Hong Kong Factories have moved to China… What does the data show? The number of manufacturing firms (companies) has declined in HK since around 1980 What might have helped cause this change? Chinese policies in the early 1980's… Began to allow foreign companies to come to China and open busineses. This opened up an opportunity for HK manufacturers that did not exist before. Suddenly, companies and factory owners in Hong Kong were faced with a choice How did they make this choice? They had to look at the Push Factors and Pull Factors Some of them are Sticky Factors! Push Factors are… things that make you want to leave a place Pull Factors are… things that make you come to a place Take a look at these factors and decide if they are HK or China Then decide if it is a Push Factor or a Pull factor Remember that these are from the perspective of the company owners High wages Hong Kong Push Factor Low cost for land China Pull factor Lots of flat land China Pull Factor Excellent telecommunications Hong Kong Sticky Factor More relaxed laws on pollution China Pull Factor Higher taxes Hong Kong Push Factors Skilled Labor Pool Hong Kong Sticky Factor Limited amount of flat land Hong Kong Push Factor Excellent transportation System Hong Kong Sticky Factor Strict laws on Pollution Hong Kong Push Factor Access to other International Companies Hong Kong Sticky Factor Stable Economy and Safe Banking System Hong Kong Sticky Factor So when we talk about Hong Kong industries moving to China.. Let’s look at which parts of manufacturing activities have physically moved to the Mainland How would you describe the trend, or pattern of which parts of the manufacturing activities have moved to China from HK? What could explain this? So now, you have an idea of why factories have relocated to China (and more recently, India, Vietnam, Pakistan…) In the next chapter (3.2), we will be looking at where factories should be located Let’s practice by looking at a map. Try to identify as many factors that influence where these industries have been located.