Workshop of the World CHINA

Workshop of the World In % world steel 60% world bicycles 50% worlds shoes 50% worlds garments In Production cloth doubled Production cars 6x Mobile phone ownership9x

Factfile 1973 Population 96.3million GDP US$ 56 Length roads 960,000km Value of international trade =US$ 1.3 billion ,238 million US$ ,730,000km US$ 2,561.6 billion

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 want electric goods, A/C, cars, computers Large, increasing income=£1050 in 2011

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

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

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

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

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

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

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

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=1 st, 2 nd etc

Exam question 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.