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Workshop of the World
CHINA
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Workshop of the World
• In 2003• 25% world steel• 60% world bicycles• 50% worlds shoes• 50% worlds garments• In 2000-2006• Production cloth doubled• Production cars 6x• Mobile phone ownership9x
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Factfile
• 1973• Population 96.3million• GDP US$ 56• Length roads
960,000km• Value of international
trade =US$ 1.3 billion
• 2008• 1,238 million• US$ 3.332
• 3,730,000km
• US$ 2,561.6 billion
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1977, Chairman Maos successor (Hua Guofeng,)
• No more isolation• Stimulate industry• Allowed foreign investment in special
economic zones (SEZs) with tax incentives for foreign investors
• Open cities eg Shanghai• Domestic market-1 child policy in 1979-
want electric goods, A/C, cars, computers• Large, increasing income=£1050 in 2011
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Changes
• Moved from state control to allowing foreign investment-open door policy
• Moved from making cheap copies to research and development
• Now aiming for brand identification eg computer manufacturer-LENOVO
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• 2008 Olympics in Beijing-• showcased the nation-prestige in hosting
the event-open, friendly, integrated, positive
• Three Gorges Dam• Biggest in the world-needed to provide
electricity for factories• Two-thirds power from coal fired power
stations
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Reasons for Rapid Growth
• Size of home market and average income has tripled in last 20 years
• Labour-limitless supply and good educational standards
• Competiveness-no other country can compete on cost-clothes/toys
• GLOBALISATION-opening up of world trade, ICT revolution, reduction transport costs all enabled China to trade with the world
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Export Processing Zones
• These are a type of Special Economic Zone (SEZ) where businesses can import raw materials , make them into finished products and then export them without paying any duties or tariffs.
• SHENZEN was the first of these areas
• China has formed partnerships with foreign companies like BMW
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To Do!!!!
• Page 116 in Revision Guide• Draw a spider diagram with detailed labels to
show the 5 reasons for the growth in manufacturing
• Labour• Working hours• H&S• Strikes• Tax incentives
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The Downside
• China has 16 of the 20 most polluted cities
• 30% China suffers from acid rain caused by coal fired power stations
• 70% rivers polluted
• 20% China’s population live on less than $1 a day
• Child labour used by some factories to make souvenirs for Beijing Olympics
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• Government has control over the media-blocks access to websites
• Demand for raw materials will have impact on price of oil, metals, timber
• Second largest producer greenhouse gases due to burning fossil fuels
• Import 100 million cubic metres wood a year-illegal felling in Russia, Brazil, SE Asia
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• Highlight the most positive aspects to Chinas rapid economic growth
• Highlight the negative aspects that you think are the most worrying for China
• Now add numbers to put them in order=1st, 2nd etc
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Exam question
• What were the advantages that led to the growth of manufacturing in China?
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What were the advantages that led to the growth of manufacturing in China?
• Areas like Shenzhen grew as a SEZ and gave tax incentives to foreign countries who moved factories to China. Companies were attracted by China’s low wages, long working hours and a lack of strict workplace laws in health and safety. Workers can only join 1 union which is controlled by the government.