Swot analysis of China. The people’s Republic of China is an Asian country located in East Asia. She’s the most populated country in the world with an estimated of 1.4 billion people by the end of 2019. China is also one of the largest countries with an area of 3.7 million square miles.
China has divided the whole country into 23 provinces. Beijing is the capital of China. The country has 5 independent regions, out of 4 are directly under the control of municipalities like Chongqing, Shanghai, Taijin, and Beijing. Hong Kong and Macau have special administrative privileges.
China is following the socialist system with a single Chinese Communist Party. She’s the remaining socialist states after the cold war. She’s also a permanent member of the UN. Many human rights organizations have been criticized for censorship, surveillance, and many other violations.
China is the fastest-growing economy of the 21st century. She’s the world’s 2nd richest nation. The country has the highest number of exporters and manufacturers in the world. Most importantly, she has brought approximately 850 million out of poverty and made them better.
Approximately the top 10% of the wealthiest people of the world are living in China. She has the largest army in the world with the 2nd highest defense budget. Many economists and analysts predict that China would be the next superpower of the world.
Today, we’ll discuss the swot analysis of China. Here we’ll be focusing on the prominent strengths of the People’s Republic of China. If you want to learn about the external factors impacting China, check out the pestle analysis of China. Here’s the swot analysis of China as follows;
Strengths of China
High GDP Growth
GDP (gross domestic product) is the standard to evaluate the financial strength of any country. The annual GDP of China in 2022 was 18.321 trillion US dollars and it’s the 2nd highest GDP of the world. Per capita of the country was 12.970 dollars and it has the 69th position.
The financial strength provides a country with enough resources to launch different mega projects. The country can set the terms and conditions on the negotiation table. Her GDP growth has been increasing since 2010. According to an estimate, China has a foreign cash reserve of more than 3 trillion US dollars. That’s why analysts are pointing fingers at China for being the next superpower of the world, and some say she is already the superpower of the world.
China has the advantage of the availability of cheap labor. She has the highest number of manufacturers and exporters in the world. That’s why the world’s leading brands like Apple, Samsung, Huawei, Adidas, Nike, and many others have their manufacturing units in China.
Many people question the quality of Chinese-made products. But the country provides a cost-effective advantage that avoids the problems that come with it. It provides two major advantages, first, it creates job opportunities, and second, it brings revenue.
High Usage of Smartphones
The usage of mobile devices and smartphones has been increasing in both rural and urban parts of the country. The growth and development of the telecom industry have attracted the attention of mobile users. That’s why the demand for the tech product has increased; the growth in the tech industry means more revenue to the country’s economy.
Approximately 1.4 billion people are populating the country. The government has divided the administration into 4 political parties to check and maintain the decision-making process of the whole country. It’s a very big country in terms of population, but the sub-division of the government has made it easier for her to manage public issues.
Weaknesses of China
It’s no doubt that China has brought millions of people out of the misery of poverty. The country offers cheap labor to foreign manufacturers to create more and more job opportunities. But the unemployment rate in China is still high. According to an estimate by Statista, the unemployment rate in China is 3.64% at the beginning of 2021.
China has a strong base in the agriculture industry. But it’s fading away as people are migrating towards cities to find jobs in the service industry. The younger generations don’t have an interest in the agrarian business. People of older generations in the faraway villages are doing this business.
The Chinese government has a reputation for being overly restrictive. For instance, she doesn’t allow Netflix to offer its content unless the company provides content according to her requirements. The thorough editing of every episode of every show on Netflix isn’t in the company’s interest. Therefore, there’s no Netflix in China.
No Social Media
Chinese people don’t have permission to use the world’s famous social media platforms like Facebook, Twitter, Snapchat, etc. It’s because they’re open and they allow people to share anything whatever they want. The Chinese government isn’t ready to give western freedom of speech to its people yet.
Restriction on Property Selling
The Chinese government has also imposed restrictions on the sale of land, property, and mortgage. The construction business in China is very slow. The prices of residential houses are also very low because of the mortgage sale restrictions. The construction workers don’t work and they rely on limited paychecks. They leave their industry and try to find work somewhere else.
Opportunities available to China
Agriculture & Service Industry
As we know that China is famous for two major industries; agriculture and manufacturing. Now, she has got a great opportunity to bring back the interest of people in agriculture by providing them better incentives. It would help her to reduce the unemployment rate. It would also help her to maintain a balance between agriculture and the manufacturing industry.
Chinese people are leaving the agriculture industry and migrating to the cities to find work in the manufacturing and service industries. According to an estimate, 18% of the migrating people are above the age of 50 years old. 55% of the people are younger and at the age of 40 years old. The Chinese government has got a great opportunity to utilize this mass influx of talent in the cities.
Threats China has to face
The world has a negative perception of China. It’s because of many reasons like censorship, the one-child policy, and overly restriction. The world views China as a land of restrictions and they don’t want to visit her for tourism and residential purposes.
The pandemic crisis started in China and spread all over the world. Donald Trump, president of the USA, has called it many times a “Chinese Virus.” Such a level of mockery and criticism isn’t helping China to win back the trust of the world.
Smog (a mixture of fog and smoke) level is very high in the industrial cities of China. Even before the pandemic of covid-19, people have to wear masks to protect themselves. Many outsourcing manufacturers are concerned about the lives of factory workers in China. It would result in the form of loss of business.
China has a law if you hurt someone in case of an accident, then you’ll be responsible for the life of the injured person. It doesn’t matter whether you accept your mistake or not, you’ll end up helping them for the rest of their lives. Therefore, it has created an environment of “hit and runs” rather than staying and helping.
We about the news about China where the condition of workers is very poor, low air quality, censorship, a one-child policy, an increasing suicide rate, and much other negative press. But China doesn’t care about any of them whatever the world is saying about her. Such a careless attitude isn’t good for her worldly public image.
The trouble with Neighboring Countries
China controls the economy of the Asian and world market with cheap labor. Many neighboring countries like South Korea and Japan have issues with them for taking their business away. The country doesn’t respond to their criticism or care about them at all. That’s why these three countries have got a strong trading conflict with one another.
Conclusion: China SWOT Analysis
After a careful study of the swot analysis of China, we’ve concluded that China is indeed one of the world’s largest and powerful economies. But she should pay a little attention to her worldly image by taking care of its people and working conditions. It would send a positive message to the world.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.