Table 2.1 Provinical Development Strengths (cont'd)
Strengths
Any Spatial Implications and Other Comments
New Competitive, Market Oriented Attitude to Business
Cheap labour and land makes Guangdong an ideal place for foreign investors wishing to set up factories and reduce their production
costs.
Areas close to Hong Kong and the new Chinese ports are likely to grow most rapidly. Labour is now cheapest in the northern mountain regions and eastern parts of the province - some industry may, therefore, be attracted to these areas. Land is most expensive in the Special Economic Zones - it is becoming more expensive throughout the Pearl River Delta - the cheapest areas are again the mountains - some types of industry may now be more attracted to these areas.
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New wealth is creating a demand for consumer goods.
The new local industries are in an ideal position to satisfy the new demand for consumer goods.
As it was the first region in China to expand its light manufacturing base, Guangdong is now in an ideal position to dominate the domestic market for these goods
Environmental
The provincial authorities have been prepared to accept low environmental standards during the initial rapid growth period.
The need for reforms of the environmental regulatory system has already been recognised and a good legal basis for environmental controls exists.
Polluting industries may be relocated to the peripheral areas of the Pearl River Delta. If pollution problems become much worse. there may be much greater selection of the types of industry allowed to set up in the province.
Hong Kong and Guangdong can Complement Each Others Development
Hong Kong based service industries are able to support newly emerging industries in Guangdong
Some service industries in Hong Kong can move their low value added operations to Guangdong
Hong Kong service industries can cater to consumer demands in Guangdong
Hong Kong is an emerging "world city" where regional investment decisions are made
Hong Kong people's kinship with people from Guangdong makes the province the area of first choice for Hong Kong investors.
Hong Kong and Guangdong people's common language makes the province an area of first choice for Hong Kong investors.
Hong Kong's sophisticted financial markets can support Guangdong industry
These are likely to be located in established service centres such as Guangzhou or Shenzhen - they include Cathay Pacific's accounts and possibly the Chinese directory enquiry services for Hong Kong Telecom.
Hong Kong is likely to be the tourist destination of first choice for many newly affluent Chinese.
Guangdong's/close proximity to Hong Kong should benefit from any "spin-offs".
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