Resources 2.0 Flashcards
Examples of China advancing towards more sustainable energy imports;
- Sino-Myanmar
- ESPO
What is the position of most Chinese businesses which allows them to advance foreign policy? Give an example
High number (155,000) state owned companies
e.g China’s National Petroleum Company
= state owned
= owns Sino-Myanmar pipeline
Example of China ensuring constant supply of iron ore demand
bought 10% stake in Rio Tinto
Consequences of increased resource consumption for China;
- long term debt
- militarisation
- dependency
- environmental degradation
What view suggested that the west may take China’s increased militarisation to protect resources as expansionist?
Guardian (View 5)
How much had China invested into Africa by 2011?
How many Chinese companies in Africa?
What is this compared to USA?
Invested $70billion+ by 2011
800,000 Chinese companies in Africa
only 1/3 of the USA’s investment
Why is aid well received in Africa from China?
- no colonial legacy
unlike much of Europe
Investment examples
- Nigeria
- Ghana
- Ethiopia
- Zambia
- Nigeria : $10billion for oil fields
- Ghana - $11billion for infrastructure investment
- Ethiopia : market for military hardware
HEP / Dam construction - Zambia :
copper mining
Example of China taking action towards securing agricultural resources;
- 5% of Ukrainian land
- Chinese State Owned Chemical Company bought SYNGENTA
China purchasing Syngenta suggests their belief in what philosophy
Boserup’s
necessity is the mother of invention
What is the current status of GM in China?
Why may China have purchased Syngenta?
GM currently banned
China may want to hold valuable patents
Or may relax ban on GM as under pressure to provide agriculture for growing population (until 2030) and growing demand
How many state owned companies;
India :
China :
India : X190 fewer than China
China : 155,000
Response to foreign investment;
- China
- India
China : required to set up joint ventures
India : difficult for foreign companies to gain market access due to protectionism
What has been the rate of increase in Fortune 500 companies since 2004?
China : X6
now 95
India : X2
now 8
What does the increase in Fortune 500 companies suggest?
increasing global dependence
increasing cultural influence potential
potential to advance political agenda
What does a high number of state owned businesses allow for?
companies to invest in areas which help to advance the country’s political agenda
Why may India’s growth in F500s not be as great as Chinas?
- not supported by increased education spending - so less innovation
- less reliable power supply
- lack of just in time infrastructure
Who devised the ‘Ease of Doing Business’ rankings?
World Bank
Why is the Ease of Doing Business ranking important to TNCs?
important when determining where to outsource or to set up operations
Where does China rank in the ease of doing business ranking?
India?
USA?
84th : China
123rd : India
7th : USA
Lowest categories ease of doing business rankings :
China :
India :
China : access to electricity & in most recent report “getting construction permission”
India : enforcing contracts
What does India’s ‘enforcing contracts’ weakness suggest?
- weak legal system
- presence of corruption
Why does India have difficulty enforcing contracts in relation to its history?
series of socialist governments post-independence
set up of LICENSING RAJ
= government would issue licenses to businesses
What improvements has India recently made to improve ease of business?
- new online registration schemes
= easier to pay taxes / set up businesses - abandoned minimal capital requirement to set up businesses
Examples of SEZs in India and China;
India : Goa
China : Shanghai
Trade relationship : Indo-Chinese
C’s exports to India
I’s exports to China
C–>I = $150billion
I–>C = $17billion
Why is India in a long-term trade deficit with China?
- weak manufacturing
- restrictive land laws
- inadequate power
= doesn’t produce goods to provide for its 1.29billion population
What is China’s increase in F500 companies not necessarily a reflection of?
Not necessarily decline in Westernisation
China purchasing SYNGENTA showed adoption of Western technology + innovation
What is the trade relationship between China and USA?
USA = China’s largest market
USA increasing trade deficit with China
What has China been accused of doing in order to provide it with advantageous trading positions?
Artificially keeping its currency low
flooding the market
What did China’s economic engine to in relation to geopolitical tension in Asia?
What potential does India have in this regard?
transformed its relationship with its neighbours in the 1990s
India’s economic growth may provide foundations of prosperity and regional cooperation in Southern Asia
