader of the country and has final authority on political issues. Although Chinese government is set up like that of the Unite States with an Executive, Legislative, and Judicial branch, the big difference is that all branches report Jian.

Moreover, Chinese Constitution stipulates that citizens have freedom of speech and demonstration, yet any speech that is deemed detrimental to Communist Party can be punished on grounds of “national security”. However, over the past 20 years China has gone through drastic “Open and Reform” policy that has transformed its economy into capitalism in many parts of the nation.

Current Climate Political Environment in China has been relatively stable for the past decade. The Tiananmen Square Student Demonstration was the last political upheaval. Since then the ruling party has delicately maintained political status quo and economy boon. However there are many troubling spots looming. Rising unemployment in under-developed regions and social injustice have trigger several regional riots. China has already held the adamant principle that “Taiwan is part of China, Tibet is part of China”. Moreover...