Unit3.3( Industry) How Has The Location Of The Iron And Steel Industry In China Changed Over Time? Flashcards
How does the location of iron and steel industry in China has changed?
In 1950s:
•most of the works were located in the northern part of China
(eg. North east of China,Anshan and eastern coast of China ,Shanghai )
Location change: inland shift
In 1970s:
•under the first 5year plan, shift to the central part of China (eg. Wuhan, Baotou, Lan Zhou)
•the second 5 years plan, shift to the north west of China (Urumqi) and south west of China (Kunming)
Location change: coastal shift
In early2000s:
•most of works were located in the coastal regions such as Anshan and Shanghai
What was the most important factor resulting in the relocation of the iron and steel industry in China between the 1950s and 1970s? Why?
Government policy was the most important factor because China has adopted State-planned economy
What is the reasons for the relocation of iron and steel industry in China between 1950s and 1970s ?
About strategic reasons
-strategic reason:
•during wars, factories in coastal regions could be easily attacked by enemies
•the central government adopt the policy of “moving the industry into the inland regions” in order to protect its industries from being attacked.
What is the reasons for the relocation of iron and steel industry in China between 1950s and 1970s ?
About economic reasons
- most coalfields and iron ore in China were find in the inland regions.
- locating the iron and steel work near the iron ores and coalfields could reduce transport costs, especially iron ore and coal are heavy and bulky
- transporting coal and iron ore to the coastal regions ere difficult as the transport links were poorly developed.
What is the reasons for the relocation of iron and steel industry in China between 1950s and 1970s ?
About social reasons
- the level of development and living standard in the inland regions were low.
- moving the iron and steel work to the inland regions help achieve a more balanced economic development throughout the whole country, and relive the problem of overpopulation in the coastal regions
What are the reasons for the relocation of iron and steel industry in China between the 1980s and the early 2000s ?
About Government policies
-open polices
•encourage overseas investors to invest in the coastal region
-“having some regions developed first”
•coastal region was chosen for this purpose
~this encourage industrial development in the coastal region
What are the reasons for the relocation of iron and steel industry in China between the 1980s and the early 2000s ?
About Technological advancements
-production (using raw materials )
•substitutes eg.scrap iron and steel can be used in new furnaces to produce steel. This reduces the demand of iron ore
•iron and steel works tend to locate near coastal cities where supply of scrap iron and steel is sufficient
-transport:
•the use of bulky carriers and advancement in rail transport can increase the carrying capacity of vessels and trains which can lower the transport costs of per unit coal and iron ore
~due to the technological advancements, the iron and steel works were no longer need to tie to the sources of raw materials and power.
What are the reasons for the relocation of iron and steel industry in China between the 1980s and the early 2000s ?
About Markets
-important heavy industry center
•the well-developed iron and steel consuming industries demand large amount of steel as raw materials
-large cities
•the growing population and the booming of construction industry require a large amount of steel products
•a higher living standard means a larger demand for electrical appliances and private cars. This push up the demand for steel products
~locating iron and steel works near the markets help to save the transport costs of delivering the steel products
What are the reasons for the relocation of iron and steel industry in China between the 1980s and the early 2000s ?
About Other pull factors of the coastal regions
-well-developed infrastructures
•coastal regions have well-developed infrastructure and port activities.
•this facilitate the import of iron ore and coal and export of steel products.
•sea transport is cheaper for the transportation heavy and bulky items
-existence of industrial centers
•enjoy agglomeration economy in coastal industrial centers
•a large pool of skilled labour is available
•abundant supply of scrap iron and steel
-extensive flat land
•more land is supplied by reclamation
•coastal area provide extensive flat land
-sufficient cooling water is available
What are the reasons for the relocation of iron and steel industry in China between the 1980s and the early 2000s ?
About Push factor of the inland region
- lack of capital
- low accessibility
- rugged relief
- low quality of coal and iron ore
- lack of skilled labour
- far away from the major market
- inadequate water supply
- backward technology
What is the recent changes in the location factors of the iron and steel industry in China ?
About the raise of iron and steel bases in the south and the west
-the west
•Urumqi:Baosteel Group
•urban and industrial development under “Go West” policy which increase the market demands
-the south
•Zhangjiang in Guangdong
•incentives provided by local government and approval from the central government
•large market in south China. Locating near market can save the cost of transporting steel products
•rapid development and low grade coal in China increase the dependency on imported iron ore and coal which encourage the plants to locate at the port and areas with efficient rail networks
What is the recent changes in the location factors of the iron and steel industry in China ?
About the Rise of large iron and steel enterprises
Merging small enterprises into a large one helps enlarge the economies of scale scale
What is the recent changes in the location factors of the iron and steel industry in China ?
About the Environmental concerns
- The iron and steel industry is a serious source of air pollution
- Environmental concerns have caused the Shougang Group (state-owned) to relocate its production plants from Beijing to Caofeidian, where is farther away from the populous city.
Liaoning was a major iron and steel production base in China. However, after decades of development, iron and steel production there has become less economical because of what ?
- diminished coal mines and ore fields; •outdated machinery;
- overloaded transport system.
Why does the production base in Liaoning remain at its original location?
- Relocation involves high costs.
- It would be a waste to shut down the production plant as the investment in it and related infrastructure is large/huge.
- Closing down the production plant would lead to unemployment and other social problems (e.g. drunkenness and family abuse)
- Closing down the plant would reduce the tax revenue of the local government. This in turn would adversely affect the quality of social services and the investment on infrastructure
- Related industries would be also adversely affected, especially the iron and steel consuming industries.
