TNAG-2792-FCO40-4031-Relations-between-Hong-Kong-and-China-1993 — Page 145

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2.1

Main Conclusions Strengths, Weaknesses, Opportunities and Threats (SWOT) to Continued Development in Guangdong

Introduction

2.1 This Chapter is divided into five distinct sections -Section 2.2 presents (in largely pictorial form) some of the most important study findings. This review is, however, a much simplified version of the information contained in the Appendices.

2.2 Sections 2.3 and 2.4 look closely at the strengths and weaknesses of the province - these are basically internal attributes and are seen from a number of perspectives: the geographic, socio-economic, overall level and direction of economic development, infrastructural, environmental, the complementary functions of Guangdong and Hong Kong, business freedoms, the property market and institutional/ political matters. Any spatial implications are noted.

Figure 2.1 Emerging Spatial Network of Urban Developments on the Asia Pacific Rim

Kuala Lumpur

Bangkok

Tianjin

Bohai

Shanghai

Hong Kong Pearl River Delta

Taipei

Jakarta- Bandung

Singapore Growth Triangle

Manila

Seoul

Toyko

Attention is also paid to any particular matters where Hong Kong influences are important Hong Kong businesses can, for example, help to overcome many of the present deficiencies in the service sector.

2.3 It should be noted, that cheap labour and land, often seen as one of the Province's strengths are not necessarily so. While they have undoubtedly attracted the assembly and other low value-added outward processing work that have been the motor for much. of the development to date, there is little intrinsically "good" or "strong" about low costs. Few of Guangdong's inhabitants would, for example, wish to perpetuate the low wage situation indefinitely - most are keen on rapid advances in their prosperity. And yet the alternative, higher technology industries which should ensure higher wage levels may be hard to attract. Ironically, there is also the threat that established low wage enterprises may now be attracted away from Guangdong to even lower cost areas such as Bangladesh, or that future rises in wage levels may be suppressed in order to compete with rival enterprises being established in these areas.

Major core cities

World City (existing and potential)

Mega-urban regions

Transborder urban regions

National and international development corridors

Source: Douglass, Mike, "Global Interdependence and Urbanization: Planning for Bangkok Mega-Urban Region,"

2.4 Despite this, the Province's strengths clearly outweigh its weaknesses. Many of the weaknesses that are noted are, moreover, easily correctable; some will simply take time others will, however, require clear changes in PRC Government policy.

2.5

Sections 2.5 and 2.6 examine the opportunities for further development and the threats to that development. The opportunities relate primarily to the economic situation they are examined from two perspectives - external and internal markets. Threats are the external forces that may hinder growth. Both these subjects will be considered in more detail in Stage II of the study.

2.6 For ease of reference, most material is set out in a tabular format.

2.2 Some of the Most Important Study Findings

General

2.7 The Pearl River Delta's central position within the emerging pattern of large urban regions on the Asia-Pacific Rim is illustrated on Figure 2.1. Hong Kong is an emerging "world city" where large international conglomerates are locating their regional

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