China Case Study
China Case Study
1 trading with china
in 2007 container ship Emma Maersk brought 11,000 containers to the UK for the Christmas market this delivered 45000tons of consumer goods from china & is the latest stage in switching manufacturing from Europe to USA and china in 2006 Felixstone port in Suffolk reported an increase of 16% in Chinese imports, since 1980 30% increase, importing £22.8billion worth of goods in 2009
China’s growth in manufacturing means Europe consumers can purchase cheaper goods
2 how has china’s economy grown since the 1970s china’s economy has doubled every 8 years, while the US economy has doubled only once by 2010 world’s second largest economy china has the largest sustained GDP growth ever seen and is no longer an LIC
2.1 how can china’s growth be explained?
National factors
From 1949-76 Mao Zedong’s peoples republic kept communist China separate from the rest of the world- economy centrally planned, goods produced for consumption in china and little overseas business permitted
Following his death in 1976, new rulers developed ‘open-dorr policy’ to investment from overseas from 1986 onwards
In 1990s china transformed to a capitalist economy, allowing a wealthier society producing without state interference
Chinas natural resource base provide workers and raw materials for industrialization
Chinas increasing need for energy will be helped by the three gorges dam – enough to supply 11-15% of china’s energy
Prolonged spending on health and education-skilled, healthy workforce
Creation of special industrial export processing zones(where businesses are free to import raw materials, process and manufacture them, and re-export without paying duties or tariffs) has stimulated mass manufacturing
Global factors
In 2001 china joined WTO
TNCs now invest in china to take advantage of low labour costs and the special economic zone
Since 2000 china has been largest recipient of overseas investment and 53% of its exports are produced by foreign owned
1 trading with china
in 2007 container ship Emma Maersk brought 11,000 containers to the UK for the Christmas market this delivered 45000tons of consumer goods from china & is the latest stage in switching manufacturing from Europe to USA and china in 2006 Felixstone port in Suffolk reported an increase of 16% in Chinese imports, since 1980 30% increase, importing £22.8billion worth of goods in 2009
China’s growth in manufacturing means Europe consumers can purchase cheaper goods
2 how has china’s economy grown since the 1970s china’s economy has doubled every 8 years, while the US economy has doubled only once by 2010 world’s second largest economy china has the largest sustained GDP growth ever seen and is no longer an LIC
2.1 how can china’s growth be explained?
National factors
From 1949-76 Mao Zedong’s peoples republic kept communist China separate from the rest of the world- economy centrally planned, goods produced for consumption in china and little overseas business permitted
Following his death in 1976, new rulers developed ‘open-dorr policy’ to investment from overseas from 1986 onwards
In 1990s china transformed to a capitalist economy, allowing a wealthier society producing without state interference
Chinas natural resource base provide workers and raw materials for industrialization
Chinas increasing need for energy will be helped by the three gorges dam – enough to supply 11-15% of china’s energy
Prolonged spending on health and education-skilled, healthy workforce
Creation of special industrial export processing zones(where businesses are free to import raw materials, process and manufacture them, and re-export without paying duties or tariffs) has stimulated mass manufacturing
Global factors
In 2001 china joined WTO
TNCs now invest in china to take advantage of low labour costs and the special economic zone
Since 2000 china has been largest recipient of overseas investment and 53% of its exports are produced by foreign owned