Bank of China: Chinese Central Bank

These effective strategies helped Hong Kong overcome the financial crisis. All these facts fully demonstrated that China is a responsible big country. After the Asia financial crisis, the importance of China's economy has been brought into focus; China's neighboring countries have begun to recognize the influence of the Renminbi.

Investments as in the case of Chinalco's bid for Rio-Tinto, allowed China to expand its economy. China's state-owned and state-controlled banks were able to weather the economic crisis of 2008 and 2009 in contrast to many western countries. The state could force Chinese banks to start lending money again, without having to wait for the banks to do it on their

China is the largest market in the world, and probably the hardest business environment. This narrative reflex China’s immense diversity, complexity, and its enormous competitive intensity is unrivalled versus the world.

CIBC has focused its core business on retail and business banking, wealth management, and whole sale banking. They have shown a proven track record of providing there customers with financial services and advice through a group upwards of 1100 branches worldwide. Strategies CIBC has portrayed is to continually find new ways to enhance the experience of the client and to stimulate safe revenue growth. CIBC has put emphases on creating deep meaningful relationships with all clients, constantly trying new ways to improve service and sales prospects and to create relationships with new clients while retaining existing clients for a long period of time (CIBC).

Over the past ten years China’s financial flows have fluctuated a fair bit, with down turns and upturns throughout. With an obvious trough when the GFC hit. Although as soon as the GFC finished China’s financial flows bounce straight back up and boomed. As of recent China’s financial flows have been in a deficit and is now looking to be bouncing back up into the positive numbers. (Refer to Figure C)

China has memberships in many international organizations. For instance, China became a member of the World Trade Organization (WTO) on December 11, 2001. Secondly, the World Economic Forum (WeForum)

Ian Bremmer profoundly states that he did not witness a global financial crisis. He witnessed a financial crisis with Western, free market, countries while China was not phased because they are the owners of their banks. Additionally, he claims that when one confronts a Chinese citizen and asks of his or her opinion of their government, they are generally happy with their state; unlike their Western counterparts. Ian Bremmer quotes Chinese Premier Wen Jiabo’s definition of state capitalism, “The complete formulation of our economic policy is to give full play to the basic role of market forces in allocating resources under the macroeconomic guidance and regulation of the government. We have one important piece […] that both the visible hand and the invisible hand are given full play in regulating the market forces.” The Chinese government also ensures that they are creating thousands of new jobs each year to create an easier access from poverty to middle class without any social threats. Lastly, a key in China’s state capitalism market is that they have a strong grip and direction on their banking

“ Our mission is to be a Premier Bank in the Asia- Pacific region, committed to providing Quality Products and Excellent Customer Service.”

Not only is it listed in NSE and BSE but it also became the first non-Japanese Asian bank to get listed in the New York Stock Exchange(NYSE)

It has founded the China-initiated Asian Infrastructure Investment Bank (AIDB), which will be an alternative to the World Bank, and is well funded. The New Development Bank, based in Shanghai, has been set up as an alternative to the IMF for the BRICS countries. And although it is mainly of symbolic importance (oil trade is only in the hundreds of billions, not trillions) the US dollar is no longer the primary oil currency because China is buying its oil in yuan and China is the largest consumer.

“We aim to become a super regional bank. This involves growing our presence in the Asia pacific region and sourcing 25-30% of earnings from our Asia Pacific Europe and America division by 2017, while also being very focused on growth in our core domestic businesses in Australia and New Zealand.”

With China emerging as a global power in business within the last decade, knowing about doing business in China has become more important than ever. There are both many advantanges and challenges with doing business in China in this modern era, and understanding both sides of this coin is the key to being successful in China. Some aspects to keep in mind include the cultural barrier, the price of the work force in China compared to the United States, and have the “made in China” brand be accepted back in the United States.

As the article from (The Business Times, 2010) reported, in early January 2010 the government in China ordered banks to control lending following a stimulus-driven credit surge in mid-2009 and is trying to prevent over-investment in the economy.

The formidable distribution strength and in-depth local market knowledge of Canara Bank and Oriental Bank of Commerce coupled with the considerable insurance

In 1994 the Chinese government made the decision to peg the RMB to the US dollar at a rate of US$1 to RMB8.7, a year later the Renminbi appreciated 5% and was revalued to RMB8.28. This rate would remain unchanged for the next 10 years, even though the Chinese faced heavy scrutiny and pressure to revalue their currency. The Chinese exercised many policies in maintaining their exchange rate. The PBoC controlled the amount of foreign currency by forcing all exporters to immediately sell their foreign currency to designated banks. The RMB could only be traded on the China Foreign Exchange Rate