SBM ITB welcomed Prof. Yang Sun from Northeastern University, China, to the bachelor of the management study program. He was the guest speaker presenting a lecture entitled “China’s PESTEL Analysis, Belt and Road Initiative.”
Prof. Yang Sun talked about the PESTEL analysis of China and the opportunities for doing business in China. “We have six factors to be analyzed in PESTEL Analysis,” said Yang Sun when opening the lecturer through zoom.
PESTEL Analysis is a strategic framework used to evaluate the external business environment by breaking down the opportunities and risks into political, economic, social, technological, environmental, and legal factors.
Yang Sun explained that on the political side, China is stable due to the policy made together by the party and the people of China.
“Our politics or the policy can be said stable, for example, the communism party, the people can support and give advice or suggestions to the communist party in establishing policy, and finally the party and the people decide if a new policy is ok,” said Yang Sun.
Hence, Yang Sun believed that it is an excellent opportunity to do business in China or collaborate with China because China has a stable political system.
Furthermore, from the economic perspective, Yang Sun highlighted the Troika for economic growth in China. He said that China’s main drivers of economic growth are investment, export, and consumption. For the investment, public finance expenditure is spent on education, technology, and defense. For export, China sells products to other countries and builds relationships with them. However, China not only exports its products but also imports products from other countries.
“China sells products to all countries but also we import other products,” Said Yang Sun. So economically, Yang Sun implied that China is open to doing business with other countries, such as through export-import.
However, Yang Sun revealed that the coronavirus also affects the export-import of China with other countries. ” The Chinese hope Coronavirus can be over so that we can do export business to other countries as previously. He added, due to Covid-19, many countries refused to import products from China.
Besides the political and economic aspects, Yang Sun also explained some external environments in China, such as the development of technology 5G, which is promising for companies to expand to China. However, if they want to expand to China, Yang Sun highlighted that companies should consider the legal side because China has strict laws.
