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Industrial relocation of Hong Kong manufacturing firms: towards an expanding industrial space beyond the Pearl river delta

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Abstract

This paper explores the recent industrial relocation of Hong Kong manufacturing firms in the Pearl River Delta. Based on a combination of recent surveys, four in-depth case studies and nearly 20 firm interviews through the end of 2008, the paper argues that in response to a dynamic business environment in the region, some Hong Kong manufacturing firms in the PRD are forced to design new spatial strategies. The paper also identifies the different relocation strategies adopted by Hong Kong manufacturing firms, namely, total relocation, stratified relocation and “pseudo relocation”. The industrial space of Hong Kong manufacturing firms will be expanded beyond the PRD. In addition, the new round of relocation of Hong Kong manufacturers is a response to the initiative ushered in by the provincial and local governments in order to achieve the objectives of industrial upgrading, sustainable environment and regional balanced development.

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Notes

  1. The Chinese Manufacturers' Association of Hong Kong (CMA) is a non-profit making chamber of commerce and industry. With over 3,700 member-companies from various sectors of industry and trade, it is one of the oldest and most representative industrial associations in Hong Kong, known for its public interest and community service.

  2. The Chinese General Chamber of Commerce is a non-profit-making organization of local Chinese firms and businessmen based in Hong Kong. Founded in 1900, it is one of the oldest and largest chambers of commerce in Hong Kong. At present, the Chamber has a membership of over 6,000, comprising association, company and individual members.

  3. In the wake of the global credit crisis of September 2008, it was reported that the Guangdong Party Secretary, Wan Yang, maintained that “the crisis offers us the opportunity to change the model of Guangdong’s economic development” (South China Morning Post, Hong Kong, December 11, 2008, p. A5).

  4. Due to the major concerns of industrial relocation on the regional scale, the other changes concerning the macro economy in China, including the appreciation of RMB, stringent policies of processing, and new labor law will not be analyzed in details.

  5. Taikunpao, November 29, 2008, p. A18. Central Government Facilitates the Hong Kong firms in the Mainland.

  6. The entry criterion has been greatly reduced from 5 to 0.5 million registration capital in 2006 (Bureau of Economic Operation and Foreign Trade of Dongguan).

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Authors and Affiliations

  1. Department of Geography, University of Utah, Salt Lake City, UT, 84112, USA

    Haifeng Felix Liao

  2. Department of Urban Planning and Design, Faculty of Architecture, The University of Hong Kong, Pokfulam Road, Hong Kong SAR, People’s Republic of China

    Roger C. K. Chan

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  1. Haifeng Felix Liao
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Correspondence to Roger C. K. Chan.

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Liao, H.F., Chan, R.C.K. Industrial relocation of Hong Kong manufacturing firms: towards an expanding industrial space beyond the Pearl river delta. GeoJournal 76, 623–639 (2011). https://doi.org/10.1007/s10708-009-9316-3

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