安碧(中國)印刷有限公司

ANPAK CHINA PRINTING LID. wer A10-12 $5 #7718781-7710801 £45 7710801

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安碧月曆有限公司 ● 香

ANPAK CALENDARS LIMITED -

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+8114118(85634133+8:5157405

ANS

competitive position of Hong Kong industry was beginning to diminish - this was a result of increasing land and labour costs in the Territory. Hong Kong

firms were compelled to restructure their businesses.

This initially involved spatial relocation of their

labour intensive production activities across the border

- in the Pearl River Delta there was:

(a)

a reserve of low cost labour;

(b)

an abundance of cheap land; and

headquarters and investment decisions that affect the whole Asia Pacific Rim are now being made. It is also a city from which global financial resources can be harnessed. This new status has enormous importance for Guangdong.

Agriculture

2.8 In Guangdong, agriculture was the first sector to be reformed. Throughout the 1980s, output increased by 7 to 8 per cent per year. Major productivity gains resulted from the introduction of the household responsibility system and the early liberalisation of markets. Employment in agriculture, forestry, aquaculture and irrigation grew to 1985 but has since declined as an increasing number of workers have switched to manufacturing and service sector jobs.

2.9 Farmers have also switched from grain to cash crops. With increasing wealth, demand for the latter has grown inter-provincial trade is also now encouraged - previously, all regions in China were supposed to be self sufficient in grain. In Guangdong, growth in output has been fastest in fisheries, livestock, vegetables and sugarcane.

2.10 The total area of land in agricultural use declined slightly during the 1980s. The losses were mainly due to urbanisation, particularly in the Pearl River Delta, but were largely offset by gains from reclamations and the bringing of marginal lands in mountain areas into agricultural use.

Industrial Development

2.11 More efficient agriculture freed many workers to take up new types of employment. The industrial transformation which resulted has been driven by export led manufacturing. The tremendous expansion of this sector must, however, be attributed to a number of other factors internal and external to Guangdong. At the same time that the "open door" reform process was creating the conditions which allowed entrepreneurial activity to flourish, the

(c)

common cultural, linguistic and kinship links.

2.12 As labour intensive assembly operations migrated across the border so did many of their sub- contractors (a "follow the leader" type of process) resulting in the agglomeration of production processes.

2.13

Industrial development has since been dominated by foreign investors, often in joint venture partnership with Chinese enterprises (these often. collectively owned). Recent growth has been concentrated on light industry - particularly in the electronics and telecommunications and electro- mechanical sectors. Other important sectors are textiles and garments, metal products and food and tobacco processing and toy manufacturing. There has been a marked shift away from heavy industry. This has been partly a result of the lack of natural resources and partly because this sector was dominated by inefficient state owned industries.

Service Sector Development

2.14 Growth in the service sector has varied substantially according to sub-sector (see Figure 2.2) and location. Between 1982 and 1990, the largest absolute growth in employment has been in commerce (and associated activities). The fastest growth in employment has, however, occurred in real estate - employment in this sub-sector has almost trebled.

40' Container heading from Hong Kong into the Delta

-7-

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