The Chinese government plays an important and influential role in the Chinese economy and in business activities. Whereas the central government makes fundamental policies such as the Five-year plans and determines the scope and framework of the economy and society, it is the regional (provincial and municipalities) governments that usually have large influence on concrete projects.
Therefore, a healthy friendship relation with local governments can be very beneficial to certain projects or businesses, especially for SME foreign companies.
The fast economic development in China last twenty years leads to enormous environmental challenges. Everybody has heard of or experienced the serious smog haze generated by coal- fired power plants and huge traffic jams in Chinese cities.
But how about other pollution and problems that we cannot see with our eyes, such as soil & (ground) water contamination, ground subsidence due to huge extraction, vegetables growing on contaminated land with an overdose of fertilizers and pesticides?
The focus of the economic development in the past 20 years has mostly been on the industry and services sector. While the Chinese economy overall has been booming, the agriculture sector has been lagging behind for years.
However, China is now developing its agriculture sector rapidly, partly stimulated by food scandals and the rapid urbanization creating challenges for the rural hinterland to supply the cities with safe and healthy food. Policies targeted on up-scaling and modernizing the sector are implemented.
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