This
may be the best result of economic and trade
interaction between Hong Kong and China's
mainland. The economic and trade cooperation
between the two began a new phase in 1979 when
the Chinese government began to alter its view
on how to build its economy. China's
modernization was made a priority. At the same
time, industrial and commercial circles in Hong
Kong took the lead in investing neighboring
Guangdong Province, which shares the same
Chinese local dialect with Hong Kong. Many Hong
Kong processing enterprises move to Guangdong to
take advantage of lower costs for raw materials,
land and labor.
The
Pearl River Delta is the area most Hong Kong
investment has concentrated in. According to
Feng, the electronics, toy, clothing and
watchmak8ing enterprises in Hong Kong have
transferred 80 percent of their labor-and
land-intensive production capability to
Guangdong Province, and the province now has
become a processing base for Hong Kong's
manufacturing industry, making 80 percent of
Hong Kong's manufactured goods.
By
investing, establishing factories and employing
workers in the Pearl River Delta Area, Hong Kong
manufacturers have helped bring about a local
economic boom. According to "Investment in
Pearl River Delta by Hong Kong
Manufacturers," report issued by Hong
Kong's General Chamber of Industry, about 40.6
percent - or 510 out of the Chamber's 1,256
member manufacturers - had invested in the Pearl
River Delta as of January 30, 1992. Of those,
221 expected to expand their business and half
hoped to maintain their current size. In
addition, 69 new manufacturers were planning
investment in the area.
The
fact that members of the General Chamber of
Industry represent various fields of Hong Kong's
manufacturing industry adds credibility to the
chamber's report.
From the result of the Chamber's
investigation, we can see that manufacturers
from Hong Kong have successfully established
a competitive production base in the Pearl
River Delta area. Through years of
operation, the businesses there have gotten
onto the right track. Industrialist Ding
Heshou said the fact that Hong Kong
manufacturers are establishing factories in
the mainland makes the relationship like,
"Shop in the front, workshop at the back."
That means, by taking advantage of cheap
labor and factories on the mainland, Hong
Kong's manufacturing industry can maintain
its competitive position in world markets.
According to relevant date, manufacturers
from Hong Kong have employed more than three
million laborers in the coastal areas of
Guangdong Province. The huge production base
has become an important factor in Hong
Kong's constant economic growth.
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"Hong Kong Businessmen march to the
Pearl River Delta," "Invest in the Pearl River Delta" and
similar slogans have become a main subject of talk in Hong Kong's , mass
media and industrial and commercial circles. The Hong Kong Business
Times, in its January 31, 1992 issue, published and editorial entitled
Mutual Prosperity of Hong Kong and the Pearl River Delta, stating that
the dozen years of reform and opening to the outside world implemented in
China's mainland has enabled closer economic ties between Hong Kong and
South China, especially the Pearl River Delta. The huge production base
established by Hong Kong manufacturers in South China has resulted in
mutual prosperity and economic efficiency. The maintenance and further
development of cooperation between both sides in the 1990s will largely
depend on continuing reform on the mainland. The editorial also referred
to Deng Xiaoping's inspection tour of Shenzhen and Zhuhai special
economic zones in Guangdong Province early this year. It said that Deng's
inspiring speech had greatly encouraged Hong kong manufacturers,
confirming the maintenance of China's policy of opening to the outside
world. The editorial commented that if China'' policies remained
unchanged, there would be a brighter future, compared with 10 years ago,
for Hong Kong manufacturers on the mainland. Based on information now
available, China'' mainland would attract much more investment from Hong
Kong manufacturers and there would be grand prospect for mutual
prosperity.
Hong Kong's Wenhui
Daily's February 7, 1992 issue editorial said that ample resources of
land, labor and science and technology in the Pearl River Delta area had
made it possible for further strengthening of economic and technological
exchanges and cooperation between Hong Kong and the delta area. Hong Kong
manufacturers should have their eyes not only on present benefits but
also the future when further cooperation with China's mainland will bring
an even greater level of mutual prosperity.
China in Brief
