03 Modern China Discussion

Topics: Economic growth, Economics, Economy Pages: 19 (4554 words) Published: April 6, 2013
2012-13 S5AB Modern Chin in-class discussion
Modern China workbook
p. 9 -- Township village enterprises (TVE)

c. Do you agree that the reform and opening-up were beneficial to the development of township and village enterprises (TVEs)? Explain. (6)

Yes. I agree.
A1: China reform encouraged extensive scale marketization of the economy (T).

Under the reform, the Chinese Govt aimed at developing a Chinese-style socialist market economy, which combines the features of socialism and capitalism. Individual enterprises were given autonomy to set their production means and plan. Companies aim at maximizing profit.(Elaboration) According to the source, the owner of a TVE was free to determine their business mode and their products were sold well in rural and urban areas (eg. From the source). The reform allows the new business mode of maximizing profit in China

Other Elaboarion:
( development is Ying daoli ( focused on economic development( economic responsibility system( higher degree of autonomy were given to lower-level units ( profit maximization |Skills: | |Write in TEE format | |Application of concepts/ knowledge | |Use of source |

A2: The Chinese government encouraged the development of TVEs by providing different favourable policies Under the agricultural reform, the Chinese govt encouraged non-argicultural economic activities (use of knowledge) among peasants. The Chinese Govt set up different policies like offering concessionary loans and tax benefit to the TVE to facilitate their growth up. These TVEs are based on the secondary and tertiary industries like food processing industry and small energy industry.(Use of source)

Workbook – p.18 b
How did state-owned enterprises reforms affect the quality of life of the Chinese people? (10) (ref; notes p.8) |Skills: | |M-perspectives (positive and negative ….. socially, economically…..) |

The positive impacts brought by the SOE reform:
A1: Economically, the SOE reform reward those who made wise business decisions Under the SOE reform, the Chinese Govt provided a higher degree of autonomy to enterprises through Fang Quan Rang Li. The SOE could make decisions based on profit maximization. As a result, those businessmen who could make right business decisions could a higher income.

A2: Socially, SOE reform allows a better and more efficient resources allocation

The negative impacts brought by the SOE reform:
A1: Socially, the SOE reform greatly reduced the demand for workers which caused the problem of xiagong.

A2: Socially, the workers of the SOE may lose their social welfare

Reasons for ‘Three agricultural problems”
(Reference: HKET news)

1. Dual rural and urban economic systems
( Urban areas: Govt policy to develop secondary production ( rural areas: mainly based on farming and rural economic activities Result: large income urban and rural disparity

2. lack of infrastructure in rural areas
( Govt policy to develop the urban area ( allocated most of the resources in urban development ( rural area only get limited resources (about 1.1% of resources allocation ) for infrastructure development

3. Hokou system
( push and pull factors( young adults left the home villages and worked in urban areas( lack of labour force in rural areas

4. Corruption of local government officials
( lack of financial support from Central govt(...
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