Workshop of the World

CHINA

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

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

http://blog.willji.com/china-mfg/

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

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=1st, 2nd etc

Exam question

• What were the advantages that led to the growth of manufacturing in China?

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.