Chapter 3: Mining and Industrial Development in China

Keywords

Minerals

Mining

Extraction

Industry

Great leap forward

After studying this chapter, you should be able to;

know the minerals found in China

know the types of industries in China

draw a map to show the main mining and industrial areas in China

understand how China developed industries

realize the role of the government and central planning in industrial development A understand changes in industries in China

understand the importance of Africa as a market for Chinese goods and investment

appreciate the growing importance of China in the economic development of Africa

Introduction

In Senior Two in chapter thirteen and in Chapter Twenty-six, you learned about the importance of developing manufacturing industries, the types and location of manufacturing industries, and the problems of developing manufacturing industries.

China started its industrialization process in the early 1900s. This process was interrupted by the long-term wars in the following years. China then undertook a special industrialization path in the years following the founding of the People’s Republic of China in 1949. Different strategies were adopted at different stages since then, including prioritising heavy industries, balancing the development of heavy and light industries, and re-prioritising heavy industry.

In this chapter, you are going to learn about why and how industries developed in China, the industries which developed and how they have evolved. You will also learn about minerals and mining in China.

Minerals and Mining in China

You have already learnt about mining in East Africa and Africa in Senior Two and in chapter twenty-five. China also carries out mining because it has mineral deposits. It has coal in abundance. You can name other countries in Africa that have coal. After doing tasks in activity 27.1, you are going to understand minerals and mining in China.

Activity 27.1 Understanding minerals and mining in China

Study the map of China showing mining areas in Figure 27.1 and do the tasks that follow.

1 Copy the map in Figure 27.1 into your notebooks.

2 Using the map you have drawn in (1), identify the mining areas in China and the minerals mined.

3 Present your finding in a table form like in table 27.1 Table 27.1: Mining areas and minerals mined in China.

You have learnt that China has huge mineral resources such as oil, natural gas and coal which provide raw materials which favour industrial development. These raw-materials also run the machines in factories.

Industrial development in China

In the beginning China was an agricultural country with a few industries. However, since there is abundance of coal, oil, natural gas and iron reserves a lot of efforts were made to industrialise China with the rise to power of the communists in 1949.

The main Industrial Regions of China

There are seven major industrial regions in China with different types of industries. Most of these industries are located in the Northeast, East, North, Central South and Southwest regions of China. After doing tasks in activity 27.2, you are going to find out the main types of industries and industrial regions in china.

From activity 27.2, you learnt that China has a number of industries such as automobiles, electronics, pharmaceuticals, and textiles.

Today, China is the world’s largest manufacturing country. It produces nearly 50 percent of the world’s major industrial goods, including steel, cement, coal and vehicles.

You should note that China’s per capita income was only one-third of that of sub-Saharan Africa. China is also the world’s largest producer of ships, high-speed trains, robots, chemical fibers, machine tools, computers and cellphones. You have also learnt that industries provide employment opportunities, government revenue, foreign exchange through exportation and international relationships.

Evolution of industries in China

You have learnt that industries evolve. The industrial revolution began around the 1920s. What is happening in China is not its first attempt at industrialisation but the fourth over the past 120 years. The first attempt was made between 1861 and 1911.

It came on the heels of China’s defeat in 1860 by the British in the Second Opium War. Deeply humiliated by unequal treaties imposed by Western industrial powers, the Qing monarchy that was then in control in China embarked on a series of ambitious programs to modernise its backward rural economy.

This was done by establishing a modern navy and industrial system. This attempt started eight years earlier than the Meiji Restoration that triggered Japan’s successful industrialization.

After doing tasks in activity 27.3, you are going to understand how industries evolved in China.

Activity 27.3 Understanding the evolution of industries in China

In groups, read the extract below and do the tasks that follow. China’s industrialization can be roughly divided into three stages. The first stage ranges from 1953 to 1978 when China prioritized heavy industry through the command economy, with the intention of accomplishing a Second Five Year Plan and catching up with the developed world (Lin 2004).

This stage can be further divided into four periods The first period corresponded to the first five-year plan (1953-1957) when China focused its efforts on the construction of 694 large and medium-sized industrial projects, including 156 supported by the Soviet Union (Wu 1999).

Through these considerable efforts, China laid the primary foundations for industrialisation to provide material and technological support to restore/build the national economy. During the second period, from 1958 to 1960, China implemented a Second Five Year Plan industrialisation strategy.

The Chinese government mobilized massive amounts of investment funds and manpower to support industrial development, which emphasised heavy industry in general, and the iron and steel industry in particular.

The hope was to industrialise by making use of the huge supply of cheap labor and avoid having to import heavy machinery. For various reasons, the years of the Second Five-Year Plan saw economic decline and material shortages. The policy failures promoted the government to rethink and adjust its policies from 1961 to 1965. During this period, China began to adopt a development strategy of coordinated and balanced development of agriculture, light industry, and heavy industry.

The imbalanced economic structure that resulted from the Great Leap Forward was gradually improved and China’s economic output greatly increased. During the fourth period or the Cultural Revolution from 1966 to 1978, China had implemented a strategy of three-front construction.

The country was divided into three fronts, roughly corresponding to the three regions: coastal, central and western. As 15 most new industrial projects were located in the third-front areas, the industrial expansion in these areas has been known as the third front program.

Though China concentrated on heavy industry, the entire third-front build-up was dictated by considerations of military strategy rather than economic efficiency. About 95 percent of China’s basic construction investment funds were allocated to the construction of defense-oriented industries. The share of heavy industry increased from 51 percent to 55.8 percent within this period.

However, this policy resulted in further differences between light and heavy industry in the total economic structure and regional imbalances in industrial distribution and production. The second stage, the period of 1979 to 1999, witnessed a more balanced development of China’s industries.

In 1979, China adopted the opening-up policy and started to adjust the strategy of prioritising industrial development. The roles of the market and private businesses in promoting industrialisation were emphasised and encouraged industrialisation. The Chinese economy has moved back into a development phase of industrialisation through the heavy industry (Ye & Yu 2014). Many local governments have combined physical and financial resources for the launch of large-scale projects in an attempt to drive economic growth.

From 2000 to 2012, heavy industry in China grew much faster than light industry. The third stage started in 2000 when China saw the reappearance of heavy industries. The proportion of heavy industry increased from 53.8 percent in 1999 to 71.8 percent in 2012, while that of the light industry fell to 30 percent.

The contribution rate of heavy industry to total industrial profits reached more than 72 percent in 2012. It can be seen that industrial growth during this phase largely relied on heavy industrialisation.

By Prof. Dr. Li Xiao Yun

1 How did industries develop in China.

2 Explain what was in the Second Five Year Plan.

3 Identify the industries which developed in china.

4 Explain the role of the government of china in planning industrial development?

5 Share your work with the rest of the class through a discussion.

You have learnt that China’s path to industrialization has gone through three major phases: The phase which featured the sprouting of millions of rural enterprises across China’s vast countryside and small towns is known as Proto-industrialisation.

The phase that featured the mass production of labor-intensive light consumer goods across China’s rural and urban areas, relying first mainly on imported machinery is known as the First Industrial Revolution and the Second Industrial Revolution was a phase that featured the mass production of the means of production.

Role of Africa to China’s development

You learnt that Africa plays a very big role in China’s development. Africa has emerged as a potential market for many Chinese businesses, both state-owned and private.

Remember the number of items used in your home, and how many are labeled “made in China”, this is exactly how Africa has supported China’s industrial development. After doing tasks in activity 27.4, are going to understand the role of Africa to China’s development.

Activity 27.4 Understanding the role of Africa to china’s development

In pair carry out a textbook or internet research on the role of Africa to China’s development and do the that following tasks:

1 Discuss the importance of Africa as a market for Chinese goods and investment.

2 Identify any four Chinese products that are sold in Uganda.

3 Identify any projects in Uganda where Chinese are investing.

4 What are the advantages and disadvantages of Chinese investment in Uganda?

5 Of what importance is Africa in the economic development of china.

6 Present your work to the rest of the class through a discussion.

You have learnt that trade between China and Africa has increased. The majority of this trade is Chinese exports to Africa. China’s largest exports are machinery and electrical equipment. In 2020, Africa accounted for 4 percent of China’s trade with the world (4.4 percent for its exports and 3.6 percent for its imports).

In 2019, the continent accounted for just 2.9 percent of Chinese direct investment flows in the world. Since Africa is made up of 54 countries, 53 of which recognize Beijing, economic relations are even less important by country.

Chapter Summary

In this chapter, you have learned that;

▲ China’s most important mineral resources are hydrocarbons, of which coal is the most abundant.

▲ China has huge mineral resources such as oil, natural gas, and coal which provide raw materials that favours industrial development.

▲ The major industrial regions in China include; Manchuria, Tianjin-Beijing, Shanxi Baotou, lower chang jiang, Wuhan area, Xinjian, Sichuan, and Yunnan.

▲ Industries include; mining and ore processing, iron and steel, aluminum textiles food processing, and automobiles. Most of these industries are located in the Northeast, East, North, Central South and Southwest regions of China.

▲ China’s industrialization has gone through three major phases which include Proto-industrialization and the first Industrial revolution.

▲ Africa has emerged as a potential market for many Chinese businesses, both state-owned and private.