Pestle Analysis

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PESTLE Analysis of China 2012
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China’s economy has experienced a strong annual GDP growth rate of 10% during the last five years. It is expected to continue its growth momentum and surpass the US in GDP by 2020. A high rate of savings, abundant and increasingly skilled labor, healthy export business, and potential urban growth is likely to drive the Chinese economy to sustained growth during 2012- 2017.
Lucintel, a leading global management consulting and market research firm, performed a Political,
Economical, Sociological, Technological, Legal, and Environmental (PESTLE) analysis of China and presents its findings in “PESTLE Analysis of China 2012.”
As indicated in the study, foreign direct investment (FDI) has proven to be the driving force for China’s ongoing economic growth. The large and expanding market of China is attracting leading multinationals, encouraging local innovators, allowing domestic manufacturers to produce lowcost products, and permitting formation of industry clusters and business groups. Successive governments’ focus on reform processes and simplification of China’s tax law and FDI procedures makes China an ideal destination for investment and growth. The report also indicates that large-scale production diminishes production costs, leading to less-expensive exports. China’s strong presence as an export platform supports income and employment growth in the economy.
The Chinese economy is plagued by challenges from the European economic crisis that could adversely affect its growth rate, regional disparity, and growing environmental concerns. Rapid economic development and accelerated domestic demand in China, however, offers significant opportunities for growth.
Lucintel’s study outlines China’s need to address several significant challenges and…...

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