Desk 25 - China and the global shift and the impact on developed countries Flashcards
What does the global shift mean?
The global shift refers to the movement of economic activity east towards China.
Why has the world’s economic centre of gravity shifted east?
The rapid urbanisation in developing countries such as China has led to large increases in the size of urban populations leading to further economic growth. It is cheaper for western TNC to outsource their manufacturing processes to middleweight eastern cities.
What are the three factors which have influenced the global shift?
- TNCs offshoring activities around the world
-Providing FDI into predominantly Asian countries
-Asian countries creating ‘open door’ policies
How did the global shift bring investment in infrastructure in China?
There has been impressive expansion in infrastructure in China:
By 2016
* China had developed the largest highway (motorway) network in the world.
* Its rail system had reached 100,000km in length.
* Its high-speed rail was the world’s longest having doubled in length in ten years – with high-speed lines linking Beijing with Guangzhou and Shenzhen as well as with Shanghai
* 82 airports had been built since 2000 taking China’s to 250.
How did the global shift increase urban incomes in China?
Urban incomes in China have increased sharply since 2000 driven by both slower population growth and economic growth. As a result of China’s reduction of the one child policy, employers need to pay higher wages to recruit staff.
Urban incomes have risen by 10% per year since 2005 and by 2014 they averaged $9000 per year.
There is a big and growing rural-urban divide in China. Per capita (person) net annual income after taxes and rents for the poorest 20% of rural households was the equivalent of £412 compared with over £9000 for the richest 20% in cities.
How did the global shift decrease poverty in China?
- Between 1981 and 2010, China reduced the number of people living in poverty by 680million.
- Over 300 million Chinese people are middle class – nearly as many as the total population of the USA!
- Sales of consumer goods have grown with Chinese people purchasing more TV’s and laptops than Americans.
- Although 20% of the Chinese population still live on less then $2 a day (particularly in rural areas), many cope with low incomes because of the payments sent from the urban areas (remittances).
How did the global shift improve education and training in China?
- Education is free and compulsory in China between the ages of 6 and 15.
- 94% of Chinese over the age of 15 are now literate compared to just 20% in 1950.
- In 2014, 7.2 million Chinese graduated from university 15x higher than in 2000.
- This growth in higher education has enabled workers to become skilled expanding China’s knowledge and service sectors.
- There is a big rural-urban divide with per capita spending on secondary education varying widely from £2200 in Beijing to just £300 in Guizhou.
How has the global shift created the loss of productive farmland in China?
Despite increased food production, China’s industrialisation has led to an increasing loss of farmland since 2000. Over 3 million hectares of arable farmland (size of Belgium) has been polluted with heavy metals; 12 million tonnes of grain were polluted in 2014. The increased use of fertilisers and pesticides has also led to farmland near rivers (used for drinking water) taken out of production.
How has global shift in China led to land degradation?
Despite having 22% of the world’s population, China only has 6.4% of its land and 7.2% of its farmland. Rapid urbanisation and industrialisation are reducing this further and over 40% of China’s farmland is now suffering from degradation. Land clearance has also led to deforestation and over intensive grazing.
How are the health of Chinese systems limited due to the global shift?
Chinese economic growth has caused environmental problems that affect human health:
* China’s air pollution caused mostly by coal fired power stations is so bad that the capital Beijing has frequent pollution alerts.
* 70% of China’s river and lakes are now polluted.
* 100 cities suffer from extreme water shortages and 360 million Chinese do not have access to safe drinking water. Tap water in Chongqing contains 80 out of 101 forbidden toxins under Chinese law.
* In 2015, one US climate research organisation calculated that Chinese air pollution kills an average 4400 people every day (1.6 million people each year).
How has China’s global shift increased unplanned settlements?
China’s rapid industrialisation has created a need for more urban housing which has resulted in a large increase of informal housing. Land prices have rocketed and made decent housing unaffordable particularly near city centres. Two types of informal housing have emerged both illegal under Chinese law:
* Expanded housing in villages located on the edge of cities.
* Farmland is privately developed for housing without permission.
How has the global shift created resources to be overexploited in China?
China has abundant oil and coal as well as key metals such as iron ore. But its resources cannot keep up with its demand, so the Chinese government has sought additional resources in Africa and Latin America. Amazonian rainforest has been cleared in Ecuador and oil fields are underdevelopment in Venezuela all for China’s consumption.
How has the global shift created loss of biodiversity in China?
The environmental charity WWF found that China’s terrestrial vertebrates had declined by 50% since 1970.
The WWF researchers tracked over 2400 populations of nearly 700 vertebrate species in China and discovered that almost half had vanished in the 45 years since 1970. Economic development caused the most habitat loss and degradation of natural environments.
How has developed countries such as UK been hindered from the global shift?
- Deindustrialisation increased due to movement of labour and industries abroad, created large amounts of unemployment and inequality.
How has developed countries such as UK benefitted from the global shift?
- More innovation and movement through the Clark Fisher Model has been enabled through movement towards tertiary and quaternary industries.
- Lower amounts of air pollution due to decrease in manufacturing and use of factories.
