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also mean that the investment came from a joint venture or subsidiary of an overseas firm with an office in Hong
Kong.
Nonetheless it was the figure recognised by the Chinese. His best guess was that more than half of the investment actually came from Hong Kong.
Ag PA
commented that the figure of 1.5-2 million people working for HK businesses in Guangdong would need also to be looked at in this light.
Govt Econ said that quite a lot of activity involving Hong Kong people such as outward processing involved little investment. Raw materials were provided and a
This sort of processing fee was paid but that was all. activity tended to rely on family ties. SLW noted that this was particularly the case in the counties and not so true of the Shenzhen special economic zone.
Govt Econ said that Guangdong had chosen to go for export oriented activity and quantity rather than quality. More important than importing high technology to them was the earning of foreign exchange through Guangdong people being hired in joint ventures etc. This approach was likely to have been led by market forces rather than determined by administrative decisions. Development, however, he said was dispersed. This made it economically inefficient. authorities wanted to move people off the farms but did not want them to move into the towns. Jobs therefore
had to be created in the villages. CS suspected that the dispersal was the result of families wanting to set
up factories in their home towns. It was also more difficult to do business in the SEZ where one had to
deal with the central bureaucracy.
The
In response to CS's question on the power supply and transport infrastructure in Guangdong, Govt Econ said that both were still inadequate. SES noted that a group of Guangdong planners had told her that the province was
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