China has become a focal point for foreign investors, especially from the United States. One reason for this is the perception of a potential for incredible growth in a country with such a large and untapped consumer base. This study involves the possibility of introducing a new product into China, specifically condoms, a product that could gain the approval of the Communist Chinese leadership given the desire on their part to control the growth of the population. Investment in China is affected by social, political, and economic issues, and there are vast differences between the United States and China in all these areas which must be considered before any investment is undertaken. These various factors will be considered and analyzed as to how they affect doing business in China and of what they might mean to the proposed introduction of condoms as a consumer product in China.
The Chinese population stands at 1.2 billion and is highly homogeneous, with nearly 92 percent being Han Chinese, or native Chinese. The remaining 8 percent consists of various provincial groups in areas that are still part of China, such as Manchu, while others are from Tibetan, Mongolian, and Korean descent.
Religious beliefs do not have a strong influence on business. China is a Communist nation and has no official religion, but there are religious groups because suppression of religion in China has not been strong. Taoism and Buddhism are predominant, with only 3 to 4 percent following Muslim or Christian beliefs. Taoism is based on the philosophy that everything in the world is controlled by nature and interconnected by the ying and the yang. Buddhism teaches that suffering is experienced because of personal desires. Both fit with certain Communist beliefs.
Language is a problem in some of the more remote areas of China. There are eight recognized languages in China, the most common being Mandarin and Cantonese. Many business people in C...