1. Beer culture springs up domestically for four reasons listed below:
Chinese prefer bustle and excitement, and enjoy the atmosphere while drinking beer in groups together.
As the people's living standard improves, they enjoy their life by drinking beer.
Youngsters in Mainland China tend to accept Western culture. They usually drink beer with their friends after school or work, so target consumers of beer products are youngsters.
As Chinese youngsters worship foreign life style, they prefer to drink imported beers than domestic beers.
2. Support from Local Government:
The Central government supports renowned domestic beer enterprises to become the giants of the beer industry by means of investing capitals and granting loans etc.
China, a member of World Trade Organization has positive impacts on its beer industry development.
The beer enterprises import raw materials of better quality at lower customs duty so the products can be improved.
The advanced production facilities can be imported at lower customs duty so production technology of beer products can be improved.
China opens domestic beer market and foreign beer enterprises swarm into it. Domestic beer enterprises emulate with foreign beer enterprises in a competitive market.
China can trade its beer products with other member countries of World Trade Organization at the most preferential treatment. It benefits China to export its beer products.
Foreign enterprises invest their capital and technology into China beer enterprises as they would like to be joint ventures with domestic beer enterprises. Thus, it solves the development problems of China beer industry by investing capital, improving the corporate governance and upgrading production technology.