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Economic Growth and Challenge: China

China's global role and economic growth

  • 3 things to know
  • A2 Unit 4

Overview

Why manufacturers relocated production to China, how China's economy is now changing structurally and global shift.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Key term

Explain why manufacturers relocated production to China.

Key term

Describe how China's economy is now changing structurally.

Key term

Define the global shift.

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    Describe the change in China's economy since 1978.

    Model answer

    Reform and opening turned a closed planned economy into a market-oriented one integrated with world trade, and it grew to become the second largest economy on earth.

  2. 2

    Why is China called the workshop of the world?

    Model answer

    It manufactures a very large share of the world's goods, from clothing and toys to electronics and machinery, and exports them worldwide.

  3. 3

    Explain why manufacturers relocated production to China.

    Model answer

    Very low labour costs combined with a huge workforce, improving infrastructure and government incentives made production far cheaper than in developed economies.

  4. 4

    Describe how China's economy is now changing structurally.

    Model answer

    Wages have risen so low-value manufacturing is moving elsewhere, and China is shifting towards higher-value production, technology and domestic consumption.

  5. 5

    Define the global shift.

    Model answer

    The global shift is the movement of manufacturing, and later services, from developed economies to lower-cost countries.

  6. 6

    Give two consequences of the global shift for developed economies.

    Model answer

    Loss of manufacturing employment and the deindustrialisation of former industrial regions, alongside cheaper consumer goods for those who remain in work.

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