completed bcomm report

8/6/2019 Completed Bcomm Report

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Ngee Ann Polytechnic

Industrialisation in

ChinaManufacturing industry in China


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A Report on Industrialisation of China

Prepared for:

Mr Lim Kok Chan

Minister

Ministry of Social Affairs

Prepared by:

Seah Joel

Teo Guang Wei

Lim Jia Ying

Rachel Yap

March 31 2010


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Table of Contents

1. Executive Summary...............................................................................................................................4

2. Purpose of Report ................................................................................................................................. 6

3. Scope of Report ..................................................................................................................................... 6

4. Research Methodology.........................................................................................................................7

5. Limitations of Research ........................................................................................................................7

6. Findings ..................................................................................................................................................8

6.1 China, The Factory of the World .................................................................................................... 8

6.2 Impact on the Economy....................................................................................................................13

6.3 Impact on the Environment .............................................................................................................15

6.4 Impact on the Culture of the Chinese Nationals ............................................................................19

6.5 Impact on Population of China ........................................................................................................22

7. Conclusion ...........................................................................................................................................29

8. Recommendations ..............................................................................................................................30

9. Appendix ..............................................................................................................................................32

A : Questionaire in both English and Chinese .......................................................................................32

Questionnaire.................................................................................................................................32

B : Outline of entire China economy......................................................................................................35

10.2 List of Illustrations...........................................................................................................................42

10.3 References .......................................................................................................................................43


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1. Executive Summary

Issue

Chinas uprising economy has been creating major impacts on the following areas

namely, Economy, Environment, Culture, Population and also views of people on

this industrialisation boom.Having such huge industrial processes in China may bring

about much wealth and reputation but there must be no ignorance of the side effects

this quick boom in the economy can cost.

Like a medicine with side effects, the manufacturing industry rise can heal Chinas

poverty in several provinces and can also help China to grow as a nation to compete

globally. This would also give the citizens a better life.However, like the side effects

of this medicine, with this rise comes about problem with the population increase and

also global environmental problems. These become huge deficiencies if not dealtwith at an early stage thus leading us to our purpose of this report.

Purpose

This report seeks to find out how industrialisation affects these several areas of

China and what can be done to further improve them or to salvage the current

situation.

Scope and Limitations

As Chinas industrialisation is such a vast topic, the scope of the report would

basically be on how Chinas manufacturing industry affects the factors named above.

However, there are limitations as research is done on China as a whole scale, thusto zoom in on provinces and cities profiles would be hard . For example, impacts on

Shanghai and Suzhou specifically would be hard to be accurate as compared to the

whole scale of China. At the same time, surveys would only be based on the people

of Shanghai and thus not full opinions can be taken from all the people of China thus

decreasing the accuracy of the information.

Consideration, analysis, decisions

31 surveys were conducted near the Shanghai University have been thoroughly

analyzed and spoilt surveys were taken as disregarded.

In the research done China, the factory of the world, it has been concluded that the

local brands never hit the Europe market and in comparison with foreign brands,local brands were not as popular. The final analysis was that China was not the

factory of the world but more like the factory for the world as products were made for

foreign companies. In order to curb this problem and improve Chinas branding


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goods as a whole, more local entrepreneurs should be encouraged and the law

could possibly be adjusted to allow younger people to venture out on business.

With an early start, these locals could possibly craft out products so creative and

useful, it might break out of the Asia market and take off to Europe . Mr Edmund Yip,

founder and manager of many hotels in Asia, has retired and also dreams to create a

local brand which breaks out of the Asia market .

In the research done for Impact of Environment, we can see that the rapid

industrialization indeed have a vast impact on the environment. The pollutants

emitted by the factories polluted the air; water used and disposed by the factories

polluted the rivers and streams. The booming industrialization in China worsens the

condition of the environment although it boosts the economy.

Water pollution is often a result of irresponsible behaviours practiced by the

manufacturing industries. This problem can be easily dealt with as compared to airpollution. One way is that government can consider offering tax incentives for

factories employing proper waste disposal methods. By offering tax incentives, it will

definitely force the factories to make it a point to dispose the waste properly. The

government should also build necessary infrastructures needed for factories to

dispose their waste materials with ease and convenience.

In the research done for Impact on the Culture, it has been concluded that the

locals are consuming more meat as they get richer. Globalization from the rise in

manufacturing industry has made the locals obtain new westernized behaviours,

such as setting up of pubs and bars and enjoying eating western food. Another

analysis is that this globalization has helped to wipe out Ching-lish(China spoken

english) in some parts of China, which is a good start of the government to make

China become a better culture country. Lastly, the manufacturing industry growthhas led to a dilution in the value of filial piety, and this matter should be treated

seriously as we do not want this traditional virtue to get diluted as China modernized .

In the research done for Impact on Population, it has been concluded that one child

policy affects the population growth the most as compared to the other three factors

aging population, social status of working women and urbanization. In addition, we

also found out that all the four factors complements and indirectly caused each factor

to arise. The government played a huge role in causing the decrease in the

population growth. This caused the birth rate to be less than the death rate resulting

in the aging population. Statistics have shown that in 2008 the birth rate is 12.14%

and the death rate is 7.06%.

Many of the respondents claimed that they know that China is facing aging

population.However, as far as we are concerned, they only know about the crisis but

not the consequences of it.


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Several consequences have been derived from our findings and some of which

include,if china does not cope with its aging population,there would be a slow down

for the future generation as it burdens both the young and the nation.

Also,due to enviromental issues the country may have a change in climate and it

would definitely affect the mood and morale of the people in the nation thus

jeopardizing everyones working abilities.

Some important reccomendations are as follows,there could be education for woman

to be learn to work and stay at home to take care of the family as well.Children

should also be enriched with the chinese value of fillial piety.

There should be a polluter pay policy.Large manufacturing companies must still bind

by rules by reducint the by products they emit out each day and also wrong disposal

of industrial by products should be strictly prohibited and heavier fines should be

given.

Even if there is a possibility that such reccomendations might slow down the

economy growth,it is inevitable that they have to be executed in one way or another

as the social effect on the people would be for a long term.

Placing the economy and people of China on a balance scale,it is easy to notice that

people make out the country and without people and the country,there would be no

need for economy thus these effects have to be reduced and the good enviromental

policies like encouraging renewable shopping bags have to be kept for the goodwill

of the enviroment and the people.

2. Purpose of Report

The purpose of the report is to try to find solutions for problems in the negative

impacts of large scale manufacturing in China and improving the positive impacts of

it on the several areas.

3. Scope of Report

In this study, we collected and analyzed statistics on the manufacturing industry of

China and how it impacted the economy, environment, culture and population .

We did not research on the whole industrialization boom in China or the impact onpolitical issues or system.


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4. Research Methodology

Our group seeks to analyze the perspective of the people living in China about their

views about fast moving industralisation in China over 5 different issues respectively .

The 5 issues are China, The factory of the world, Impact on Economy, Impact on

the Environment, Impact on the Culture of the Chinese Nationals and Impact on

Population of China.

It is important to collect primary data due to the limited information the secondary

data can provide. These limitations would be discusses in each section where each

data collection method is explained in detail. Our group has decided to use surveys

and focus group in our primary data collection . The rationale, process and outcome

for each data collection method will be explained later in the findings .

The secondary sources we have found in our findings have failed to provide us with

the first hand locals views on the booming industrialization in China.

Our survey includes 17 questions, however we have 5 issues, thus on average each

issue have three questions. Being in Shanghai, we have conducted our survey near

the campus hostels, thus our interviewees are mainly those residing around the

campus, students as well as teachers of the university. Out of the 30 interviewees,

95% of them are students with an age group of 18-26 and the rest are working

adults. In addition, 90% of them are males and 10% are females. With a combination

of multiple choices and open ended questions, we provide the interviewee with

flexibility in their answers and an opportunity to express their opinions. Furthermore,

we translated the questionnaire into Chinese so that the interviewees can respond at

ease.

The purpose of doing so is such that we will be able to obtain a range of results and

make our survey results to be of higher accuracy. To ensure the validity of the

results, spoilt surveys are disregarded. The survey questionnaire can be found in the

Appendix.

5. Limitations of Research

Credibility of Chinas statistic

Volumes have been written on faulty Chinese statistics. None of the governments in

the West and media barons in particular ever dared to question the statistic .China

herself has a tight lip to the credibility of the national statistics given out .However,we

cannot neglect the fact that it is possible that there might be some faulty statistics


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recognized No. 1 national brand has refused to act as an OEM manufacturer. But

its 2002 revenue amounted to only 10% of Sonys. And the combined profits of all 20

Chinese TV makers are less than that of Sony (Ying, 2005: P. 30)

It seems that China indeed serves as a factory of the world but only the factory for

the world and not a successful one for local brands.

Why China became the factory of the world

Our team has pondered why China as a 2nd tier country could become the factory of

the world.

Reasons are as follows:

y Continually increasing manufacturing prowessy Significant cost advantages (beyond just labor cost)y Good, repetitive qualityy Worldwide market-share 50% of cameras, 30% of air conditioners and

televisions, 25% of washing machines, 20% of refrigeratorsy One private Chinese company makes 40% of all microwave ovens sold in

Europey The city of Wenzhou, Eastern China produces 70% of the world's metal

cigarette lightersy Wal-mart Buys $18 billion from China, providing a direct link to the US

consumer

Summarizing all the reasons, we see that they enter China because its too costly to

produce in their own country but in China they can make use of the low labour cost

and materials. The huge Chinese domestic market also serves as an attractive

factor.

Products Current Price (Yuan)Price Changes Over

Previous Period(Yuan)

Growth Rate

1.Coal

Anthracite Coal 6.1 1.5

Anthracite Coal 427.2 6.1 1.5

Bituminous Coal 0.1 0.0

Coking bituminous coal 593.0 0.3 0.1

General bituminous coal 384.9 -0.1 0.0

2.Crude Oil

Natural Crude Oil 0.0 0.0

Natural Crude Oil 3480.1 0.0 0.03.Product Oil

Gasoline 0.0 0.0

Gasoline for 93 # Automobiles 6171.3 0.0 0.0

Gasoline for 97 # Automobiles 6547.3 0.0 0.0


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98% 262.8 0.2 0.1

Caustic Soda (Sodium Hydroxide) 17.4 1.2

100% Solid 1752.7 21.0 1.2100% Liquid 1320.4 14.4 1.1

Ethene 0.0 0.0

Ethene 7258.3 0.0 0.0

PVC Resins 48.4 0.8

Shrinkage 6508.9 48.4 0.8

Petroleum Asphalt 33.9 1.2

Road Asphalt 3059.3 71.9 2.4

Building Asphalt 2692.3 0.0 0.0

8.Cements

General Portland Cement -0.2 -0.1

Intensity Level at 32.5 263.9 -1.2 -0.5

Intensity Level at 42.5 300.3 0.9 0.3

Intensity Level at 52.5 382.7 0.0 0.0

As show by statistics, the manufacturing industry of China has become enormous

and still growing.China product development is escalating at an unimaginable rate

as compared to any other nation. At current point of time, the Chinese have huge

production plants mainly in the telecommunication and computing related products

and in the production of electrical products.

At early stages of Chinas introduction to foreign investments, enterprises withforeign funds were virtually not allowed to sell their products in the domestic market . Article 3 of the Law of the Peoples Republic of China on Foreign-Capital

Enterprises, taking effect on April 12

, 1986

, says:Enterprises with foreign capital shall be established in such a manner as

to help the development of Chinas national economy; they shall useadvanced technology and equipment or market all or most of theirproducts outside China.

However, China revised the law on Oct 31, 2000, and the same article was amendedto read:Foreign-funded enterprises shall be established in such a manner as to help the

development of Chinas national economy. The state encourages the establishment

of foreign-funded enterprises that export their products or have advanced

technologies.

As from then, foreign investors have been rushing in to tap on this gold mine, China .

Chinas level of industrialization and strength of manufacturing

According to a worldwide accepted standard, a country only gets considered

industrialized if they fulfill the following criterias:


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1.

gri ultural

alue-added a

ount for le

than 15 of the D ;2.

plo

ent in agri ulture i redu ed to le than 20% of the total; and

3.

rban population ri

e

to 60% of the

hole population (

en and Wang, 2003) .

hina had not

et all of the e riteria in 2004 and in 2010;

hina i no la

ified

a

a

I

, ne

l

indutriali

ed

ountr

.

Country

GDP(PPP)

(Millions of

USD,

2008IMF)[7]

GDP

per

capita(USD,

2008IMF)[8]

GDP per

capita (PPP)

(USD,

2008IMF)[9]

Income equality

(GINI)2006[10]

Human

Development

Index (HDI,

2007)[11]

GDP

(real)

growth

rate

GDP (real)

growth rate

per capita

B azil[2][3][4][5]

1 981 207 8 197 10 326 54 0 813 (hi

h) 5 70 4 50

hina[3][4][5]

7,916,429 3 315 5 963 44 70 772

(medium)11.10 9.95

India[3][4][5]

3 288 345 1 016 2 762 32 50 612

(medium)9 70 7 02

! ala" sia[3][4][5]

384 119 8 141 14 072 49 2 0 829 (hi

h) 5 40 3 65

! e#

ico[2][3][4][5]

1 548 007 12,235 14,560 46 3 0.854 (hi

h) 3 00 3 30

$ hilippines[2][3][4][5]

320 384 1 866 3 546 44 50 751

(medium)7 50 7 40

Sou%

h Af ica[3][4][5]

492 684 5 693 10 119 57.80 683

(medium)4 50 4 92

& hailand[2][3][4][5]

546 095 4 115 8 225 420 783

(medium)4 40 3 93

&

u

ke"

[3][4][5]

915

184 10

472 13

138 38 0

806 (hi

h) 5

20 4

10

*'

he abo(

e table)

a0

adapted fro1

Wi2ipedia

(http://en.wi 2 ipedia.org/wi 2 i/Newl3

_indu0

triali 4 ed_5

ountr3

)


13/45


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sector has done a whole lot of good to the economy and helped China improved in

its military power and ability for growth.

The economy has improved visibly since 1994 where the manufacturing sector grew .

As seen in the sales of consumer goods in November2009, the national bureau of

China claims that total retail sales of consumer goods reached 1,133 .9 billion Yuan.

In the first eleven months of this year, the total retail sales of consumer goods were

11,273.3 billion Yuan. It maintained the same level over that in the first ten months of

this year.

In different geographical locations, the retail sales in cities reached 760.6 billion

Yuan in November, up by 16.5 percent, and the retail sales at and below county level

stood at 373.3 billion Yuan, up by 14.4 percent.

Grouped by different sectors, in November, the sales by wholesale and retail

businesses reached 957.3 billion Yuan, up by 16.4 percent. By adding lodging andcatering industry was 157.5 billion Yuan, up by 14.4 percent, others 19.1 billion

Yuan, up 1.6 percent.

Grouped by commodity categories, the sales of grain and oil went up by 14.5

percent; meat, poultry and eggs up by 6.8 percent; clothing, up 25.8 percent; articles

for daily use, up 16.5 percent; household appliances, music and video equipment, up

24.9 percent; motor vehicles, up 61.5 percent; petroleum and products, up 16.4

percent; building and decoration materials, up 43.3 percent.

At the same time, the manufacturing industry which heightens Chinas economy so

much also affects the global economy. A massive shift in economic power is under

way. A tenfold surge in high-quality Chinese imports at below US manufacturing

costs is changing the landscape. In the US, the message is loud and clear cut yourprice at least 30% or lose your customers (Adapted from the article, The China

Challenge).

A new book, "The Chinese Century" has a clear message: If you still make anything

labor intensive, get out now rather than bleed to death. Shaving 5% here and there

would not work. You need an entirely new business model to compete.

The global economy have shifted position all due to Chinas booming economy due

to the manufacturing sector.USA starts to worry about prices and its own economy

and military defences. Even though USA is much ahead of China in technology and

many other fields, China is significantly catching up on all of them, thus pressure is

created on many countries economy. Below are two graphs showing the comparison

of China and USA .The G7

P percentage growth and the disposable income growth.Both indicated the predicted possible rise of China over USA in economic terms .


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(h8 8

p 9 //wo @ ld A neB

8

vie8

nam A biz/2009/china-vs-usa-as-a-wo@ ld-supe @ powe @ -in-focus/)

C

ll in all, theD

uper riD

e in the E anufa F uturingD

e F tor haG

e helped the lo F al F hina

e F ono E H riD

e up E oD

tl H and alD

o pla F ed i E E enD

e preD D

ure on otherD

.

6.I

P mp Q ct o R theS

R viro R me R t

Poll T tion

Diagram below shows the statistic from the survey result


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According to the survey we carried out, we can see that industrialization has affected

air pollution the most, at 68%, followed by water pollution at 29%, and lastly land

pollution at 3%.

Water covers 71% of the Earths surface, but only 0.6% is drinkable and can be

found at rivers, lakes and ponds. As water is a vital and essential resource for all life

forms to survive, it is necessary to examine the negative repercussions brought

about by industrialization on the Earths water bodies. In Shanghai where

industrialization is taking place at an exponential rate, her citizens are beginning to

feel the impacts brought about by industrialization on their water bodies .

From the survey conducted by the World Watch Organization in 2005-06, it is found

that about 18% of chemical and petrochemical projects are located near clean waterbodies. One of the reasons why these plants choose to locate there may be due to

the ease of transporting bulky materials through the use of water transports. There

may also so be hidden agendas in saving costs. Instead of using proper disposal

methods in their waste management, they may seek cheaper alternatives such

employing illegal dumping methods, causing rivers and streams to be polluted. This

is evident from the fact that 1 out of 5 water sources do not meet the requirements

for sale drinking water in Shanghai.

In China whereby the availability of clean water sources is already an issue, effects

caused by water pollution will only exacerbate the situation even further. With 76

pollution accidents occurring nation-wide, it is not surprising that China faces a lack

of suitable water needed for agriculture and drinking . It is important to note that not

all of these accidents are reported to the appropriate authority.Hence figuresprovided by the State Environmental Protection Administration (SEPA) may not

necessary be accurate. Current situation may be far worse than the reported figures.

Although one may argue that 76 accidents within a year may be insignificant for a

large country like China, one must also measure and look at the extent of problems

68%3%

29%

Wh ch e ndus z n h s

ffec ed he m s ?

Air Pollution

LanU Pollution

Water Pollution


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caused by an accident. For instance, a contamination on Songhua River has

resulted in the cutting off of water supply to 3.8 million people for four consecutive

days.

In suggesting solutions to deal with the water pollution in Shanghai, we must

recognize the various economic benefits that industrialization has brought about.

These benefits mean that we cannot totally abolish industrialization even though it

has indirectly caused harm to our natural environment. Industrialization and

environmental protection must co-exist as this will ensure sustained economic

growth for China in the future. It is not possible for a country to achieve economic

growth if her citizens fall sick on a regular basis.

Water pollution is often a result of irresponsible behaviours practiced by the

manufacturing industries. This problem can be easily dealt with as compared to air

pollution. This is because even the most efficient manufacturing industries will emit a

certain amount of gaseous pollutants detrimental to the environment.Hence, there isa need to limit the emission of greenhouse gases as well as harmful air pollutants .

According to the survey conducted, the results are as follow, the traffic congestion is

the highest at 48.39%, follow by poor air condition at 32.26% and lastly dumping of

waste at 6.45%.

The traffic congestion shows that there are too much cars in China . With the large

amount of cars on the road, naturally, the air condition of Shanghai is greatly

affected.H

ence the result of the locals being affected more by the traffic congestionthan the poor air condition in Shanghai.

With rapid industrialization, the number of car ownership in China has risen

significantly, ahead of countries like America and India. This coupled with pollutants

48.39 V

32.26V

6.45 W

0.00 V

10.00 V

20.00 V

30.00 V

40.00 W

50.00 W

60.00 W

TrafficX Y

gestiY ` a Y Y

rb

ir X Y ` c itiY

Dd e f

i g Y f g aste

Wh ch f hese ffec y u fes y e he

m s ?


18/45

emitted by factories has resulted in hazy air conditions in Shanghai and other parts

of China. Surveys conducted by SEPA have shown that more than 40% of Chinas

cities are severely polluted. Apart from gaseous pollutants, the amount ofgreenhouse gases emitted has also reached a record high of 18.57 million tons in

1999. These figures provided by the SEPA are valid as of 1999. Today, more than

ten years after the survey had been conducted; accurate figures should be higher

than what had been stated.

This is evident from the fact that many Chinese are experiencing respiratory

problems due to the polluted air. The World Health Organization (WHO) has

projected an annual death rate of about 650,000 Chinese citizens due to air

pollution. This does not take into account of the long term health effects (such as

cancer) experienced by the locals. Further, the air pollution in China has also

resulted in the spread of acid rain. Statistics has shown that 3 out of 10 areas in

China are experiencing by acid rain. Eventually, this will have adverse impacts onthe aquatic life and natural vegetations in China. China will lose her flora and fauna if

air pollution is left uncontrolled.

As Chinas industrial capacity grows to meet the increasing needs of her people, her

energy consumption will definitely rise.Hence, it is not possible to reduce pollution

through reducing energy usage.However, China can develop more renewable

energy sources such as solar, hydroelectric and nuclear energy to combat air

pollution. For instance, the Three Gorges h am completed in 2009 has generated

100,000 kilowatt per hour of power annually. This aptly shows the significant

advantages brought about by renewable energy.

Government Measures

China has been making attempts to form regulations and implement policies to curbthe negative impact on the environment caused by industrial wave. Some of theattempts have been unsuccessful. Importantly the measure that government istaking is highly insufficient relative to the size of economic growth.

State Environmental Protection Administration (SEPA)SEPA was formed as a national entity to disseminate national environmental policyand regulations, collect data and provide technological advice on both national andinternational environmental issues. China has adopted a model of "CleanerProduction" and has also made several other attempts to reduce air pollution . Butoverall success in curbing the air pollution has not been attained .

Innovative transportation systemIn 1999 municipal government ordered city vehicles to convert to liquefied petroleumgas and natural gas to reduce air pollution in Beijing . By 2002, Beijing had 1630vehicles using natural gas which is the largest fleet of natural gas buses in the world .Subway and light rail systems also are being expanded in Beijing .


19/45

Effort to reduce coal consumption and reduce greenhouse gases

China has accelerated the development of natural gas and coal bed methaneinfrastructure to increase the number of combined heat and power plants, addingapproximately 3,000 megawatts (MW) of hydropower annually.

China is attempting to implement strategies for energy efficiency and conservation,clean energy supply and reforestation. These results in reduction of energy costsand reduce local pollution, while reducing carbon emissions.

Government is trying to increase energy efficiency by reducing coal and petroleumsubsidies. Government has been promoting less energy intensive services andhigher value-added products and also encouraged the import of energy intensiveproducts.

Government has introduced a tax on high-sulfur coals are also aiming to phase out

coal from the city center have established 40 "coal-free zones," in Beijing.Government is also planning to construct natural gas pipelines. Similar efforts aretaking place in other major Chinese cities.

Renewable Energy

China is hoping to carry out multi-million dollar renewable energy strategy withassistance from United Nations and the United States to combat pollution. Chinesegovernment is planning to harness wind energy concentrated in the northern andwestern regions of China, and the coastal areas.Government is also aiming to utilize solar energy which can cover small-scale usesof energy.Hydropower will be China's dominating renewable energy in the next decade,particularly with completion of the 18.2-gigawatt Three Gorges

i

am project in 2009.By 2025, the share of nuclear power used for China's electricity generation is

expected to increase to 4% from present little over than 1%.

Future Endeavours

China's future priority will be to treat wastewater, prevent air pollution and improve

environmental monitoring systems. There are a number of policies that the State

Environmental Protection Administration is considering. Adopting the "polluter pays"

principle and allowing for accumulation of funds for pollution abatement are currently

policies being enacted. Future Chinese environmental initiatives may also include

formulating a tax structure beneficial to environmental protection, and granting

preferential loans and subsidies to enterprises that construct and operate pollution

treatment facilities or produce environmentally friendly products.

6.4 Impact on the Culture of the Chinese N ationals

Being a country with over five thousand years of history, China has a set oftraditional cultures that are being passed down. The culture includes some values

like being unselfish, having filial piety and being conservative . These values are

viewed as the good moral values by the Chinese and they form the traditional

Chinese culture in our modern world.


20/45

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an t t t pe q ofr

eat andv

egetable q . w he s ulture of eating ha q s learlt

s hanged dra q ti s all t a q in the pa q t, q u s hr

ealq are onl t prepared onv

ert q pe s ial

os s

a q ion q .

Westernisation in

lt re

w

he riq

e inr

anufas

turing induq

trt

haq

brought about globaliq

ation, and foreignerq

q tarting s o

r

ing into x hina to woru

and trav

el. w hi q i q q upported b t the q urv

e t whi s h

we had s ondu s ted, and the re q ult q q how that the 71% of the people agreed and

q trongl t agreed that ther

anufas turing indu q trt had led to an inflow of foreignerq into

x hina.

13

58

16

13

How fa do you ag ee that the inflow of

foreigners ha e diluted the Chinese culture?

St ongly Ag ee

Agee

isag ee

St ongly isag ee


21/45

When foreigners come to China, intercultural interactions would occur between the

locals and the foreigners. Among these foreigners, many of them come from Europeand American. After frequents interaction with these people, it is clear to say that the

people in China had preferred and adopted some part of the western culture way of

life. One aspect the locals have preferred would definitely be the nightlife of the

westerners. The street of in Tian i, Shanghai is filled with bars and clubs, and the

famous Luna club shown in the Picture B in the list of illustrations is just one of

many clubs.

This shows the clear change in the culture of the local Chinese as the traditional

Chinese culture is conservative and would definitely disapprove of clubs where

people dance and have close contact with each other. This shows that there is a

change in the conservative culture of the chinese people and they are now more

willing to open up and start t accept the culture of others .

Rise in Western Fast-Food Empire

As China experiences globalization, many organizations are keen to set up their

company in the giant market. Two of these organizations are fast-food organization

from the United States, the KFC and Mac onalds. An extensive focus group studies

of Chinese consumer gives a common result: 'We come to you because you are a

Western brand, if we want to rice or congee we can eat at home or in Chinese

restaurants, we want to sample the Western brand,' However, the locals had clearly

expressed their interest in these western food as not just sampling, but liking. In the

year2008, there are already 2200 KFC and 970 Mac onalds fast-food chain

located all over China. The two enterprises had been very successful in penetrating

the giant economy and expanding so well within 20 years of time.

This shows that there is change in culture between the older generation and the

younger generation in China. China is a nation that has taken pride in the delicacy

and diversity of a cuisine which dates back thousands of years, and in order to have

expanded so well in China, these fast-food chains must have had the support of the

younger generation. This westernised effect on the younger generation have made

the young people in China enjoy eating Western food, rather than the traditional

Chinese cuisine which comprises mainly of rice, vegetables and meat.

Dilution ofFilial Piety

One negative effect of the manufacturing industry has on the traditional Chinese

culture is that it diluted the value of filial piety. Filial piety is deem to be the mostimportant value in the Chinese culture as everyone is taught that we should respect

our elders and takes good care of them when they are still alive .However, by

working in the factories, this means that the workers would probably have to leave

their parents and live either in the hostel of the factory or living nears the factory .


22/45

This clearly illustrates that the filial piety value is already diluted as how can one

possible take good care of their parents if they are living far away from them?

On the contrary,there is the monetary compensation which many families do

need.To the citizens,it is a golden opportunity to be out of town to work for a better

pay and thus they grab each of these chances. It is a controversial social issue but

nobody can judge except the fear of forgetting this precious and important chinese

value.

Wiping out Chinglish

Since 1987, when China started opening up to the world, the manufacturing industry

has helped to play an important role in the globalization effects . This globalization

effects has brought in many foreigners into China and the usual method of

communication between the foreigners and locals is by speaking English.However,

many people in China do not speak proper English, as they translate the languagedirectly from the Chinese language and often the meaning of the sentence is totally

changed. Pictures 3-6 in the list of illustrations are some examples of the local

Chinglish which are direct translation from the Chinese language.

As show in the pictures, some of the direct translation may not only change the

meaning of the sentence but may be offensive as well. As globalization continues,

more foreigners would come to China and there is a need for China to wipe out such

culture practices in order to become more presentable to the world . This shows that

the manufacturing industry can lead to a good change in the Chinese culture, as the

English standards of the locals will be improved over time.

Future

As China continues to experience globalization, it is important to make sure that the

Chinese culture gets preserve along the way.However, as we can see above, some

parts of the Chinese culture such as the Chinglish ought to be eradicated in order to

make China more competitive in the world.As China seeks to be the world largest

economy by 2026,negative habits have to be eliminated to reach a world class

standard.

6.5 Impact on Population of China

In 1950, the population in China is only 563 million and it increased tremendously to

1 billion in the early 1980s. China became the worlds most heavily populated

country with the population of 1.3 billion people, to be exact 1,330,044,605 as of mid-2008. Out of the 1.3 billion, the more developed country in China like Shanghai has a

population of 18.8 million by the end of2008. The statistics was taken from Shanghai

Statistic Bureau.


23/45

With the population of nearl 6.7 billion, hina ha

ta

en up appro

i

atel 20% of

the world

population. In otherword

, 1 out of 5 people i

fro

hina.

One c il olicy

Howe er, due to the one

hild poli

whi

h wa

being i

ple

ented in 1979 b

a

hine

e leader Deng Xiao ing to li

it

o

uni

t hina

population growth. hi

rule ha

e

ti

ated to ha e

lowed down the population growth b 300

illion people

o er it

fir

t twent ear

. hi

au

ed

an

ouple

to abort fe

ale babie

a

hine

e prefer

ale babie

to fe

ale one

. he re

ult of

u

h Dra

onian fa

il

planning ha

re

ulted in the di

parate ratio of 114

ale

for e er 100 fe

ale

a

ong babie

fro

birth through

hildren four ear

of age.Nor

all , 105

ale

are

naturall born for e er 100 fe

ale

. j tati

ti

all , hina'

total fertilit rate (the

nu

ber of birth

perwo

an) i

1.7,

u

h higher than

lowl -de

liningk

er

an at

1.4 but lower than the l .S. at 2.1 (2.1 birth

perwo

an i

the repla

e

ent le el of

fertilit , repre

enting a

table population, e

lu

i e of

igration). With onl 1.7 a

thefertilit rate, hina i

e

perien

ing an aging population a

the repla

e

ent le el i

low a

a re

ult, the ounger generation would now ha e to wor

harder to

upport a

bigger hou

ehold.

We ha m e re m iewed our n urm eo

findingn for quen tion 14, wherebo

we quen tioned our

ren pondentn whi h of the following affe ted the population growth the

o n t.

he

ren ult n ha m e n hown that 14 out of the 31 ren pondent n felt that one hild poli o

i n the

ethod that affe tn population growth the

on t. urther

ore, theo

added in que n tion

16

that the rean

on being it in

the

on

t dire

t and effe

tim

e

ethod an

o

pared tothe other three. Howe m er, one hild poli o

will n top in 2010 after that 5o

earn plan.

he pon n

ible rea n on that al

o n t half of the ren pondentn feel that the one hild poli o

i n the dire t and effe ti m e

ethod of li

iting population growth i n that the poli o

targetn the a tual li

it to one hild per fa

ilo

. Hen e, e m ero

fa

ilo

will ha m e to thin

about birth ontrol and the right ti

e to hoon e for the hild to be born, in ter

n of

0

5

10

15

AB

5

14

3

9

Which of the following slows down

population growth the most


24/45

gender and time. Gender will be referred to their personal preference of male or

female as they can only have 1 child and it forces them to choose. Time will be

referred to as the right time to have the child especially when the breadwinner of thefamily has a decent stable job to support the child. Being the only child, naturally

they will be pampered with all attention shown on him/her.

As a result, we can conclude that despite the fact that it creates an aging population

and brings about a bigger generation gap, it indeed did help to keep Chinas

population within control.

Aging Population

Aging population is a problem that is being surfaced in the recent years.

Percentage of Older Adults (Age 65+) in China, 1950-2050

Source: World Population Prospects: The 2004 Revision (2005).

Population Pyramids, China: 2000 and 2050

2000 2050


25/45

Source: World Population Prospects: The 2004 Revision (2005).

The declining of the mortality rate resulted in higher survival rate of children andfamilies. Before this century, infant mortality rate was very high with a large number

of children not able to reach adulthood. It was as much as 30% of the children

population. Eventually, people reacted to the decreasing mortality rate by restricting

the number of children per family or reducing their fertility. Industrial revolution

impacted the reduction in mortality with countries converting their means of

production of agricultural practices to industrial powerhouses. People moved from

suburban or countryside towards the urban areas in search of jobs working for large

companies rather than being self-employed.Having lower education level than those

born in the urban areas, they can only resort to the manufacturing industry. All of

these contributed to the reduction in number of children as many children are not

needed and not compatible with urban industrial lifestyle as they are not skilful for

the workload. Instead, rural agricultural life is more favourable to them as they aresimpler and need more manual manpower. Furthermore, they cannot survive in the

fast-moving society being unable to cope with the stress.


26/45

Re ult ha

e hown that ajorit z of the people { now of the proble of aging

population.|

nl z 3 out of the 31 re pondent did not { now of the proble .} hi

hows that, the students ha

e the { nowledge that the z ha

e to support the older

generation when the z are ofwor{ ing age. } herefore, I ~ an ~ on~ lude that the z should

be entallz prepared to ta { e on an z job in order not to let the fa il z fa ~ e finan ~ ial

diffi ~ ulties.

eing the onl z ~ hild in their fa il z , the z ha

e the responsibilitz indset

that in near future the burden of the fa il z finan ~ ial statuswill be on the . } hus the z

are able to put the sel

es in adrenaline in ter s ofwor{ ing and earning onez for a

better future of their fa il z .

With referen~ e drawn fro the results of question 8, the respondents feel that

whether or not the wo en are wor{ ing will not ha

e an effe ~ t on the aging

population.} his pro

es that the proble is not with the wo en gi

ing birth late that

28

3

0

5

10

15

20

25

30

Yes No

Awareness to China's Aging Population

16

48

29

7

How far do you agree that the increase

numberof women working in the

industralisation sector contribute to the

aging population

St ongly isag ee isag ee Ag ee St ongly Ag ee


27/45

draws the problem of aging population. In accordance to the results, 48% of the

respondents disagree that aging population is caused by increase in number of

women working in the industrialization sector. Only a small percentage, 7%, of therespondents strong agrees that the number of working women contribute to the

aging population.Hence, we can conclude that women working are not the main

cause of the aging population.However, we must not deny the fact that working

women do contribute to a small factor of the aging population. The possible reasons

that almost half of the respondents would disagree might be because of the one child

policy scheme administered to them and possibly the reluctance of women getting

married at early age and giving birth early. The one child policy might also contribute

to the reluctance of women as they are only allowed to be given birth once hence

they might not be interested to be tied down so early. The thought of spending large

portion of their lives with just one child puts them off the idea of early birth .

Urbanization

Through the last 2 decades, China is experiencing urbanization. People are moving

from the agriculture field to the service and manufacturing field which expands the

urban core. In the past, agriculture sector used to be the leading part of economy.

80% of the labour force comes from the agriculture sector. Farming in China used to

be manual labour. Using the development of the history various methods that are

being developed or imported, farming has been more efficient and productions has

been increased tremendously.

evelopment also is a process that drives the economy from one dependent

predominantly on agriculture to one dominated by the industrial and service sectors

(Otsuka 1995). Successful urbanization also requires the expansion of infrastructure

(Parker 1996

; Ogu2000

).

In short, shifting populations, the emergence of theindustrial and service sectors and the expansion of infrastructure all require the use

of land. The table below shows the rate China uses the conversion of land to urban

to stimulated land expansion.

Table 1. Expansion of the Area of the Urban Core in Shanghai, Kunming and Yibin,

1988 to 2000.

Urban core

in 1988 (ha)

Urban core in

1995 (ha)

Urban core in

2000 (ha)

Percent

change, 1988

to 2000

Percent

change, 1995

to 2000

China3,218,166 3,879,129 4,035,472 +25 +4


28/45

Shanghai

51,048 68,661 69,470 +36 +1

Kunming,

Yunnan

10,387 14,505 15,640 +51 +8

Yibin, Sichuan

1407 1,607 2,280 +62 +42

ata source: Chinese Academy of Science atabase

Social Status ofWorking Woman In the Society

Typical social factors such as late marriages, independent women seeking career

rather than domestic involvement, difference between the needs of children in

agricultural and industrialized areas are cited as factors in the old theory. Children

are able to handle huge workload in simple small-scale agricultural practices rather

than industrial areas, resulting in a decline in birth rates in industrializing regions.

Proposed by anthropologist Virginia Abernerthy in her book Population Politics is

another version of demographic transition. There she states how favourable

demographic transition happens where women are able to enjoy a special status. In

patriarchal nations, women enjoying few special rights normally have population

growth where high standard of living can be found.

Many countries have high population growth rates but lower total fertility rates

because high population growth in the past skewed the age demographic toward a

young age, so the population still rises as the more numerous younger generation

approaches maturity.


29/45

Fro the results, generall

people agree that wor

ing wo en are gi ing birth at the

later age.

hus I an on lude that it is probabl

due to the risk of losing their jobs

during pregnan

and the fa t that the

are ore edu ated and areer inded.

herefore, giing birth will not ross their inds unless the

are nearing 35 of age,

whi h will risk their li eswhen the

get pregnant.

7. Co

c

usio

Through the arious identifi ations of the negati e and positi e i

pa ts, su h as

e

ono

i

al effe

ts, en

iron

ental effe

ts, do

esti

effe

ts, we ha

e su

essfull

o

e up with a detailed infor

ationhannel.First off, in finding the solutions for the

proble

s in the negati e i

pa ts, we ha e o

e up with se eral questions that will

aid us in sele ting the best possible solution fro

the opinions of people.This is

done through sur e s and questionnaires targeted with

ore rele ant details under

the ppendi Se tion.To further fa ilitate the ease of o

uni ation between us

and the people, we ha e also pro ided the

with andarin te t for those not in

fa ors of

nglish te t.

Looking at the issue of population,it an be obser ed that the aging population is

gi ing rise to a huge proble

for the ne t generation.Due to the one hild poli ,the

ontrol of the bab boo

has been su essful but thus bringing

ore stress to the

older population.It an be obser ed that 1 hild ha e to take are of6 elderl thus

putting a strong boulder on his/hershoulder.The one hild poli has been take awa

and other poli ies are about to be i

ple

ented to urb this proble

The en iro

ental proble

s ha e also be o

e er signifi ant whi h huge le els of

fog and smoke in the air due to the manufa turing a ti ities e er da .Go ernment

S

on l isa

ee

7

isa

ee

19

A

ee

61

S

on l A

ee

13

Do you agree that women working at the

manufacturing sector are giving birth at laterage


30/45

measures have not been totally ineffective but more has to be done to curb the issue

and to catch up with the speedy increase with such industrial activities.At the same

time,the WHO also puts pressure and suggests policies effective enough to controlChinas enviromental problems.There is without doubt that eyes are looking at China

in how the governement is going to take into consideration this world envriomental

crisis and with the upcoming expo 2010,indeed there has been good change.

Cultural changes have been proven and there is both a good and bad to it.The

elimnation of bad habits like spitting and littering.The new habits of speaking softly

and not smoking in non designated areas have also been observed.In time to

come,China may have become more westernized but the traditional cultures are still

being enforced in schools.It is hopeful that despite being modernized and

globalised,there would still be room for the deep and valued culture and values of the

chinese people.

The economy has been on a exponential curve and there is no stop to it now.Despitethe slowing down due to the financial crisis which affected the whole world in

2009,there have been significant rise and revenue and income in the first two

months of2010.That is a good sign for the rising economy and it is believed that

near to 2026,China might become the largest economy in the world.This would only

be possible if aid is given by foreign companies and more urbanisation in the

country.

China would also seek to brand its local products for penetration into other markets

besides Asia.There would be a need for government funding and also talented locals

to come out with creative and attractive products,both durable and useful in the long

run.

All in all,the increase of manufacturing activies have indeed cost both good and badto the several areas of China.The rising economy has side effects and just like any

other illness,it has to be cured.The cure in this context is the government policies

and strategies to build China as a cultured,clean and green place which also acts as

a business hub for the world.

8. Recommendations

To begin with China needs outstanding local brands which goes global, more localentrepreneurs should be encouraged and the law could possibly be modified to allowyounger people to venture out on business. There should be more educational

courses to help the young generation break out of monotonous studying which ismemorizing and writing. Creativity is the key. Potential local brands should be fundedby the government for further expansion.


31/45

In the aspect of the Chinas economy, manufacturing should continue indefinitely foryears to come. The only recommendation is to reduce the bad effects of it which

would be further elaborated below.

In the aspect of the impact of manufacturing industry on the culture, it is good thatthe globalization had helped to wipe out the culture of speaking Chinglish, as thisraises the standards of English Language in China. Also, some traditional Chinesevalues such as filial piety and cherishing the availability of food should be reinforce inthe citizens, as such values are good traits of the Chinese culture and should not beforgotten.

In the aspect of the impact on the environment, in the short term, the relevantChinese authorities can impose stringent guidelines in the issuing of license tofactories being set up along water bodies. License to set up these plants must begiven on a case to case basis, depending on their need to use water from thesesources and also their need to use these water bodies in terms of transportation . In

the long term, the government can consider offering tax incentives for factoriesemploying proper waste disposal methods. The government should also buildnecessary infrastructures needed for factories to dispose their waste materials withease and convenience.

The Chinese government can also consider improving and enhancing her transport

network through introducing subway and rail systems in Shanghai. This will

effectively lower down the need to purchase private transportation, thereby reducing

carbon emissions by cars.

In the aspect of the impact on the population, with the stop of the one child policyplan soon, young families of China will be able to have more children without theselection of gender. Baby boom plans should help encouraging low income families

to have more babies.

This aid can be in terms of financial aids, educational aids,medical aids and cash tax rebates. These are some examples of successful babyboom plans attractive to many families. The more babies they have the better thebenefits.

Soon aging population will be reduced as more babies grow up into the workingclass and per income to support one elderly will be greatly reduced .However, thatwill be the case of the future, now having more babies means that the currentworking class will not only have to support the current elderly but also the influx ofbabies.Heavier burdens will be on them, thus it will have to be up to theresponsibility of government to bring in large amount of money to help lower incomefamilies or possibly average income families. This can be done by reducing annualtax and reduce the costs of baby products. Although the first few years thegovernment might have a reduction in income but on the long run, it will be beneficialto the government as money plunged in can be returned in doubles or triples whenthe babies get to the working class. By having more children, families will gainresponsibilities to want the best for their children and the breadwinner will strive towork better earning more money, resulting in higher work motivation level in theworking class.


32/45

Teenagers in China are aware of the burden soon to be taken up of supporting the

families, thus they are already prepared to work hard to earn more money. China willnot be afraid that the teenagers are not self-motivated to work hard . People of China

working hard bring benefits to both their families and to China.

To discourage more women to work and rather stay at home to take care of family,

or best of both worlds, teaching women how to work and how to take care of family

concurrently, government has to come up with ideas to do that. Well, for start, they

can have successful women who can handle both work and family to start various

large-scale talks in all the provinces to educate women on how they handle the both

burden effectively. Education alone is not enough, thus they can join groups to help

each other evaluate on how to cope with work and family. Giving each other support

is greatly encouraged as they can reduce the stress level of working women . Also,

men should be motivated to support the whole family so that their wives do not needto go out to work. The government can help by providing more job opportunities that

require higher skill level for the men. With jobs that require higher skill level, the pay

will naturally be higher. To help educate those who do not know the required skills,

the companies or firms can help to pay for the lessons to teach the workers rather

than the workers having to pay on them own, bringing more financial burden. With

the higher pay, wives of the workers would not have to come out to work to share the

financial load; rather they can stay at home to take care of the children .

Above are the possible recommendations that can help in solving the negative

impacts of population and giving positive impacts boosts to further elevate Chinas

population growth in response to economic growth.

9.Appendix

A : Questionaire in both English and Chinese

Questionnaire

Questionnaire for Industrialization in Shanghai

Gender

:

Occupation:

Age :

1. With the fast moving manufacturing industry in Shanghai, do you agree that it has greatlycontributed to the environmental pollution?

Strongly isagree

isagree

Agree

Strongly Agree


33/45

1 2 3 4

2. What area of environmental pollution you thin that industrialization has affected the most?

A. land pollution

B.

ater pollution

C. Air pollution

3. On average, ho many times do you fall sic per month?

A. 1 3 times 1 3

B. 4 5 times 4 5

C. More than 5 times 5

4. In your opinion, hich of these affect your lifestyle the most?

A. Traffic Congestion

B. Poor Air Condition

C. Contaminated Rivers &Streams

. Illegal umping of Waste

5. The Chinese government has ta en active steps to reduce pollution in Shanghai.

Strongly isagree

isagree

Agree

Strongly Agree

1 2 3 4

6. Rate your understanding and the ability to communicate in your o n dialect.

Strongly isagree

isagree

Agree

Strongly Agree

1 2 3 4

7. Ho far do you agree in your understanding of your Chinese culture, heritage and belief

systems?

Strongly isagree

isagree

Agree

Strongly Agree

1 2 3 4


34/45

8. Ho

far do you agree that the increase number of

omen

or

ing in the industrializationsector contribute to the aging population?

Strongly isagree

isagree

Agree

Strongly Agree

1 2 3 4

9. Ta ing home appliances into considerations, ho far do you agree that local brand is not aspopular as the foreign brand?

Strongly isagree

isagree

Agree

Strongly Agree

1 2 3 4

10.Ho far do you agree that the China industry ill be booming in the future years?

Strongly isagree

isagree

Agree

Strongly Agree

1 2 3 4

11.Ho much do you agree that the foreign expertise coming in to China ill dilute the Chinese

culture?

Strongly isagree

isagree

Agree

Strongly Agree

1 2 3 4

12.To hat extent do you agree that the manufacturing industry in China had lead to an inflo

of foreigners?

Strongly isagree

isagree

Agree

Strongly Agree

1 2 3 4

13.Are you a are that China is facing aging population?

?


35/45

1) Yes

2) No

14. In your opinion, hich of the follo ing do you thin slo s do n population gro th the

most?

1) Career minded omen ho dont ish to give birth at an early age

2) One child policy

3) Urbanization

4) Aging population

Why?

15.Do you agree that omen or ing at the manufacturing sector are giving birth at a later

age?

StronglyDisagree

Disagree

Agree

Strongly Agree

1 2 3 4

THANK YOU!

B : Outline of entire China economy

IndicatorsDecember Jan-Dec

Absolute

MagnitudeIncreased YoY

(%)Absolute

MagnitudeIncreased YoY

(%)

1. GDP (100 million yuan) 335353 8.7

Primary Industry 35477 4.2

Secondary Industry 156958 9.5

Tertiary Industry 142918 8.9

2. Agriculture


36/45

Grain (10,000 tons) 53082 0.4

Summer Maturing Crops (10,000 tons) 12335 2.2

Early Rice (10,000 tons) 3327 5.3

Autumn Maturing Crops (10,000 tons) 37420 -0.6

7509 5.0

Pork, Beef, Mutton and Poultry (10,000

tons) 4889 5.8

# Pork (10,000 tons) 64465 5.7

Slaughtered Pig (10,000) 46983 1.5

Live Pig (10,000) 53082 0.4

3. Value-added of Industry Above

Designated Size 18.5 11.0

Grouped by Light & Heavy Industry

Light Industry 12.1 9.7

Heavy Industry 21.4 11.5

Grouped by Ownership

State Owned & State-holding Enterprises 21.7 6.9

Collective-Owned Enterprises 15.7 10.2

Joint-Stock Enterprises 20.5 13.3

Enterprises with Funds from Hong Kong,

Macao and Taiwan, and Foreign Funded

Enterprises 15.7 6.2

The Value-Added of the Main Industrial

SectorsManufacture of Textile 10.2 8.5

Manufacture of Chemical Raw Material and

Chemical Products 23.8 14.6

Manufacture ofNonmetal Mineral Products 18.7 14.7

Manufacture of General Purpose Machinery 18.2 11.0

Manufacture of Transport Equipment 35.8 18.4

Manufacture of Electrical Machinery &

Equipment 15.7 12.0

Manufacture of Telecommunications

Equipment, Computers and Other Electronic

Equipment 19.8 5.3

Production and Supply of Electric Power and

Heat Power

15.2 6.0

Smelting and Pressing of Ferrous Metals 21.5 9.9

Output of Major Products

Coal (100 million tons) 2.8 25.1 29.6 12.7


37/45

Crude Oil (10,000 tons) 1607 1.6 18949 -0.4

Generating Capacity (100 million kWh) 3498 25.9 36506 7.0

Pig Iron (10,000 tons) 4472 24.6 54375 15.9

Crude Steel (10,000 tons) 4766 26.6 56784 13.5

Steel (10,000 tons) 6464 31.4 69244 18.5

Cement (100 million tons) 1.4 12.6 16.3 17.9

Automobile (10,000 sets) 154 130.5 1383 47.8

Of which: Autocars (10,000 sets) 87.4 134.9 749 47.4

Sales Ratio (%) 99.330.86

(percentage

points)97.67

-0.01

(percentage

points)

Export Delivery Value (100 million yuan) 7320 12.4 72882 -10.1

4. Investment in Fixed Assets in the Whole

Country (100 million yuan) 224846 30.1

Grouped by Regions

Urban 194139 30.5

Of which: State-owned and State Holding 86536 35.2

Of which: Real Estate Development 36232 16.1

Rural 30707 27.5

Grouped by Jurisdiction of Project

Management

Central Investment 19651 18.4

Local Investment 174488 32.0

Grouped by Types of Industry

Primary Industry 3373 49.9

Secondary Industry 82277 26.8

Tertiary Industry 108489 33.0

Grouped by Industrial Sectors

Coal Mining and Washing 3021 25.9

Production and Supply of Electric Power and

Heat Power 11078 22.8

Extraction of Petroleum and Natural Gas 2793 4.4

Railway Transportation 6823 67.5

Ore Mining, Processing ofNon-MetallicMinerals and its Products

6575 43.8

Ore Mining, Smelting and Pressing of Ferrous

Metals 4048 3.0

Ore Mining, Smelting and Pressing ofNon-

Ferrous Metal 2994 17.9


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Grouped by Registration Type

Domestic Funded 178955 33.8

Funds from Hong Kong, Macao and Taiwan 6392 0.3

Foreign Investment 7720 -1.2

Grouped by Construction and New Projects

Accumulative Construction Projects 461544 102331

Total Investment in Construction Project (100

million yuan) 420141 32.3

New Started Projects 344769 87694

Total Planned Investment in New Projects

(100 million yuan) 151942 67.2

Funds in Place for Investment (100 million

yuan) 218279 37.6

Government Budgetary Funds 11341 53.7

Domestic Loans 37604 47.7

Foreign Investment 3954 -15.8

Self-Raising Funds 127749 30.6

Output Value ofNational Construction (100

million yuan) 75864 22.3

Construction Areas ofNational Construction

Housing (100 million square meters) 58.7 10.7

5. Total Retail Sales of Consumer Goods (100

million yuan)12610 17.5 125343 15.5

Grouped by Different Areas

Cities 8546 18.6 85133 15.5

At and Below County Level 4064 15.4 40210 15.7

Grouped by Different Sectors

Sales by Wholesale and Retail Businesses 10618 18.1 105413 15.6

Lodging and Catering Industry 1747 16.5 17998 16.8

Others 245 1.6 1932 2.5

Grouped by Commodity Categories (Sales by

Wholesale and Retail Businesses)Grain, Oil, Foodstuff, Beverages, Tobacco,

and Liquor516 17.3 5766 14.0

Garments, Footwear, Hats, Knitwear 527 21.8 4622 18.8

Cosmetics 73.1 13.4 740 16.9

Gold and Silver Jewelry 79.7 25.4 808 15.9

Commodities 153 18.7 1592 15.6

Sports and Recreation Articles 20.5 14.8 236 9.1

Household Appliances and AV Equipment 282 25.2 3154 12.3


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Durable Consumer Goods -1.4 -2.3

8. Purchasing Price for Raw Materials, Fuels

and Power Products (Same Period of Previous

Year = 100) 3.0 -7.9

Nonferrous Metal Materials 17.1 -18.9

Fuel and Power 10.5 -10.8

Ferrous Metals Materials -6.7 -13.7

Chemical Raw Materials -0.7 -8.7

9. Price of Investment in fixed assets (Same

Period of Previous Year = 100)

-1.0

(4Qr) -2.4

Construction and Installation -1.6

(4Qr)

-3.7

Materials -4.2

(4Qr) -7.2

Labor costs 6.3

(4Qr) 6.6

Mechanical Royalties 2.4

(4Qr) 2.0

Equipment Purchase -2.5

(4Qr) -2.4

Others 3.2

(4Qr) 2.4

10. Produce Prices of Agricultural Products

(Same Period of Previous Year = 100) -2.4

Planting products 2.9

grain

3.7

cereal 4.9

Wheat 7.9

paddy 5.2

Corn -1.5

Cotton 11.8

Oil-bearing -5.8

Sugar 1.5

Vegetables 11.8

Fruit 7.0

Tea -3.2

tobacco leaf 4.7

Forest Products -5.1


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Wood -4.3

Livestock Products -9.9

Pig -18.4

Cattle 1.0

Live Sheep 1.1

Poultry 2.2

Eggs 2.8

Dairy Products -8.4

Feather -11.8

Fishery products -1.0

Seawater Products -1.6

Freshwater Products

1.3

11. Income and expenditure of Residents

Per Capita Cash Income of Rural Residents

(yuan) 5153 8.5

Wage Income 2061 11.2

Production Operating Income from Primary

Industry 1988 2.2

Production Operating Income from

Secondary and Tertiary Industry 539 10.0

Property Income 167 12.9

Transferred Income 398 23.1

Per Capita Disposable Income of UrbanResidents (yuan) 17175 9.8

Per Capita Consumption Expenditure of

Urban Residents (yuan) 12265 10.1

Notes:

1. Construction enterprises in the whole country refer to the general contracting and professional contracting construction

enterprises that owned the qualification certificates, the non-labor subcontracting construction enterprises are excluded.

2. The producer price of agricultural products refers to the price of products sold directly by the agricultural producers.

3. The growth rate of GDP, value-added of industry above designated size and its classification items calcu lated in

comparable prices; the growth rate of per capita cash income of rural residents, per capita disposable income of urban

residents, and per capita consumption expenditure of urban residents are real growth rate; the growth rate of other

indicators calculated in current prices.


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10.2 List of Illustrations

Picture A

Picture B

Picture C-F


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~sopshres

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completed bcomm report

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