Ngee Ann Polytechnic

Industrialisation in China
Manufacturing industry in China

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

Table of Contents
1. 2. 3. 4. 5. 6. Executive Summary............................................................................................................................ . . . 4 Purpose of Report .............................................................................................................................6 . . . . Scope of Report .................................................................................................................................6 . . . . Research Methodology......................................................................................................................7 . . . Limitations of Research .....................................................................................................................7 . . . 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. 8. 9. Conclusion .......................................................................................................................................29 . . . . Recommendations ........................................................................................................................... 0 . . . 3 Appendix ..........................................................................................................................................32 . . . . A : Questionaire in both English and Chinese .....................................................................................32 . . Questionnaire .............................................................................................................................32 . . . .

B : Outline of entire China economy...................................................................................................35 . . . 10.2 List of Illustrations........................................................................................................................ 2 . . . 4 10.3 References ...................................................................................................................................43 . . . .

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 dealt with 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, thus to 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

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 air pollution. 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 growth has 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.

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 on political issues or system.

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

and thus further researches on the internet had to be made based on first or second hand observations. Time Lag In addition, there might be time lag in the secondary data that we found on the internet. This is because from the time the national bureau finds the statistic and tabulates the statistic to post it online, there might have already be a change in the initial numbers collected by the national bureau. Survey We conducted our survey to a sample size of only 31 people and we use the results taken from the surveys to write up on our findings and analysis. Hence it might not be very accurate in our findings and analysis as we are only able to conclude and analyze base on the results of sample size of 31 people out of 1,336,760,000 people in China using statistical estimation. Given the data limitations, they should not be taken as completely accurate or representative of the entire population in China. In addition, the survey was only done in Shanghai and not other provinces, but the project is based on the whole scale of China. Therefore, the results on the analysis may not be that accurate.

6. Findings
6.1 China, The Factory of the World
How China got the name The term The Factory of the World was first used in Chinese media report .The name Factory of the World was given by Japanese Ministry of Economy, Trade and Industry (METI) in its Year 2001 White Paper. Factory of the world or just the Factory for the world No doubt that China has been having a booming manufacturing industry since the year of 2000. However, consumers often always associate Made in China with Made by China. In actual fact, that is not necessarily true. Many products have been made in China but the components and parts come from all over the world. The term Factory of the World merely shows that the country is highly manufacturer seeking and products are assembled there. Even with the good improvement in the manufacturing industry, efforts to market uniquely Chinese brands have thus far stalled (Tucker, 2006: p. 12). So far, there is not a single Chinese brand that is recognized worldwide. Haier the nation-wide

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 2 nd tier country could become the factory of the world. Reasons are as follows:
y y y y y y y

Continually increasing manufacturing prowess Significant cost advantages (beyond just labor cost) Good, repetitive quality Worldwide market-share 50% of cameras, 30% of air conditioners and televisions, 25% of washing machines, 20% of refrigerators One private Chinese company makes 40% of all microwave ovens sold in Europe The city of Wenzhou, Eastern China produces 70% of the world's metal cigarette lighters 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 Anthracite Coal Bituminous Coal Coking bituminous coal General bituminous coal 2.Crude Oil Natural Crude Oil Natural Crude Oil 3.Product Oil Gasoline Gasoline for 93 # Automobiles Gasoline for 97 # Automobiles

427.2 593.0 384.9

6.1 6.1 0.1 0.3 -0.1 0.0 0.0 0.0 0.0 0.0

1.5 1.5 0.0 0.1 0.0 0.0 0.0 0.0 0.0 0.0

3480.1

6171.3 6547.3

Diesel Oil -10 Diesel Oil 0 Diesel Oil 10 Diesel Oil 4.Rolled Steel General Large-Sized Rolled Steel Round (Square) Steel Angle Steel I-Beam Flat Steel Channel Steel Figured Steel General Medium-Sized Rolled Steel Round (Square) Steel I-Beam Channel Steel Flat Steel Angle Steel Screw Steel General Small-Sized Rolled Steel Round (Square) Steel Screw Steel Wire Solid Steel Sheet Steel Carbon Hot-Rolled Sheet Steel Carbon Cold-Rolled Sheet Steel Seamless Steel Pipe General Carbon Balance Tube (Hot Rolled) General Carbon Balance Tube (Cold Rolled) 5.Iron Ore Blocks of Iron Ore Mine for Steel Making 56% Iron Blocks of Iron Ore Mine for Iron Making 45% Iron 45% Iron 6.Nonferrous Metals Copper 99.95% Copper Aluminum Ordinary Ingot Zinc Electrolytic Zinc 7.Chemical Products Sulfuric Acid 98%

5631.1 5264.4 5070.9

0.6 0.0 1.7 0.0 19.6 30.6 0.0 0.0 50.0 0.0 0.0 -7.7 15.9 0.0 -22.3 0.0 -21.6 -7.3 54.9 92.7 18.3 -13.3 -13.3 54.2 49.8 58.9 2.9 2.9 0.0 12.9 12.9 2.0 7.0 0.0 719.4 719.4 -42.0 -42.0 -207.7 -207.7 14.5 32.3

0.0 0.0 0.0 0.0 0.6 0.9 0.0 0.0 1.5 0.0 0.0 -0.2 0.5 0.0 -0.7 0.0 -0.7 -0.2 1.6 2.7 0.5 -0.4 -0.4 1.2 1.3 1.2 0.1 0.1 0.0 2.5 2.5 1.4 2.9 0.0 1.4 1.4 -0.3 -0.3 -1.2 -1.2 5.0 10.2

3501.2 3162.4 3350.0 3188.0

3584.2 3504.3 3203.2 3146.6 3170.6 3540.5 3383.6 3288.5 4011.3 4992.2 3993.7

520.6 249.2 76.4

51443.7 14034.0 16974.8

349.1

98% Caustic Soda (Sodium Hydroxide) 100 % Solid 100% Liquid Ethene Ethene PVC Resins Shrinkage Petroleum Asphalt Road Asphalt Building Asphalt 8.Cements General Portland Cement Intensity Level at 32.5 Intensity Level at 42.5 Intensity Level at 52.5

262.8 1752.7 1320.4 7258.3 6508.9 3059.3 2692.3

0.2 17.4 21.0 14.4 0.0 0.0 48.4 48.4 33.9 71.9 0.0 -0.2 -1.2 0.9 0.0

0.1 1.2 1.2 1.1 0.0 0.0 0.8 0.8 1.2 2.4 0.0 -0.1 -0.5 0.3 0.0

263.9 300.3 382.7

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 with foreign 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 use advanced technology and equipment or market all or most of their products outside China.

However, China revised the law on Oct 31, 2000, and the same article was amended to 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:

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; a nd 3. rban population ri e to 60% of the hole population ( en and Wang, 2003) .

Country

GDP (PPP) (Millions of USD, [7] 2008IMF)

GDP per capita(USD, [8] 2008IMF)

GDP per capita (PPP) (USD, [9] 2008IMF)

Income equality [10] (GINI)2006

Human Development Index (HDI, [11] 2007)

GDP (real) growth rate

* he abo e table a adapted fro Wi ipedia (http://en.wi ipedia.org/wi i/Newl _indu triali ed_ ountr )

0 2

3 1

0 )

" &

u ke

[3][4][5]

915 184

10 472

13 138

38

0 806 (hi h) 5 20

4 10

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

546 095

4 115

8 225

42

0 783 (medium)

4 40

3 93

Sou h Af ica[3][4][5] 492 684

5 693

10 119

57.8

0 683 (medium)

4 50

4 92

hilippines

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

320 384

1 866

3 546

44 5

0 751 (medium)

7 50

7 40

 

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

1 548 007

12,235

14,560

46 3

0.854 (hi h) 3 00

3 30

ala sia

[3][4][5]

384 119

8 141

14 072

49 2

0 829 (hi h) 5 40

3 65

India

 

[3][4][5]

3 288 345

1 016

2 762

32 5

hina[3][4][5]

7,916,429

3 315

5 963

44 7

0 772 (medium)

11.10

9.95

0 612 (medium)

9 70

7 02

B azil

 

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

1 981 207

8 197

10 326

54

0 813 (hi h) 5 70

hina had not et all of the e riteria in 2004 and in 2010; a a I , ne l indu triali ed ountr .

   % " ! #!  $ &

'

hina i no

la ified

GDP (real) growth rate per capita

4 50

At the same time , according to Goldman Sachs :review of emerging economies, by 2050 the largest economies in the world will be as follows: China, USA, India, Brazil, and Mexico. The Goldman Sachs Group, Inc. is a global investment banking and securities firm which engages in investment banking, securities services, investment and other financial services primarily with institutional clients It is definite that China would be the Factory of the World for years to come. With globalisation, it is tough to really accurately know the maker of the product despite it being written as Made in China but China has definitely become the factory by providing a good venue for manufacturing. But by becoming the Factory of the World, China imports roughly US$660.12 billion a year. Its 6.1% of the worlds total and enough to feed many countries. With so much manufacturing in China, it is inevitable that there would be some pros and cons on the impacts of the demography of China which would be written about in the several components beneath.
Comment [R1]: For years to come or in years to come?

6.2 Impact on the Economy

As mentioned in China, the Factory of the World , the manufacturing sector have indeed been growing large. In this section, the focus would be on how then this manufacturing sector impacted the entire economy of China. As an industrial giant, China has to be taken seriously as an international economic force and a strategic and military power. China's new status is not surprising because as a consumer, China became the 2 nd largest petroleum producer in 2005, beating Japan. In 2006, China surpassed Japan as the world's No. 2 auto market, with total sales of 7.2 million vehicles and production of 7.3 million. In 2007, China also became the world's top producer of merchant ships. Appendix B shows the national statistics taken from the national bureau of China which shows the entire economy outline now. In 2006, America's manufacturing sector produced about $2.7 trillion in goods. China's manufacturing sector produced about $1.124 trillion at the prevailing exchange rate of 7.77 Yuan to the U.S. dollar. But the real value of China's output is more than twice the exchange-rate value, according to price studies done by the World Bank for the year 2005. As seen above, the manufacturing industry has brought about huge growth to the economy. The income and expenditure of the residents have also greatly increased in the first 2 months of 2010. According to Wikipedia, the manufacturing sector accounted for 44.1% of the G P of China. This is close to half of the nations revenue. As seen, the manufacturing

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 November 2009, 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 and catering 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 your price 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 G P percentage growth and the disposable income growth. Both indicated the predicted possible rise of China over USA in economic terms.

ll in all, the uper ri e in the anufa uturing e tor ha e helped the lo al hina e ono ri e up o tl and al o pla ed i en e pre ure on other .

Poll tion Diagram below shows the statistic from the survey result

6.

mp ct o the

viro me t

F F

DD G @

D EE F D

F F

D E

R R Q P S I HD E D HE F D D C 8 8B A @ 9 88 A T

(h p //wo ld ne vie nam biz/2009/china-vs-usa-as-a-wo ld-supe powe -in-focus/)

Wh ch

e ndus z nh s ffec ed he m s ?

29%

Air Pollution

Lan Pollution
3% 68% Water Pollution

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 water bodies. 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 figures provided 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

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 is a need to limit the emission of greenhouse gases as well as harmful air pollutants.

Wh ch f hese ffec y u m s?
50.00 40.00

fes y e he

30.00 20.00 10.00 0.00

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. Hence the result of the locals being affected more by the traffic congestion than 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

g Y ` fe d

`Y

`YX

Traffic

gesti

r ir

iti

i g f

`Y c`YX b YYa

V
32.26
6.45 aste

V V V V W W W

60.00

48.39

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 of greenhouse 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 on the 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 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 curb the negative impact on the environment caused by industrial wave. Some of the attempts have been unsuccessful. Importantly the measure that government is taking 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 policy and regulations, collect data and provide technological advice on both national and international environmental issues. China has adopted a model of "Cleaner Production" and has also made several other attempts to reduce air pollution. But overall success in curbing the air pollution has not been attained.

Innovative transportation system In 1999 municipal government ordered city vehicles to convert to liquefied petroleum gas and natural gas to reduce air pollution in Beijing. By 2002, Beijing had 1630 vehicles 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.

Effort to reduce coal consumption and reduce greenhouse gases China has accelerated the development of natural gas and coal bed methane infrastructure to increase the number of combined heat and power plants, adding approximately 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 costs and reduce local pollution, while reducing carbon emissions. Government is trying to increase energy efficiency by reducing coal and petroleum subsidies. Government has been promoting less energy intensive services and higher value-added products and also encouraged the import of energy intensive products. 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 are taking place in other major Chinese cities. Renewable Energy China is hoping to carry out multi-million dollar renewable energy strategy with assistance from United Nations and the United States to combat pollution. Chinese government is planning to harness wind energy concentrated in the northern and western regions of China, and the coastal areas. Government is also aiming to utilize solar energy which can cover small-scale uses of energy. Hydropower will be China's dominating renewable energy in the next decade, particularly with completion of the 18.2-gigawatt Three Gorges 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 of traditional 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.

More Wealt , More Meat? In the pa t before the anufa turing indu tr tarted it rapid growth in 1978, o t of the wor er are people who li ed in illage . When the anufa turing indu tr began to grow, wor er are needed in the fa torie in urban area . he wor a a fa tor wor er i er attra ti e to the e illager a the a ount of alar i on idered a high a o pared to li ing in the illage. he wor er tandard of ediatel and the ould afford an ore thing whi h li ing would in rea e i were unaffordable to the in the pa t. hildren in the illage u ed to loo forward to pring fe ti al, partl be au e it wa fun, but al o be au e it wa a han e to eat eat. ut now we an eat eat e er da if we want. It ha be o e part of our li e .(Zhang Xiu Wen , a 2008), a an who o ed fro hi illage into the it to wor . hi help to how that when people get ri her, the would tend to on u e ore eat and le er ri e a the o t of eat i no longer e pen i e to the . hi indi ate a hange in habit of the people a traditionall , on u ing eat i onl done on pe ial o a ion and i dee ed a a lu ur . Howe er, in odern o iet , an people alread too on u ing eat for granted due to the dail a ailabilit of eat in uper ar et and ar et . hown in pi ture in the li t of illu tration i a odern hine e eal whi h o pri e of an t pe of eat and egetable . he ulture of eating ha learl hanged dra ti all a in the pa t, u h eal are onl prepared on er pe ial o a ion .

q q ss s qt t q q t sq s v r s q q t sq s w q v r q t t r q q r s s q q s r q x r qq q q r q r u r t t u t r v t r r q s t s q t q r q qu q ss s q v r t q q q s q s r r q s t q w r q r q s q s qq vq r r t s q q q w r q s u ts t q v vq r v r r t t v s r s q r y r s s q q s q q q s t q vq q x q v r u s q st t v rt r rr q s q q w q q s v v r sq qt q u r q q t vq t s v q vs u w q q s q u s q q v v r uq q qt q s
How fa do you ag ee that the inflow of foreigners ha e diluted the Chinese culture?

he ri e in anufa turing indu tr ha brought about globali ation, and foreigner tarting o ing into hina to wor and tra el. hi i upported b the ur e whi h we had ondu ted, and the re ult how that the 71% of the people agreed and trongl agreed that the anufa turing indu tr had led to an inflow of foreigner into hina.

58

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Westernisation in

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When foreigners come to China, intercultural interactions would occur between the locals and the foreigners. Among these foreigners, many of them come from Europe and 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 year 2008, 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 of Filial 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 most important 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.

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 w ork 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 language directly 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 of 2008. The statistics was taken from Shanghai Statistic Bureau.

With the population of nearl 6.7 billion, hina ha ta en up appro i atel 20% of hina. the world population. In other word , 1 out of 5 people i fro

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 . tati ti all , hina' total fertilit rate (the nu ber of birth per wo an) i 1.7, u h higher than lowl -de lining er an at 1.4 but lower than the .S. at 2.1 (2.1 birth per wo 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 the fertilit 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.

Which of the following slows down population growth the most

15 10 5 0 A B 5 3 14 9

We ha e re iewed our ur e finding for que tion 14, whereb we que tioned our re pondent whi h of the following affe ted the population growth the o t. he re ult ha e hown that 14 out of the 31 re p ondent felt that one hild poli i the ethod that affe t population growth the o t. u rther ore, the added in que tion 16 that the rea on being it i the o t dire t and effe ti e ethod a o pared to the other three. Howe er, one hild poli will top in 2010 after that 5 ear plan. he po ible rea on that al o t half of the re pondent feel that the one hild poli i the dire t and effe ti e ethod of li iting population growth i that the poli target the a tual li it to one hild per fa il . Hen e, e e r fa il will ha e to thin about birth ontrol and the right ti e to hoo e for the hild to be born, in ter of

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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 the family 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

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

The declining of the mortality rate resulted in higher survival rate of children and families. 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 are simpler and need more manual manpower. Furthermore, they cannot survive in the fast-moving society being unable to cope with the stress.

Awareness to China's Aging Population

30 25 20 15 10 5 0 Yes No 3 28

How far do you agree that the increase number of women working in the industralisation sector contribute to the aging population
7

16 29

48

Re ult ha e hown that ajorit of the people now of the proble of aging population. nl 3 out of the 31 re pondent did not now of the proble . hi hows that, the students ha e the nowledge that the ha e to support the older generation when the are of wor ing age. herefore, I an on lude that the should be entall prepared to ta e on an job in order not to let the fa il fa e finan ial indset diffi ulties. eing the onl hild in their fa il , the ha e the responsibilit that in near future the burden of the fa il finan ial status will be on the . hus the are able to put the sel es in adrenaline in ter s of wor ing and earning one for a better future of their fa il . 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

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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 the respondents 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. e velopment 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; Ogu 2000). In short, shifting populations, the emergence of the industrial 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 Urban core in 1995 (ha) 2000 (ha) Percent change, 1988 to 2000 Percent change, 1995 to 2000

Urban core in 1988 (ha) 3,218,166

China

3,879,129

4,035,472

+25

+4

51,048
Shanghai

68,661

69,470

+36

+1

10,387
Kunming, Yunnan

14,505

15,640

+51

+8

Yibin, Sichuan

1407

1,607

2,280

+62

+42

ata source: Chinese Academy of Science atabase

Social Status of Working 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.

Do you agree that women working at the manufacturing sector are giving birth at later age
S on l A ee 13

A ee 61

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, gi ing birth will not ross their inds unless the are nearing 35 of age, whi h will risk their li e s when 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 ation hannel. 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 of 6 elderl thus putting a strong boulder on his/her shoulder.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 e rnment

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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 control Chinas 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.Despite the 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 of 2010.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 bad to 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 local entrepreneurs should be encouraged and the law could possibly be modified to allow younger people to venture out on business. There should be more educational courses to help the young generation break out of monotonous studying which is memorizing and writing. Creativity is the key. Potential local brands should be funded by the government for further expansion.

In the aspect of the Chinas economy, manufacturing should continue indefinitely for years 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 that the globalization had helped to wipe out the culture of speaking Chinglish, as this raises the standards of English Language in China. Also, some traditional Chinese values such as filial piety and cherishing the availability of food should be reinforce in the citizens, as such values are good traits of the Chinese culture and should not be forgotten. In the aspect of the impact on the environment, in the short term, the relevant Chinese authorities can impose stringent guidelines in the issuing of license to factories being set up along water bodies. License to set up these plants must be given on a case to case basis, depending on their need to use water from these sources 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 factories employing proper waste disposal methods. The government should also build necessary infrastructures needed for factories to dispose their waste materials with ease 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 policy plan soon, young families of China will be able to have more children without the selection 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 baby boom plans attractive to many families. The more babies they have the better the benefits. Soon aging population will be reduced as more babies grow up into the working class and per income to support one elderly will be greatly reduced. However, that will be the case of the future, now having more babies means that the current working class will not only have to support the current elderly but also the influx of babies. Heavier burdens will be on them, thus it will have to be up to the responsibility of government to bring in large amount of money to help lower income families or possibly average income families. This can be done by reducing annual tax and reduce the costs of baby products. Although the first few years the government might have a reduction in income but on the long run, it will be beneficial to the government as money plunged in can be returned in doubles or triples when the babies get to the working class. By having more children, families will gain responsibilities to want the best for their children and the breadwinner will strive to work better earning more money, resulting in higher work motivation level in the working class.

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 will not 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 need to 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 greatly contributed to the environmental pollution?

Strongly isagree

isagree

Agree

Strongly Agree

: :

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

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

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

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

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

Strongly isagree

isagree

Agree

Strongly Agree 4

Strongly isagree

isagree

Agree

Strongly Agree 4

Strongly isagree

isagree

Agree

Strongly Agree 4

A. B. C. .

Traffic Congestion Poor Air Condition Contaminated Rivers &Streams Illegal umping of Waste

8. Ho far do you agree that the increase number of omen or ing in the industrialization sector contribute to the aging population?

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

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

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

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

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

Strongly isagree

isagree

Agree

Strongly Agree 4

Strongly isagree

isagree

Agree

Strongly Agree 4

Strongly isagree

isagree

Agree

Strongly Agree 4

Strongly isagree

isagree

Agree

Strongly Agree 4

Strongly isagree

isagree

Agree

Strongly Agree 4

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 don t 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?

Strongly Disagree 1

Disagree

Agree

Strongly Agree 4

THANK YOU!

B : Outline of entire China economy

December Indicators Absolute Magnitude Increased YoY (%) Absolute Magnitude Jan-Dec Increased YoY (%)

1. GDP (100 million yuan) Primary Industry Secondary Industry Tertiary Industry

335353 35477 156958 142918

2. Agriculture

8.7 4.2 9.5 8.9

Grain (10,000 tons) Summer Maturing Crops (10,000 tons) Early Rice (10,000 tons) Autumn Maturing Crops (10,000 tons)

53082 12335 3327 37420 7509 4889 64465 46983 53082

0.4 2.2 5.3 -0.6 5.0 5.8 5.7 1.5 0.4

Pork, Beef, Mutton and Poultry (10,000 tons) # Pork (10,000 tons) Slaughtered Pig (10,000) Live Pig (10,000)

3. Value-added of Industry Above Designated Size Grouped by Light & Heavy Industry Light Industry Heavy Industry Grouped by Ownership State Owned & State-holding Enterprises Collective-Owned Enterprises Joint-Stock Enterprises Enterprises with Funds from Hong Kong, Macao and Taiwan, and Foreign Funded Enterprises The Value-Added of the Main Industrial Sectors Manufacture of Textile Manufacture of Chemical Raw Material and Chemical Products Manufacture of Nonmetal Mineral Products Manufacture of General Purpose Machinery Manufacture of Transport Equipment Manufacture of Electrical Machinery & Equipment Manufacture of Telecommunications Equipment, Computers and Other Electronic Equipment Production and Supply of Electric Power and Heat Power Smelting and Pressing of Ferrous Metals Output of Major Products Coal (100 million tons)

18.5

11.0

12.1 21.4

9.7 11.5

21.7 15.7 20.5 15.7

6.9 10.2 13.3 6.2

10.2 23.8 18.7 18.2 35.8 15.7 19.8 15.2 21.5

8.5 14.6 14.7 11.0 18.4 12.0 5.3 6.0 9.9

2.8

25.1

29.6

12.7

Crude Oil (10,000 tons) Generating Capacity (100 million kWh) Pig Iron (10,000 tons) Crude Steel (10,000 tons) Steel (10,000 tons) Cement (100 million tons) Automobile (10,000 sets) Of which: Autocars (10,000 sets) Sales Ratio (%) Export Delivery Value (100 million yuan)

1607 3498 4472 4766 6464 1.4 154 87.4 99.33 7320

1.6 25.9 24.6 26.6 31.4 12.6 130.5 134.9 0.86 (percentage points) 12.4

18949 36506 54375 56784 69244 16.3 1383 749 97.67 72882

-0.4 7.0 15.9 13.5 18.5 17.9 47.8 47.4 -0.01 (percentage points) -10.1

4. Investment in Fixed Assets in the Whole Country (100 million yuan) Grouped by Regions Urban Of which: State-owned and State Holding Of which: Real Estate Development Rural Grouped by Jurisdiction of Project Management Central Investment Local Investment Grouped by Types of Industry Primary Industry Secondary Industry Tertiary Industry Grouped by Industrial Sectors Coal Mining and Washing Production and Supply of Electric Power and Heat Power Extraction of Petroleum and Natural Gas Railway Transportation Ore Mining, Processing of Non-Metallic Minerals and its Products Ore Mining, Smelting and Pressing of Ferrous Metals Ore Mining, Smelting and Pressing of NonFerrous Metal

224846

30.1

194139 86536 36232 30707

30.5 35.2 16.1 27.5

19651 174488

18.4 32.0

3373 82277 108489

49.9 26.8 33.0

3021 11078 2793 6823 6575 4048 2994

25.9 22.8 4.4 67.5 43.8 3.0 17.9

Grouped by Registration Type Domestic Funded Funds from Hong Kong, Macao and Taiwan Foreign Investment Grouped by Construction and New Projects Accumulative Construction Projects Total Investment in Construction Project (100 million yuan) New Started Projects Total Planned Investment in New Projects (100 million yuan) Funds in Place for Investment (100 million yuan) Government Budgetary Funds Domestic Loans Foreign Investment Self-Raising Funds Output Value of National Construction (100 million yuan) Construction Areas of National Construction Housing (100 million square meters) 5. Total Retail Sales of Consumer Goods (100 million yuan) Grouped by Different Areas Cities At and Below County Level Grouped by Different Sectors Sales by Wholesale and Retail Businesses Lodging and Catering Industry Others Grouped by Commodity Categories (Sales by Wholesale and Retail Businesses) Grain, Oil, Foodstuff, Beverages, Tobacco, and Liquor Garments, Footwear, Hats, Knitwear Cosmetics Gold and Silver Jewelry Commodities Sports and Recreation Articles Household Appliances and AV Equipment 10618 1747 245 18.1 16.5 1.6 105413 17998 1932 15.6 16.8 2.5 8546 4064 18.6 15.4 85133 40210 15.5 15.7 461544 420141 344769 151942 218279 11341 37604 3954 127749 75864 58.7 102331 32.3 87694 67.2 37.6 53.7 47.7 -15.8 30.6 22.3 10.7 178955 6392 7720 33.8 0.3 -1.2

12610

17.5

125343

15.5

516 527 73.1 79.7 153 20.5 282

17.3 21.8 13.4 25.4 18.7 14.8 25.2

5766 4622 740 808 1592 236 3154

14.0 18.8 16.9 15.9 15.6 9.1 12.3

Traditional Chinese and Western Medicines Cultural and Office Appliances furniture Communication Appliances Petroleum and Related Products Automobile Building and Decoration Materials

218 93.4 46.9 55.0 774 1366 47.0

27.6 15.3 37.6 11.5 27.9 57.7 53.9

2242 848 432 640 7801 11537 445

21.7 6.7 35.5 -1.3 6.8 32.3 26.6

6. CPI (Same Period of Previous Year = 100) Of which: Urban Rural Of which: foodstuff Non-foodstuff Of which: Consumer Goods Services Grouped by Commodity Categories Foodstuff Tobacco, Liquor and its Articles Clothing Household Facilities, Articles and Maintenance Services Health Care and Personal Articles Transportation and Communication Recreational, Educational, Cultural Articles and Services Housing

1.9 1.8 2.1 5.3 0.2 2.2 0.7

-0.7 -0.9 -0.3 0.7 -1.4 -0.6 -1.1

5.3 1.4 -0.8 -1.1 2.2 -1.5 -0.3 1.5

0.7 1.5 -2.0 0.2 1.2 -2.4 -0.7 -3.6

7. Producer Prices for Manufactured Goods (Same Period of Previous Year = 100) Means of Production Mining and Quarrying Raw Materials Processing Means of Livelihood Foodstuff Clothing Articles for Daily Use

1.7 2.0 17.6 3.6 -0.7 0.8 2.6 1.7 -0.4

-5.4 -6.7 -15.8 -8.1 -4.9 -1.2 -1.4 0.1 -0.8

Durable Consumer Goods

-1.4

-2.3

8. Purchasing Price for Raw Materials, Fuels and Power Products (Same Period of Previous Year = 100) Nonferrous Metal Materials Fuel and Power Ferrous Metals Materials Chemical Raw Materials

3.0 17.1 10.5 -6.7 -0.7

-7.9 -18.9 -10.8 -13.7 -8.7

9. Price of Investment in fixed assets (Same Period of Previous Year = 100) Construction and Installation Materials Labor costs Mechanical Royalties Equipment Purchase Others

-1.0 (4Qr) -1.6 (4Qr) -4.2 (4Qr) 6.3 (4Qr) 2.4 (4Qr) -2.5 (4Qr) 3.2 (4Qr)

-2.4 -3.7 -7.2 6.6 2.0 -2.4 2.4

10. Produce Prices of Agricultural Products (Same Period of Previous Year = 100) Planting products grain cereal Wheat paddy Corn Cotton Oil-bearing Sugar Vegetables Fruit Tea tobacco leaf Forest Products

-2.4 2.9 3.7 4.9 7.9 5.2 -1.5 11.8 -5.8 1.5 11.8 7.0 -3.2 4.7 -5.1

Wood Livestock Products Pig Cattle Live Sheep Poultry Eggs Dairy Products Feather Fishery products Seawater Products Freshwater Products

-4.3 -9.9 -18.4 1.0 1.1 2.2 2.8 -8.4 -11.8 -1.0 -1.6 1.3

11. Income and expenditure of Residents Per Capita Cash Income of Rural Residents (yuan) Wage Income Production Operating Income from Primary Industry Production Operating Income from Secondary and Tertiary Industry Property Income Transferred Income Per Capita Disposable Income of Urban Residents (yuan) Per Capita Consumption Expenditure of Urban Residents (yuan) Notes:

5153 2061 1988 539 167 398 17175 12265 8.5 11.2 2.2 10.0 12.9 23.1 9.8 10.1

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 calculated 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.

10.2 List of Illustrations

Picture A

Picture B

Picture C-F

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