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Government policies: Special Economic Zones (SEZ) China’s Regional Policy 5-year plans What is a Special Economic Zone? • • • • • • • • • 1980 – Shenzhen SEZ set up – 1st 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 China’s first SEZ http://news.xinhuanet.com/english/200905/22/content_11416541.htm 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". Shenzen, & from Hong Kong 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) 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), 4th in country (same as Argentina & Malaysia, more than Lebanon & Mexico!) 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.stm • What is the Core & Periphery concept? Province Pop. % rural / urban rural / urban p.a. growth income (RMB) % ethnic minorities Shaanxi 36m 67 / 33 1,186 / 4,891 0.71% 0.6 Gansu 25m 76 / 24 1,400 / 4,890 1.00% 8.3 Qinghai 5.8m 64 / 36 1,490 / 5,170 1.45% (2.5%) 44 Xinjiang 18m (>90% in oases) 1,618 / 5,817 1.28% China 1,3b 64 / 36 Beijing 12m 3,441 / 8,493 c. 2.5% 3m MWs? 17.7m 4,138 / 8,864 <1% Shanghai (4.4mMW) 61.4 0.4 https://www.youtube.com/watch?v=y0p q1qM5rJU • https://www.youtube.c om/watch?v=a70tmpp do_I 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 (12th) 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. 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 • January 2012 • 13. Examine the factors responsible for the growth of China’s economy. [25] • Deadline: Thursday 15th January