Background Capital: Beijing Population: 1.357 billion (2013) World Bank Currency: Renminbi Gross domestic product: 9.24 trillion USD GDP per capita: 6,807.43 USD (2013) Communist
Containers from China On 4th November 2007, the container ship Emma Maersk docked at Felixstowe It was carrying 11,000 containers – mostly for the UK Christmas market. 2006: 16% of imports to Felixstowe port UK were from China Since 1980 the UK has experienced a 30 Fold increase in trade with china. 2009: UK imports £22.8 billion worth of goods From China
Growth Manufacturing National growth Consequences of growth Global growth Energy Services
Manufacturing The automobile industry The steel industry The petrochemical industry The motor industry The consumer goods sector
National Factors During the period from 1948-76 The economy was centrally planned, Goods were produced for the consumption of Chinas own people, and the little individual wealth or overseas business was permitted. Following his death in 1976, new rulers developed an ‘open door policy’ to investment from overseas from 1986 onwards In the 1990’s, china transformed to a more capitalist economy, allowing individuals accumulate wealth by producing goods and services, without state interference China’s massive population and huge natural resource base provide both the workers and raw materials for industrialisation Chinas increasing need for energy will be helped by the Three Gorges Dam – its 25 generating providing enough energy to supply 11-15% of China’s energy. Prolonged spending on health and education over 50 years has provided a healthy, literate and skilled workforce. The creation of special industrial export processing zones has stimulated mass manufacturing on a scale unimagined 25 years ago
Consequences of Growth Is it fair? East Grew Faster than west Famines in late 1950’s China has a rich energy potential. Electricity demand is higher than production. Urban Rural inequality Raising the living standards in rural areas.
Global Growth A US intelligence portrait of the world in 2030 predicts that China will be the largest economic power, climate change will create instability by contributing to water and food shortages, and there will be a "tectonic shift" with the rise of a global middle class. Demand for food, water, and energy will grow by approximately 35, 40, and 50% respectively owing to an increase in the global population and the consumption patterns of an expanding middle class.
Global Factors In 2001, China joined the world trade Organisation. TNCs now invest in China to take advantage of low labour costs and the and the special economic zones. Since 2000, china has been the largest recipient of overseas investment and 53% of its exports are produced by foreign owned companies or those in partnership with Chinese companies. 60% of the increase in world trade between 2006-07 was a result of Chinas industrialisation, and in 2007, china overtook the USA, consuming: 67 million tonnes of meat (USA 39 million tonnes) 258 million tonnes of steel ( USA 104 million tonnes). Before 2050, China will be consuming more oil and paper than the world now produces.
Energy Since 1980 Chinas energy production has grown dramatically 80% of all power is generated from fossil fuel 17% from HEP stations 2% from nuclear energy. China has a rich overall energy potential, but most sources have not yet been developed The geographical distribution of energy puts most of these resources relatively far from their major industrial users: the industrialise regions around Guangzhou and the lower Yangtze region around shanghai have too little energy, while there is relatively little heavy industry located near major energy resources in north-east, central and south-west china. Although electricity generating capacity is growing rapidly, it still falls considerably short of demand. This is partly because energy prices have been fixed so low that industry has few incentives to conserve. In addition, it has often been necessary to transport fuels great distances from the mines to consumers.
Services Service Sector Ranks 7 th in the World 2005: service Sector produced 40% of China’s GDP The biggest boost to this sector was when china hosted the Olympic games in 2008 Tourism is expected to grow by between 4% and 8% in the next 5-10 years Worlds top tourism industry by 2020?