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Government policies:
Special Economic Zones (SEZ)
China’s Regional Policy
5-year plans
What is a Special Economic Zone?
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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
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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