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Study Notes: Regional Economic Development of the Mainland

Hello everyone! Welcome to our study notes for "Regional Economic Development of the Mainland". China is a massive country, and it's so big that different parts of it grow and change in different ways, just like how students in a school have different strengths. In this chapter, we're going to be detectives and investigate the economic development of some super important regions in the Mainland.

We'll look at the powerful Yangtze River Delta and see what's happening in Guangdong province, which is right next door to us in Hong Kong! Understanding this is super important because what happens in the Mainland's economy can create both new opportunities and new challenges for Hong Kong. Let's get started!


Part 1: The Yangtze River Delta (YRD) - An Economic Super-Team

What and Where is the Yangtze River Delta?

Imagine a super-team of cities working together to build a powerful economy. That's the Yangtze River Delta region, also known as the Changjiang Delta region! It's one of China's most important economic zones, with the city of Shanghai as its team captain.

The YRD's Game Plan: What are they good at?

The YRD has a plan to be a world leader in many areas. Let's break down its key strengths, which the syllabus calls its industries, and financial, business and logistic services.

1. Industries: They make everything! From simple products to high-tech gadgets. They are constantly trying to upgrade their factories to make more advanced things.

2. Financial Services: Think of Shanghai as a giant bank for the whole region. It provides the money and investment that businesses need to grow, build new factories, and invent new products.

3. Business and Logistic Services: "Logistics" is just a fancy word for moving things around efficiently. The YRD has amazing ports, super-fast trains, and huge airports to ship goods all over China and the world. It's like the master delivery system for the economy!

Bumps in the Road: Difficulties Faced by the YRD

Even a super-team faces challenges. Developing so quickly can cause some "growing pains". For the YRD, some difficulties include:

- Increasing competition from other regions in China and other countries.
- The cost of land and hiring workers is getting more expensive.
- Environmental issues like pollution can arise from having so many factories and cars.

Hong Kong and the YRD: Competition or Cooperation?

So, is the rise of the YRD good or bad for Hong Kong? The answer is... it's a bit of both! This is a really important concept to understand.

Challenges for Hong Kong (The Competition):
- The YRD, especially Shanghai, is a major competitor to Hong Kong in areas like finance and shipping. They are both fighting to be the top financial hub and have the busiest port.

Opportunities for Hong Kong (The Cooperation):
- Hong Kong businesses can invest in the YRD's growing companies.
- Hong Kong has a lot of experience and expertise in areas like law, accounting, and design. These are professional services that YRD companies need as they grow and do business with the world.
- By working together, both regions can become stronger.

Key Takeaway for Part 1

The Yangtze River Delta (YRD) is a powerhouse economic region in the Mainland, led by Shanghai. It focuses on industry, finance, and logistics. For Hong Kong, the YRD's development brings both challenges (competition) and opportunities (cooperation).


Part 2: Guangdong's Big Move - The "Industrial Shift"

Guangdong's Old Problem: Why Did It Need to Change?

For a long time, Guangdong province was known as the "world's factory," making things like toys, clothes, and shoes. This was great for its economy after the reform and opening up! But after 30 years, they faced some serious constraints (limits or problems):

- They were running out of land and resources.
- The cost of labour (workers' salaries) was rising.
- The factories were causing pollution.
- They were stuck making low-profit products and wanted to upgrade.

Analogy: Imagine your desk is covered with old drawings. It was fun making them, but now you have no space to do your important homework. You need to clear the old drawings to make space for your new work. Guangdong faced a similar problem.

The Solution: The "Industrial Shift" Policy

To solve these problems, the Guangdong government came up with a clever policy called the "industrial shift". It has a famous Chinese nickname: "teng long huan niao" (腾笼换鸟).

What does "teng long huan niao" mean?
It literally means "empty the cage for new birds to settle down".

This is a brilliant way to describe the policy! Here's how it works:

Step 1: "Empty the Cage" (腾笼)
Move the older, simpler, and more polluting factories (the "old birds") out of the main cities in Guangdong. These factories are encouraged to move to less developed areas further inland.

Step 2: "Welcome New Birds" (换鸟)
Use the newly freed-up space, resources, and workers for newer, more advanced industries (the "new birds"). This includes things like high-tech manufacturing, creative industries, and modern services.

Did you know? Using a memorable idiom like "teng long huan niao" helps everyone, from government officials to factory owners, easily understand the goal of the economic policy!

The Ripple Effect: How the Shift Affects Everyone

This big change in Guangdong didn't just affect Guangdong. It had huge effects on Hong Kong and other stakeholders (people or groups who are affected).

- For Hong Kong: This was a massive challenge. Many Hong Kong businesspeople owned the factories in Guangdong that were now considered "old birds". They had two choices: spend a lot of money to move their factories inland, or spend a lot of money to upgrade their business to become a "new bird". It was a difficult time for them.

- For Guangdong: The province started to become cleaner and was able to develop more profitable industries, creating higher-paying jobs for its people.

- For Inland Provinces: They benefited by getting new factories and jobs, which helped their local economies grow.

- For Workers: Some factory workers in Guangdong might have lost their jobs, but the government aimed to retrain them for the new, higher-skilled jobs that were being created.

Key Takeaway for Part 2

Guangdong faced constraints like lack of land and rising costs. To upgrade its economy, it launched the "industrial shift" policy, famously known as "teng long huan niao". This policy involved moving older factories out to make space for high-tech industries, and it had major effects on factory owners in Hong Kong.

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