1. Government policies: Special Economic Zones (SEZ) China’s Regional Policy 5-year plans

2. What is a Special Economic Zone? 1980 – Shenzhen SEZ set up – 1 st of many Designed to attract investors – foreign Special tax incentives for foreign investors Some joint ventures – Sino-British etc Provincial level government Mainly export-oriented Market-driven Largely labour-oriented Increasing no’s of high-tech industries

3. China’s first SEZ

4. http://news.xinhuanet.com/english/2009- 05/22/content_11416541.htm

5. Why Shenzen? Close to Hong Kong – attract investment from established firms there Experiment in “socialism with Chinese characteristics” City population now over 8 million Considered a successful project – taken up elsewhere Focus of Pearl River Delta area – China’s economic powerhouse 1990s - Shenzhen "one high-rise a day and one boulevard every three days".

6. Shenzen, & from Hong Kong

7. Rapid growth 1982 – 350,000 1990 – 1.3 mill i.e., a 245% increase 2000 – 2 mill, i.e., a 477% increase 2010 – 10.4 mill (approx 48% increase)

8. Which firms? Primarily manufacturing (often very high technology) but also, increasingly, tertiary industries: IBM Huawei (telecommunications) Skyworth (electronic components) Apple - Taiwanese firm makes iPods, iPhones etc Walmart Ping An Insurance Banking – China Merchants Bank 2010’s GDP - 95,000 yuan (US$14,615), 4 th in country (same as Argentina & Malaysia, more than Lebanon & Mexico!)

9. What about the rest of the country? The core-periphery concept applied to China: Core – the eastern coastline & southern China to Hong Kong Periphery – the rest of the country http://news.bbc.co.uk/1/hi/programmes/impact_a sia/8655134.stmhttp://news.bbc.co.uk/1/hi/programmes/impact_a sia/8655134.stm What is the Core & Periphery concept?

10. ProvincePop.% rural / urban rural / urbanp.a. growth% ethnic income (RMB)minorities Shaanxi36m67 / 331,186 / 4,8910.71%0.6 Gansu25m76 / 241,400 / 4,8901.00%8.3 Qinghai5.8m64 / 361,490 / 5,1701.45% (2.5%) 44 Xinjiang18m(>90% in oases) 1,618 / 5,8171.28%61.4 China1,3b64 / 36 Beijing12m 3,441 / 8,493c. 2.5% 3m MWs? Shanghai17.7m 4,138 / 8,864<1%0.4 (4.4mMW)

11. https://www.youtube.com/watch?v=y0p q1qM5rJU https://www.youtube.c om/watch?v=a70tmpp do_Ihttps://www.youtube.c om/watch?v=a70tmpp do_I

13. 5-year plans Government strategic plans first begun in 1953 Each focuses on a particular strategic development need. 1st Plan – State ownership; collectivisation of farming along Soviet lines; centralised planning. Current (12 th ) 2011 – 2015. Current Plan includes: secure economic growth & economic structure, urbanise the population – 52% Develop HEP & nuclear energy encourage sound, sustainable developments Increase length of high speed rail line, roads, new airport for Beijing New development inland Coastal areas = R & D & high end manufacturing, services. Affordable housing Encourage FDI – agriculture, high-tech inds, environmental practices Control population @ 1.3bn.

14. Since the 1978 Reforms national & regional development have been the main focus of policy making. Regional policies/strategies: Coastal Development Strategy, Metropolitan Growth Pole Strategy, Western Development Strategy, Rejuvenating Northeast Strategy Developing the Middle Area Strategy

15. January 2012 13. Examine the factors responsible for the growth of China’s economy. [25] Deadline: Thursday 15 th January