Understanding Chinese economy
The Chinese market has always been one that is difficult to interpret and understand, particularly its customers and entrepreneurs. It has been a huge challenge for foreign companies who want to deal partnerships with Chinese businessmen, not only do they find trouble communicating with one another, but also struggle to find agreements on various subjects.
China is trying to make efforts
To take one example, Partnership between Australia and the Chinese has always been complicated.
China has been requested to conclude the negotiation on the Regional Comprehensive Economic Partnership (RCEP) at the end of 2016. The organization has spoken of large issues, with promises to arrange for agreements between the two countries. While Australian businesses have been hesitating to negotiate with the Chinese, trade agreements between China and India have begun. The new project shows promising potential as the economy in both countries are growing.
Reforms involved in China’s market success
In recent months, China has adopted many regulations in order to improve their economic activity. Previous protocols have been difficult, and take long amounts of time to build up. According to American corporates, China should apply for loose monetary policies, which would improve in settling agreements.
The Chinese market has acknowledged that they are not interested in this type of economic approach. Chinese businesses are conscious that the strategy development for this is not an effective long-term resolution. In fact, for years and years, China has been very patient in their progress, and has taken time to effectively seek for solutions. The present day has shown that the country has succeeded in reaching its goals and built a solid economy.
China’s most effective economy is the online market. The development on Chinese e-commerce websites have proved to be the most successful compared to the rest of the world.
Consequently, foreign companies have found difficulty in penetrating the Chinese market due to their lack of knowledge on the economy culture.
Chinese customers’ confidence
According to American companies, the best way to improve the country’s productivity is to create competition within the market, whereas the Chinese government chooses in giving priority to privatized state-owned enterprises.
Market productivity depends on the reliance between the country’s economy and its customers, who are in charge of making their businesses work. In view of many surveys, two factors have been raised. The employment rate in China is growing, even with the economy growth rate decreasing to 7%, employment rate has seen 13million new opportunities granted by the Chinese government. On the other hand, Chinese consumers need to see concrete reforms, whilst the government approves them, only until then will they be in confidence in their economic plans.
There have been other ways to attract Chinese consumers, however government reforms enable them to become very connected. They also become sensitive of what they see or hear on the news and social media, thus making their general knowledge of buzz and trends more appropriated.
That’s why Digital Marketing is the key to success, in such an economic-precise nation.
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