2.4 Shanghai: city of transport and distribution

2.4 Shanghai: city of transport and distribution
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2.4 Shanghai: city of transport and distribution

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Learning objectives
After studying this section, you will be able to:
  • Explain the reasons why Shanghai grew to be an important port;
  • Describe the functions of Shanghai as a transport hub.

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Slide 3 - Carte

Slide 4 - Vidéo

First Opium War = A series of military engagements, fought and won by the British, to force China to import opium.

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Concessions = Small pieces of territory that are owned by foreign countries, in this case located next to old Shanghai.

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In 1991 the city was opened to foreign investors and trade once again, starting with Special Economic Zones (SEZs)

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Shanghai as 
transport hub
Transport hub
A city where goods are stored and distributed all over the world.

The world's busiest container port 
A harbour that specialises in the storage, handling and shipping of containers.

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Shanghai as 
transport hub
  • In Shanghai there are SEZs or Free-Trade Zones (FTZs) for the industrial sector and container ports.
  • Goods are manufactured, stored in warehouses and made ready for shipment. 
  • These zones are special: they are not subject to customs, taxes and other duties. 
  • This makes these zones attractive places for companies to invest in and establish their businesses.

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Strengths & weaknesses of Shanghai
  • Shanghai profits greatly from export. 
  • Reason: China joined the World Trade Organization (WTO) and signed free trade agreements with other nations. 
  • As a result, Shanghai not only exports a lot of products, but also attracts a lot of foreign direct investments (FDIs): companies are taken over or a new company is started, as production costs are lower here.

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Downside of Shanghai: smog, which is air pollution caused by industry and excessive car use.

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Made in China
  • China is called the 'factory of the world'.
  • Negative side: Low wages, bad working conditions, etc.
  • Positive aspect: Job opportunities, growing wealth, etc.
  • Factories are economic investments for China
  • Future: Transformation to a service economy?
  • Challenge question: Which country is most likely to be the biggest competitor to become the 'office of the world'?

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Homework 3HT
Wednesday 2nd December, 6th hour:
  • Compulsory: Ex. 3 to 9ab, 10
  • Revision: Ex. 1
  • Challenge: Ex. 2

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