Integration of Hong Kong and Term Paper

Download this Term Paper in word format (.doc)

Note: Sample below may appear distorted but all corresponding word document files contain proper formatting

Excerpt from Term Paper:



This shift in Hong Kong's economy as a response to a more open Chinese economy has been explored in detail by economists and academics.

This relationship is reciprocal and not one-sided, as China benefits from increased numbers of jobs and industry that are imported from Hong Kong, and Hong Kong benefits from the increase in service jobs and a higher quality of life and income provided by the move to away from a manufacturing focus and toward a service-oriented economy. In the following section, this paper will critically examine how Hong Kong can continue this integration with China in order to provide the most profitable outcome in both nations.

The first and most obvious way for Hong Kong to encourage and continue economic integration with China is to continue exporting its manufacturing jobs to the mainland. Despite critics who say that this is a detriment to the overall Hong Kong economy, most academics believe that the effects of shifting to service industries as opposed to manufacturing will be more beneficial for Hong Kong in the long run. This exportation of jobs will encourage integration by building more communication and exchange between the two nations; knowing that each is dependent on an aspect of the other (i.e., Hong Kong as dependent on the labor available on the mainland and the mainland dependent on the jobs provided by Hong Kong) will create an atmosphere of cooperation.

Secondly, Hong Kong can encourage continued integration with China simply by continuing to provide specialized services; in many areas, especially information technology and telecommunications, the majority of the experts are located or based in Hong Kong. The proliferation of financial and legal experts in Hong Kong will also continue to be demanded by China. The necessity of these experts in other nations, China included, will continue to demand their presence and advice in the international sphere. This inclusion will also extend to China, which will be hard pressed to re-close its economy when the experts necessary for certain functions and areas of expertise are vastly located in another nation, namely Hong Kong.

Finally, Hong Kong can continue to integrate with China by encouraging the already-established labor unions and activism that exist among the manufacturing industries.

The political participation in the form of labor unions and labor activism in the political realm has been significant among Hong Kong workers and in Hong Kong industries; the workers of southern China who are now employed in these industries will be well-served to continue this tradition of labor activism. In doing so and encouraging such activism, Hong Kong will create a protected and healthy environment for workers at its corporations, and in doing so will integrate itself with the workers of China.

Integration with China is not solely a positive occurrence for Hong Kong, however. Several aspects of integration must be carefully monitored and managed in order for integration to not pose significant risks to Hong Kong's economy. Integration has:

promoted price convergence, exerting downward pressures on goods and factor prices in Hong Kong SAR under the linked exchange rate system...its role as a traditional trade intermediary is likely to diminish further as the mainland's trade restrictions are lifted; direct trade relations are established between Taiwan Province of China and the mainland; and more foreign businesses are set up directly on the mainland.

These potential drawbacks of integration-lowered prices, diminished role as a trade intermediary-must be carefully managed in order to prevent their becoming a detriment to the economy of Hong Kong and to the integration of the Special Administrative Region with the mainland.

Specifically, linkages between Hong Kong and the mainland are being encouraged in the southern provinces of China, especially the Guangdong province.

Due to both the geographic proximity of the two areas as well as the supply and demand factors in each, infrastructure and transportation linkages between the two are actively encouraged by Hong Kong and will produce better integration between the two:If the State Planning Commission will take part in future planning of infrastructure linking Hong Kong and Guangdong Province, there will be greater compatibility between the two places," said Donald Tsang, Hong Kong Special Administrative Region's administrative secretary.

This encouragement of physical infrastructure as well as the theoretical and economic integration will promote the overall integration of mainland China and Hong Kong by encouraging transportation between the two areas.

In conclusion, the economy of Hong Kong has, over the past few decades, made significant changes toward becoming a service-oriented one as opposed to being focused on manufacturing. In doing this, the economy of Hong Kong has given up certain areas of development; specifically, the loss of jobs in the unskilled and low-wage areas of production and manufacturing. However, these jobs have been replaced with higher-wage, higher-skill and more internationally demanded jobs in service industries such as financial and legal services, real estate and insurance services, and other business-oriented occupations. This shift has resulted in greater integration with the mainland of China due to the large number of manufacturing jobs being exported to the mainland as a result of the cheaper labor available there as well as due to the Chinese demand for the services provided by Hong Kong. Both of these integrations are in large part due to the opening of China's economy and of Hong Kong's own liberal economic market. Integration can be continued in the future by encouraging these liberal markets as well as encouraging the creation of communication and infrastructure for transportation between China and Hong Kong, and this continued integration will result in a beneficial relationship for the two nations' economic situations

Works Cited

Chang, Ha-Joon. The Political Economy of Industrial Policy. New York: St. Martin's Press, 1994.

Cheung, Yin-Wong, Chinn, David Menzie, and Fujii, Eigi. "China, Hong Kong, and Taiwan: A Quantitative Assessment of Real and Financial Integration" USCS Papers, number 565. Available online at http://repositories.cdlib.org/ucscecon/545/

Chu Gregory, "The Return of Hong Kong to China, Two Years Later," Focus 46:1, p. 16.

Edgington, David and Haga, Hiro "Japanese Service Sector Multinationals and the Hierarchy of Pacific Rim Cities" Asia Pacific Viewpoint 39:2, 1998.

Jayantha, Wado Mesthridge, Lau, Stephen, and Ganesan, Sivaguru. "The Impact of a Rapidly Expanding Service Center on Private Office Property: The Case of Hong Kong" Applied Regional Science Conference, Blackwell Publishers, 2001.

Jessop, Bob, and Sum, Ngai-Ling. "An Entrepreneurial City in Action: Hong Kong's in and for (Inter)Urban Competition" Urban Studies 37:12, 2000.

People's Daily, March 26, 2002, available online at http://english.people.com.cn/200203/26/eng20020326_92852.shtml

Prasad, Eswar. "Hong Kong SAR: Meeting the Challenges of Integration with the Mainland," International Monetary Fund Occasional Paper 226, published February 12, 2004

Sino-British Joint Declaration, 1997. Available online at http://www.info.gov.hk/trans/jd/jd2.htm

Tao, Zhigang and Wong, Y.C. Richard, "Hong Kong: From an Industrialized City to a Center of Manufacturing-related Services," Urban Studies, 39:12, 2002. p. 2345

Tsu-Auch, Lai-Si. "Has the Hong Kong Model Worked? Industrial Policy in Retrospect and Prospect," Development and Change 29, 1998.

Sino-British Joint Declaration, 1997. Available online at http://www.info.gov.hk/trans/jd/jd2.htm

Tao, Zhigang and Wong, Y.C. Richard, "Hong Kong: From an Industrialized City to a Center of Manufacturing-related Services," Urban Studies, 39:12, 2002. p. 2345

Chu Gregory, "The Return of Hong Kong to China, Two Years Later," Focus 46:1, p. 16.

Tsu-Auch, Lai-Si. "Has the Hong Kong Model Worked? Industrial Policy in Retrospect and Prospect," Development and Change 29, 1998.

Chang, Ha-Joon. The Political Economy of Industrial Policy. New York: St. Martin's Press, 1994.

Tsu-Auch, p. 72.

Jayantha, Wado Mesthridge, Lau, Stephen, and Ganesan, Sivaguru. "The Impact of a Rapidly Expanding Service Center on Private Office Property: The Case of Hong Kong" Applied Regional Science Conference, Blackwell Publishers, 2001.

Tau p. 2347.

Edgington, David and Haga, Hiro "Japanese Service Sector Multinationals and the Hierarchy of Pacific Rim Cities" Asia Pacific Viewpoint 39:2, 1998.

Jessop, Bob, and Sum, Ngai-Ling. "An Entrepreneurial City in Action: Hong Kong's in and for (Inter)Urban Competition" Urban Studies 37:12, 2000.

Cheung, Yin-Wong, Chinn, David Menzie, and Fujii, Eigi. "China, Hong Kong, and Taiwan: A Quantitative Assessment of Real and Financial Integration" USCS Papers, number 565. Available online at http://repositories.cdlib.org/ucscecon/545/

Prasad, Eswar. "Hong Kong SAR: Meeting the Challenges of Integration with the Mainland," International Monetary Fund Occasional Paper 226, published February 12, 2004, online at http://www.imf.org/external/pubs/nft/op/226/.

People's Daily, March 26, 2002, available online at…[continue]

Cite This Term Paper:

"Integration Of Hong Kong And" (2005, October 23) Retrieved December 3, 2016, from http://www.paperdue.com/essay/integration-of-hong-kong-and-69556

"Integration Of Hong Kong And" 23 October 2005. Web.3 December. 2016. <http://www.paperdue.com/essay/integration-of-hong-kong-and-69556>

"Integration Of Hong Kong And", 23 October 2005, Accessed.3 December. 2016, http://www.paperdue.com/essay/integration-of-hong-kong-and-69556

Other Documents Pertaining To This Topic

  • Globalization and Food Culture in Hong Kong

    Hong Kong Food Culture Unlike many other cities, Hong Kong offers a unique case study in the effects of globalization on local economies and cultures due to its premier status as a nexus between China and the West. Over the years, and even through British rule, Hong Kong maintained its own distinctly Chinese culture even in the face of relentless influence from other countries and explicit attempts to manipulate Hong Kong

  • Impact of China on Hong Kong After 1997

    China on Hong Kong after 1997 The purpose of this work is to examine and explore the impact that China has had upon Hong Kong since 1997. Hong Kong has a population of 7,116,302 of which 96% are Chinese. Due to the political shifts on the Mainland a rapid change in population has taken place. Although many nationalities visit and live in Hong Kong the Chinese culture is the one that

  • Nike Case Study Nike s Global Women s Fitness Business Driving Strategic...

    Nike Women's Case Nike's Global Women's Fitness Business: Driving Strategic Integration Case Study Need for Organizational Change Business Case Kotter's 8 Step Model for Change Create Urgency Build the Change Team Create a Vision for the Change Communicate the Vision Remove Obstacles Create Short-Term Wins Build on the Change and Anchor the Changes in the Corporate Culture Other conditions for change. Need for Organizational Change It became evident to many executives at Nike that women had evolving needs that were not being met under

  • Shanghai Tang Strategic Case Analysis Strategic Case

    Shanghai Tang Strategic Case Analysis Strategic Case Analysis: Shanghai Tang (ST) Fashion and Clothing Industry Overview Shanghai Tang (ST) Business Strategy Global Business Expansion Strategic Placement Analysis of Environmental Factors Suitability of Shanghai Tang Strategy Technology Business Focus The strategic review of Shanghai Tang is conducted in order to explore brand presence, business focus, and other related functional strategies. The business is quite well placed in terms of its growth, revenues, and profitability. The company has also expanded its business line

  • Parent s Selection for Supplementary Tutoring Centre in

    Parent's Selection for Supplementary Tutoring Centre in Hong Kong - Primary School Level With reference to the above discussion, it can be apparently observed that the education industry in Hong Kong is quite expanded. However, the performance of students and educational growth in the country can be observed to be weakening which indicates that the education sector in Hong Kong requires to be facilitated significantly within a short-run period. This

  • Work Life Balance The Role of

    Work Life Balance - the Role of HRM Human resources management come with massive demands chiefly in light of the fact that it involves dealing with people, a task that is complex in itself. To enhance organizational growth, pleasure on the part of workforce is very crucial. This is a necessity that human resources sectors in organizations have to grapple with on a day-to-day basis through the initiation and implementation of

  • Honolulu Rail Honolulu s Impeding Rail System Addressing

    Honolulu Rail Honolulu's Impeding Rail System: Addressing the Necessary Factors to Ensure the Successful Implementation of a Mass Transit Rail System in Honolulu, Hawaii The Honolulu High-Capacity Transit Corridor Project has already gone through a plethora of designs and revisions and has recently the project has been approved by the governing authorities. The project is meant to address many issues that can propel Honolulu into a more sustainable direction. Inspiration for this project


Read Full Term Paper
Copyright 2016 . All Rights Reserved