Hong Kong Factories have moved to China

Hong Kong Factories
have moved to China…
What does the data show?
The number of manufacturing
firms (companies) has
declined in HK since around
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
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
Pull factor
Lots of flat land
Pull Factor
Hong Kong
Sticky Factor
More relaxed laws on
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
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
Let’s practice by looking at a map. Try to
identify as many factors that influence
where these industries have been located.

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