8.2.4

Case Study: Inequality in China

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Inequality in China

China is a Newly Emerging Economy (NEE) that has high income inequality between the rural population and the urban population, who have disproportionately benefited from industrialisation.

Illustrative background for Richer areasIllustrative background for Richer areas ?? "content

Richer areas

  • Coastal industrial zones seem to have benefited from cumulative causation since China became more of a market-based economy.
  • Coastal locations are good for trade.
  • The major cities in each province are generally a lot wealthier than the smaller cities.
    • E.g. Shanghai is 5x wealthier than inland areas like Gansu.
  • Locations like Inner Mongolia, which have oil, coal and minerals that can be used in industrial processes are generally wealthier.
Illustrative background for Poorer areasIllustrative background for Poorer areas ?? "content

Poorer areas

  • The South West of China has the Himalayan mountains.
  • The soil here is bad and the terrain is mountainous.
  • Land-locked areas that are inland and away from trade routes, like Gansu and Ningxia are poorer than other parts of China.
Illustrative background for Improving west ChinaIllustrative background for Improving west China ?? "content

Improving west China

  • The Chinese government developed the “Go West” plan to improve infrastructure (including roads, railways and pipelines).
  • The “Belt and Road” policy aims to improve the links between the Central parts of China and South East Asian countries.
Illustrative background for Government policyIllustrative background for Government policy ?? "content

Government policy

  • Twinning policies pair a poor inland area with a rich coastal area.
    • The rich area offers advice and development strategies.
    • But the inland areas may have locational disadvantages.
  • Poorer areas also get more funding from the central government.

Jump to other topics

1Paper 1 - Changing River Environnments

2Paper 1 - Changing Coastal Environments

3Paper 1 - Changing Ecosystems

4Paper 1 - Tectonic Hazards

5Paper 1 - Climate Change

6Paper 2 - Changing Populations

7Paper 2 - Changing Towns & Cities

8Paper 2 - Development

9Paper 2 - Changing Economies

10Paper 2 - Resource Provision

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