China's Growth Reasons

Question 1

Joint ventures

Answer 1

Between 1980 and 2000 most cars made in China were joint ventures between TNCS and Chinese Companies; all technology was imported in China

Question 2

Open door policy to FDI 1978

Answer 2

Encouraged TNCS to locate manufacturing plants in China. Local suppliers benefit from contracts, but technology is not transferred

Question 3

Investment in infrastructure

Answer 3

By the PRC government- $250 billion in roads

Question 4

Focus on exports

Answer 4

Some copying foreign products, others are joint ventures with TNCs (they fill the technology gap)

Question 5

Size of the local market

Answer 5

Chinese themselves have become consumers, reducing the reliance on exports

Question 6

Decollectivization of agricultural land

Answer 6

Land divided for each farmer (tragedy of the commons)

Question 7

Indigenous producers

Answer 7

Built cars of their own late 1990s

Question 8

2001

Answer 8

Joined the WTO

Question 9

Joined the WTO

Answer 9

2001

Question 10

High value exports

Answer 10

Switched from cheap toys and textiles to information and communication technology

Question 11

Globalisation

Answer 11

Keep in touch with countries and factories; transport costs reduced