China yr13


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  • 1949 - 1 October - Mao Zedong, having led the Communists to victory against the Nationalists after more than 20 years of civil war, proclaims the founding of the People's Republic of China (communist china). The Nationalists retreat to the island of Taiwan and set up a government there.
  • 1950 - China intervenes in the Korean War on the side of North Korea.Tibet becomes part of the People's Republic of China
  • Mao encouraged population growth, and under his leadership the Chinese population almost doubled from around 550 million to over 900 million
  • Mao launches the "Great Leap Forward", a five-year economic plan. Farming is collectivized and labour-intensive industry is introduced. The drive produces economic breakdown and is abandoned after two years. However, Mao's Great Leap Forward, a large-scale economic and social reform project, resulted in an estimated 45 million deaths between 1958 and 1961, mostly from starvation. Disruption to agriculture is blamed for the deaths by starvation of millions of people following poor harvests.
  • revolt erupted in Lhasa, the capital of Tibet,The guerrilla warfare later spread to other areas of Tibet and lasted through 1962. 87,000 Tibetans killed.
  • The Sino-Indian war was a war between China and India in 1962. A disputed Himalayan border was the main pretext for war, but other issues played a role. There had been a series of violent border incidents after the 1959 Tibetan uprising, when India had granted asylum to the Dalai Lama. India initiated a Forward Policy in which it placed outposts along the border. The war ended when the Chinese declared a ceasefire on 20 November 1962, and simultaneously announced its withdrawal from the disputed area.
  • In 1966, Mao and his allies launched the Cultural Revolution, which would last until Mao's death a decade later. The Cultural Revolution, motivated by power struggles within the Party and a fear of the Soviet Union, led to a major upheaval in Chinese society. Its stated goal was to enforce communism in the country by removing capitalist, traditional and cultural elements from Chinese society
  • Mao dies. "Gang of Four", was the name given to a political faction composed of four Chinese Communist Party officials heavily involved with Mao in his cultural revolution. They all jockey for power but are arrested and convicted of crimes against the state. From 1977 Deng Xiaoping emerges as the dominant figure among pragmatists in the leadership. Under him, China undertakes far-reaching economic reforms.
  • Government imposes one-child policy in effort to curb population growth
  • China is ideally placed for exploiting hydropower thanks to its large rivers. CDMmakes them eligible for financial investment from developed countries – there are 70 CDM projects around the country
  • Surpassing Denmark, Germany, Spain, and the United States.The industry is in fact so strong that it was almost unaffected by the global financial crisis.
  • Its six biggest solar companies having a combined value of over $15 billion.An extra 500 megawatts were installed in 2012 alone.
  • There are concerns that food insecurity will rise as more farmers are under pressure to cultivate biofuel crops such as ethanol.Bioenergy is also used at the domestic level in China, both in biomass stovesand by producing biogas from animal manure.
  • Following the Fukushima nuclear disaster in 2011, the Chinese government froze all nuclear power stations and ordered safety checks. Unlike Japan, however, China is likely to increase its reliance on nuclear in the future.
  • Temperate regions will experience changes in boreal forest cover, while vanishing mountain glaciers will cause problems such as water shortages and increased risks of glacial lake flooding. Coastal zones are under increasing risk from sea level rises as well as pollution and overexploitation of natural resources. In 2006 in China storms, floods, heat and drought killed more than 2700 people.Aims to develop and improve standards for conservation and comprehensive utilization of natural resources in the following areas: energy, water, wood and land conservation, development of renewable energy, the comprehensive utilization of mineral resources, recovery, recycling and reuse of scrap materials and clean production.
  • United States emits 5.5 metric tons of carbon per personThe world on average 1.1 metric tons, and China 0.6 metric tons of carbon per person.China accounted for 9.8% of world energy consumption. By 2025, projections indicate that China will be responsible for approximately 14.2% of world energy consumption.
  • Remarkable enhancement of energy supply capability and security. In 2011, the output of primary energy equaled 3.18 billion tons of standard coal, ranking first in the world.During the 1981-2011 period, China's energy consumption increased by 5.82 percent annually. China lags far behind Western industrialized countries when it comes to energy efficiency. British thermal units – measurement of heat created by burning a material.According to the U.S. Energy Information Administration, the energy intensity of China in 2005, the most recent year for which data are available, was 35,766 British thermal units per U.S. dollar. In the U.S., the Btu/dollar ratio was 9,113. In the U.K. and Japan, the figures were even lower, 6,145 and 4,519 respectively - the lower the number, the less drag on economic growth.(Http:// )
  • China is growing so quickly that improvements in efficiency are often overwhelmed. "Since 2001, efficiency gains alone have not been nearly sufficient to compensate for the effect of heavy industrialization," says a 2006 paper by the China Energy Group of a national Laboratory in California.China's industrial sector accounts for 70% of total energy consumption. Experts estimate the country builds, on average, two new coal plants per weekto meet its booming energy demand. The other barrier to energy efficiency--a lack of money--is far more surprising, considering China holds the world's largest foreign currency reserves ($1.7 trillion and growing).
  • For China to be willing to reduce its use of coal-fired power plants that cause CO2 emission, alternative energy source must be priced not higher than the price of power generated by coal. Will become possible when sufficient technological innovations in the production of clean energy is at low prices. Another major source of air pollution is the use of oil and gasoline in the transportation sector, especially the emission from automobiles and jet engines. As the country becomes industrialized, pollution from both industrial and consumer sources will increase because of higher levels of output and consumption, the latter including the increase in the use of automobiles and in air travel, Water pollution - Mercury released into the air by coal-fired power plants is captured by raindrops, then transferred to the soil, surface water and groundwater. Surface water affects the fish consumed. Groundwater is polluted by runoff from factories, smelters and mining operations, and then used by farmers downstream to irrigate their crops.Global environment degradation is due to the significant increase of greenhouse gases – with CO2 being the largest contributor to global warming For instance, nitrogen dioxide is a lung irritant which increases the lung sensitivity to other pollutants. Sulphur dioxide is an acidic gas that can lead to short-term lung irritation or long-term lung tissue changes and has negative impact on agricultural crops. According to WHO (World Health Organisation), 17 percent of all deaths in the Asia-Pacific Region (in which the bulk of the population is represented by China) are related to environmental problems. (
  • China, for the past 2000 years, has ben the world’s largest coal producer.In an spurt of economic growth, China’s coal production has grown markedly in recent years; with 2000-2010, coal production tripling.However the massive increase in domestic production has not met the needs of the expanding, demanding economic growth.Electricity production is now the major consumer that uses powerhouse coal – with 80% of electricity production powered by coal.('s energy problems are a direct outgrowth of being an industrializing "producer," which is the opposite of the U.S., a consumer-led energy guzzler.Producer – supplying to the world its resources and products using any means of energy resources.
  • (Graph source – IEA world energy outlook)
  • From the source right, can see majority of Gas basins are located in Northern China. With large amounts of coal regions also North. Majority of resources located in western region of country. Comparing both maps, can see that CO2 sources will affect the major cities in the country- resulting in deficiencies in health and agricultural production.Gas Basins – locations in the ground which are rich in Shale Gas, slowly becoming China’s main source of energy from the fracking process.Oil Basins – Vast reserves of oil found in country, could potentially become a new resource for China’s energy consumption UPSIDE = Deep Saline Formations – formations of very large, porous rock formations, containing water that is unusable (high salt/mineral content)IPCC report on Carbon Dioxide capture reported that the global capacity of deep saline was 100s of times greater than the annual CO2 emissions from Industrial sources.Image source: (
  • However, China is still lagging behind the developed countries in many areas of its manufacturing, despite the rapid increase in output. Technical standards of Chinese manufacturing industry are catching up, through a combination of simply copying designs and joint ventures with foreign companies.As China rises the value-chain in manufacturing, low valued-added jobs are leaving the developed seaboard cities (such as Shenzhen and Hangzhou) for inland provinces where wages are lower.
  • China has been hit particularly hard by the recession in much of Europe. The European debt crisis has prompted steep austerity measures in many countries, and weak conditions have zapped demand in the eurozone, the largest market for Chinese exports. Given the structure of the global economy, a slowdown in China has ripple effects further down the structure of production. As China has become the world’s manufacturing center, countries like Australia and Brazil have benefited by supplying raw materials.
  • An official survey showed that China's manufacturing sector continued to expand in January but at a slower pace, which analysts said suggests a steady growth trend in China's economy. The official purchasing managers' index, measuring the manufacturing sector performance, scored 50.4 in January. A PMI reading above 50 suggests expansion of the sector. However, the index reading was down from 50.6 in December. The slight retreat suggests that China's economy will exhibit a steady growth trend in the near future, said Zhang Liqun, an analyst from the Development Research Center of the State Council.
  • policy of reform and opening-up has given extensive scope to the common development of various economic sectors. Individual and private industrial enterprises and enterprises have mushroomed with investment from outside mainland China.Domestically, modernisation and economic growth has been the focus of the reformist policies introduced by Deng Xiaoping, and in attempting to achieve this, the leadership has implemented the Four Modernizations Program that lays special emphasis on the fields of agriculture, industry, education, science and technology, and defence.
  • Deng-Xiaoping’s policy of reform and openness reinvigorated the Chinese car industry during the 1980s. Chinese auto-makers were allowed to form joint ventures with foreign car companies to produce cars for the domestic market.
  • These seven industrieswill become the focal points for China’s state economic development and will create new markets for American exporters of energy solutions
  • Because of its ability to undercut costThe reason is that the preferred renewable generating technologies, wind and solar, have low capacity factors compared to fossil, nuclear and hydroelectric technologies. That means that wind and solar generation levels from the same amount of capacity as fossil and nuclear technologies will be much lower in comparison. So, while China currently has more wind generating capacity than any other country in the world and is expected to add over 100 gigawatts more by 2035, wind power’s share of generation will only meet 5 percent of the country’s total generation in 2035 and solar generation will not even attain a one percent share.
  • The tertiary sector of the economy is the service industry. This sector provides services to the general population and to businesses. Activities associated with this sector include retail and wholesale sales, transportation and distribution, entertainment , restaurants, clerical services, media, tourism, insurance, banking, healthcare, and law.In most developed and developing countries, a growing proportion of workers are devoted and employed into the tertiary sector.
  • The tertiary sector has grown faster than averagein China. The service sector in china is equal to the industry sector. Before 1978 the tertiary sector was discouraged by the government and employment in this sector was kept to a minimum. This was too support the development of Primary and Secondary sectors and too encourage/boost their outcomes. Cities were transformed to ‘consumption centres’ to ‘production centres’.In 1992 the government decided to accelerate the development of the tertiary sector. In 1998 the tertiary sector took up over half of the states investment in the economy. Employs more peoplethan the secondary sector.
  • Tourism has greatly expanded in China over the last few years. The emergence of a newly rich middle class and an easing of restrictions on movement by the Chinese authorities are both fueling this travel boom. China has become one of the world's most-watched and hottest inbound and outbound tourist markets.China is the 3rd most visited country in the world. 60 million tourists came from overseas to visit China in 2010. China's tourism income reached $185 billion in 2009By 2020 China will become the biggest tourist country in the world. China is such a widely visited country due to many factors including its physical geography of lakes, mountains, rivers and caves. China now however spends a lot of money promoting tourism and making new facilities to support the tourists that come. Cultural sights in China such as the Great Wall are now swamped with tourists causing many controversial arguments as to weather the Chinese should continue to tempt more people into the country. Old temples now have traditional monks selling tourists postcards and souvenirs. The tourist industry has boomed so much no one can get away from it and even in the remote areas there will be souvenir stands.
  • There are around 2 million policein China. The police in China and normally poorly paid and have very little training. They work long days and patrol large areas. Police have normally been more involved in maintaining government issues that solving crimes. The Chinese say the police ‘frustrate’ them as they don’t seem interested enough in solving crimes that effect them and their families. One women said that Chinas police are the most frightening thing and you can feel their presence even when they are not around. The police were brought into China in 1983 to remove the amount of armed forces patrolling the country and transferring the responsibilities of smaller crimes to a new sector of service. In 1985 the police started at around 600,000 volunteers.Money spent on law and order in the country is now at $95 billion in 2011, since the police force had started. China uses a series of high tech equipment including surveillance cameras on citizens 24 hours a days. All police officers will carry guns with the permission to shoot when they see necessary.
  • China has the most hospitals (60,784) and the most doctors (1.97 million) of any country in the world.17 doctors per 10,000 people compared to 25 per 10,000 people in the United States.4.5% of GDP is allocated to healthcare alone in the country. Health care in China can range from a tooth pulled by sidewalk dentist at a local market to a sophisticated transplant operation performed at a major city hospital.Thebusiest department in a Chinese hospitals and clinics is the abortion clinic. Chinas laws ban foreigners for entering the country with major illnesses which would then be treated by highly skilled Chinese doctors and surgeons. People with illnesses such as TB also cannot enter the country in fear they may contaminate the Chinese population. Until 2010 people with AIDS and sexually transmitted diseases are also banned from entering the country.One price is fixed for all healthcare. Doctors get paid the same amount if their a GP or Surgeon. One forth of Chinas population have no health insurance so when get ill cannot afford to go to hospital, they go and see Chinese herbal doctors.
  • Chinas education system has been constantly rising and improving since 1949. China has 15 million teachers in the country with more than 20million students studying in 3000 schools. Chinas colleges and students have a yearly intake of around 6 million students wanting to proceed into further education. China has around 220,000 foreign students coming to study every year with only 180,000 Chinese leaving to study abroad. The Chinese say their key to a high educated success is ‘effort rather than talent’. With them having a very high number of people wanting to learn. People who live in the rural parts of China are those who have little ability to read or write and mainly carry on with family jobs in the agricultural service.Adult literacy rate for men is 95% and women is 83%.Education is seen as a family effort which requires a great deal of time, effort and money from everyone in that family. However children in schools are expected to be, diligent, silent and obedient. A competitive education system runs between schools with a large competition to see who can get the best yearly grades. 66% of young people said they were under constant heavy stress from their schools. Chinese children study for a minimum of 10 hours a day.
  • The Internet in China was established on 20 September 1987Since then the Internet in China has grown to host the largest base of net users in the worldIn the past decade, the Internet has emerged as a new cultural phenomenon in mainland ChinaChina had 538 million regular internet users by the end of June 2012.It is projected that China's Internet population will hit 718 million by 2013, accounting for 52.7 percent of the total population.472 billion hours spent online in 2011. A Chinese internet user spends an average of 18.7 hours online per week.All access routes to the Internet are owned by the Chinese government.Chinese spend 70% of their leisure time online. Many sites are banned in China including facebook ,twitter and skype, and everything the Chinese look at and search for is highly monitored.
  • The telecommunications industry in China is dominated by three state-run businesses: China Telecom, China Unicom and China Mobile.As of March 2012, there were a total of 284.3 million fixed-line telephone subscribers and 1.01 billion mobile phone subscribers in China.The Chinese telecommunication sector’s growth rate was about 20% between 1997 and 2002. China fixed-line and mobile operators have invested an average of 25 billion US dollars on network infrastructure in the last years, muchmore than western European countriescombined.Only one out of ten Chinese citizens had a phone five years ago. Today more than one out of three have a fixed telephone subscription and more than 1.25 million mobile phone subscribers sign up in China every week.
  • Photographs from the Guardian Eyewitness seriesBeijing; A performing tiger looks out of its cage in a Chinese travelling circus called Sun Circus
  • Heilongjiang; Soldiers do morning exercises in Heilongjiang province in the far north-east of China, where the temperature has dropped to -30C
  • Fuzhou; A child takes part in a gymnastics training session at Fuzhou sports school. Talented children are cherry-picked and trained up in their individual disciplines
  • Wenling;A newly built road surrounds a house owned by an elderly couple in Wenling, Zhejiang province. LuoBaogen and his wife refused to sign a demolition order because they felt they had been offered too little compensation to rebuild their house
  • Guangzhou;Former farmer Liu Xianping, 72, has become an internet sensation after modelling his granddaughter's teenage fashion designs for her online boutique Yuekou. What began as a joke went viral after Lyu Ting posted the photographs online, and saw her sales increase fivefold. Comments have been very favourable about Mr Liu's slender pins.
  • Great Wall in China;Chinese tourists throng along the Great Wall as extended national holidays and the lifting of road tolls have brought many attractions almost to a standstill in China
  • The transfer of sovereignty over Hong Kong from the United Kingdom to China, referred to as "the Handover" internationally and "the Return" or "The Reunification" by Mainland Chinese, took place on 1 July 1997, and marked the end of British rule in Hong Kong.
  • Strait Times also note a separate report from Xinhua of a study of 118 cities in China which found that the groundwater of 64% of cities is severely polluted, while that of 33% is mildly polluted. Only a measly 3% of cities have clean groundwater. An official from the Beijing Public Environmental Research Center summed up the full significance of this: the sources of drinking water in China’s cities have been polluted, and especially so with what he described as heavy metal contamination (金属污染) containing organic matter pollution that is extremely difficult for traditional water treatment methods to process.
  • When an economy first becomes industrialised it grows very fast by importing foreign technology and employing capital and plentiful, cheap, unskilled labour from the farm. But after a while the extra agricultural labour is put to work and wages start to rise. This makes firms less profitable and they have to come up with their own technology to keep growing. This shift is known as the Lewis Turning Point, named after Nobel-Prize winner Sir Arthur Lewis.
  • China yr13

    1. 1. Pre-1978 China
    2. 2. • 1949 - 1 October - Mao Zedong, founds the Peoples Republic of China.
    3. 3. • 1950 – China gets involved in the Korean war.• 1950 – Tibet becomes part of the peoples republic of China.
    4. 4. • People = Power
    5. 5. • 1958 - Mao’s “Great Leap Forward”
    6. 6. • 1959 - Chinese forces suppress large-scale revolt in Tibet.
    7. 7. • 1962 - Brief conflict with India over disputed Himalayan border
    8. 8. • 1966-1976 - Cultural Revolution “Destroy the old world; forge the new world”A Red Guardcrushes thecrucifix, Buddha,and classicalChinese texts withhis hammer
    9. 9. • 1976 – Mao Dies• The Gang of Four.• The members consisted of Mao Zedongs last wife Jiang Qing, the leading figure of the group, and her close associates Zhang Chunqiao, Yao Wenyuan, and Wang Hongwen.
    10. 10. • 1979 - Diplomatic relations established with the US.
    11. 11. Economic Reform in China •By Ashley Jones
    12. 12. The Transition of Power The open door policy was introduced by the Chinese Premier Deng Xiaopeng at the Communist Party Conference in December 1978.Until this point, the Peoples Republic of China had been centrally planned economy. This means that all economic activity is managed by the Government. A protectionist, self-sustaining ideology is common in all Communist and Marxist countries, where the state has a economic monopoly. Mao Zedong won power in 1949 after a civil war with the centrist-right nationalist party Kuomnitang, who retreated to Taiwan. The war claimed some 8 million lives between the years 1927-1937 and 1946-1950.
    13. 13. The Start of Reform Deng Xiaopeng had returned from political exile when Mao Zedong died in September 1976. Previously, the party had been abhorrently against reformist policies. Throughout 1977 however, the reformist ideology and plans gained many plaudits, and sent the reputation of Deng spiralling through the roof. In December 1978, the reforms were announced at the Third Plenary session of the 11th CPC central committee. This was the point where Xiaopeng pretty much became the leader of China, though he didnt officially Hua Guofeng until 1981.
    14. 14. The First Steps Xiaopengs first approach in the late 1970s was to reform the agricultural sector. This primary industry had been collectivised, where private landlords were eliminated and farming families were organised into communes. At this point, domestically-produced food supplies were reaching low levels not seen since the famine brought by the Great Leap Forward in the late 1950s. The household-responsibility system was introduced nationwide across the industry in 1981.
    15. 15. Household Responsibility System In 1981, communes were divided into plots; people were given land by the government, and these people could now grow crops on fields that they privately owned. Government quotas on what needed to be grown were significantly reduced, and now going beyond this quota could produce a very sizeable reward. This was because whatever food that was grown as a surplus to the quota could now be sold on an unregulated market; Chinese agricultural workers could now make a profit on their livelihoods. 98% of farmers were on this system by the end of the 1980’s.
    16. 16.  Since 1988, China has concentrated on making these Special Economic Zones larger. More coastal areas were opened up to investment at this time, creating a platform for free trade all over the Yangtze and Pearl river deltas. The South East coast of China is nearly entirely open with favourable business policies. Border cities and all provincial Capitals in Inland areas were opened up in 1992 after another massive wave of reform.
    17. 17. Where are the SEZs?
    18. 18. Government Decentralisation Throughout the 1980s, there was a massive emphasis on the decentralisation of government, and the devolvement of authority to local councils. Township and Village Enterprises were one way of doing this. The term was first used in 1984. This describes companies actually located in townships and villages rather than its ownership or structure. These were flexible in ownership; some were independent whereas some were entirely managed by the council it was located in. This left local provincial leaders to experiment with ways to increase economic growth and privatize the state sector. From 1978 to 1985, these increased 8 fold to 12 million, and nearly 135 million people were employed in them by 1996.
    19. 19. Currency Reform The Yuan Renminbi had been pegged with the US Dollar since its existence in 1949; it was not a freely floating currency. During Deng Xiaopengs time in office, this peg was still in place to manage the value of the Renminbi. Though, to increase the lucrativeness of Chinese exports, the currency was continuously devalued, from 2 yuan per dollar, to over 8.5 in 1994. In order to strengthen the currency and reduce inflation, this peg was removed in 2005. Now, the Yuan freely floats in Forex market, in that its value is dictated by supply and demand. Government intervention is still in place though.
    20. 20. Opening up Private Markets The Shanghai Stock Exchange was re-opened in December 1990, forty years after it had been shut down by Mao Zedongs egalitarian regime. Having a stock market meant that Chinese based companies could now sell equity on a public market in return for capital. It was a way for firms to obtain money, and for speculators to make money.
    21. 21. Privatisation Privatisation is the process of a governmental organisation or department being sold on/acquired and become part of the private sector. In the 1980s, this happens to many government departments which became unviable to run. More large-scale privatisation occurred through the 1990’s, especially during 1997 and 1998. Nearly all state enterprises were liquidated and passed on to private investors.
    22. 22. The Impacts of this Reform
    23. 23. Economic Growth
    24. 24. Domestic Yield Growth
    25. 25. Though there have been Growing Pains...
    26. 26. Explaining InflationBuilt-In Inflation Cost-Push Demand- Inflation Pull Inflation
    27. 27. The Effect of the Devalued Yuan• There is great concensus in the IMF and amongst economists that the Yuan is devalued by between 5 and 27%. Whilst it has been the catalyst of economic growth in China and throughout the world, there has been a lot of criticism of the ‘Weak Yuan’.• Keeping the currency’s value low was a key factor to the creation of inflation. This was because the government has to buy foreign currencies via investment and trade surpluses… and this involved printing money…• Undermines domestic consumer’s purchasing power as an undervalued Yuan makes foreign goods more expensive.• Exacerbates capital misallocation problems in Chinese banks, creates more bad loans.• Completely against rules mandated by GATT and the WTO, currency manipulation through direct intervention is PROHIBITED.
    28. 28. China’s Energy Industry… Investment in renewables is now part of China’s economic stimulus strategy.
    29. 29. Renewable Energy - Hydropower• Chinas installed hydropower capacity has surpassed 200 GW in late August 2010.• Hydropower projects such as the Gansu Dang River Hydropower Project (2007) are registered as Clean Development Mechanisms (CDMs) under the Kyoto Protocol.
    30. 30. Renewable Energy – Wind Power• China has identified wind power as a key growth component of the countrys economy…• Researchers from Harvard University and Tsinghua University have found that the Peoples Republic could meet all of its electricity demands from wind power by 2030.• As of 2010, China has become the worlds largest maker of wind turbines – among the leading companies are Leading wind power companies were Goldwind, Dongfang, and Sinovel.
    31. 31. Renewable Energy – Solar Power• China produces 30% of the world’s solar photovoltaics (PV)…• According to some studies, the demand in China for new solar modules could be as high as 232 MW each year from now on until 2012.• The government has announced plans to expand the installed capacity to 20 GW by 2020.• Golmud Solar Park, Qinghai Province, is China’s largest solar park, with over 200 megawatts.
    32. 32. Renewable Energy – Biomass, Biofuel• and Geothermal China plans to develop 6 megatons a year of fuel ethanol capacity, which is expected to grow to 15 megatons/year by 2020.• Work has begun on the ¥250 million (US$ 40,046,500) Kaiyou Green Energy Biomass (Rice Husks) Power Generating project which will generate 144 GWh/year and use 200 kilotons/year of crop waste as inputs.• There are over 2,700 hot springs occurring at the surface, with the temperature exceeding 25°C.• China the second direct user of geothermal energy in the world.
    33. 33. Nuclear Power• As of 2012, the Peoples Republic of China has 16 nuclear power reactors and 26 under construction.• Intention to raise the percentage of Chinas electricity produced by nuclear power from the current 1% to 6% by 2020 (20% in the USA).• Due to increasing concerns about air quality, climate change and fossil fuel shortages, nuclear power has been looked into as an alternative to coal power in China.• More long-term plans for future capacity are 200 GW by 2030 and 400 GW by 2050. Fast neutron reactors are planned to contribute 1400 GW by 2100
    34. 34. Efforts to reduce CO2 emissions• The Chinese government is implementing multiple policies to promote renewable energy. From 2008 to January 2012, China held the top spot in clean energy investment.• In 2011, coal consumption decreased by 10 percent.• Non-fossil energy currently accounts for more than 8 percent of the total primary energy consumption.• Chinese energy experts are estimating that by 2050 the percentage of Chinas energy requirements that are satisfied by coal-fired plants will have declined to 30-50% of total energy consumption and that the remaining 50-70% will be provided by a combination of oil, natural gas, hydropower, nuclear power, biomass and other renewable energy sources.• At the UN climate summit in 2009 in New York, pledged that China will adopt plans targeting to use 15% of its energy from renewable sources within a decade.• The government’s Golden Sun program providing financial subsidies, technology support and market incentives to facilitate the development of solar power industry.
    35. 35. Consumption• 2nd in the world for energy consumption• 9.8% of world energy consumption.• By 2025 - 14.2% of world energy consumption.• China’s industrial sector accounts for 70% of total energy consumption.• 2 new coal plants built per week
    36. 36. Non-renewable energy Consumption• 1981 – 2011: energy consumption increased by 5.28 % ANNUALLY• Energy intensity 2005 figures:In China - 35,766 British thermal units per $.UK and Japan figures < 7,000.
    37. 37. Problems with countries growth• Improvements in efficiency are often overwhelmed• Experts estimate that the country builds, on average, 2 new coal plants per WEEK.• One barrier for energy efficiency is a lack of money. As the country is chasing after Steel companies who have not repaid loans and other unpaid debts.
    38. 38. Effects of Non-renewable energy• In 1998, of the ten most polluted cities in the world, seven can be found in China.• As of 2001, China accounted for 13% of CO2 emissions worldwide.• Air pollution – caused from the use of oil and gasoline in the transportation sector.• Water pollution –from groundwater polluted by factories and mining operations.• China is the leading global CO2 emitter• Major effects on health problems across the country
    39. 39. Non Renewable Production• China has always been the largest producer of coal• In 2011, output of primary energy equalled 3.18 billion tons of standard coal.• In the UK coal supplies 33.4% of electricity.• Whereas China relies on coal for 55% of its electricity. • Chinas energy problems are a direct outgrowth of being an industrializing "producer,"
    40. 40. Coal-fired Electricity - different countriesTerrawatt–hourper year • OECD - Organisation for economic development and co-operation
    41. 41. China’s manufacturing industry
    42. 42. Introduction to the industry• The manufacturing industry forms the backbone of the Chinese economy. Following Chinas entry into World Trade Organization in 2001, China’s economy has grown exponentially.• The Chinese manufacturing industry is first among the manufacturing industries of the world, ahead of the USA, Japan and Germany. It is a highly important industrial sector in China, producing 44.1% of GDP in 2004 and accounting for 11.3% of total employment in 2006.• China was the seventh largest manufacturing economy in 1990, third in 2000, and number one in 2010.• Chinas leap to the top came through a combination of price increases, exchange rate appreciation, and an extremely fast growth rate in the physical volume of manufacturing value.
    43. 43. Chinas trade with the worldChina’s economy is structured around exports which account for about 30% of its GDP. Most of thoseexports go to the US and Europe.
    44. 44. Purchasing Managers IndexThe PMI= An indicator of the economic health of the manufacturing sector. The PMIindex is based on five major indicators: new orders, inventory levels, production,supplier deliveries and the employment environment.PMI of more than 50 represents expansion of the manufacturing sector, compared tothe previous month. A reading under 50 represents a contraction, while a reading at 50indicates no changeThe Purchasing Managers Index (PMI) for China’s manufacturing sector: fell to 50.4percent in January from 50.6 percent in December.
    45. 45. Chinas success• Chinas manufacturing sector has been one of the biggest drivers of its growth over the past few decades.• A key role in the sectors success has been played by the availability of a large pool of low-cost labour, which has seen China become the destination of choice for many global firms looking to make goods cheaply.• However, researchers at the International Monetary Fund (IMF) have said that Chinas pool of low cost labour is likely to decline in the next few years.• After the reforms of 1978, economic growth was given most attention. The policy of reform has allowed economic sectors to develop.• For example, such an impressive growth in car output has been achieved largely through establishing of a number of joint ventures with outside companies such as Volkswagen, General Motors, and others.
    46. 46. Car industry• In the 1990s, China’s auto industry grew. China’s automobile production exceeded 1 million vehicles for the first time in 1992.• China’s automotive production grew from 2 million cars in 2000 to over 13 million cars in 2009. Some growth has been due in part to China’s entry into the World Trade Organization in 2001. China’s automobile production increased an average of 21% annually between 2002 and 2007. China surpassed the US in 2008 to become the world’s second largest automobile producer behind Japan. Such an impressive growth in output has been achieved largely through establishing of a number of joint ventures with Volkswagen, General Motors, and others. While the initial approach was to bring in key subsystems such as engines, transmissions and other from foreign companies, the present emphasis is on building up the supply chains in China.
    47. 47. Chinas five-year planIn the summer of 2012 China released The Five-Year Plan with a focus on emerging Industriesto accelerate the evolution of the country’s current foreign trade structure and economicdevelopment model. The Plan aims at an annual growth rate of 10 percent in imports andexports of electromechanical and high-tech products during 2011-2015, reaching a total ofUS$2.5 trillion by 2015.The plan’s six major tasks include:New & Alternative Fuels for the Automotive Industry: Concerns over the boom in car ownership, with fuel andpollution worries growing, China is looking to clean-burning carsInformation Technology: China’s tech industry is accelerating and the number of professionals skilled enough totake on demanding IT jobs is low. To keep up with its neighbours Japan and South Korea, China will attempt topump resources into multiple facets of its IT sector.Biotechnology: An obvious choice given the agricultural and medical needs of a massive populace, the biotechsector will see considerable funding over the next five years.High-End Manufacturing: Following the general resolution that aims to “green up” the production of consumergoods, Chinese companies and foreign entities with manufacturing centers in China will be increasingly pressuredto improve their manufacturing standards.New Materials: A vague-sounding pronouncement, which covers the fabrication of advanced composites andnext-generation building materials designed to reduce the environmental impact of growing China’s basicinfrastructure.New Energy: Development of nuclear, wind, solar and biomass energy production.Environmental Protection: China aims to change its reputation as one of the globes least environmentallyconscious nations by pouring resources into national recycling programs, emission reduction and a more robustenvironmental protection apparatus.
    48. 48. Chinas development goals for 2015
    49. 49. China’s Renewable Manufacturing Sector• China’s policy is to undercut the market for solar cells and wind turbines in developed countries with inexpensive labor. A Chinese wind, turbine, for example, is one third the cost of one manufactured in Germany or Spain.• China is now the world’s largest manufacturer of wind turbines and solar panels.• China is the world’s largest exporter of rare earth minerals, which are needed in the manufacture of these renewable technologies as well as in hybrid vehicles, cell phones, and energy efficient light bulbs.• China supplies about 95 percent of the global market for rare earth minerals• High-technology manufacturers are finding it difficult to operate anywhere but in China due to China’s tightening of rare earth supplies and creating higher prices through heavy taxes and other export controls.
    50. 50. China’s ServicesWhat is the Tertiary Sector?
    51. 51. Tertiary sector.
    52. 52. Tourism
    53. 53. Police services
    54. 54. Medical
    55. 55. Education
    56. 56. Internet
    57. 57. Mobile phone industry.
    58. 58. Power as we know it is changing in two fundamental ways:1. Power transition: change in power amongst states, power moving from west to east2. Power diffusion: power moving from all states to non state actors; NGO’s, TNC’s etc.When looking at China’s future as a global power, we have to consider power by both of these definitions, not just in araw economic sense.1. PT: “Rise of Asia” very much a hot topic, but it should be called the recovery of Asia a. In the 1800’s more than ½ the world population lived in Asia, and Asia owned more than ½ of the world’s product b. In the 1900’s, the population distribution remained the same, however Asia now owned jus 1/5 of the worlds product c. What happened? Western Industrial evolution, but this raises the question, what will happen as Asia’s economic prowess reaches a par with its population monopoly once again?2. PD: Computing and communications costs have fallen 1000 fold between 1970 – C21 a. If the price of automobiles had fallen by the same degree, you could buy a car today for only $5 US b. This kind of decline reduces barriers to entry; what few could do in 1970, now anyone can do with ease c. Non governmental powers can be both good and bad: Oxfam vs. Al Qaeda, leading to new phenomenon’s such as the privatisation of war, e.g. Pearl Harbour
    59. 59. Power can be defined as the ability to affect other to achieve the outcome that you want; this can be harnessed in three ways: Threats aka Sticks Payments aka carrots Making others want what you want aka soft power1. PT: Rise of China and the fall of the US are considered synonymous amongst economic circles; however we keep getting it wrong, economists predicted that the 2008 financial crisis would be the beginning of the end for the USA, but they were wrong. The future is unpredictable, they could be wrong again. a. Goldman Sachs predicted that China’s economy would surpass the USA’s by 2027, but this could be very wrong: i. It is a linear projection, but history is not linear, little bumps along the way can produce big change ii. If 2027 does happen, it will be a measure of total economic size, but not per capita income iii. This projection is one dimensional; it doesn’t talk about the influences of military or soft power, it thinks purely in terms of economics which are liable to change by the influence of such power b. Some predict that C21 will repeat the history of C209 – WW2 was caused by the rise of German power creating fear in its rival nation states; how will Europe respond to China’s growing dominance? How will USA respond if China can not quash North Koreas growing threat – what if china becomes a bigger threat than North Korea?2. PD: can be perceived as a 3D chess game: a. Top board = military power amongst states – USA still dominant b. Middle Board = economic power – China becoming a front runner, USA an UK still highly influential c. Bottom Bard = transnational relations: climate change, drugs, pandemics – no one is in control
    60. 60. What is all the more astonishing, is that these projections were drawn upbefore the economic crisis of 2008; post crisis projections suggest the sameresult for as early as 2020. This is unprecedented on two levels China’s population is growing at 10% per year; with a growing population, never before has the worlds largest economy been that of a developing country For the first time, the world’s leading economy will not have western roots. The cultural heritage of china makes it a civilisation state; china is shaped by its culture, not as a nation state. Unlike the West, China is diverse, pluralistic and decentralised
    61. 61. 1. Key political values in china = unity, maintenance of Chinese civilisation and ancient culture a. Hong Kong is a key example of this. When China proposed the ides of 1 civilisation: 2 systems, the west were highly sceptical, but China has kept there word reflecting this civilisation state mentality b. Looking into the future and the way in which China will handle the “Taiwan Issue”, it is likely a similar system will be imposed2. The Chinese don’t view themselves as multiracial: over 90% of the population consider themselves Han descendants, and have a powerful sense of cultural identity a. This concept, reinforced by the government, creates a very positive relationship between the state and its people. IN the west, we see such authoritarian power as intrusive, too influential and something to b challenged and resented, in the East. The state is the patriarch of your average Chinese family b. There are some negatives however – there is almost as sense of Han supremacy, which is reflected in Chinese attitudes to the Tibetans to name but one example c. This all ;links back to the civilisation state idea; the Chinese do not challenge the state, as it preserves the culture they people wish to maintain – the west has almost lost its sense of culture and heritage; we can’t relate t this sense of self d. The state in China is ubiquitous i. The Chinese Grand Canal, 1114 miles from Beijing to Shanghai, 3 gorges dam; it is an expression of state competence:
    62. 62. 1. Civilisation State2. Notion of Race3. Relationship between state and societyWe try to understand China in western terms, but we simply can’t. Paul Coen said: “The west thinksof itself as the most cosmopolitan of all cultures, but it is not. In many ways it is the most parochial”The west has been so dominant for the past 200 years that it has never needed to accept andunderstand other cultures. Other cultures have been forced to understand the west as we haveforced ourselves into other cultures. These are the cosmopolitan countries: the countries of the East.What will be the consequences of this in terms of China’s growing position as a world power:1. The West will loose its influence: Just look at Copenhagen, for the first time again in 200 years, Europe was not at the final negotiating table of a major global affair2. World will become “strange”, our time of cultural dominance is over, and we, the arrogant west, will be taken by surprise
    63. 63. The groundwater of 90% of Chinese cities is polluted A prolonged bout of heavy pollution over the last month, which returned with avengeance for a day last week – called the "airpocalypse" or "airmageddon" by internet users – has fundamentallychanged the way that Chinese people think about their countrys toxic air. The event was worthy of its namesake. On one day, pollution levels were 30 times higher than levels deemed safe by the World Health Organisation (WHO). Flights were cancelled. Roads were closed. One hospital in east Beijing reported treating more than 900 children for respiratory issues. Bloomberg found that for most of January, Beijings air was worse than that of an airport smoking lounge.
    64. 64. • In 2012 China eclipsed America as the worlds biggest trader. New figures show that Americas imports and exports of goods amounted to $3.82 trillion in 2012, compared with Chinas $3.87 trillion• These figures count only trade in objects. If services are added, America retains its lead for the moment.• Chinas trade networks are spreading. The Associated Press says 124 countries count China as their leading trade partner.
    65. 65. • Cheap Chinese labour supplies developed markets with cheap goods which, to some extent, make up for stagnating wages.• This labour keeps the Chinese economic model humming by providing the foundation for growth. But how long can it last?• IMF economists Mitali Das and Papa N’Diaye, in a new working paper, reckon only about another decade.• The glut of labour peaked in 2010 and, as the population ages, it’s all down-hill from here. They estimated that if things stay as they are, China will reach the Lewis Turning Point between 2020 and 2025.• If China relaxed its one child policy and everyone there suddenly had lots of babies the Lewis Turning point might be delayed by a few years• Alternatively if there’s financial sector reform, interest rates will rise. In that case Chinese worker/savers will feel richer and may not want to work as much; this would speed up the turning point.• If using countries such as Hong Kong, Singapore, Taiwan and South Korea as a model, eventually you run out of cheap labour, reach a point of diminishing returns to adding more capital, and growth slows. Though living standards are much higher than they were before, these countries no longer grow as fast.• If China follows a similar path, consumer goods will cost more, though some low-skill jobs may come back to the west. China cant sustain its current rate of growth; the question is whether growth will slow before incomes have attained rich-world levels or while many have yet to benefit from the current development.
    66. 66. China voices: the professor of gender studiesAs part of our series offering a portrait of modern China, we ask ordinary Chinese people how they seetheir country. Lu Ying, 64, lives in Shanghai and is a lawyer and professor of women and gender studiesWhat has been the biggest change in China in your lifetime? And to your own life?In China, the biggest change would be the great economy development brought by reform and openingas well as social changes. Things like the life quality of citizens have been greatly improved, while peopleare estranged from each other. In the past 30 years, women in China have become more and moreconfident about themselves, especially the younger generation. Society as a whole has become moretolerant of women. The amendment to the marriage law in 1980 ensured womens property rights inmarriage, while in 2005, bills banning domestic violence and establishing civil compensation for spousescheating were added.The biggest change for me was the death of my mother last May, aged 96. Suddenly I realised I spend toomuch time on my work, which is typical among my generation. My mother, who was hard-working andkind-hearted, inspired me in many ways as part of the first generation of working women in China.What is your greatest hope or aspiration for yourself? And for China?I hope China can set up a more adequate legal system and I wish that it will not only develop itselfeconomically, but also in terms of politics and culture.Personally, I am a typical Shanghai woman with some petit bourgeoisie sentiments. I hope one day I canrun a cafe or live in the countryside, escape from my work, which has brought so much pressure, andenjoy the peace with books.What is your greatest fear?My greatest concern for the country is corruption. If the corruption problem cant be solved completely,the future of the country wont be bright. Even though the economy has been developing all these years,corruption will corrupt them all. Personally, I have no fears, currently.
    67. 67. China voices: the farmerAs part of our series offering a portrait of modern China, we ask ordinary Chinese people how they seetheir country. Song Huiran, 71, lives in Xiloudian village, Henan provinceWhat is the biggest change you have seen in China? And in your own life?Our country has solved the problem of starvation. Everyone has enough to eat. Our economy is strongand big. The financial crisis has not affected us much. I havent noticed any difference in village life,though some migrants have come back home. As individuals, we dont feel that we have got much richer.We dont have much money. The biggest change since I was young is the loss of water. I used to swim inthe ponds around our village, but they have all dried up.Whats your greatest hope for China and for yourself?I would like the government to provide more support to improve the environment in rural areas. Theyalways say that they treat the city and the countryside equally, but that is not the case when it comes tosanitation. We need more help from above. But I believe our country is generally following the rightdirection set by our party. We could see the power of China last year during the Olympics and in the waywe helped each other after the earthquake. Our country can be the greatest in the world.What is your greatest fear?My biggest concern is my wifes health. She has Alzheimers. She always supported me by looking afterthe farmland while I was out. But now, I must stay home and look after her. She has been sick for twoyears now. We have to pay all our medical bills ourselves. That is tough. Our income is very low. We earn1,000 to 2,000 yuan (£100-£200) per year from our farmland. They say there will be a new medicalinsurance system later this year that will help us, but I havent seen anything about it yet.
    68. 68.