This paper will briefly but sufficiently provide an explanation for this.
China has long been dubbed as the sleeping giant. However, the past three decades saw its awakening as it experience unprecedented economic growth and development. From being a communist republic for a long time it had open its doors to globalization and new economic policies in 1979 (China 2005). This new economic system has paved the way for progress. Currently, China is the sixth largest economy in the world recording the highest growth in real Gross Domestic Product (GDP) at 9.5% during 2004. China's GDP was recorded at US$1.96 trillion in during the same year which is equivalent to 1/7 of the United States' economy. China is now known to be the "new economic giant" (Gulob, 2003).
A small business trying to break into the foreign market can well establish its operation in China. As one of the recently emerging and developing economy, China poses various business opportunities. Simultaneous with the rise in its GDP is the increase in the country's per capita GDP. This, in turn indicates a higher income for individuals and more money to spend. A small business entity can take advantage of this rise in income by offering the Chinese market new and innovative products.
Another reason why China is considered is its relatively lower wage rate. ...Show more