Unit 13: Relocating our industries in other parts of South China These industries mainly include:  Electronics  Clothing  Toys  Plastics  Dyeing  Leather-tanning (A)What types of industries have moved? –Need a lot of workers –Are labour-intensive industries –Need a lot of water and discharge wastes which pollute the environment –Are offensive industries Next

Unit 13: Relocating our industries in other parts of South China The industries mainly moved to:  The Shenzhen Special Economic Zone  Guangzhou  Dongguan  The Zhuhai Special Economic Zone Next

Unit 13: Relocating our industries in other parts of South China (B)Why have our factories moved to other parts of South China? 3 main reasons:  All these advantages make the cost of production in other parts of South China much lower than in Hong Kong. Close to Hong Kong Plenty of labour and land Less costly on waste treatment Next

Unit 13: Relocating our industries in other parts of South China Close to Hong Kong  Those special economic zones are in the ZhuJiang Delta.  They are well linked to Hong Kong by roads and railways  They have good communications with Hong Kong  Hence, the factory owners find it convenient in managing their factories, controlling the quality of products and transporting products and raw materials. NextBack Railway Main road Town or city km Key:

Unit 13: Relocating our industries in other parts of South China Plenty of labour and land  The South China areas have plentiful labour and land.  The wages of workers and the cost of land for building factories are low.  Factory owners find it easy to hire plentiful labour as well as to build and expand their factories.  The total production cost is low. NextBack

Unit 13: Relocating our industries in other parts of South China Less costly on waste treatment  In Hong Kong, there are strict laws on environmental protections.  Hence, the treatment of industrial waste in Hong Kong is very expensive.  The cost on industrial waste treatment in other parts of South China is much lower. Back

Unit 13: Relocating our industries in other parts of South China (C)What can Hong Kong gain? 4 gains: Next New business High-technology industries Land for other uses Less pollution

Unit 13: Relocating our industries in other parts of South China New business  Although many labour-intensive and offensive industries have moved to other parts of South China, they still give Hong Kong new business as they need the services of Hong Kong.  These important service activities include: –Transport –Finance –Communications BackNext

Unit 13: Relocating our industries in other parts of South China High-technology industries  Most of our workers are well educated and skilled.  They prefer better paid jobs which require high technology.  High-technology industries can possibly replace the declining labour intensive industries. NextBack

Unit 13: Relocating our industries in other parts of South China Land for other uses  In Hong Kong, land is insufficient.  As factories have moved, more sites can be redeveloped for residential, commercial and other uses.  Congestion is reduced. The living environment is improved.  Commercial activities can have more space for development. BackNext

Unit 13: Relocating our industries in other parts of South China Less pollution  The decrease in the number of factories means less factory wastes are being produced in Hong Kong.  This helps improve our environment. Back

Unit 13: Relocating our industries in other parts of South China (D)What are Hong Kong’s losses? 3 losses: Fall in manufacturing industries Unemployment Labour disputes Next

Unit 13: Relocating our industries in other parts of South China Fall in manufacturing industries  The percentage of our total income earned by manufacturing sector is getting smaller and smaller since  In 1990, it was 18%.  In 1997, it fell to 7.2%.  The economy structure is changed. The service industry has substituted the role of the manufacturing industry in Hong Kong.  The number of workers employed in the service industry is 7 times to those employed in the manufacturing industry.  The importance of the manufacturing industries to our economy is falling. Hong Kong will lose one of the most important sources of income. NextBack

Unit 13: Relocating our industries in other parts of South China Unemployment  Many workers lose their jobs as factories close down and move to other parts of South China.  Those working in business relating to manufacturing industries also lose their jobs, like transport business.  Unemployment has become a serious problem in our society. Unemployment rate in Hong Kong NextBack

Unit 13: Relocating our industries in other parts of South China Labour disputes  The wages of factory workers have fallen since there are fewer jobs for them.  Labour disputes become more common. This may lead to social unrest and affect the living of the general public. Back

Unit 13: Relocating our industries in other parts of South China Terms to learn:  Relocate a factory - move a factory to another area  Offensive industry - an industry producing wastes which damage the environment  Treatment of factory wastes - making wastes of a factory less harmful to the environment  High-technology industry - an industry that requires modern technology and skilled workers, e.g. electronics industry. Also written as hi-tech industry  Labour dispute - quarrel between factory owners and workers End