Workshop of the World

1. Workshop of the World CHINA

3. 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

4. 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 Factfile

6. Why??????1977, Chairman Maos successor • 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=£600 in 2007

7. 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

8. 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

9. 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

10. 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. • China has formed partnerships with foreign companies like BMW

11. 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

12. 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

13. 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

14. 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

15. Exam question • What were the advantages that led to the growth of manufacturing in China?

16. 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.