Shift of Global Supply Chain and Guangdong-Hong Kong Industrial Development

27 Jul 17

Executive Summary

The industrial landscape in Asia is undergoing a fresh round of changes following the earlier large-scale relocation of production activities from many of the developed countries to lower cost regions in the late 1990s. As a result, industrial production activities soared across Asia, particularly in China, which emerged as a manufacturing powerhouse. In recent years, however, the investment environment in China has begun to change. Rising labour and production costs across the mainland have prompted a number of foreign-invested and domestic enterprises to adjust their business strategies, frequently resulting in the relocation of part of their production activities to other locations within Asia, while their mainland business operations have been upgraded in a bid to enhance their competitiveness.

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