Government policies: Special Economic Zones (SEZ) China’s Regional Policy 5-year plans

What is a Special Economic Zone? 1980 – Shenzhen SEZ set up – 1 st of many Designed to attract investors – foreign Special tax incentives for foreign investors Some joint ventures – Sino-British etc Provincial level government Mainly export-oriented Market-driven Largely labour-oriented Increasing no’s of high-tech industries

China’s first SEZ

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Why Shenzen? Close to Hong Kong – attract investment from established firms there Experiment in “socialism with Chinese characteristics” City population now over 8 million Considered a successful project – taken up elsewhere Focus of Pearl River Delta area – China’s economic powerhouse 1990s - Shenzhen "one high-rise a day and one boulevard every three days".

Shenzen, & from Hong Kong

Rapid growth 1982 – 350, – 1.3 mill i.e., a 245% increase 2000 – 2 mill, i.e., a 477% increase 2010 – 10.4 mill (approx 48% increase)

Which firms? Primarily manufacturing (often very high technology) but also, increasingly, tertiary industries: IBM Huawei (telecommunications) Skyworth (electronic components) Apple - Taiwanese firm makes iPods, iPhones etc Walmart Ping An Insurance Banking – China Merchants Bank 2010’s GDP - 95,000 yuan (US$14,615), 4 th in country (same as Argentina & Malaysia, more than Lebanon & Mexico!)

What about the rest of the country? The core-periphery concept applied to China: Core – the eastern coastline & southern China to Hong Kong Periphery – the rest of the country sia/ stmhttp://news.bbc.co.uk/1/hi/programmes/impact_a sia/ stm What is the Core & Periphery concept?

ProvincePop.% rural / urban rural / urbanp.a. growth% ethnic income (RMB)minorities Shaanxi36m67 / 331,186 / 4, %0.6 Gansu25m76 / 241,400 / 4, %8.3 Qinghai5.8m64 / 361,490 / 5, % (2.5%) 44 Xinjiang18m(>90% in oases) 1,618 / 5, %61.4 China1,3b64 / 36 Beijing12m 3,441 / 8,493c. 2.5% 3m MWs? Shanghai17.7m 4,138 / 8,864<1%0.4 (4.4mMW)

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5-year plans Government strategic plans first begun in 1953 Each focuses on a particular strategic development need. 1st Plan – State ownership; collectivisation of farming along Soviet lines; centralised planning. Current (12 th ) 2011 – Current Plan includes: secure economic growth & economic structure, urbanise the population – 52% Develop HEP & nuclear energy encourage sound, sustainable developments Increase length of high speed rail line, roads, new airport for Beijing New development inland Coastal areas = R & D & high end manufacturing, services. Affordable housing Encourage FDI – agriculture, high-tech inds, environmental practices Control 1.3bn.

Since the 1978 Reforms national & regional development have been the main focus of policy making. Regional policies/strategies: Coastal Development Strategy, Metropolitan Growth Pole Strategy, Western Development Strategy, Rejuvenating Northeast Strategy Developing the Middle Area Strategy

January Examine the factors responsible for the growth of China’s economy. [25] Deadline: Thursday 15 th January