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The major challenge that our company might face is language barrier, which is caused by different ethnic communities living there (Lu, 2012). For American company working in China language becomes a major hindrance. Since early 1980’s, English and Chinese literature were contradictious, though, both addressed the problems of being marginalized in different states (Lu, 2012). China has a centralized education system, which upholds to a higher degree the uniformity of Chinese education, especially among the minority. This system incorporates general education as well as adult education and vocational education (Lu, 2012). Due to such system of education, one does not get the required level of education. The Americans in China receive marginalized formal education due to Chinese perception of the Marxist theory, where Chinese literature blames poverty and its regional level as the key sources of educational discrimination (Lu, 2012). Trying to deal with such harsh reality, the financial institution’s branch office in China investigates the formal and cultural practices of Chinese population. According to a report written by Lu (2012), minority education policies are viewed from the multicultural perspective in terms of education. It means that cultural discrepancies in both social and educational aspects in China are based on good cultural ties as well as political affiliations. Due to this information, working for a financial institution in a foreign country, it would be appropriate for me to develop good business relations with the educated population in China. The reason behind such a move is that intelligent people receive the best due to the fact that their families have close political ties with the government. While staying in a foreign country, I do not want to be arrested and detained.

Recently, the western media portray China as an economic soldier. The Chinese companies do everything possible to dominate the world economy (Yu, n.d.). In 2006, Chinese government launched a campaign which allowed its firms become global in order to ensure that Chinese government would gain its role in the world economy (Yu, n.d.). The strategy was aimed at allowing China to reestablish its previously lost economic power, and gain political power in the world. These Chinese firms have become a crucial part of the Chinese economy irregardless of the security concerns involved (Yu, n.d.). In terms of policy making, such companies become indispensible because they have acquired natural resources and they use modernized technological equipment provided by some of their business partners as well as competitors (Yu, n.d.). Competing with such companies require strategy as well as good business relations. Having worked for a multibillion financial institution, it is wise not to compete on a full scale with such politically acclaimed companies because they tend to control the politics and decision-making process based on their disposal. Privatization of financial institutions by the Chinese government was a good move, especially considering the fact that Beijing had a bad state banking system, which resulted in numerous financial anomalies (The Economist, n.d.).

Even though privatization is beneficial, in the end, large financial institutions will lose if they do not play their cards well. China is a socialist nation, which means that certain factors including privatization of financial institutions appear to be a very thorny affair since the private companies tend to demand their constitutional rights (The Economist, n.d.). Since our company is based in China, it might lose huge finances if the companies, which offices we have been using, claim their constitutional rights (The Economist, n.d.). Even though most of the companies have developed rapidly in China, they have remained avoided. Due to China’s needless experiments with privatization of the companies, which have created several categories of companies, our company will still have close relation with the Chinese government in order to secure the rights of our organization (The Economist, n.d.).

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I chose this location for developing a financial institution because under the Chinese government, a multinational firm can form part of its economy under the large private companies (Yu, n.d.). Another reason for choosing China as an investment destination is due to the growing population and well-established business industry. Such a move would provide more chances for accruing huge profits within the coming years. These big companies are private and therefore, they own huge and powerful individual shareholdings in other multi-corporate firms that shape the future of China (Yu, n.d.). These companies are run independently but fall under the Ministry of Commerce. Despite our company’s operational independence, few senior management officials under the Ministry of Commerce serve in other government agencies. Therefore, the company should be aware of such authorities whose identities still remain a mystery to some of the western companies and investors.

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