SLCSS/Form 5/GEOG/Chapter B10/P.

Chapter B10 Changes in industrial Development in China—

Locational Changes in the iron and steel industry

Exercise 1 (similar to 95#5)

Source 1 Five Year Plans - Study the following passage about the
development of iron and steel industry in China.

During the past 50 years, Government influence on industry location in China was
strong. The Communist government adopted the following policies:
Year Policy Aims
1953-1957 First Five -Year Plan Expanded and redistributed
industry, including the iron
and steel industry.
Industry shifted from
coastal to inland
1958-1961 Second Five –Year Plan Industry was shifted further
into interior and more
remote regions
After 1978 Ten – Year Plan Located iron and steel
industry more economically
Shifted back to coastal
location.
Source 2 (Location of Iron and Steel Centres)

Source 3 (Location of Main Iron Ore Mining Centres)

SLCSS/Form 5/GEOG/Chapter B10/P.2

Source 4 (Location of Major Coal Centres)

SLCSS/Form 5/GEOG/Chapter B10/P.3

Source 3.The following conversation about the people’s attitude towards

First Five - Year Plan in 1950s

A: Five -Year Plan is a good idea.

First, from economic reasons, it can balanced regional economic development.
Also it can improve the living standard for the interior provinces. On the other
hand, it can fully utilize untapped resources. Moreover…….
B: Stop! Don’t be so childish.
A: You don’t think so? Why?
B: First, the economy is unsound in the interior. And the physical environment
will hinder the development. The cost is very high. It will bring a lot of problem.
Finally, the plan will fail.

(a) What are the factors favouring the development of the iron and
steel industry in X? (7
marks)
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SLCSS/Form 5/GEOG/Chapter B10/P.4

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(b) Despite difficulties encountered, the government has set up an iron

and steel centres at Z
i) What are these difficulties? (4 marks)
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ii) Justify the government’s decision (5 marks)

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1c) Refer to Table 1, which shows the steel production of X and Y in

1986 and 1991
Steel production (000’tonnes)
X Y
1986 749.05 248.13
1991 761.12 436.73

i) Compare the changes in steel production of X and Y (1 mark)

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ii)Explain the changes at Y. (7 marks)

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SLCSS/Form 5/GEOG/Chapter B10/P.5

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Information sheet---The location change of iron and steel

industry in China
Stage I---Before 1949

A) Location
Before 1949, the spatial distribution of the iron and steel industry in
China was very uneven.
It was highly concentrated in two places:
1) Northern China e.g: Anshan
2) East coast e.g: Shanghai

B) Favourable factors of concentration

1) near to raw material
Abundant deposits of iron ore are available, e.g Anshan

2) near to power resources

There is rich supply and good quality coal from local coalfields
e.g.Fushun

3) History of Japanese and Russia development

-good network of railways
-foreign technology and capital

4) Ice-free ports
There were large, deep ice-free ports in Northern China for import and
export

5) High population density

-abundant supply of skilled labour
-large local market
SLCSS/Form 5/GEOG/Chapter B10/P.6

Stage II---1950s-1970s

In stage I, we can see the iron and steel industry in China was uneven
distribution .In fact, it brought a lot of problems:

A) Problems of high concentration

1) unbalanced economic development
The economic development between the interior and the coast was very
unbalanced

2) Under-utilized of inland resources

3) Strategic reasons: vulnerable to enemy attack

4) Population was uneven distributed

Therefore, since 1949,the Chinese government decided on the inland

shift (i.e decentralization) of the iron and steel industry in China under
a series of Five -Year Plan . It was decentralized inland and western to
more remote areas.

e.g.
Urumqi inland ( e.g Baotou) coastal
(western direction)

Also, between this period, the iron and steel industry became the leading
industry and the basis of all industries in China.

B) Reasons for locational change

1) government policy

2) strategic reasons

3) economic reasons
-avoid unbalanced regional economic development
-achieve local /regional self-sufficiently
SLCSS/Form 5/GEOG/Chapter B10/P.7

4) create more employment opportunity for the interior provinces

improve the living standard

5) fully utilized untapped resources

6) improve the infrastructure and transport network

7) more even distribution of population

C) Difficulties of Development
Although the interior has large reserves of coal and iron ore, it is
uneconomically and inefficiently located for the development of iron and
steel industry because of the following problems and disadvantages:
1) The iron ore is low-grade
-unsuitable for use

2) The coal is found in thin and discontinuous seams

-costly to mine

3) ineffectively transport system in the interior

The rate of transport development in the interior is slower than the
rate of industrial development
-import and export are often delayed

4) far away from markets + poor transport network

-high transport cost

5) lack of infrastructure

6) extreme continental climate

-low population density
-lack of skilled labour supply
SLCSS/Form 5/GEOG/Chapter B10/P.8

Stage III---after 1978

As interior centres have become less economically and efficiently located,

since 1978, the iron and steel industry was shifted back to coastal
location.

A) Advantages of relocate to coastal regions

1) coastal location  adequate space for reclamation
 water transport

the cost of transport and production can be lower

+
better access to raw material
2) better infrastructure

3) abundant and skilled labour supply

4) nearness to markets

IV) Conclusion

The locational of iron and steel industry in China was strongly

influenced by the government. And the government policy became
the most important factor affecting industrial location after 1949.
SLCSS/Form 5/GEOG/Chapter B10/P.9

Answers
1a)
 long history of Japanese and Russia development
-well developed railway network and infrastructure
 access to raw material (iron ore)
 access to power(good quality coal)
 near to port/coast
 high population density
-abundant supply of labour
-large local market
1b) i)
 far away from coast
 difficult transport
 lack of infrastructure
 harsh environment + problem of water and food supply
-sparsely populated
-insufficient labour supply
-small local market
ii)
 strategic reasons
 achieve regional balance in economic development
 improved living standard in interior areas
 utilization of local resources
 redistribution of population

1c) i)X--slower rate

Y—faster rate
ii)
 government policy
 modern intergrated steel mill
 modernization of existing plants
 great demand for steel
 good infrastructure
 coastal location-easy supply of raw materials
-water cooling