A Survey of China
1.1. Geography
Zhonghua Renmin Gongheguo, the People’s Republic of China (PRC) is the world’s fourth largest country (after Russia, Canada and the United States) covering an area of about 9.6 million square kilometers and stretching from the temperate to subtropical zones.
In size and climate one can compare China with the United States, but its topography is quite different with more mountains and hills and a shorter coastline. These topographic features result in higher transportation costs and in a greater requirement for physical infrastructure construction. Hence, the economic development in China is more challenging than, for instance, in the United States.
However, the natural resources China is endowed with are favorable to its development. One cannot only exploit coal, iron ore, or natural gas, but China is also blessed with the world’s largest hydropower potential.1
1.2. Population
About 1.3 billion people (July 2004 est.) live in the PRC, with a population growth rate of 0.57% (2004 est.). The life expectancy at birth of the total population comes to 71.96 years (male: 70.4 years, female: 73.72 years, 2004 est.).
Moreover 90.0% of the Chinese population is literate, meaning that only 9.1% of the population of age 15 and over cannot read and write.2
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1 cp. Démurger et al. (2002), p. 8, CIA (2005), and Table 1
2 cp. CIA (2005), and Table 1
Table of Contents
1. A Survey of China
1.1. Geography
1.2. Population
1.3. Government
2. The Economic Policies in China
2.1. The Central Planning Period (1949-78)
2.2. The Market-oriented Reforms Period (since 1978)
2.2.1. The Establishment of Special Economic Zones
2.2.2. The Establishment of Economic and Technological Development Zones
2.2.2.1. Characteristics of Economic and Technological Development Zones
2.2.2.2. The Economic Development in Economic and Technological Development Zones
2.2.2.3. Qinhuangdao Economic and Technological Development Zone
2.2.2.4. The Impacts of Economic and Technological Development Zones on the Chinese Economy
3. Critical Analysis of China’s Opening Up Policies and the Economic Situation in China Today
Objectives and Key Themes
This paper examines the evolution of China's economic policies, specifically focusing on the transition from a central planning model to an export-oriented economy through the implementation of Economic and Technological Development Zones (ETDZs) to facilitate modernization and international integration.
- Historical overview of China's economic phases since 1949.
- The rationale and strategic function of Special Economic Zones and ETDZs.
- Analysis of economic incentives used to attract Foreign Direct Investment (FDI).
- Case study of the Qinhuangdao Economic and Technological Development Zone.
- Evaluation of the broader impacts of development zones on the Chinese national economy.
Excerpt from the Book
2.2.2.1 The Characteristics of Economic and Technological Development Zones
A state-level ETDZ is a relatively small piece of land carved up in coastal or other open cities. The total area of the 54 ETDZs is about 400 square kilometers, equal to 0.004% of the total area of China.
To strive for a fast and sound development ETDZs adhere to the policy of mainly developing the high-tech industry, focusing on industrial projects, absorbing foreign fund, and building up an export-oriented economy. Thereby, they serve as windows and bases in the fields of opening-up, capital attraction, export enlargement, high-tech development, and regional economic promotion.
To be a focus for FDI a multitude of incentives are granted to foreign firms: The corporate income tax levied on foreign investing firms is set at a flat rate of 15% for productive enterprises and at a rate of 30% for non-productive enterprises. (That is the lowest income tax rate of enterprises in China.) Foreign export-oriented enterprises with an export value of more than 70% of its output level are collected income tax for 10%. Financial institutions with foreign operation capital above US$10 million and an operation period of 10 years or more hand in income tax for 15%.
Chapter Summaries
1. A Survey of China: This chapter provides a foundational overview of China's geography, demographic structure, and political system as the context for its economic transformation.
2. The Economic Policies in China: This chapter details the transition from the restrictive central planning period to the market-oriented reform era, highlighting the strategic role of various development zones.
3. Critical Analysis of China’s Opening Up Policies and the Economic Situation in China Today: This chapter evaluates the gradualist approach to reform and assesses current challenges and future economic prospects for the People's Republic of China.
Keywords
People's Republic of China, Economic and Technological Development Zones, ETDZ, Special Economic Zones, SEZ, Foreign Direct Investment, FDI, Economic Reform, Industrialization, Export-Oriented Economy, International Trade, Qinhuangdao, Economic Policy, Regional Development.
Frequently Asked Questions
What is the core focus of this seminar paper?
The paper focuses on China's transition from a centrally planned economy to a market-oriented model, specifically examining the establishment and impact of Economic and Technological Development Zones (ETDZs).
What are the central themes addressed in the text?
Key themes include the shift in policy since 1978, the role of FDI, government-led industrialization strategies, and the regional impacts of opening up to international markets.
What is the primary objective of the research?
The objective is to analyze how ETDZs have functioned as 'windows' for technology transfer and capital attraction, and to evaluate their effectiveness in promoting economic growth in China.
Which scientific methodology is applied?
The study utilizes a descriptive and analytical approach, synthesizing historical data, economic reports, and statistical indicators to evaluate the effectiveness of the development zone strategy.
What is covered in the main body of the work?
The body covers the historical phases of economic policy, the specific characteristics and incentives of ETDZs, a specific case study of Qinhuangdao, and a critical analysis of the current Chinese economic environment.
Which keywords best describe the work?
The work is best defined by terms such as Economic Reform, FDI, ETDZ, Industrialization, and International Trade.
Why were the ETDZs established in the early 1980s?
They were established to build on the successful experiences of initial Special Economic Zones, aiming to further open the country by attracting high-tech industries and foreign capital to coastal regions.
How does the author characterize the Chinese approach to economic reform?
The author describes it as a "gradualist approach," comparing it to building a "new road" alongside the old one to test market-oriented rules without risking immediate systemic collapse.
- Quote paper
- Elisabeth Herrle (Author), 2005, China's Policy of Opening Up to the Outside World - The Economic and Technological Development Zones, Munich, GRIN Verlag, https://www.grin.com/document/41943
