China Essay

Question 1

Intro

Answer 1

since 1978 - eco reforms - embraced globalisation and shifted towards market economy

Question 2

policies to mention

Answer 2

open door policy, entry to WTO

Question 3

positive impacts

Answer 3

economic growth and increases in living standards and HDI

Question 4

negative impacts

Answer 4

Environmental impact and income inequality

Question 5

Open Door Policy

Answer 5

implemented in december 1978 - aimed to encourage foreign trade and investment. SEZs

Question 6

Special Economic Zones

Answer 6

Shenzhen, Zhuhai, Shantou and Xiamen. Favourable tax rates, low wages and mandated that goods manufactured there must be exported.

Question 7

Shenzhen average growth rate

Answer 7

between 1981 and 1993 - 40%

Question 8

expansion of open door policy

Answer 8

1984 - included ports - Shanghai and Tianjin. Saw increases in FDI

Question 9

effect of open door policy

Answer 9

prior to implementation, china was 32nd in world export volume, by 1989, doubled exports and was ranked 13th for export volume

Question 10

WTO

Answer 10

15 years of negotiations –> 2001 china entered
agreed to gradually reduce tariffs on agricultural and industrial products
open up service and manufacturing industries
between 2001 and 2010, china’s average tariff rate fell from 14.1% to 3.7%. Exports increased by 590% and imports increased by 570% and total GDP nearly doubled
from 2002 to 2007, net exports as a share of gdp rose from 2.6% to 7.7%
reduced restrictions on FDI. Between 2001 and 2002, FDI into China increased by 30%

Question 11

eco growth

Answer 11

in 2014 - largest economy in world in terms of GDP at PPP overtaking US
between 1978 and 2005, growth rate of 9.5%
between 2001 and 2010 - 10.5%
since 2010, growth declined
since 2016, average rate down to 6.5%
IMF has projected by 2024 will be down to 5.5%
IMF - china makes up 17.1% of global GDP

Question 12

HDI and stuff

Answer 12

1990 - approx 2/3 pop lived in poverty as defined by world bank, by 2016 only 0.5%
between 1978 and 2015, annual national income rose from 6500 yuans to 57800 yuans.
HDI rose from 0.52 in 1995 to 0.74 in 2005
only country to rise from low human development category to high human development
life expectancy rose from 63.2 in 1975 to 76.7 in 2018

Question 13

environmental impact

Answer 13

high rates of resource use and enviro degradation
2007 oecd report concluded that unless pollution levels were controlled by 2020, 600000 premmy deaths in urban areas and 20 million cases of respiratory illness
7% of gdp is lost to pollution, could rise to 13% without enviro protection
2012 co2 emissions were 12,454 million metric tonnes - 50% higher than US
OECD estimates that >300 million people drink contaminated water daily
high incidence of respiratory illness - SARS and COVID

Question 14

income inequality

Answer 14

wide urban-rural divide - according to OECD The per capita income of urban households in 2012 was about three times that of the rural households, whereas in 1978 it was about two and half times higher.
gini coefficient rose from 0.3 in early 1980s to 0.385 in 2016. standardised world income inequality database estimates that it could be as high as 0.5.
moved from a moderately unequal economy in 1990 to one of the most unequal.