Open door economic policy, International Economics

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Open Cities & Open Coastal Areas: like the Sezs, aimed at attracting foreign investments and technology. They are : Dalian (Liaoning province); Qinhuangdao (Hebei), Tianjin, Yantai (Shandong), Nantong (Jiangsu), Lainyungang (Jiangsu), Shanghai, Ningbo (Zhejiang), Wenzhou (Zhejiang), Fuzhou (Fujian), Guangzhou (Guangdong), Zhanjiang (Guangdong) and Beihai (Guangxi Zhuang A.R.). These investment rules and regulations are stricter compared with the Sezs. Beijing is concerned about the potential adverse negative impact; demands for greater human rights and democratization.

1. In these economic zones, investors are offered many economic and financial incentives. Taxes are low. Import and export regulations are eased. Land leases are simplified. The hiring of labor under contract is allowed. Products made in the economic zones may be sold on foreign markets and under some restrictions, in China as well. Even Taiwan companies may operate in the economic zones. Profit made may be sent back to the investors' home country.

2. Deng Xiaoping's Open Door Economic Policy. Over the past 25 years, as a result of these free market reforms , China's economy has expanded by an average of 9%-10% annually. Today, China has become the world's ‘manufacturing centre'. China's economic size today is 4th largest in the world, after the US, Japan, and Germany. Over the past 2 years, China has become the largest trading partner of Japan and South Korea, surpassing the US.

Guideline & Outline Answer:

Show how each contributes to the Pacific Rim developments that are currently affecting much of China's seaboard.

A. The importance of the ethnic-Chinese in the South East Asian realm. Discuss the spatial correspondence between the distribution of ethnic-Chinese and the realm's key political decision-making centres.

1. Generally, ethnic-Chinese (30 million) dominate the economies of South East Asia urban cities trade, commerce, banking and finance:
• In Indonesia: major cities in Java (Jarkata; Bandung ; Semarang; Surabaya). Suharto era: pribumi policy. "Cukongs" (Liem Sioe Liong).
• Malaysia: western part of country: Johor, Malacca, Kuala Lumpur, Ipoh, Penang. May 1969 New Economic Policy: pro-bumiputra policy.
• Thailand: Bangkok area. Assimilation into Buddhist society
• Vietnam: Ho Chi Minh City: Hanoi
• Myanmar: Yangon
• Cambodia: Phnom Penh
• Philippines: Manila area (Luzon Island)
• Singapore: 75% ethnic Chinese

2. Cultural (religious) diversity of South East Asia. Make observations about the leading regional patterns of ethnic groups and religions.
• Indonesia: Sunni Islam. Non-Javanese ethnic groups (Sundanese)
• Malaysia: Sunni Islam. Minorities: Chinese and Indians
• Thailand: Buddhist
• Myanmar: Buddhist. Karens/Shans
• Philippines: Catholic Christians. Muslims (Mindanao)
• Singapore: Multiracial
• Brunei: Islamic sultanate

3. Characteristics of ‘antecedent boundaries'. Example: the border between East Malaysia (Sabah/Sarawak) and Kalimantan-Indonesia.

Definition: ‘antecedent boundary' is one that is defined and delimited before the main elements and settlement patterns of the present cultural landscape began (influence of major rivers and mountainous terrain).

Other examples: Border between US/Canada. China/Mongolia, Chile/Argentina, Egypt/Sudan, Egypt/Libya, Potugal/Spain

Major rivers: Irrawaddy, Salween (Myanmar), Mekong, Chao Phraya (Thailand), Red (North Vietnam)

Water Bodies: Andaman sea (off western Thailand), Flores sea (south of Indonesia's Sulawesi Island), Sunda straits (between Sumatra and Java), Tonle Sap (Cambodia)

Land Bodies: Sumbawa (next to Bali), Panay (Philippines)

Mountains and Plateaus: Arakan mountains (Myanmar), Khorat plateau (Thailand), Barisan Range (Sumatra), Iran mountains (Kalimantan)


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