GLOBALISATION: China's 1978 Open Door Policy

Question 1

what was China’s policy pre 1978?

Answer 1

China was not economically developed and politically isolation, ‘switched off’ from the global economy

communist leadership was seeing million of people die from famine

rural areas were extremely poor

Question 2

what were the changes made to China’s policy in 1978?

Answer 2

radical ‘Open Door’ reforms allowed China to embrace globalisation while remaining under one-party authoritarian rule

the one child policy (1979) helped to curb the increase in population

Question 3

what was China’s policy post 1978?

Answer 3

china’s transformation in to an industrialised nation gained rapid momentum

300 million people left rural areas and moved to urban areas in China
hukou was a registration system that prevented from rural villages emptying altogether

an urban mega-region of 120 million people has grown around the Pearl River Delta, including three cities (conurbation)

newly established Special Economic Zones along the coast promoted economic growth

400 million people said to have escaped poverty since the reforms began

Question 4

what are China’s Special Economic Zones?

Answer 4

SEZs have contributed 22% of China’s GDP, 45% of total national foreign direct investment, and 60% of exports. SEZs are estimated to have created over 30 million jobs, increased the income of participating farmers by 30%, and accelerated industrialization, agricultural modernization, and urbanisation

Question 5

how have government subsidies affected China’s economy?

Answer 5

government subsidies in industries such as coal allow it to reach significantly lower prices

in 2006 became the world’s largest exporter of steel and currently accounts for 40% of global production