Video #14 - Hong Kong: Moving to China?
Tuesday, January 10, 2006BACKGROUND INFORMATION
"Hong Kong, as the world's tenth-largest trading entity and ninth-largest banking center, is one of the world's most open and dynamic economies. Per capita GDP approximates Great Britain's." (Geographyiq.com, 2001) But since that was written, a lot has changed.
By all accounts, 2002 was another good year economically for Hong Kong. According to BBC News in November, 2002, strong exports led the government to increase the growth forecast for Hong Kong in 2002 to 2% from 1.5%. This increase was largely due to trade involving handling imports and exports heading to and from China-much of which was ultimately headed for the U.S. Tourism, with a heavy increase from mainland China, is also reported to have helped the increased revenues.
However, Agence France Presse reported at the end of January, 2003 (which marks the Lunar New Year), Hong Kong retailers were suffering from the flight of thousands of their prospective shoppers grossing over to the Chinese mainland for the New Year's celebration. An estimated 220,000 buyers were crossing before the celebration. Furthermore, the Democratic Party reported that of 814 respondents, 70% said they would spend less this year. A similar survey conducted by The Association for Democracy and People's Livelihood reported that 61% answered in similar fashion. They claimed fear of losing their jobs or earning less as their motivation for keeping a tight hold on their money.
Additionally, Mary Kwang, correspondent for The Straits Times Interactive, reported that the Lunar New Year competition between Guangdong on the mainland side of the border and Hong Kong has become indicative of economic weakness in Hong Kong. Another example: disparaging remarks made by the mayors of major cities in the nearby. Dongguan mayor Li Guikang told the people of Hong Kong that they had to accept mainland wage levels if they sought jobs in his city. Consultant Mau Chi Wang is reported as saying: "Guangdong is rising, but Hong Kong is in decline." Because of the need for jobs in the mainland, those statements went unanswered by Hong Kong authorities.
Ms. Kwang reports that some people have lost confidence in the government and feel that the decline of the territory is permanent. However, a retired academic from Fujian who has lived for 11 years in Hong Kong is quoted as saying that "Hong Kong has to accept that the mainland is developing and the territory must be part of the Pearl River Delta, not outside it." The developments signify a sign of the times, a result of the political and economic changes taking place both in Hong Kong and in the People's Republic of China.
Reportedly, Guangzhou officials' had felt Hong Kong's lack of respect for years. They have been competing for economic supremacy with the Yangtze River Delta which includes the cities of Shanghai, Hangshou and Suzhou. Ten years ago, Yangtze River Delta exports were a third of the Pearl River Delta's. Today, they are almost equal. Guangzhou officials do not want the central government to restrain the development of their province to favor Hong Kong. The fact that the political structure treats Hong Kong as special has impeded communication between the two areas as well. All dealings with Hong Kong must be arranged by Beijing. However, Hong Kong's Secretary for the Environment, Transport and Works, Ms Sarah Liao, says that competing regional interests make it difficult for local governments to have direct negotiations. She claims that obstacles are reduced only when Hong Kong gets the central government's support first.
Differences notwithstanding, the two regions have profound connections. The province is the biggest producer for Hong Kong's manufacturers, because the Pearl Delta provides savings in production costs. Mary Kwang reports that around 53,000 Hong Kong firms, employing 10 million workers, are now in Guangdong.
"The times," as they say, "are a changing..." Both sides of the border seem to be undergoing transformation to adjust to the new reality they face.
SOURCES
Agence France Presse: "Hong Kong retailers lament gloomy Lunar New Year." January 31, 2003. Hoover's online.
"Exports Buoy Hong Kong Economy." BBC News, November 29, 2002. news.bbc.co.uk/i/hk/business/2527101.stm
"Hong Kong: Economy." Geographyiq.com/countries/hk/Hong_Kong_economy_summary.htm
Kwang, Mary, "Hong Kong must come to terms with Guangdong's rise." The Straits Times Interactive, February 1, 2003. http://straitstimes.asia1.com.sg/
LESSON PLAN
GRADE LEVEL/SUBJECT:
10-12 grade Economics, International Relations, World History, Geography, International Baccalaureate Programs (IB), Current Events.
PURPOSE:
To present activities to be used in a variety of classroom situations in order to enhance student understanding of the Riau economy and its significance globally.
OBJECTIVES:
Students will be able to:
- Document economic changes taking place in Hong Kong since its return to the People's Republic of China.
- Document economic changes taking place in the People's Republic of China since Hong Kong's return to the mainland.
- Speculate on the economic future of Hong Kong.
MATERIALS:
- Background information provided.
- Resources on People's Republic of China and Hong Kong available at your school's Media Center and the Public Library System in your area.
- Background information available through Internet "search engines"
- www.chinapages.com
ACTIVITIES:
May be assigned as group activities or as individual tasks. They may also be designed as preparation for related presentations either by individuals or groups.
- Use charts and graphs to compare and contrast economic changes in the People's Republic of China and in Hong Kong after reunification.
- Use the information above to organize a panel discussion to speculate on the future of the relationship between Hong Kong and the PRC.
- Write an editorial expressing your opinion on the future of Hong Kong based on the information provided by the above activities.
EVALUATION:
Individual assignments should be graded by the teacher using established criteria. Group activities, presentations and projects may be evaluated by teachers and students using the following criteria and scale:
Content 1 = Superior (A) Creativity 2 = Excellent (B) Clarity 3 = Good (C) 4 = Fair (D) 5 = Poor (F)
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