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2.4 Shanghai: city of transport and distribution
Slide 1 - Diapositive
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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Slide 6 - Vidéo
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.
Slide 11 - Diapositive
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'?