Industrialisation of China

Mind Map by , created almost 6 years ago

Mind Map on Industrialisation of China, created by anndjan21 on 12/03/2013.

Created by anndjan21 almost 6 years ago
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Industrialisation of China
1 Industry
1.1 30 years - gone from mainly agricultural economy to strong manufacturing economy. 3rd largest economy in world after US + Japan.
1.2 % of GDP from agriculture fell between 1978 + 2004 from 30% to less than 15%
1.3 Same time - number of products manufactured increased rapidly e.g. 4000 colour TVs made in 1978 compared to 75 million in 2004.
1.4 Manufactures many products e.g. clothes, computers + toys. Lots of TNCs have factories there e.g. NIKE, Hewlett-Packard + Disney.
2 Cheap Labour
2.1 No single min wage - different all over country.
2.2 Makes labour much cheaper than other countries e.g. UK - min wage is £990 per month.
3 Long working hours
3.1 Chinese law - people only allowed to work 40 hours per week - maximum 36 hours overtime per work.
3.1.1 Not always enforced - e.g. manufacturing company, foxconn, - some of factory workers have done 80 hours overtime per month to maximise production.
4 Laxer health + safety regulations
4.1 Health + safety laws similar to other countries - not heavily enforced e.g. over past decade, 100s of factory workers treated for mercury poisoning despite strict laws on working with toxic materials.
5 Prohibition of strikes
5.1 Workers can strike but All-Chinese Federation of Trade Unions (ACFTU) - required by law to get people back to work quickly so productivity is maximised.
5.2 Illegal to join any other union than ACFTU.
6 Tax incentives + tax free zones
6.1 Special Economy Zones (SEZs) - offer tax incentives to foreign businesses.
6.2 Foreign manufacturers pay no tax for 1st 2 years in zone, 7.5% for next 3 years, then 15% then on. (Still half of usual 30% tax elsewhere in China.)
6.3 Shenzen - one of most succesful SEZs - $30 billion of investment by TNCs. Factories in Shenzen make products for companies like Wal-Mart, Dell + IBM.

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