China 1978 Open Door Policy

• Prior to 1978, China = switched off
• Deng Xiaoping began radical Open Door reforms which allowed China to embrace globalisation whilst remaining under one authoritarian rule
• Earliest reforms in rural areas
• Agricultural communes dismantled and farmers allowed to make small profit for the first time
• Strict controls on number of children introduced to curb population growth
• Over the next 30 years, approx 300 mn people migrated to cities from rural areas in search of a better life.
• Mukou is a strict registration system to prevent rural villages from emptying all together
• Continued growth expected with 200 Chinese cities soon to have 1 mn inhabitants or more
• Urban mega-region grown around Pearl River Delta with a population of 120 mn
• Initially, urbanisation fuelled growth of low-wage factories which gave China the nickname of 'workshop of the world'
• World's largest TNCs quickly established branch plants or trade relationships with Chinese owned factories in newly established coastal SEZs.
• By 1990s, 50% of China's GDP came from SEZs
• 400 mn escaped poverty since reforms began
• By 2015, many of those working in factories making quality goods were earning $40 or more a day e.g by making iPhones for FoxConn in Shenzen SEZ
• FDI from China and its TNCs is predicted to total US$1.25 trillion between 2015 and 2025
• China agreed to export more 'rare earths' minerals to other countries in line with a WTO ruling
• Foreign TNCs are now allowed to invest in some sectors of China's domestic markets including its rail freight and chemical industries.
• However, Google and Facebook have little to no access to Chinese markets. Rather, Chinese companies like Youku provide social network services.
• China Gov sets a strict quota of only 34 foreign films to be screened in Cinema's each year.
• Strict controls on foreign TNCs in some sectors. China's gov blocked Coco-Cola's acquisition of Huiyan Juice in 2008.