712 CHAPTER 24

Economies of the RegionSince World War II, East Asia’s countries have grownmore active in the world market. Today, Japan has one ofthe strongest economies in the world. Consumers in theUnited States regularly purchase goods made in China,Japan, Taiwan, and South Korea. However, wars, droughts,and internal conflicts have made economic growth diffi-cult for some countries, such as North Korea.

TERMS & NAMEStungsten antimonytextilecooperative

East Asian economies havechanged, some drastically,since World War II.

As these economies grow stronger,they play a larger role in globalmarkets and have a larger influenceon the economies of other nations.

MAIN IDEA WHY IT MATTERS NOW

BAKU, AZERBAIJAN, SEPTEMBER 1998—The famous Silk Road is coming back to life.This remarkable path has fallen into disusein the past few hundred years, except for afew hardy tourists who explore the oldtrade route.

Today, however, representatives frommore than 30 countries are meeting to dis-cuss rebuilding the trade routes that formedthe Silk Road. Many countries and organiza-tions, such as the United Nations, will giveaid to the project. Railroads, highways, andferries will be built or improved in an effortto increase trade among the nations alongthe road.

The Economiesof East Asia

Human-Environment Interaction • This man isbeginning repairs on a stretch of the Silk Roadin China. �

The Economiesof East Asia

TAKING NOTES

Economy

Religion

PredictionsCategoryCorrect orIncorrect

Use your chart to take notes about China and its neighbors.

China’s EconomyAlthough this has begun to change, China’s government controlsmost of its economy. It owns all financial institutions, such asbanks, and the larger industrial firms. The government also setsthe prices on goods and plans the quantity of goods each workershould produce.

Industry China has put a strong emphasis on improving its indus-try. It has become one of the world’s largest producers of cottoncloth and of two metals—tungsten and antimony. The industriesthat have seen the most growth are machine building, metal pro-duction, and the making of chemical fertilizers and clothing.

Farming Many people in China live in the countryside and makea living by farming. They use traditional methods, such as plow-ing with oxen, rather than using farm machinery. Much of theland in China—in the deserts and mountainous regions—cannotbe farmed. Nevertheless, China is the world’s largest producer ofrice. It is also a major source of wheat, corn, soybeans, peanuts,cotton, and tobacco.

Human-EnvironmentInteraction • Muchof China’s rice isproduced on terraced gardenslike these. �

Human-EnvironmentInteraction •Chinese villagers inYunnan work in therice terraces. �

China and Its Neighbors 713

Place • Locatedon China’s southcoast, HongKong is a major port and financialcenter for East Asia. �

Other East Asian EconomiesTaiwan Taiwan has a growing market economy that relies heav-ily on manufacturing and foreign trade. Since 1988, Taiwanesebusinesses have invested billions of dollars in mainland China,significantly contributing to China’s fast-growing economy.

North Korea Like China’s, North Korea’s government controlsthe economy. Also like China, North Korea has emphasized thegrowth of industry. Iron, steel, machinery, chemical, and textileproduction are the main industries in North Korea. A textile is acloth manufactured by weaving or knitting.

Many people in North Korea are farmers. They work on largecooperatives, where some 300 families share the farming work.These farms have become more productive as improvements inirrigation, fertilizers, and equipment have been made.

For most of the 20th century,North Korea traded with otherCommunist nations. Since the fall ofthe Soviet Union, North Korea hasopened its borders to investment andtrade with other countries.

South Korea The economy ofSouth Korea has changed dramati-cally since the early 1960s. At thattime, it was a poor nation of subsis-tence farmers. Since then, however,the government has supported theexpansion of the textile industry andthe building of factories that make

electronics, small appliances, and equipment. The government alsohelped develop iron, steel, and chemical industries. Today, SouthKorea has one of the world’s strongest economies. It is a major pro-ducer of automobiles and electronics and trades with many countries.

Japan The government of Japan does not control its economy inthe way the governments of China and North Korea controltheirs. However, it does oversee and advise all aspects of the econ-omy, including trade, investment, banking, and production.

Like South Korea’s, Japan’s economy has grown significantlysince the mid-20th century. Japan is a small nation with few naturalresources and little farmland. Industry and a skilled, educated workforce are vitally important to Japan’s economy.

714 CHAPTER 24

Place • This isone of manynew ships manufacturedby SouthKorea’s shipbuildingindustry. �

A. EvaluatingDecisions Do you think it makessense for so manyfarmers to sharetheir work?

B. SynthesizingWhat is the benefitof having the government controlthe economy?

China and Its Neighbors 715

Make a chart or diagram that illustrates the trade between Japan and the United States.What goods flow between these two countries?

SECTION ASSESSMENT

Using Graphics2. Use a chart like this one to list

important economic activities ofthe countries in East Asia.

Main Ideas3. (a) What role has China’s

government played in its economy?

(b) How does Japan’s economy differ from those of China and North Korea?

(c) How have the economies of East Asia changed in recent years?

Critical Thinking4. Forming and Supporting

OpinionsHow might the nearness of EastAsia’s small countries to Chinaaffect their economies?

Think About◆ availability of resources◆ possibilities of exchange among

neighbors◆ worldwide trade partners

Terms & Names1. Explain the significance of: (a) tungsten (b) antimony (c) textile (d) cooperative

Important Economic ActivitiesCountry

The country imports the raw materials it needs and transformsthem into goods for export. Ships, automobiles, steel, plastics,machinery, cameras, and electronics are Japan’s major exports.The United States is Japan’s biggest customer, although Japanalso exports goods around the world. It is currently one of theworld’s largest economic powers.

China

Taiwan

North Korea

South Korea

Japan

C H I N A

JAPANM O N G O L I A N. KOREA

S. KOREA

TAIWAN

Yellow Sea

Sea ofJapan

East ChinaSea

PACIFICOCEANSouth China

Sea

Ulaanbaatar

BeijingPyongyang

SeoulTokyo

Kobe

Pusan

Taipei

Harbin

Shenyang

Shanghai

Tianjin

Nanjing

WuhanChengdu

Xi’anLanzhou

Ürümqi

KunmingGuangzhou

Hong Kong

ChongqingAutomobile manufacturing

Chemicals

Food processing

Electronics/High-tech

Engineering

Gas

Iron and steel

Textiles

0

0 500 1,000 kilometers

500 1,000 miles

N

Industry in East Asia, 2000

GEOGRAPHYSKILLBUILDER:Interpreting a Map1. Place • Name three

cities in which foodprocessing is anindustry.

2. Place • What industries exist in Taiwan?