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PESTLE ANALYSIS OF CHINA
Noman Ghalib
Azam Jahangir
Introduction
 Capital:- Beijing
 World's second-largest country by land area,and the third- or fourth-largest
in total area.
 Area:
14,500 kilometres
 Population:(over 1.3 billion)
 Currency: 1 chine's Yuan = 15.80 Pakistani rupees
Political factors
 Government type:
Nominally Marxist–Leninist single-party state. The People's Republic of China
is a single-party state governed by the Communist Party of China.
• tariffs are high, but on decreasing slope.
• stable political environment
Economic factors
 GDP:- $11.316 trillion
 GDP growth:- 9.5%
 Per capita:- $8,394
 Unemployment Rate:- 6.1%
 Inflation rate:- 3.2%
 Population below poverty line 10%
 Tax rate for foreign investments 30% national & 3% local rate for production business
and 20% for others(interest, rent, license, utilization)
 Current account balance : $296.2billion (2009) world’s largest
 Reserves of foreign exchange :$2.206 trillion (2009)
Economic Factors
 Labor force: 815.3 million (2010); agriculture 10.2%, industry
46.9%, services 43% (2010 est.).
 Labor costs are low
 Exports: $1.581 trillion
 Imports: $1.327 trillion
 Revenues:$ 972.3 billion
 Expenditures:$ 1.137 trillion (2009)
The industrial production growth rate is 8.1%(2009).
Socio-cultural factors
 51.27 percent male & 48.73 percent female of the total population.
 Literacy rate:- 92.8%
 Religions:
Buddhism(50%), Taoism(30%), and Chinese folk religions &
others(Muslim 1.5-2%,Christian 3-4%)
16.6
70.14
13.26
Age structure (Yrs)
0-14
15-60
60+
 The average income in east china is
2.26 times then west of china
 Chinese prefer first mover.
Environmental factors
 Over reliance on coal which produces
acid rain.
 Water shortage
 Climate vary from region to region
 Natural disasters
(floods, earthquakes)
 Clean energy, low carbon technology
Technological factors
 Internet users:-500 million (2011)
 Airports :- 482(2009)
 Railway worlds third largest system
 Roadway 3583,715km(2007) world second largest
 China Telecom alone serves 55 million broadband subscribers
 Tianhe-1A world’s fastest supercomputer
 In 2011, China unveiled a prototype train
 Technology is becoming cheaper
 Telephone system is on world’s number one

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Pestel analysis of china

  • 1. PESTLE ANALYSIS OF CHINA Noman Ghalib Azam Jahangir
  • 2. Introduction  Capital:- Beijing  World's second-largest country by land area,and the third- or fourth-largest in total area.  Area: 14,500 kilometres  Population:(over 1.3 billion)  Currency: 1 chine's Yuan = 15.80 Pakistani rupees
  • 3. Political factors  Government type: Nominally Marxist–Leninist single-party state. The People's Republic of China is a single-party state governed by the Communist Party of China. • tariffs are high, but on decreasing slope. • stable political environment
  • 4. Economic factors  GDP:- $11.316 trillion  GDP growth:- 9.5%  Per capita:- $8,394  Unemployment Rate:- 6.1%  Inflation rate:- 3.2%  Population below poverty line 10%  Tax rate for foreign investments 30% national & 3% local rate for production business and 20% for others(interest, rent, license, utilization)  Current account balance : $296.2billion (2009) world’s largest  Reserves of foreign exchange :$2.206 trillion (2009)
  • 5. Economic Factors  Labor force: 815.3 million (2010); agriculture 10.2%, industry 46.9%, services 43% (2010 est.).  Labor costs are low  Exports: $1.581 trillion  Imports: $1.327 trillion  Revenues:$ 972.3 billion  Expenditures:$ 1.137 trillion (2009) The industrial production growth rate is 8.1%(2009).
  • 6. Socio-cultural factors  51.27 percent male & 48.73 percent female of the total population.  Literacy rate:- 92.8%  Religions: Buddhism(50%), Taoism(30%), and Chinese folk religions & others(Muslim 1.5-2%,Christian 3-4%) 16.6 70.14 13.26 Age structure (Yrs) 0-14 15-60 60+
  • 7.  The average income in east china is 2.26 times then west of china
  • 8.  Chinese prefer first mover.
  • 9. Environmental factors  Over reliance on coal which produces acid rain.  Water shortage  Climate vary from region to region  Natural disasters (floods, earthquakes)  Clean energy, low carbon technology
  • 10. Technological factors  Internet users:-500 million (2011)  Airports :- 482(2009)  Railway worlds third largest system  Roadway 3583,715km(2007) world second largest  China Telecom alone serves 55 million broadband subscribers  Tianhe-1A world’s fastest supercomputer  In 2011, China unveiled a prototype train  Technology is becoming cheaper  Telephone system is on world’s number one