This includes a wide variety of environments for the production of cash crops, some of which are used for processing and also substantial reserves of coal, petroleum and minerals. China can gain foreign exchange by selling some of her resources. For example, China has financed the purchase of sophisticated machinery and technology from Japan through the sale of crude oil. But by contrast, accessibility is poor. Water transportation links the country with the outside world. The great industrial cities such as Beijing (Peking), Shanghai, Chengtu, Canton and Angshan are the best served by rail. Rail network is continued to increase towards the interior linking new growth centres. Its accessibility to the sea has favored international trade. Recently, new emphasis has been placed on other forms of surface (other than water transportation) and air transportation.
It has rich coal deposits but iron ore deposits are not big. Petroleum is also not sufficient seeing the size and population of the country. Coal deposits are concentrated in the Loess plateau and iron reserves are centered in the southern Manchuria. The exploitation of these two important minerals has been possible only in the south Manchuria because of transportation facilities. Antimony, Tungsten and tin are very important minerals for the world industry. The establishment of magnesium and aluminium industries are found both in north and south China. Petroleum is found in the north west desert lands in Manchuria and Szechwan. Power potentials of China are excellent but need harnessing. Yangtze Gorge site is known to be the biggest source of power for China.
China has high grade bituminous coal; four-fifth of which is in Loess provinces namely Shensi and Shansi. But chief production is in southern Manchuria, Hopei and southern China provinces-(Hunan, Szechwan, Yunnan and Kweichow). More than 50 percent of petroleum production comes from north western Kansu. The other centres are located in Manchuria, Shensi, Szechwan and Hunan. Hydel power in China amounts to 4 percent of the total world production. Maximum is from Hwang Ho but the southern provinces have high potential water power. Major metal resources are antimony, tungsten, tin and iron. High grade iron ore is located south of the Greatwall - southern Manchuria, Hupei Kansu and Szechwan.
Major deposits of tungsten is in southern Kiangsi. Southern Manchuria has one of the world's largest reserves of Magnesite. Yunnan is the major producer of tin. About 55 percent of world's total production of antimony is from Hunan, Kwicnow. China ranks third world production after Bolivia and Mexico. Even though copper ore occurs widely as the scattered resource, the Southern provinces are important producers of copper and silver. The mineral distribution shows that ferrous metals and coal are concentrated in the north and non-ferrous metals in the south.
The industrial development is due to the policy of rapid industrialization adopted by the planners. The Soviet Union initially provided a great deal of technical assistance in constructing new plants and provided much of the equipment and machinery necessary. In the late 1950's, the Soviet Government withdrew their assistance and the Chinese changed direction in central planning. They adopted 'walking on two legs' policy since 1960. This refers to the development of both small and large scale units of production - the traditional and modern sectors, and the rural and urban locations. This has led to economic self-sufficiency at the Commune level. Most recently China has moved to the policy of 'Four Modernization'. The policy is to modernize four broad sectors-agriculture, industry, science and national defense by the end of the century. China already indicates her willingness to borrow and use western technology so as to compete with United States of America and USSR.
Cotton mills have been established in Shanghai, Tientsin and Tsengtao to meet out the basic necessity of clothing for the teeming millions of China. Households looms still are used for making cloth. Beijing, Sian and Urumchi are the leading cotton textile producers other than the centres mentioned above. These represent China's modern industry. Silks are produced at Canton.
Southern Manchuria has become the industrial heart land of China because of the availability of essential minerals inside or in the vicinity of Manchuria. Heavy industries such as chemicals, iron and steel and machine manufacturing are mainly established here. Shan Yang, which is the largest city in the Northeast China, is considered as the Pittsburgh of China. Anshan in Manchuria has also become industrial centre of importance because it is iron and steel producing centre. Harbin is also an industrial city of great significance not only because it manufactures the heavy machineries but also because it lies on the convergence of five rail roads and Sungari River. The region around Beijing, Tienstin and Shanghai Kwan is also industrially important.
Coal mines' are present here and this is the main factor for establishing such industries as cement, glass, iron smelting and steel working in the cities and towns of the areas. In Inner Mongolia too an important centre of iron and steel industry has been established at Paotow. This is the first iron and steel centre outside of the Great wall. A major oil refining centre now exists in Kansu Province. In Central China the Hamkow metropolitan area is the main centre of industrial activity. Iron and steel making, flour milling, textile manufacturing etc. go on in this region. In Szechwan Chungking is very important industrial centres. On the lower Yangtze plains three important industrial centres exist which are famous for manufacturing silk and cotton fabrics. Both light and heavy industries are concentrated here. Shanghai, Nanking and Hangchow produce steel and chemicals, silk and cotton fabrics in large scale.
In the south the Canton is the most important industrial centre. Hong Kong under British control at present is the centre of light industries. Taiwan, though under the control of Nationalist Republic of China, is considered the part of China, and it has a big industrial growth there. Its industries are mainly that of food processing. Taipei is the capital of Taiwan. In Taiwan cotton textile is one of the leading industries.
The major centres of industry continue to be the cities of the coast. The great industrial centres are the greatest consumers of goods, fuel and raw materials. These centres ate well linked with each other by water and rail transport network. Today, China produces in modest quantities a full array of industrial and scientific goods, cars, planes,-locomotives, computers and atom bombs. Iron, steel, cement and electricity production exceed the level of U.K. but total industrial production when compared to the level of USA or USSR is small. The per capita output is small because of its large population size. There are six recognized industrial regions. They are
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