Hong Kong's Position in Guangdong Under 'One Country, Two Systems'

Abstract

Hong Kong and south China have been undergoing a rapid process of economic integration since the 1980s. The model of “front shop and back factory” is known as the most typical in transborder cooperation utilising economic complementarity across the border. Economic integration of Hong Kong into the Pearl River Delta region is now becoming inseparable from transborder governance. The policy-making process is now an intriguing process of capital flow over a subregional economic space in southern China. This paper will revisit the economic restructuring process of Hong Kong in Guangdong under the “One Country, Two Systems” dictum.

Keywords: Economic restructuring, Economic integration, Hong Kong, Pearl River Delta region

JEL Classification: R58