Since the reforms that began in 1979, economic development in China has been marked by four major policy initiatives: the re‐integration of the Chinese economy with the global economy, the decentralization of economic decision making away from the central state to lower levels, and, especially in the coastal regions, the shift away from subsistence agriculture towards rural industrialization and increasing commercialization. In this article, the effects of the reform policies are discussed in the context of the Pearl River delta region, the economic core of the southern Chinese province of Guangdong. Closely proximate to Hong Kong, with many Overseas Chinese connections, the province was given opportunities to innovate within the new policy option and has been marked by rapid economic growth. The article focuses on the impact of industrialization, commercialization, and globalization in four contrasting areas of the Pearl River delta in the 1980s and 1990s. At a general level, what McGee has called desakota zones have emerged and follow a development process which is similar to that observed in parts of East and Southeast Asia in the 1970s. When examined from the perspective of villages and localities, the blending of government policies, geographical location, and market forces with an array of local social values has resulted in separate and distinctive patterns of development.