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has made great efforts to adjust its industrial structure to meet with market demands

and to fully exploit its locational advantage. The development of Foshan has

benefitted from the economic development in Hong Kong in the following aspects:

(a)

Hong Kong is only 68 km south-east of Foshan. The completion of

Rongqi Port, 7 km south of Shunde Town, provides direct and regular

passenger services between Hong Kong and Foshan.

(b) The locational factor of Foshan, together with the abundant supply of

labour and cheap developable land, has attracted manufacturers in Hong

Kong to relocate part of their manufacturing process there. In fact, about

90% of the 2800 industrial enterprises in Foshan are direct or indirect

investments from Hong Kong. 80% of the total export from Foshan are

to Hong Kong, before re-export to other countries.

(c)

Foshan has the support from many Hong Kong and Macau residents who

have origin in or familial ties with the region.

(d) Special policy and flexible measures granted by the Central Government

to Guangdong as a whole has permitted vigorous development, external

economic cooperation and foreign trade, especially those with Hong

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