Yam, Richard Ching Man (1996) Strategic development of HK/China manufacturing industries. PhD thesis, University of Warwick.

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Abstract

Since China adopted its Open Door policy, many of the Hong Kong low cost
manufacturing activities have been relocated to China. This project analyses the
strategic development of HK/China manufacturing industries in order to identify the
measures necessary to preserve the role of HK for sustaining growth in HK/China
manufacturing industries. The historical development of HK manufacturing industries,
the economic reformation in China and the inseparable relationship of the two places
have been analyzed.
Previous studies in this field have concentrated on Hong Kong investments in China
in aggregate. The purpose of this thesis is to take a specific look at the industrial
sector in which Hong Kong has historically held international competitive advantages,
i.e. its low cost light engineering manufacturing. This thesis investigates the reasons
why it has been strategically beneficial for establishing Hong Kong industries with the
emerging Chinese industries in the Pearl River Delta(PRD) by relocating HK
production on a large scale. The benefits to each region are discussed and a future
development model is derived for this sector.
Strategic/operational attributes, i.e. quality, product, technology and logistics aspects,
which are important to contribute to the complementary development of the industries
in the two places have been studied in details through series of extensive
questionnaire surveys and structured interviews. The heavy reliance on low cost
approach with poor technology development so far adopted by HK manufacturers has
been critically reviewed.
The project concludes that the success of the current HK/China manufacturing
industries is the results of the proper economic reformation policy adopted by China
at the right time and in the right place. China reoriented its economic policy to
"Growth through complete transfer of technology and management know how via
foreign direct investment(FDI) with focus on light export-oriented manufacturing
industries developed in PRD Special Economic Zone(SEZ) adjacent to HK." HK low
cost manufacturing industries relocated to PRD at about the same time to resolve its
ever escalating landllabour costs problems.
To sustain growth and competitiveness, the quality experiences, i.e. 15O9000-CQITQM,
gained in HK through the 1S09000 movement can form a good foundation for
China to build up its quality capabilities. To cut costs, HK manufacturers can expand
their operations beyond the major cities in PRD to other areas within PRD where
logistic support has been improved. HK manufacturers need to migrate from the sole
focus in low cost approach to emphasizing more new product and high technology
development. Through the better utilization of the China's R&D talents and the
commitment from HK manufacturers to gradually upgrade their new product and
technology development, HK would be able to preserve its leading role to contribute
to the development of HK/China manufacturing industries rather than being overtaken
by the Chinese.

Item Type:	Thesis (PhD)
Subjects:	H Social Sciences > HD Industries. Land use. Labor
Library of Congress Subject Headings (LCSH):	Corporations, Hong Kong -- China, Manufacturing industries -- Hong Kong, China -- Economic conditions -- 20th century
Official Date:	January 1996
Dates:	Date Event January 1996 Submitted
Institution:	University of Warwick
Theses Department:	School of Engineering
Thesis Type:	PhD
Publication Status:	Unpublished
Supervisor(s)/Advisor:	Hill, John
Extent:	xvi, 248 leaves
Language:	eng

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