Cross‐border connection between hong kong and mainland china under ‘two systems’ before and beyond 1997

Abstract

Cross‐border flows of people, goods and capital are fundamental forces triggering spatial and economic transformations in any cross‐border regional production system. This study focuses on such cross‐border links between Hong Kong and mainland China in the context of cross‐border regional production systems. The paper examines first the close demographic ties and investment and trading relations between Hong Kong and mainland China before 1997. In terms of total direct and indirect trading, and outward investment, Hong Kong was the largest partner of mainland China and vice versa. The recent development in the cross‐border development between Hong Kong and the mainland after 1997 is also analyzed. The political change, the return of Hong Kong to China in 1997, did not alter the demographic‐economic linkages significantly as such connections had been well established during the period 1978 to 1997 after China's opening to the outside world. Hong Kong and mainland China are two independent economic entities practicing ‘two systems’ of capitalism and socialism respectively. Contrary to common expectation, the new government in Hong Kong only played a limited role after 1997. However, a bottom‐up approach has been working spontaneously and the local people and businessmen in Hong Kong have been the primary force in establishing strong relations with the mainland facilitated by the close demographic‐cultural ties both before and after 1997.

The globalisation of real estate: the politics and practice of foreign real estate investment

“…In recent years, however, the 'foreignness' of Hong Kong developers was developed as a political strategy to mobilise public discontent around issues of housing affordability, the local politics of land rent extraction and the loss of cultural built heritage in Chinese cities. Kan's (2016) article traces the ebbs and flows of a 'glocal' economy of foreign real estate investment in a 'zone of exception' that has been created as a result of the intertwining of the social, economic and political histories of Hong Kong and Mainland China (also see: Shen, 2003). Notwithstanding the particularities of the Hong Kong-Mainland China case, Kan's work highlights more broadly how 'foreignness' is a contested term within the globalisation of real estate practices.…”

Consideration of the Role of Guanxi in the Ethical Judgments of Chinese Managers

“…In the process of modernization, Hong Kong people have been widely exposed to other cultural influences, particularly the West (Snell, 1999). Both geographical proximity and cultural similarity between Hong Kong and China have facilitated the cross-border investment between the two places in the last three decades since the open door policy was introduced in 1978 (Shen, 2003). Hong Kong firms are keen to employ Hong Kong Chinese expatriate business managers to manage their subsidiaries in China.…”

“…Similarly, the Chinese government has assigned many Chinese mainland business expatriates to manage their investments in Hong Kong (Selmer, 2002;Selmer and Shiu, 1999). Moreover, crossborder employment between China and Hong Kong is also evident in the last decade (Shen, 2003). Arising from these interactions is an increasing interest in the nature of guanxi in the Hong Kong context, and the relationship between types of guanxi and moral, or ethical, conduct.…”

The Pearl River Delta and Hong Kong: an evolving cross-boundary region under “one country, two systems”

“…For the CBRs in the context of China, Greater China consisting of Mainland, Hong Kong and Taiwan has been generally taken as a typical case (Sum, 2002). Although a number of contribution to the study of CBRs have appeared in the context of China mainly from the perspective of regional production systems (Chan, 1998;Shen, 2003;Wu, 1998), few have addressed the cross-boundary region evolving between the PRD and Hong Kong under OCTS since 1997.…”

“…As the unprecedented OCTS principle has just been implemented for 7 years, little has been written on the changes of the cross-boundary interaction between Mainland China and Hong Kong in general, and how the unique framework of OCTS has influenced on the cross-boundary 1 region evolving between the Pearl River Delta and Hong Kong in particular. Among relatively few exceptions, Shen (2003) argued that the political change, i.e. the return of Hong Kong to China in 1997 did not alter the demographic-economic linkages between Mainland andHong Kong during 1997-2001 significantly as such connections well established during the period of 1978-1997. Taking the Pearl River Delta (''the PRD'' hereafter) 2 and Hong Kong as a case (Fig.…”