HKDSE Geography/M3/China's Iron and Steel Industry 1980s-2000s
The general trend was returning to the coastal regions.
Thanks to technological development, electrical furnaces were developed. They can accept scrap iron and steel, so there is no need to use blast furnaces to make pig iron any more. More energy is saved.
- Land: The coastal regions can provide sufficient coastal flat land for expansion of the iron and steel industry.
- Labour: The coastal regions can provide sufficient labour for the expansion of the iron and steel industry as they are near to large urban centres.
- Capital: The coastal regions can provide sufficient foreign investment for the expansion of the iron and steel industry thanks to government policy.
- Market: The coastal regions have important steel-consuming industries like car manufacturing and construction, which demand a huge amount of steel. They are also an important source of scrap iron and steel.
- Government: The Chinese government, after the Open Door Policy, is actively developing coastal cities as industrial centres, and is planning to expand, regroup and modernise the steel companies.
- Transport: Ports along the coast facilitate the import of raw materials and export of final products.