Unit 3: How has the location of the iron and steel industry in China changed over time?

Question 1

what factors affect the location of the iron and steel industry?

Answer 1

1. land attributes
2. access to raw materials and power sources
3. access to markets
4. transport
5. government policy

Question 2

land attributes importance to the iron and steel industry

Answer 2

1. building iron + steel works require a large area of flat land
2. such land attributes enable the easy expansion of the production plants

Question 3

access to raw materials and power sources importance to the iron and steel industry

Answer 3

1. steel production consumes a large amount of iron ore + coal
2. the raw materials -> heavy + bulky -> lose a lot of weight during production
3. iron + steel industry to locate at a site with good access to raw materials -> transport costs lowered

Question 4

access to markets importance to the iron and steel industry

Answer 4

large cities + industrial centres -> major markets for steel products
locate icon + steel works near the places -> transport costs reduced

Question 5

transport importance to the iron and steel industry

Answer 5

raw materials + finished products -> transport costs lower -> usually transported by rail / sea
-> favourable to locate at places with
1. good railway networks
2. port facilities

good port facilities -> facilitate import of raw materials + export of finished products to overseas markets

Question 6

what’s a good port facility

Answer 6

facilitate import of raw materials + export of finished products to overseas markets

Question 7

government policy importance to the iron and steel industry

Answer 7

government may regulate supply of industrial land
production process of steel -> involves burning coal -> emits large amount of air pollutants -> not favourable for development of industry
-» places with government subsidies for industrial development -> favourable

Question 8

what type of industry does the iron + steel industry belong to

Answer 8

1. heavy industry
2. capital-intensive
3. market oriented

Question 9

how important is the iron and steel industry in China

Answer 9

1. China is the worlds top steel producer + consumer
2. iron and steel industry is the “backbone of all industry”
3. after 1980 -> steel production in China -> growing faster

Question 10

How has the location of the iron + steel industry in China changed over time?

Answer 10

most of the iron + steel production centres were located :

before 1950:
in NE part of China

early 1950s -> late 1970s:
on the inland regions of China

1980s-early 2000s
in the coastal region of China

Question 11

change in iron and steel industry: before 1950 in coastal + NE china

Answer 11

iron + steel industry in China -> concentrated in NE
-» most important production centre -> Anshan, Liaoning

Question 12

access to raw materials and power resources before 1950 in coastal + NE china

Answer 12

1. production centre in Anshan -> obtain raw materials from coal mines + iron ore field nearby
2. Heilongjiang rich in natural resources (iron ore, coal, limestone)
3. raw materials heavy + bulky -> difficult to move -> proximity to these natural resources -> help reduce transport costs

Question 13

land attributes before 1950 in coastal + NE china

Answer 13

large piece of flat land available at floodplain of the Liao He -> favoured development + expansion of the production plants

Question 14

access to markets before 1950 in coastal + NE china

Answer 14

large demand for steel products from the north-east -> major centre of heavy industries
e.g. shipbuilding + automobile

Question 15

transport before 1950 in coastal + NE china

Answer 15

railway network well developed in the NE -> raw materials + finished products transported cheaply and efficiently

Question 16

historical factor before 1950 in coastal + NE china

Answer 16

early industrial development during Russian + Japanese occupation in the 20th century -> necessary infrastructure + a pool of skilled labour -> available to support the development of the industry

Question 17

abundant labour supply before 1950 in coastal + NE china

Answer 17

NE China -> 1 of the populous areas in China -> labour from large cities facilitated development of industry (e.g. Shenyang)

Question 18

location of the iron + steel industry in China changing over time: stage 2, early 1950s-late 1970s

Answer 18

inland shift
1. central government adopted state-planned economy
government policy -> most important factor -> relocation of iron + steel industry in China

-> several 5-year plans were carried out to rapidly boost steel-production capacity

Question 19

First five year plan year + contents

Answer 19

1953-1957: shifting to central China (Wuhan, Xian)

Question 20

after first 5 year plan contents and year

Answer 20

1958-1970s
shifting to NW China + SW China

new icon + steel works -> set up in Central + NW China

Question 21

Why did the central government relocate the iron + steel industry to inland regions?

Answer 21

1. national security
2. economic + social reasons
3. utilisation of resources

Question 22

Why did the central government relocate the iron + steel industry to inland regions: national security

Answer 22

wars -> factories in coastal regions could be easily attacked
-» central government,adopted policy of “moving industries into inland regions” -> safeguard industries

Question 23

Why did the central government relocate the iron + steel industry to inland regions: economic + social reasons

Answer 23

levels of economic development + living standard in the inland region -> low -> setting up iron + steel production centres -> local economic development + promote regional self-sufficiency
more people attracted to move there -> problem of overpopulation could be relieved

Question 24

Why did the central government relocate the iron + steel industry to inland regions : utilisation of resources

Answer 24

1. rich untapped mineral + power resources in inland region of china -> great potential to develop industries
2. xinjiang Autonomous Region -> rich in mineral resources (oil, natural gas, iron ore, limestone)
3. transport links between inland region + coastal industrial region -> not well-development
4. developing iron + steel industry near sources of raw materials + power resources -> transport costs -> minimised

Question 25

location of the iron + steel industry in China changing over time: stage 3, 1980s-early 2000s - coastal shift

Answer 25

1. government policy
2. presence of large domestic markets
3. technological + transport advancements
4. push factors of the inland region
5. pull factors of the coastal region

Question 26

government policy in the 1980s-early 2000s

Answer 26

1. open policy -> encouraged overseas investors to invest in coastal region
2. “having some regions developed first” -> chose coastal region for this purpose
   -» encouraged industrial development in the coastal region

• make production decisions in response to market trends

Question 27

presence of large domestic markets in the 1980s-early 2000s

Answer 27

coastal region ->
1. important heavy industrial centres -> well-developed iron + steel consuming industries demand a large amount of steel as raw materials

2. large cities -> growing population + booming construction industry demand larger amount of steel products

• locating iron + steel production centres near large markets help save costs of transporting steel products to the market

Question 28

technological + transport advancements in the 1980s-early 2000s

Answer 28

1. use of substitutes
   better tech -> scrap icon + steel -> substitute steel production -> reduce demand for iron ore
2. increase in transport capacity
   use of bulk carriers + advancements in rail transport increase capacity of vessels + trains
   -> lowers per unit transport of coal/iron ore

-» technological + transport advancements -> iron + steel industry no longer necessary to tie to the sources of raw materials + power resources

Question 29

push factors of the inland region in the 1980s-early 2000s

Answer 29

1. low accessibility
2. rugged relief + extreme climate
3. poor quality of coal + iron ore
4. lack of skilled labour
5. far away from the major markets
6. inadequate water supply
7. backward technology

Question 30

pull factors of the coastal region in the 1980s-early 2000s

Answer 30

1. well developed port facilities -> facilitate import of raw materials from other countries + export of steel products overseas
2. coastal industrial centres -> provide large pool of skilled labour
   -> abundant supply of scrap icon + steel -> can be used as substitutes
3. favourable land attributes

Question 31

change in iron and steel industry: since the early 2000s

Answer 31

1. setting up more production centres in the south
2. increasing the importance of port locations
3. moving away from large cities

influence of market forces on the location -> increasingly significant -> government still has strong influence

Question 32

reason of setting up more production centres in the south since the early 2000s

Answer 32

demand for steel products in South China increasing -> rapid economic development -> domestic production does not meet the demand

Question 33

reason of increasing the importance of port locations since the early 2000s

Answer 33

1. supply of coal cannot meet the rapidly increasing demand for steel products
   -> inferior quality of the local iron ore (highly dependent on imported coal + iron ore

locate production plants near port facilities + at places with an efficient rail network -> save transport costs

Question 34

reason of moving away from large cities since the early 2000s

Answer 34

1. burning of coal during steel production -> serious air pollution -> ease problem -> forced to move away / shut down
2. land is released for other land uses that make larger profits

Question 35

why do some iron and steel works remain in their original locations?

Answer 35

industrial inertia -> phenomenon for industries to remain in their existing locations despite the reduction or disappearance of original locational advantages

Question 36

why does the industrial inertia happen

Answer 36

1. relocation involves high costs -> huge plant size + massive equipment
2. a pool of skilled labour + good linkages with business partners
3. middle-aged senior staff members less willing to move
4. developed industrial region has several benefits (good infrastructure, external linkages)
5. closing down production plants -> lead to widespread unemployment -> various social problems
6. associated industries (especially iron + steel consuming industries) -> badly hit if production centre is relocated
7. relocation would reduce tax revenues of local government -> affect quality of social services + investment on infrastructure
8. entrepreneurs personal preferences
9. inflexible policies of local governments