East Asia is experiencing rapid economic changes. Agriculture continues to play a major role in the region’s economy, but industry and trade are becoming more important, especially in China, which is undergoing a dramatic economic transformation. The impact of transformation is global, as China becomes more involved in the global economy and faces enormous environmental problems.

Section 1: The Economy

Patterns of economic interdependence vary among the world’s countries. The countries of East Asia are experiencing rapid economic changes as they emerge from the Asian financial crisis of the 1990s and adjust to a global economy.

Section 2: People and Their Environment

Human actions modify the physical environment. Throughout East Asia, rapid industrialization and the burning of fossil fuels has led to severe pollution.

The Economy

The countries of East Asia are experiencing rapid economic changes as they emerge from the Asian financial crisis of the 1990s and adjust to a global economy.

The countries of East Asia are experiencing rapid economic changes as they adjust to a global economy and transition from agricultural to industrial economies.

Economic Activities

• Economic systems:

– Japan, South Korea, and Taiwan—market system based on private ownership

– North Korea—rigid command system

– China and Tibet—mixed economies

• Agriculture:

– China—most rural economy; about 50% of workers are farmers.

– Mongolia—used for grazing livestock

– South Korea—12% of the population farms

Economic Activities (cont.)

– North Korea—36% of the population farms; farms are organized into cooperatives.

– Japan and Taiwan—both are mountainous, so farming is a challenge.

Economic Activities (cont.)

Grain Production in China, 1950–1970

Economic Activities (cont.)

• Industry:

– Japan—despite a slump in the 1990s, Japan has recovered and has a strong industrial economy.

– South Korea—they have also recovered from the slump and have rebuilt their economy.

– North Korea—production of consumer goods suffers.

Economic Activities (cont.)

– Taiwan—one of the world’s most successful export-based economies

– China—the government controls most major industries, but have adopted some features of a market economy in order to stimulate the economy.

East Asia: Economic Activities

Improvements in transportation and communications networks will link the countries of East Asia and contribute to economic growth.

Transportation and Communications

• Japan, South Korea, and Taiwan have major highway and railroad systems.

• The Chinese have made progress, the China-Tibet Railway.

Transportation and Communications(cont.)

• China’s rivers provide important routes from inland areas to seaports:

– Port of Shanghai

– Tianjin

– Guangzhou

• Communications:

– North Korea and China—controlled by the government

– Japan, South Korea, and Taiwan—free press

Transportation and Communications (cont.)

East Asian countries have become increasingly interdependent, but trade disputes and political differences affect these relationships.

Trade and Interdependence

• China, Japan, South Korea, and Taiwan are members of the Asia-Pacific Economic Cooperation (APEC).

• In 2004, China signed a trade pact with the 10-nation Association of Southeast Asian Nations (ASEAN).

Trade and Interdependence (cont.)

• Japan:

– In 2004, China and Japan ranked first and second, respectively, as having the largest trade surpluses with the U.S.

– However, Japan restricts what other countries can sell to them.

– In 2001, Japan and the U.S. established the U.S.-Japan Economic Partnership for Growth.

Trade and Interdependence (cont.)

• China:

– The U.S. and other countries want to trade with China, but worry about their undervalued currency.

– Other countries have also tried to influence China to respect human rights.

East Asian Balance of Trade

People and Their Environment

Throughout East Asia, rapid industrialization and the burning of fossil fuels has led to severe pollution of the air, land, and water.

The increased burning of fossil fuels has led to severe pollution and the search for cleaner sources of power.

Managing Resources

• The burning of fossil fuels is the primary source of power for East Asia.

Meeting Energy Needs

Managing Resources (cont.)

• Other options:

– Japan uses some solar panels and nuclear power.

– China will be able to supply hydroelectric power due to the Three Gorges Dam.

Managing Resources (cont.)

• Japan, South Korea, and Taiwan rely on nuclear energy for 30–40% of their power.

The impact of industrial and economic growth in East Asia includes environmental damage, depletion of natural resources, and health risks.

Human Impact

• Problems in China:

– Acid rain from burning coal

– Disposal of waste products

Human Impact (cont.)

– Industrial waste and pollution

– Deforestation and the resulting soil erosion and flooding

– Desertification

Human Impact (cont.)

• Problems in the Koreas and Taiwan:

– Air and water pollution

• Japan is now the world leader in addressing environmental issues such as pollution and overfishing.

East Asia: Environmental Pollution

A. A

B. B

C. C

D. D A B C D

0% 0%0%0%

The Kyoto Treaty aims to remedy which environmental issue?

A. Overfishing

B. Carbon dioxide emissions

C. Deforestation

D. Desertification

East Asia faces challenges from natural disasters such as floods and earthquakes.

Future Challenges

• Challenges:

– Flooding of the Huang He and Chang Jiang

– The Three Gorges Dam project controversy

Future Challenges (cont.)

– Earthquakes

– Volcanic activity

– Tsunamis and typhoons

A Growing Economy

• East Asian economies includemarket and command systems, as well as a mix of both.

• East Asia was once largely agricultural, but industrialization and the global economy havebrought prosperity and growth to most countries in the region.

• Japan is a leading producer of technology products, while Taiwan has become one of the world’s most successful export-based economies.

Consequences of Growth

commune

a collective farming community whose members share work and products

cooperative

a voluntary organization whose members work together and share expenses and profits

Asia-Pacific Economic Cooperation (APEC)

a trade group whose members ensure that trade among the member countries is efficient and fair

trade surplus

earning more money from export sales than spending for imports

trade deficit

spending more money on imports than earning from exports

dissident

a citizen who speaks out against government policies

economic sanction

trade restriction

World Trade Organization (WTO)

an international body that oversees trade agreements and settles trade disputes among countries