Industry of China

Last updated

A 50 MW molten-salt power tower in Hami, Xinjiang, China 50 MW molten-salt power tower in hami.jpg
A 50 MW molten-salt power tower in Hami, Xinjiang, China

The industrial sector comprised 38.3% of the gross domestic product (GDP) of China in 2023. [1] China is the world's leading manufacturer of chemical fertilizers, cement and steel. Prior to 1978, most output was produced by state-owned enterprises. As a result of the economic reforms that followed, there was a significant increase in production by enterprises sponsored by local governments, especially townships and villages, and, increasingly, by private entrepreneurs and foreign investors, but by 1990 the state sector accounted for about 70 percent of output. By 2002 the share in gross industrial output by state-owned and state-holding industries had decreased with the state-run enterprises themselves accounting for 46 percent of China's industrial output. In November, 2012 the State Council mandated a "social risk assessment" for all major industrial projects. This requirement followed mass public protests in some locations for planned projects or expansions. [2]

Contents

History

China ranks first worldwide in industrial output. Major industries include mining and ore processing; iron and steel; aluminium; coal; machinery; armaments; textiles and apparel; petroleum; cement; chemical; fertilizers; food processing; automobiles and other transportation equipment including rail cars and locomotives, ships, and aircraft; consumer products including footwear, toys, and electronics; telecommunications and information technology. China has become a preferred destination for the relocation of global manufacturing facilities. Its strength as an export platform has contributed to incomes and employment in China. The state-owned sector still accounts for about 40% of GDP. In recent years, authorities have been giving greater attention to the management of state assets—both in the financial market as well as among state-owned-enterprises—and progress has been noteworthy.[ citation needed ]

Since the founding of the People's Republic, industrial development has been given considerable attention. Article 35 of the 1949 Common Program adopted by the Chinese People's Political Consultative Conference emphasized the development of heavy industry, such as mining, iron and steel, power, machinery, electrical industry, and the chemical industry "in order to build a foundation for the industrialization of the nation." [3] : 80–81 

During the Third Five-Year Plan period, the Chinese government embarked on the Third Front campaign to develop industrial and military facilities in the country's interior in preparation for defending against the risk of invasion by the Soviet Union or the United States. [4] : 41–44  Through its distribution of infrastructure, industry, and human capital around the country, the Third Front created favorable conditions for subsequent market development and private enterprise. [4] : 177 

Among the various industrial branches the machine-building and metallurgical industries have received the highest priority. These two areas now account for about 20–30 percent of the total gross value of industrial output. In these, as in most other areas of industry, however, innovation has generally suffered at the hands of a system that has rewarded increases in gross output rather than improvements in variety, sophistication and quality. China, therefore, still imports significant quantities of specialized steels. Overall industrial output has grown at an average rate of more than 10 percent per year, having surpassed all other sectors in economic growth and degree of modernization. Industrial output growth 1978–2006 Some heavy industries and products deemed to be of national strategic importance remain state-owned, but an increasing proportion of lighter and consumer-oriented manufacturing firms are privately held or are private-state joint ventures.[ citation needed ]

Following its 2001 entry into the World Trade Organization, China quickly developed a reputation as the "world's factory" through its manufacturing exports. [5] : 256  The complexity of its exports increased over time, and as of 2019 it accounts for approximately 25% of all high tech goods produced globally. [5] : 256 

Beginning in 2010 and continuing through at least 2023, China has produced more industrial goods per year than any other country. [6] : 1  It is also the world's largest user of industrial robots. [5] : 264 

Since 2010, China has had the world's largest construction market. [7] : 112 

Machinery manufacturing

China's machinery manufacturing industry can provide complete sets of large advanced equipment, including large gas turbines, large pump storage groups, and nuclear power sets, ultra-high voltage direct-current transmission and transformer equipment, complete sets of large metallurgical, fertilizer and petro-chemical equipment, urban light rail transport equipment, and new papermaking and textile machinery. Machinery and transportation equipment have been the mainstay products of Chinese exports, as China's leading export sector for successive 11 years from 1996 to 2006. In 2006, the export value of machinery and transportation equipment reached 425 billion US dollars, 28.3 percent more than 2005. [8]

Energy industry

The world's largest hydropower plant, the Three Gorges Dam, Yangtze River, China Three Gorges Dam, Yangtze River, China.jpg
The world's largest hydropower plant, the Three Gorges Dam, Yangtze River, China
This paragraph is an excerpt from Energy policy of China.[ edit ]
China is both the world's largest energy consumer and the largest industrial country, and ensuring adequate energy supply to sustain economic growth has been a core concern of the Chinese Government since the founding of the People's Republic of China in 1949. [9] Since the country's industrialization in the 1960s, China is currently the world's largest emitter of greenhouse gases, and coal in China is a major cause of global warming. [10] China is also the world's largest renewable energy producer (see this article), and the largest producer of hydroelectricity, solar power and wind power in the world. The energy policy of China is connected to its industrial policy, where the goals of China's industrial production dictate its energy demand managements. [11]    

Automotive

Chang'an avenue in Beijing Chang'an avenue in Beijing.jpg
Chang'an avenue in Beijing
This paragraph is an excerpt from Automotive industry in China.[ edit ]

The automotive industry in mainland China has been the largest in the world measured by automobile unit production since 2008. As of 2024, mainland China is also the world's largest automobile market both in terms of sales and ownership.

The Chinese automotive industry has seen significant developments and transformations over the years. While the period from 1949 to 1980 witnessed slow progress in the industry due to restricted competition and political instability during the Cultural Revolution, the landscape started to shift during the Chinese economic reform period, especially after the government's seventh five-year plan prioritized the domestic automobile manufacturing sector.

Foreign investment and joint ventures played a crucial role in attracting foreign technology and capital into China. American Motors Corporation (AMC) and Volkswagen were among the early entrants, signing long-term contracts to produce vehicles in China. This led to the gradual localization of automotive components, and the strengthening of key local players such as SAIC, FAW, Dongfeng, and Changan, collectively known as the "Big Four".

The entry of China into the World Trade Organization (WTO) in 2001 further accelerated the growth of the automotive industry. Tariff reductions and increased competition led to a surge in car sales, with China becoming the largest auto producer globally in 2008. [12] [13] Strategic initiatives and industrial policy such as Made in China 2025 specifically prioritized electric vehicle manufacturing.

In the 2020s, the automotive industry in mainland China has experienced a rise in market dominance by domestic manufacturers, with a growing focus on areas such as electric vehicle technology and advanced assisted driving systems. The domestic market size, technology, and supply chains have also led foreign carmakers to seek further partnerships with Chinese manufacturers. In 2023, China overtook Japan and became the world largest car exporter. [14] However, the industry also faced heightened scrutiny, increased tariffs and other restrictions from other countries and trade blocs, especially in the area of electric vehicles due to allegations of significant state subsidies and Chinese industrial overcapacity. [15] [16]

Steel

This paragraph is an excerpt from Steel industry in China.[ edit ]
China's steel industry, initially small and hindered by war, expanded rapidly following market reforms in 1978, eventually becoming the world's largest producer. Despite this growth, the industry faced challenges with high debt, market volatility, and environmental pressures. Rising exports from 2023-2024 led to global oversupply, price drops, and tariffs, prompting China to halt new steel mill approvals and encourage overseas investments. China's central government has also worked to phase out unprofitable "zombie" companies while pushing for stricter environmental controls on steel production.

Mining industry of China

This section is an excerpt from Mining industry of China.[ edit ]

China's mineral resources are diverse and rich. As of 2022, more than 200 types of minerals are actively explored or mined in China. These resources are widely but not evenly distributed throughout the country. Taken as a whole, China's economy and exports do not rely on the mining industry, but the industry is critical to various subnational Chinese governments.

Mining is extensively regulated in China and involves numerous regulatory bodies. The Chinese state owns all mineral rights, regardless of the ownership of the land on which the minerals are located. Mining rights can be obtained upon government approval, and payment of mining and prospecting fees.

During the Mao Zedong era, mineral exploration and mining was limited to state-owned enterprises and collectively-owned enterprises and private exploration of mineral resources was largely prohibited. The industry was opened to private enterprises during the Chinese economic reform in the 1980s and became increasingly marketized in the 1990s. In the mid-2000s, the Chinese government sought to consolidate the industry due to concerns about underutilization of resources, workplace safety, and environmental harm. During that period, state-owned enterprises purchased smaller privately-owned mines. China's mining industry grew substantially and the period from the early 2000s to 2012 is often referred to as a "golden decade" in the mining industry.

Petroleum industry of China

This section is an excerpt from Petroleum industry in China.[ edit ]
Chinese oil production 1960-2015 China Oil Production.png
Chinese oil production 1960–2015
The impact of the petroleum industry has been increasing globally as the People's Republic of China ranks seventh for oil production and second in crude oil consumption in the world. [17] [18] China became the world's largest oil importer in 2013. [18]

See also

Related Research Articles

<span class="mw-page-title-main">Economy of Kyrgyzstan</span>

The economy of Kyrgyzstan is heavily dependent on the agricultural sector. Cotton, tobacco, wool, and meat are the main agricultural products, although only tobacco and cotton are exported in any quantity. According to Healy Consultants, Kyrgyzstan's economy relies heavily on the strength of industrial exports, with plentiful reserves of gold, mercury and uranium. The economy also relies heavily on remittances from foreign workers. Following independence, Kyrgyzstan was progressive in carrying out market reforms, such as an improved regulatory system and land reform. In 1998, Kyrgyzstan was the first Commonwealth of Independent States (CIS) country to be accepted into the World Trade Organization. Much of the government's stock in enterprises has been sold. Kyrgyzstan's economic performance has been hindered by widespread corruption, low foreign investment and general regional instability. Despite those issues, Kyrgyzstan is ranked 70th on the ease of doing business index.

<span class="mw-page-title-main">Economy of Taiwan</span>

The economy of Taiwan is a highly developed free-market economy. It is the 8th largest in Asia and 20th-largest in the world by purchasing power parity, allowing Taiwan to be included in the advanced economies group by the International Monetary Fund. Taiwan is notable for its rapid economic development from an agriculture-based society to an industrialised, high-income country. This economic growth has been described as the Taiwan Miracle. It is gauged in the high-income economies group by the World Bank. Taiwan is one of the most technologically advanced computer microchip and high-tech electronics industries makers in the world.

<span class="mw-page-title-main">Vinnytsia Oblast</span> Oblast (region) of Ukraine

Vinnytsia Oblast, also referred to as Vinnychchyna, is an oblast in central Ukraine. Its administrative center is Vinnytsia. The oblast has a population of 1,509,515.

<span class="mw-page-title-main">Mining in Iran</span>

Mining in Iran is still under development, yet the country is one of the most important mineral producers in the world, ranked among 15 major mineral-rich countries, holding some 68 types of minerals, 37 billion tonnes of proven reserves and more than 57 billion tonnes of potential reserves worth $770 billion in 2014. Mineral production contributes only 0.6 percent to the country's GDP. Add other mining-related industries and this figure increases to just four percent (2005). Many factors have contributed to this, namely lack of suitable infrastructure, legal barriers, exploration difficulties, and government control.

<span class="mw-page-title-main">Industry in Brazil</span>

Brazilian industry has its earliest origin in workshops dating from the beginning of the 19th century. Most of the country's industrial establishments appeared in the Brazilian southeast, and, according to the Commerce, Agriculture, Factories and Navigation Joint, 77 establishments registered between 1808 and 1840 were classified as "factories" or "manufacturers". However, most, about 56 establishments, would be considered workshops by today's standards, directed toward the production of soap and tallow candles, snuff, spinning and weaving, foods, melting of iron and metals, wool and silk, amongst others. They used both slaves and free laborers.

At the time of its founding, the People's Republic of China was one of the poorest countries in the world. In the early 1950s, its industry developed rapidly through a state-led process heavily influenced by the Soviet experience. Aiming to close the gap between its political ambitions and its phase of development, China began the Great Leap Forward, which sought to even more rapidly industrialize the country. The effort largely failed, and its policies contributed to famine.

Trade is a key factor of the economy of China. In the three decades following the dump of the Communist Chinese state in 1949, China's trade institutions at first developed into a partially modern but somewhat inefficient system. The drive to modernize the economy that began in 1978 required a sharp acceleration in commodity flows and greatly improved efficiency in economic transactions. In the ensuing years economic reforms were adopted by the government to develop a socialist market economy. This type of economy combined central planning with market mechanisms. The changes resulted in the decentralization and expansion of domestic and foreign trade institutions, as well as a greatly enlarged role for free market in the distribution of goods, and a prominent role for foreign trade and investment in economic development.

Industry in Ghana accounts for about 24.5% of total GDP. However, Ghana's industrial production is rising at a 7.8% rate, giving it the 38th fastest growing industrial production in the world due to government industrialization policies.

Hydrocarbons are the leading sector in Algeria's mineral industry, which includes diverse but modest production of metals and industrial minerals. In 2006, helium production in Algeria accounted for about 13% of total world output. Hydrocarbons produced in Algeria accounted for about 2.9% of total world natural gas output and about 2.2% of total world crude oil output in 2006. Algeria held about 21% of total world identified resources of helium, 2.5% of total world natural gas reserves, and about 1% of total world crude oil reserves.

<span class="mw-page-title-main">Economy of Belarus</span>

The economy of Belarus is an upper-middle income mixed economy. As a post-Soviet transition economy, Belarus rejected most privatisation efforts in favour of retaining centralised political and economic controls by the state. The highly centralized Belarusian economy emphasizes full employment and a dominant public sector. It has been described as a welfare state or market socialist. Belarus is the world's 74th-largest economy by GDP.

Pakistan's industrial sector accounts for 28.11% of the GDP. Of this, manufacturing makes up 12.52%, mining constitutes 2.18%, construction makes up 2.05%, and electricity and gas 1.36%. The majority of industry is made up of textile units, with textiles contributing $15.4b to exports, making up 56% of total exports. Other units include surgical instruments, chemicals, and a budding automotive industry. Pakistan's inadequately developed labor market, unable to absorb the increasing number of educated workers, has resulted in a high rate of unemployment among graduates.

<span class="mw-page-title-main">Economy of China</span>

The economy of the People's Republic of China is a developing mixed socialist market economy, incorporating industrial policies and strategic five-year plans. China is the world's second largest economy by nominal GDP and since 2017 has been the world's largest economy when measured by purchasing power parity (PPP). China accounted for 19% of the global economy in 2022 in PPP terms, and around 18% in nominal terms in 2022. The economy consists of state-owned enterprises (SOEs) and mixed-ownership enterprises, as well as a large domestic private sector which contribute approximately 60% of the GDP, 80% of urban employment and 90% of new jobs, the system also consist of a high degree of openness to foreign businesses. According to the annual data of major economic indicators released by the National Bureau of Statistics since 1952, China's GDP grew by an average of 6.17% per year in the 26 years from 1953 to 1978. China implemented economic reform in 1978, and from 1979 to 2023, the country's GDP growth rate grew by an average of 8.93% per year in the 45 years since its implementing economic reform. According to preliminary data released by the authorities, China's GDP in 2023 was CN¥126.06 trillion with a real GDP increase of at least 5.2% from 2022.

<span class="mw-page-title-main">Mining in Bolivia</span>

Mining in Bolivia has been a dominant feature of the Bolivian economy as well as Bolivian politics since 1557. Colonial era silver mining in Bolivia, particularly in Potosí, played a critical role in the Spanish Empire and the global economy. Tin mining supplanted silver by the twentieth century and the central element of Bolivian mining, and wealthy tin barons played an important role in national politics until they were marginalized by the industry's nationalization into the Bolivian Mining Corporation that followed the 1952 revolution. Bolivian miners played a critical part to the country's organized labor movement from the 1940s to the 1980s.

<span class="mw-page-title-main">Steel industry in China</span> Overview of the steel industry of China

China's steel industry, initially small and hindered by war, expanded rapidly following market reforms in 1978, eventually becoming the world's largest producer. Despite this growth, the industry faced challenges with high debt, market volatility, and environmental pressures. Rising exports from 2023-2024 led to global oversupply, price drops, and tariffs, prompting China to halt new steel mill approvals and encourage overseas investments. China's central government has also worked to phase out unprofitable "zombie" companies while pushing for stricter environmental controls on steel production.

<span class="mw-page-title-main">Manufacturing in the United States</span>

Manufacturing is a vital economic sector in the United States of America. The United States is the world's second-largest manufacturer after the People's Republic of China with a record high real output in 2021 of $2.5 trillion.

Industrial Policy Resolution of 1956 is a resolution adopted by the Indian parliament in April 1956. It was the second comprehensive statement on industrial development of India after the Industrial Policy of 1948. The 1956 policy continued to constitute the basic economic policy for a long time. This fact has been confirmed in all the Five-Year Plans of India. According to this resolution the objective of the social and economic policy in India was the establishment of a socialistic pattern of society. It provided more powers to the governmental machinery. It laid down three categories of industries which were more sharply defined. These categories were:

  1. Schedule A: those industries which were to be an exclusive responsibility of the state.
  2. Schedule B: those which were to be progressively state-owned and in which the state would generally set up new enterprises, but in which private enterprise would be expected only to supplement the effort of the state; and
  3. Schedule C: all the remaining industries and their future development would, in general be left to the initiative and enterprise of the private sector.

With industrial production of USD $79.8 billion in 2023, Argentina is the third-largest industrial power in Latin America after Mexico and Brazil. Argentina has a sophisticated industrial base that ranges from small and medium-sized enterprises to world-class facilities operated by domestic and multinational corporations. Rich in natural resources with a relatively skilled workforce, Argentina exported almost USD $45 billion in manufactured goods in 2023.

<span class="mw-page-title-main">Machine industry</span> Subsector of the industry

The machine industry or machinery industry is a subsector of the industry, that produces and maintains machines for consumers, the industry, and most other companies in the economy.

China's mineral resources are diverse and rich. As of 2022, more than 200 types of minerals are actively explored or mined in China. These resources are widely but not evenly distributed throughout the country. Taken as a whole, China's economy and exports do not rely on the mining industry, but the industry is critical to various subnational Chinese governments.

<span class="mw-page-title-main">Industry of Belarus</span>

Industry plays an important role in the economy of Belarus. In 2020, industry accounted for 25.5% of Belarusian GDP. Share of manufacturing in Belarusian GDP was 21.3% in 2019. United Nations Economic Commission for Europe described Belarus as having "a well-developed industrial sector and highly skilled workforce". In 2020, 23.5% of the Belarusian workforce was employed in industry. In 2019, total industrial production amounted to 115.7 billion Belarusian rubles ; in 2020, it rose to Br 116.5 billion. Belarusian industry is export-oriented: in 2020, 61.2% of industrial output was exported. The most important sector is food industry. Other well-developed sectors of industry include chemical industry, automotive industry and manufacturing of other machinery equipment.

References

  1. ↑ "National Data". National Bureau of Statistics of China. March 1, 2022. Archived from the original on August 11, 2021. Retrieved March 23, 2022.
  2. ↑ Keith Bradsher (November 12, 2012). "'Social Risk' Test Ordered by China for huge Projects". The New York Times. Retrieved November 13, 2012.
  3. ↑ Harrell, Stevan (2023). An Ecological History of Modern China. Seattle: University of Washington Press. ISBN   9780295751719.
  4. 1 2 Marquis, Christopher; Qiao, Kunyuan (2022). Mao and Markets: The Communist Roots of Chinese Enterprise. New Haven: Yale University Press. doi:10.2307/j.ctv3006z6k. ISBN   978-0-300-26883-6. JSTOR   j.ctv3006z6k. OCLC   1348572572. S2CID   253067190.
  5. 1 2 3 Lan, Xiaohuan (2024). How China Works: An Introduction to China's State-led Economic Development. Translated by Topp, Gary. Palgrave MacMillan. doi:10.1007/978-981-97-0080-6. ISBN   978-981-97-0079-0.
  6. ↑ Garlick, Jeremy (2024). Advantage China: Agent of Change in an Era of Global Disruption. Bloomsbury Academic. ISBN   978-1-350-25231-8.
  7. ↑ Curtis, Simon; Klaus, Ian (2024). The Belt and Road City: Geopolitics, Urbanization, and China's Search for a New International Order. New Haven and London: Yale University Press. doi:10.2307/jj.11589102. ISBN   9780300266900. JSTOR   jj.11589102.
  8. ↑ China Facts and Figures 2007: Machinery Manufacturing and Automotive Industries.
  9. ↑ Andrews-Speed, Philip (November 2014). "China's Energy Policymaking Processes and Their Consequences". The National Bureau of Asian Research Energy Security Report. Retrieved December 5, 2014.
  10. ↑ McGrath, Matt (November 20, 2019). "China coal surge threatens Paris climate targets" . Retrieved December 9, 2019.
  11. ↑ Rosen, Daniel; Houser, Trevor (May 2007). "China Energy A Guide for the Perplexed" (PDF). piie.com. Retrieved April 25, 2020.
  12. ↑ Marr, Kendra (May 18, 2009). "China emerges as world's auto epicenter". NBC News . Archived from the original on May 16, 2024. Retrieved May 16, 2024.
  13. ↑ "Motoring ahead" . The Economist . October 23, 2009. ISSN   0013-0613. Archived from the original on May 26, 2024. Retrieved May 16, 2024.
  14. ↑ Hoskins, Peter (May 18, 2023). "China overtakes Japan as world's top car exporter". BBC News . Archived from the original on November 14, 2023. Retrieved August 3, 2023.
  15. ↑ "China's EV overcapacity may set it on a political collision course with the US". South China Morning Post . May 14, 2024. Archived from the original on May 22, 2024. Retrieved May 22, 2024.
  16. ↑ "EU companies warn China on EV overcapacity" . Financial Times . Archived from the original on May 22, 2024. Retrieved May 22, 2024.
  17. ↑ "IEA Atlas of Energy". International Energy Agency. May 2018. Archived from the original on January 10, 2021. Retrieved January 13, 2021.
  18. 1 2 "China overtakes US as the biggest importer of oil". BBC News . October 10, 2013. Archived from the original on October 10, 2013. Retrieved October 11, 2013.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.