Political: Political factors include tax and employment laws, environmental regulations, trade restrictions, tariffs, as well as political stability and governmental change. ( PESTLE, 2007) Employment laws in China are more favorable in China compared to Japan. Also, China has open market so less trade restriction. Being one party rule China has a very stable government. China is a manufacturing hub and offers many facilities and subsidy to manufacturing companies. In terms of labor laws, China has very developed and well monitored framework which help Elecdyne in functioning.