Bridging focus 1: Background and highlights of China s reform and opening-up

Transcription

1 Bridging focus 1: Background and highlights of China s reform and opening-up 1. Revision of Junior Secondary Liberal Studies Knowledge Related Terms Concept Checkpoint Let s Review Key Points of Senior Secondary Liberal Studies Issue of Exploration: How did the Chinese economy carry on after the Cultural Revolution? Step 1: Selection of enquiry areas and/or theme Step 2: Collection of data Step 3: Organization of data collected Step 4: Analysis of data collected Enquiring focus 1: What economic difficulties did China face during the late 1970s? Enquiring focus 2: How did China escape from her economic difficulties? Step 5: Evaluation of different viewpoints, drawing a conclusion Step 6: Presentation of results and production of the product Extended Exploration: Does reform and opening-up benefit all?... 21

2 2 Bridging Materials 1. Revision of Junior Secondary Liberal Studies Knowledge Senior Secondary Liberal Studies is closely related to our lives. Apart from the information you have obtained outside school, you have also acquired knowledge relevant to the theme China s reform and opening-up during junior secondary school. This theme may include topics such as the background, contents and achievements of reform and opening-up, as well as the various problems brought by reform and opening-up. This section aims to help you revise the knowledge you have acquired on China s reform and opening-up during junior secondary school. The following are definitions and concepts related to the theme to assist you in revising what you have learned: 1.1 Related Terms Reform and opening-up It refers to the important national policy of internal reforms and opening up of the country brought up by the Communist Party of China (CPC) in the Third Plenum of the 11th CPC Congress held in The Congress focused on economic reforms and the active opening-up of the country for cooperation with other countries, both of which brought immense changes to the later development of China. Internal reforms In order to increase people s productivity and production incentive and to facilitate economic development, the central government implemented a series of internal reform policies. They include the implementation of the household responsibility system ( 家庭聯產承包責任制 ) and reforms of stateowned enterprises and the ownership system. A socialist market economy was adopted so that resources are allocated according to market supply and demand. Opening-up policy In order to decrease China s alienation and strengthen her economic development, the central government has been actively promoting the opening-up policy since It encouraged the introduction of advanced foreign production technology and operation and management methods and hoped to attract foreign investment and expand the scope of foreign trade. In addition, Special Economic Zones (SEZs) and open regions were set up in coastal areas as test sites for opening to the outside world. Socialism with Chinese Characteristics In its original sense, socialism is an economic ideology that advocates a public economy and believes that production plans should be under the control of the state or the government. Socialism with Chinese characteristics was an ideological theory brought up by Deng Xiaoping ( 鄧小平 ) in 1982 as the guiding principle of reform and opening-up. Its content includes the promotion of economic development in the light of the country s conditions with economic construction as the core, while insisting on reform and opening- 走向世界的中國 走向世界的中國 走向世界的中國珠三角地區的發展 Theme 1: China s reform and opening-up, Modern China (Book 1 & Book 2)

3 Modern China 3 up and liberating productivity under the leadership of the CPC. In reality, it is to learn from the advantages of Western capitalism while maintaining the characteristics of socialism during the set up of a market economy in China. Socialist market economy A socialist market economy is the integration of a basic socialist system with a market economy, so that the market can play its basic role in resource allocation under macroeconomic adjustment ( 宏觀調控 ). Changes in economic activities within society take place mainly according to economic laws, i.e., market supply and demand, so that resources are allocated to more efficient sectors. Theme 1: China s reform and opening-up, Modern China (Book 1 & Book 2) 1.2 Concept Checkpoint a. Problems faced by China before reform and opening-up Since the establishment of the People s Republic of China (PRC), the central government has launched numerous socialist movements, such as land reforms and the suppression of commodity prices. These movements helped the Chinese economy recover after the wars and the people have their basic needs met. However, in the later phases of development, different economic and social problems arose from the intrinsic problems of the policies and loopholes in their implementation. These problems included imbalanced economic development due to the overemphasis of heavy industries, which dealt a great blow to agricultural production, and caused hardship among the peasants. In addition, the commodity economy was suppressed owing to heavy industries. Daily necessities such as food, oil and cloth were not distributed appropriately and the living standards of the people were low. A collective ownership system was practised in the People s Communes and the property and labour of their members were publicly owned. Labour and profits were uncoordinated and this lowered people s production incentive. As a result, agricultural development came to a standstill. Later, the outbreak of the Cultural Revolution, which lasted for 10 years, impaired the national economy and social development greatly. Society was unstable and people s lives became even more difficult. Theme 1: China s reform and opening-up Modern China

4 4 Bridging Materials b. A timeline of the major events before and after reform and opening-up 1949 The establishment of the PRC The Cultural Revolution 1978 One-child Policy 1997 China resumed the exercise of sovereignty over Hong Kong 2001 China s accession t o t h e W o r l d Tr a d e Organization (WTO) C h i n a s o v e r a l l national strength ranked 6th in the world The Great Leap Forward 1978 China s reform and opening-up 1980 The set up of four SEZs 1999 China resumed the exercise of sovereignty over Macao 2005 The passage of the 11th Five-year Guidelines the scientific outlook o n d e v e l o p m e n t w a s consolidated Beijing 2008 Olympic Games (Beijing Olympics) 2008 The launch of Shenzhou 7 China s first space walk 2008 China s GDP ranked 4th in the world c. Rural reform Major rural reform policies during the early period of reform and openingup included the household responsibility system and the development of township and village enterprises. The former refers to the system under which the country s farmland was contracted to peasants who could retain or sell their remaining crops in the open market for profits after submitting a required percentage to the government. The latter refers to the policy in which peasants were encouraged to develop private sideline industries as a way to diversify agricultural and industrial developments. Both policies aimed at giving peasants greater production incentive and increasing their income. 走向世界的中國

5 Modern China 5 d. Reform of industry and commerce It started with the reform of state-owned enterprises. Prior to reform and opening-up, the government was in charge of the operation of enterprises. After reform and opening-up, the government gradually reformed the management system of enterprises. The first step was to grant enterprises a certain degree of independence and ownership as well as a part of the excess profits. Enterprises were also given greater autonomy in production, and the rights to purchase raw materials, assign their manpower and conduct transactions. These were to stimulate the production incentive of both operators and workers. In addition, a reform of the ownership system was carried out to promote the developments of industry and commerce and revive the economy. These were to be achieved by developing an economy of various ownership systems, namely, a collective economy, an individual economy, a private economy and a Sino-foreign joint equity economy, with the public ownership economy as the core. e. Opening-up policies The key opening-up policy was the setting up of SEZs in Shenzhen ( 深圳 ), Zhuhai ( 珠海 ) and Shantou ( 汕頭 ) in Guangdong Province and Xiamen ( 廈門 ) of Fujian Province in 1980 as test points to attract foreign investment to these four regions. The level of opening up gradually expanded later. For example, in 1984, 14 cities including Shanghai ( 上海 ), Tianjin ( 天津 ) and Dalian ( 大連 ) were opened up one after another. In 1985, the Pearl River Delta Region was designated as a coastal development region. The strategy was to absorb the skills and experiences of foreign investors by co-operating with them. The intention was to let the coastal areas prosper before the others and ultimately achieve common prosperity with the inland regions. f. China s accession to the WTO China became the 143rd member of the WTO on 11 December After her accession to the WTO, China has enjoyed the most-favoured-nation treatment ( 最惠國待遇 ) given to WTO members in international goods and services trade. China also has the right to join the new round of multilateral trade negotiations ( 多邊貿易談判 ) and to resolve trade conflicts with other WTO members under the WTO organizational framework. Since her accession to the WTO, China has to promise the extensive opening of her market. Also, as she enjoys her rights and shoulders her responsibilities under the WTO agreement, China s trading and investment environments are freer and more predictable, thus increasing her business opportunities in different regions. 走向世界的中國 走向世界的中國珠三角地區的發展 F o r m o r e i n f o r m a t i o n on the WTO, refer to its w e b s i t e : h t t p : / / w w w. wt.org/

6 6 Bridging Materials 1.3 Let s Review a. The rural reform under reform and opening-up Consider the following illustrations and answer the questions * Hechuan: 河川縣 (a) Which rural reform policy do the above illustrations depict? (b) How did this policy improve the lives of the peasants? For more information on the rural reform, refer to the website of the PRC's M i n i s t r y o f L a n d a n d Resources: mlrenglish/ (c) What is the impact of this policy on China s economic development?

7 Modern China 7 b. China s window to the outside world: SEZs The following is a map of China s coastal areas. Study it carefully and answer the questions. (a) Match the following SEZs and open regions with the places on the map. Write the letters in the appropriate. A. Qingdao B. Xiamen C. Hainan D. Shantou E. Shenzhen F. Guangzhou G. Shanghai H. Zhuhai I. Wenzhou (b) What was the intention of the central government in setting up the SEZs? For more information on the development of the SEZs, refer to Xinhua Net: com/politics/ /01/content_ htm c. Reforms of state-owned enterprises and the ownership system Consider the following information on Mr. Ma s road to success and answer the questions. Mr. Ma In the early 1980s, I was working as an apprentice in a stateowned textile factory, which was given its own operation right by the government at that time. To give workers a greater production incentive, the factory director implemented a bonus system, under which workers were rewarded according to their contributions. I was young and worked hard. With outstanding performance, I was quick in getting promotions. I saved up some money and opened a small garment workshop of my own. Sole proprietorships like mine were common in those days. Many of the proprietors of large factories today have been sole proprietors at some point! My garment workshop kept flourishing, and grew into a large factory within ten years. I even co-operated with foreign investors. Today, we are a famous garment brand in China!

8 8 Bridging Materials (a) When working as an apprentice in a state-owned textile factory in his younger days, why did Mr. Ma work hard for outstanding performance? (b) Mr. Ma later started a sole proprietorship. Under which policy implemented after reform and openingup was it made possible? d. China s accession to the WTO Consider the following information and answer the questions. A1 Local Daily News 11 December 2001 China officially entered the WTO Foreign delegates gave their congratulations China has officially entered the WTO and become the 143rd member country of the organization. The Ministry of Foreign Trade and Economic Cooperation of the PRC expressed that with her accession to the WTO, China would take part in the WTO s work fully and enjoy various associated rights. At the same time, China would observe the rules of the WTO and fulfil her duties seriously. The delegates of other countries offered their congratulations for China s accession to WTO. French president Chirac said, we heard some good news. The Nigerian delegate said that with the entrance to the WTO by China, who has one-fifth of the world s population, the WTO had finally become a world organization. Many overseas media organizations also expressed their opinions on the event. The Los Angeles Times said that China s WTO accession would speed up the rise of China as an economic power and instil vigour into the WTO; Yomiuri Shimbun ( 讀賣新聞 ) of Japan said that the entrance to the WTO by China, who has nearly 1.3 billion people, would stimulate the world's stagnant economic development. (Source: Adapted from various local newspapers)

9 Modern China 9 According to the above report, what is the impact of China s accession to the WTO on the country s economic development and international status? For more information on China s accession to the WTO, refer to the Sina news website: z/dohawto/index.shtml

10 10 Bridging Materials 2. Key Points of Senior Secondary Liberal Studies Theme 1 China s reform and opening-up of module 1 Modern China in the Senior Secondary Liberal Studies Curriculum aims to explore the impact of reform and opening-up on China s overall development and her people s lives. The following mind map shows the eight angles to help you explore the theme: Theme 1: China s reform and opening-up, Modern China Indicators in the economy, military strength, science and technology, resources, governance, diplomacy and social development level Quantifiable and nonquantifiable criteria Measuring China s overall national strength Background and highlights of China s reform and opening-up Rural reform The development of township and village enterprises The issue of sannong Urbanization City reforms Changes in different dimensions of the country s national strength under reform and opening-up Social policies that serve different targets Building of the legal system Institutionalization of more democratic practices Legislation and policies with respect to international standards China s role and participation in intergovernmental and nonintergovernmental international organizations and conferences The Central People s Government s policies in response to reform and opening-up Effects on China s overall development with regard to the ratification and implementation of international treaties Effects on China s overall development with regard to the bilateral and multilateral ties with major countries and regions China's overall development with regard to its roles and influences in regional affairs Dimensions of governance The impact of reform and opening-up China s reform and opening-up Diplomacy after reform and opening-up Diplomacy and governance after reform and opening-up The impact of reform and opening-up on people s living standards and ways of life A country heading towards sustainable development Environmental and cultural conservation after reform and opening-up The issue of peasant-workers The reform of state-owned enterprises The role of enterprises of the non-public sector China s accession to the WTO Indicators of living standards Different living standards and ways of life The responses of the Central People s Government Responses from individuals with different backgrounds Responses from different groups and organizations National development: direction and goals Formulation and implementation of policies, laws and regulations Government intervention and market mechanism Contribution and limits of science and technology Paradigm shift in groups and the general public, and in their participation Challenges brought by reform and opening-up to environmental and cultural conservation Opportunities brought about by reform and opening-up for environmental and cultural conservation

11 Modern China 11 The theme China s reform and opening-up is extensive. The following section will use the topic Background and highlights of China s reform and opening-up and set out an issue of exploration by way of an example to help students explore the theme step by step. 2.1 Issue of Exploration: How did the Chinese economy carry on after the Cultural Revolution? Step 1 : Selection of enquiry areas and/or theme After the Cultural Revolution, the Chinese economy was severely damaged. National income fell and people s living standards dropped. To revive the economy, the CPC introduced the important policy of reform and opening-up. This section will use How did the Chinese economy carry on after the Cultural Revolution? as the issue of exploration, and will guide you to analyze how the Chinese economic conditions recovered under reform and opening-up. The Cultural Revolution has been covered in junior secondary Chinese History. You can refer to you junior textbooks for revision. Step 2 : Collection of data When we explore an issue, we need to collect relevant data. The following are data on the background and highlights of China s reform and opening-up. Study them carefully in order to learn about the development of the event. A comparison of the key national policies before and after reform and opening-up Highlights Before reform and opening-up After reform and opening-up Principle of rule Class struggle as the key link Socialist modernization Economic system Agricultural policy Planned economy Public ownership economy Agricultural collectivization was carried out. Agricultural cooperatives were set up. Farmland and farming tools were owned by the cooperatives and collective farming was practised. The People s Commune was set up later to practise collective production. Since property allocation was not based on efforts, production incentive was low. Socialist market economy Varius ownership systems (including collective economy, individual economy, private economy and Sino-foreign joint equity economy) with the public ownership economy as the core The household responsibility system was implemented to raise peasants production incentive. Township and village enterprises were encouraged in rural areas as a way to revive the rural economy and increase peasants income.

12 12 Bridging Materials Highlights Before reform and opening-up After reform and opening-up Industrial and commercial policies Under the First Five-year Plan, socialist transformation was carried out in the handicraft industry and capitalist industries and commerce. Collective ownership was practised. Eager for success, the government initiated the Great Leap Forward. People throughout the country were made to refine steel with indigenous methods. The goal was to be ahead of Britain in 15 years in steel production. Agricultural production was neglected as a result. The reform of state-owned enterprises was carried out. To raise the production incentive of the enterprises operators and workers, these enterprises were granted a certain degree of independence and ownership as well as a part of the excess profits. They had greater autonomy in production, and greater rights to purchase materials, assign their manpower and conduct transactions. Economic losses caused by the Cultural Revolution ( ) People s living standards dropped. China s per capita annual food consumption in 1976 was only 381 jin ( 斤 ), lower than the number in 1952, which was 395 jin. In 1978, 250 million people living in the country s rural villages still faced a shortage of of food and clothing. Political turmoil damaged production infrastructure, causing great direct material losses. For example, railway transportation was suspended, and factory operation and production were halted. Fights and uprisings damaged a great amount of national and personal properties and facilities. Economic development was slow. In 1957, China had a national income of US$36.88 billion, whereas Japan s national income was US$27.9 billion. In 1976, China had a national income of US$98.5 billion, whereas Japan s national income had increased to US$472.8 billion, which was 4.8 times of China s. For more information on the Cultural Revolution, refer to Xinhua Net: big5.xinhuanet.com/gate/ big5/ news. xinhuanet. com/ziliao/ /20/ content_ htm (Source: Website of the PRC Supreme People s Court, Downloaded from chinacourt.org/)

13 Modern China 13 Comments about reform and opening up China s economic development is a miracle. Her economy has been growing at an annual rate of more than 8% for 25 years. At the same time, her poverty rate did not go up. China has successfully restructured from a planned economy to an economic system increasingly close to the market-oriented model. A. Michael Spence, recipient of Nobel Memorial Prize in Economic Sciences Like the economic takeoffs of the US. and Japan in the 19th and the 20th centuries respectively, the emergence of the Chinese economy brought opportunities to global economic development. In the 21st century, China will become one of the forces to promote the growth of the world and trade. A report on China by the World Bank in 2002 Apart from the above data, you can also collect more data related to the background and highlights of reform and opening-up from the Internet and the library. The following are some reference books and websites: Reference books: 鄭宇碩, 羅金義著 : 中國改革開放 30 年 變與常, 香港 : 香港城市大學出版社, 2008 Spence, J. 著, 溫洽溢譯 (2001) 追尋現代中國 : 從共產主義到市場經濟, 台北 : 時報文化出版企業股份有限公司 Reference websites: 改革開放三十年 興化黨建 : 改革開放的背景成就和經驗

14 14 Bridging Materials Step 3 : Organization of data collected After collecting data, students can begin to classify the data and organize them systematically. For example, you may classify the data on reform and opening-up into background, economic difficulties, internal reforms and opening-up policies to facilitate analysis. After organizing the data, students can write down the key words or concepts related to this issue by drawing a mind map so as to carry out a thorough analysis in the next step. For example: Students can design their mind maps according to the chronology or causal relationships of events. For example, you can think about the events that happened in China before reform and opening-up and the economic trauma caused, as well as how r e f o r m p o l i c i e s w e r e formulated. Step 4 : Analysis of data collected Afterwards, students can carry out an analysis using the mind map above and the data colleted in order to learn about the facts, explain a certain phenomenon or dissect a certain question. We can set out certain enquiring focuses for an in-depth analysis and identify the messages contained in different data. Students can explore from the following two enquiring focuses to develop data analysis skills. Enquiring focus 1: What economic difficulties did China face during the late 1970s? The CPC made the important decision of implementing reform and opening-up at the Third Plenum of the 11th CPC Congress convened in Focus was placed on socialist modernization. The decision was closely related to the economic difficulty China faced at that time. The following data and questions for exploration will let students understand the economy difficulties of China during the 1970s. Consider them and answer the questions:

15 Modern China 15 Source 1 The annual growth rates of per capita GDP in the 1960s Region Advanced countries Developing countries Soviet Union and other Eastern European Countries Japan China Annual growth rates of per capita GDP 4% 2.6% 5.5% 10.2% 0.2% (Source: Website of 興化黨建, Downloaded from Source 2 What is the People s Commune? The People s Commune was set up as part of the Three Red Banners ( ). It was a basic body formed by integrating the village administrative structure and economic system under the county level, which was equivalent to the original township level. Farming tools and agricultural output were both owned by the communes. All assets of the communes were kept collectively and distributed centrally so as to narrow the gap between the rich and the poor. Wealth was distributed to commune members according to their actual needs instead of workload. Large public cafeterias were built and people were to eat from the same big pot ( 吃大鍋飯 ) for free. As a result, peasants lost their production incentive and eating from the same big pot caused great wastage. The People s Commune was not abolished until the early 1980s. A public cafeteria of the Yuyuantan ( 玉淵潭 ) People s Commune in Beijing

16 16 Bridging Materials Source 3 Our Party made the important decision of reform and opening up in the late 70s of the last century mainly under two background conditions. Firstly, from the perspective of our country, the 10-year internal disorder of Cultural Revolution was a severe setback and loss to the Party, the country and the people. Comrade Deng Xiaoping said, When the Cultural Revolution ended, it was total chaos in the political scenario. Economically, [China] expenienced slow development and stagnancy.... As to the external environment, the new technological revolution which flourished in the world in the 70s of the 20th century has pushed the world economy ahead at an even faster rate. A remarkably greater gap has been formed between our economic and technological powers and the international community s advanced standards. Facing immense pressure in international competition, we must lead our people to catch up with the world s development through reform and opening-up. --- Hu Jintao the CPC General Secretary For more information of the report of the 17th CPC Congress, refer to Scientific Outlook on Development special report website: cn/17thcpc/ (Source: Translated from 胡錦濤 : 繼續把改革開放偉大事業推向前進, 求是 雜誌, 2008 年 1 月 ) (a) According to Source 1, how was China s economic growth in the 1960s compared with that of other countries? Based on your knowledge, what are the reasons for such a growth? Knowledge & Understanding & Analysis (4 marks) (b) According to Source 2, what impact did the People s Commune have on China s productivity? Analysis (4 marks)

17 Modern China 17 (c) According to Source 3, what were the two main reasons for the CPC to launch reform and openingup in 1978? Induction (6 marks) Reason 1 Reason 2 (d) If you were the leader of China at that time, what policy would you adopt to tackle the economic problems? Explain with reference to the above sources. Empathy & Expressing Opinions (6 marks) Enquiring focus 2: How did China escape from her economic difficulties? After the Cultural Revolution, the important decision of implementing reform and opening-up was made to tackle economic and social problems. The following data and questions for exploration will help students understand how China promoted economic development and improved people s living standards through reform and opening-up. Consider them and answer the questions:

18 18 Bridging Materials Source 1 Giving enterprises a certain degree of independence and ownership as well as a part of the excess profits the starting point of reform and opening-up The land and enterprise responsibility systems introduced in rural villages and cities respectively in the early stage of reform and opening-up gave producers operation autonomy and the rights of profits distribution. Regional governments also had the incentive to develop the economy. The planned economy was torn open by giving enterprises a certain degree of independence and ownership as well as a part of the excess profits, and was eventually replaced by the market economy. Reform and opening-up can be considered a poverty-alleviating undertaking because it released people s productive force. For instance, before reform and opening-up, 250 million people out of China s 1-billion population were poor, representing a quarter of the whole population. Today, the number of poor people in China s 1.3-billion population has reduced to several ten millions. (Source: Adapted from various mainland newspapers) In the early stage of reform and opening-up, the Chinese government gave state-owned enterprises a certain degree of independence and ownership as well as a part of the excess profits, so as to increase production incentive. Source 2 Total number of Sino-foreign economic cooperation contracts after reform and opening-up ( ) (Source: China Statistical Yearbook 2008)

19 Modern China 19 (a) According to Source 1, what functions did giving a certain degree of independence and ownership and a part of the excess profits to enterprises serve in solving the economic problems China faced in the early stage of reform and opening-up? Analysis (2 marks) (b) According to Source 2, how was the trend of China s economic development as reflected by the diagram? Explain. Exploring Change & Continuity (2 marks) (c) According to your own knowledge, which reform and opening-up policies are related to the trend you have identified in (b)? Name two of them. Analyzing Cause & Effect (4 marks)

20 20 Bridging Materials (d) Source 1 mentions that reform and opening-up can be considered a poverty-alleviating undertaking. Do you agree with this view? Explain with reference to the source and according to your knowledge. Critical Thinking (6 marks) Step 5 : Evaluation of different viewpoints, drawing a conclusion Issue of Exploration: How did the Chinese economy carry on after the Cultural Revolution? From the data analysis above, we can understand the background and highlights of China s reform and opening-up. Afterwards, we can evaluate the different viewpoints and come to a conclusion based on our judgment. For example: Conclusions Background of China s reform and opening-up: China s economy had remained weak for a long time since the 1960s. Slow economic growth and the impact of the Cultural Revolution led to a backward economy and low living standards. Reform and opening-up policies for reviving the economy: Internal reforms: For example, the contract system, the development of township and village enterprises, the reform of state-owned enterprises, the reform of the ownership system, the implementation of a socialist market economy and other measures were taken to boost people s production incentive. Opening-up policies: For example, SEZs and coastal development regions were set up, and foreign investments and Sino-foreign joint equity were encouraged. These measures were introduced to acquire the skills and experiences from foreign countries in order to promote the development of the country s economy.

21 Modern China 21 Step 6 : Presentation of results and production of the product Lastly, sum up the data collected and the above conclusion to produce a short presentation report from your views. Formats may include an essay (around 500 words), PowerPoint presentation and data set. 2.2 Extended Exploration: Does reform and opening-up benefit all? Through internal reforms and opening-up policies, China s productivity was promoted. Economic development has shown remarkable progress, and people s overall living standards have improved. But does reform and opening-up benefit everyone in China? We can think about the direction for exploring this issue using the following mind map: From the above mind map, we can see that although the overall economy of China has improved greatly after reform and opening-up, problems related to people s livelihoods arose at the same time. Consider the following data and answer the questions: Source 1 A3 Mainland Daily news 20 January 2007 Alarm is on to warn against disparity between the rich and the poor in in China According to the World Development Report 2006 released by the World Bank, the income disparity between China s residents has further widened and become more serious than that of all developed countries. This means that the disparity between the rich and the poor in China is becoming really serious. Taking into account the unequal distribution of social welfare, the actual income inequality in China may be even greater. The report points out that 20% of China s urban residents in the highest income group (RMB ) earned 5.6 times as much as the 20% in the lowest income group (RMB ). 20% of the rural residents in the highest income group (RMB ) earned 7.2 times as much as the 20% in the lowest income group (RMB ). (Source: Adapted from various mainland newspapers)

22 22 Bridging Materials Source 2 Per capital total incomes of different regions in China in 2007 Key Region Per capita total income Eastern 18,545 Central 12,392 Western 12,130 Northeastern 12,306 (Source: China Statistical Yearbook 2008) (a) With reference to Source 1, how is the disparity between the rich and the poor in China today? Explain by quoting relevant data. Analysis & Giving Evidence (4 marks) (b) With reference to Source 2 and according to your knowledge, what are the reasons for the income disparity as shown by the map? Analyzing Cause & Effect (4 marks)

23 Modern China 23 (c) With reference to the sources and according to your knowledge, do you think reform and opening up has raised the economic level of the Chinese residents? Explain. Analysis & Expressing Opinions (8 marks) Apart from the data in this book, you may also collect more data to gain a better understanding of the background and highlights of China s reform and opening-up. The following is for your reference: Reference books: 劉佩瓊著 : 當代中國解讀, 香港 : 商務印書館, 2008 年 梁振威著 : 國解中國國情手冊, 香港 : 中華書局 ( 香港 ) 有限公司, 2007 年 三十年人和事 國家改革對青年的啟迪, 香港 : 香港青年協會, 2008 年 Reference websites: 新華網 紀念中國改革開放 30 週年網頁 : 明報新聞網新聞特輯 改革開放三十年 : 中國經濟網 改革開放三十年 :