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Business with China and E-Commerce Market

SECTION A (Total 65 marks) Instruction for ALL Questions: There is no minimum length for each answer, but the maximum length is 1,200 words. Please based on the marks given to estimate the no. of words Question 1 (a) China s breakneck GDP growth rates have moderated in recent years, with rates registering from around 6% to 7%, compared to double-digit growth in the past. Identify and describe the term used by the central government of China for this phase of China s growth. What are the characteristics of this new phase in China s economy? (8 marks) (b) Select a service industry of your choice and analyse how and to what extent your selected service industry will be affected by China s new phase of economic growth. (12 marks) Question 2 China s focus on transportation infrastructure constitutes one of the long-standing key attributes of its economy. Today, China boasts the world s largest network of high-speed railways and integrated expressway system. The complex and gargantuan network of transport infrastructure greatly spillover to the logistics sector, facilitating the sector s development. Critically assess China s logistics sector, paying close attention to China s current logistics environment. In order to answer this question, you should consider any three (3) characteristics of China s logistics environment, and analyse two (2) trends of the industry. (10 marks) Question 3 The scale of e-commerce activity in China is unprecedented in the world. On November 11 2017, which was China s double-11 or Singles Day, Alibaba alone clocked US$25 billion in merchandise sales, while JD.com reported US$19 billion in sales. Notably, China s colossal e-commerce engine still has tremendous potential and poses vast opportunities for businesses. (a) In the context of e-commerce, investigate and examine five (5) characteristics of consumers in China. You may wish to include relevant statistics and graphs if they help in your explanation. (13 marks) (b) Recommend and evaluate five (5) key strategies for foreign companies if they were to set up an e-commerce business in China. (10 marks) Question 4 Traditionally, China has required foreign companies to transfer technology to local firms following joint ventures. The recent tensions between the US and China also concern the transfer of technology and intellectual property rights law. Discuss your opinion on the transfer of technology from foreign companies to local ones in China, and evaluate the trajectory of intellectual property rights protection in China. (12 marks) SECTION B (Total 25 marks) Imagine that you are in a management consulting firm. The senior management of your firm is asking you to conduct a presentation to summarise the e-commerce market and consumer trends for potential business development in China. Your presentation should address the following points: 1. What is the current state of the e-commerce market in China? 2. What are the general consumer trends and characteristics in China s e-commerce market? 3. From Q3 in Section A, select and discuss three (3) strategies for foreign companies that are keen to setup an e-commerce business in China. Prepare a set of PowerPoint presentation

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