1 the First Special Economic Zone in China

1 The first Special Economic Zone in China

(a) (i) ‘Shenzhen speed’ refers to the rapid development of Shenzhen since reform and opening-up. It is manifested in the changes in the city’s population, land area, economy and other areas. (4 marks)

(ii) The meanings of Shenzhen as the first SEZ:

‧ The window of China’s reform and opening-up;

‧ One of the Chinese cities with the most prosperous economy;

‧ China’s main port for foreign trade;

‧ One of the areas in which the country develops new high-tech industries.

(6 marks)

(b) ‘China’s establishment of the first batch of SEZs was a response to social and world trends and to break rigid thinking patterns’ is said based on:

‧ The problems of a close-door policy: China was adopting a close-door policy before reform and opening-up. Its productivity was low and its economy was backward;

‧ Realizing the problem: When Deng Xiaoping realized the problem, he suggested to cancel the close-door policy;

‧ Implementing the opening-up policy: Strengthen international exchange, introduce techniques, experiences, capital and management skills from advanced regions to speed up the development of the national economy;

‧ Set up SEZs: Manage the SEZs as the window of opening to the outside world, expand the opening of the markets to gain foreign resources and promote the development of the national economy. (8 marks)

‧ As an international city, Hong Kong’s economic strength, legal system, international influences, etc. are ahead of Shenzhen. It can serve as the example of Shenzhen;

‧ The development conditions of Hong Kong are limited, such as a lack of land and high operation costs that make it difficult for manufacturing and high-tech industries to survive. Shenzhen can support Hong Kong in these areas;

‧ Shenzhen is adjacent to Hong Kong so that information flow is easy. It can directly expand Hong Kong’s development space;

‧ Shenzhen has new high-tech industries. Hong Kong can interact with Shenzhen by making use of this advantage. (8 marks)

(d) Free answers. The following areas can be discussed:

‧ Speed up reform and opening-up;

‧ Promote the establishment of systems;

‧ Enhance cooperation between Shenzhen and Hong Kong;

‧ Build up an international city

‧ Improve people’s livelihood to promote social harmony;

‧ Achieve coordination between quality and quantity in terms of economic development. (8 marks)

2 A summary of the 30 years of reform and opening-up

(a) The central government shook off the past closed policies, liberated people’s minds, implemented reform and opening-up, developed the society and economy, improved people’s livelihood, pointed out in the 17th Plenum report that the developmental direction of ‘scientific outlook’ was to achieve social harmony and build a moderately prosperous society. (3 marks)

(b) The reasons for Wen Jiabao to say that China’s development depended on reform and opening-up:

‧ China benefited from reform and opening-up;

‧ It changed the closed, backward, and ossified situation which had existed in China for years

‧ It freed people’s mind;

‧ It aroused people’s initiative in production and generated great economic and social progress;

‧ It made people have richer and happier lives. (5 marks)

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（Suggested Answers for Data-response Worksheets）

‧ It aroused people’s initiative, which is beneficial to governance and nurturing talents;

‧ Reform and opening-up brings great benefits to the development of the Chinese society, economy and other areas;

‧ The opening-up policy promotes China’s international status;

‧ It is believed that continued economic and political restructuring and reform in other fields can lead to sustained economic growth and social progress;

‧ It is hoped to achieve the goal of modernization and build a strong, prosperous, democratic, civilized and harmonious country. (10 marks)

(d) Free answers. It can be explored from different angles, such as:

‧ The role of Hong Kong: During China’s reform and opening-up, Hong Kong plays an important role and functions as an international financial, trade and shipping centre. It drove the economic development of Guangdong and subsequently the country, and is a driving force in the country’s reform and opening-up.

‧ The benefits of Hong Kong: Under the ‘One country, two systems’ policy, Hong Kong enjoys the capitalist social condition while benefiting from China’s economic policies. For instance, the signing of CEPA allows Hong Kong to realize its advantage and expands economic benefits using the force of the country’s reform and opening-up. (8 marks)

(e) Free answers as long as reasonable. For example:

‧ Change in its international status: Reform and opening-up has turned China from a poor country into a world power. Under globalization, China’s national strength and international status have undergone changes;

‧ Active diplomacy: To further its economic development, China shifted from its close-door policy and adopted bilateral or multilateral diplomatic policies;

‧ Building partnerships: Striving to maintain international and regional stability and peace is one of China’s diplomatic principles. To protect one another’s interests, China will continue to discharge its duties as a major power and build a harmonious world with other powers. (8 marks)

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（Suggested Answers for Data-response Worksheets）

3 The medical system of China’s rural areas

(a) It reflects the problem of expensive and limited medical services in China’ rural areas. This problem mainly affects the grassroots and poor people. (2 marks)

(b) The government responded by introducing a new rural medical health cooperative system. Through building a collective fund, the system is hoped to solve the problem of poverty of great rural residents caused by medical expenses on treating serious illnesses. (4 marks)

(c) By coverage, the system is successful to a great extent. As at 2008, 20 provinces, prefectures and cities have carried out the system and more than 900 million people have received subsidies. However, in villages where the system is not yet launched or developing slowly, people are still unable to afford getting treatment when ill and many people die at home from diseases as a result. (6 marks)

(d) Free answers. For example:

I agree. One of the indicators of living standards is medical and healthcare security. Many farmers in China are still facing the problem of expensive and insufficient medical services. Some people cannot afford going to the doctor at all, whereas those who can have to spend most of their savings. Thus, not only does the medical system affect the health of the farmers, but it also weakens their financial condition which lowers their overall living standards.

Or I disagree. Apart from medical and health care security, economy, living standards are also measured by education and other aspects. Farmers who cannot afford medical treatment usually have low economic and educational background, and a lack of medical security is only one of the causes of their low living standards instead of the major cause. Ultimately, it is a disparity between the development of villages and cities that lead to the lack of security for farmers in terms of economy, education and medical services.

(8 marks)

(e) Free answers. For example: Since the outbreak of SARS, the central government has devised better measures to prevent the spread of epidemic diseases. Nevertheless, China’s medical system is still flawed and it is difficult to speculate whether patients will get proper treatment in case of epidemics. It depends on the determination of the central government in managing the situation and supervising the operation of local medical systems through local governments. (6 marks)

(f) (i) First, China’s medical security system does not cover all areas and classes while the system of Hong Kong covers the entire society and social classes. Second, the large land area of China, loopholes of the system and human errors have caused a disparity between the development of the medical system in rural and urban areas. In Hong Kong, all citizens have equal rights to use the medical system. (4 marks)

(ii) Free answers. For example: There are a few reasons. Firstly, the administrative structure of the mainland is more complex. Human errors are prone to occur during the process in which policies pass from the central government to local governments. Hong Kong, on the other hand, does not face this problem. Secondly, the quality of medical officers in the mainland is not guaranteed, but the medical staff of Hong Kong is of better quality and it adheres to the principle of medical security. Thirdly, the living standards of farmers in the mainland are generally low and they cannot afford going to see the doctor even for minor illnesses. Hong Kong people, however, are better off financially and many of them can afford medical services even without government subsidies. (Other reasonable answers are acceptable) (6 marks)

4 Population migration and social problems

(a) The major cause is that farmers are unable to make a living out of farming because of the backwardness of the rural areas. To make money, farmers seek jobs in the cities. These people are called peasant workers. ( 2 marks)

(b) Family structure: Farmers work in the cities and have to live apart from their families. Unemployment: Many farmers have low educational background and lack skills and are unable to find jobs in the city. But often they prefer to wait for employment there than returning to the villages, thus creating the problem of unemployment.

Social security: The peasant workers do not have urban households and do not enjoy the social security in the cities. They are also discriminated by the urban residents and leading to hard lives.

Social order: Some of the farmers who fail to get proper jobs and social security in the cities engage in illegal dealings and threaten social order. (8 marks)

(c) Farmers from the previous generation seek jobs in the city to make a living, While those from this generation want to broaden their horizons and improve themselves. This change attributes to the fact that the new generation is fascinated by prosperous city life and hope to open their eyes by working in cities. In addition, the economy of many villages have improved greatly in recent years and so sustaining one’s life has become less common as a cause of people to work in cities. (4 marks)

(d) Free answers. For example: Firstly, I suggest that the quality of life and production should be improved in rural areas so that farmers can engage in production in their own villages. Secondly, a unified household registration system should be implemented quickly to eliminate the difference between peasants and non-peasants so that farmers working in cities can enjoy basic protection of their living. Also, jobs should be created for farmers to ease unemployment. Lastly, the scale of social security should be enlarged to protect the lives of different classes in different regions. (Other reasonable answers are acceptable) (8 marks)

(e) Free answers. For example, I agree. Ways of thinking in China are more diversified nowadays and many young people have been affected by Western individualism and are becoming more individualistic in their thinking and behavioural patterns. Farmers of the new generation, for instance, seek employment in the cities for personal reasons rather than family needs. City youths also value personal ideas under the one-child policy and hedonism is more prevalent. (8 marks)

5 China’s aerospace industry

(a) (i) Since reform and opening-up, China’s scientific and technological development in various areas has progressed and contributed greatly to the development of science and technology for the human race. For example, Chinese research results quoted by scientific-technological documents have increased significantly in recent years. Also, China’s investment in basic research has also increased by year, and the volume of China’s export of technological products increased continuously. (4 marks)

(ii) China faced a shortage of intellectuals in its sustainable development. To solve this problem, China is nurturing scientific brains while putting research projects into practice, that means talents are nurtured during the implementation of projects.

(4 marks)

(b) Free answers. It can be explored from the following aspects:

‧ Political aspect: Further consolidate the status as a world power and improve its overall national strength;

‧ Scientific research: Promote the country’s projects in areas such as astronomy, earth and materials, and promote scientific development;

Resources: Drive sustainable development; explore more resources beneficial to the country’s or even the world in human development, thus solving population, food, environmental and other problems;

Techniques: Improve the development of information technology, new materials technology and other new high technologies;

‧ Economic aspect: Developing the aerospace industry involves the interests of different parties and pushes the development of the national economy effectively. The business opportunities brought by the aerospace industry is a driving force promoting the development of the national economy. (8 marks)

(c) The launch of Shenzhou 7 and the visit of the Chinese astronauts to Hong Kong improved the national identity of the Hong Kong people:

‧ The success of the launch of Shenzhou 7 further consolidated China as an aeronautic power, thus improving the ethnic identity and pride of the Hong Kong people;

‧ The extensive coverage of the mass media of the 2 events stimulated the ethnic identity of Hong Kong people;

‧ The spirit of sacrifice of the astronauts generated a good feeling among Hong Kong people towards the country and pride as Chinese. (8 marks)

(d) The impact of China’s aerospace technology as one of its sustainable development project on the world:

‧ Solving different problems for the human race: Such as easing population pressure, solving world food problems, optimizing the ecological environment, managing resources properly, etc.

‧ Further consolidating China’s international status: Since reform and opening-up, China has had great economic achievements and her international influence is increasingly obvious. China’s aerospace development consolidates China’s status as a world power.