In the middle of 1980s, Hong Kong factories were moved to the mainland. The Hong Kong industry dropped sharply until today. From the middle of 1980s started, many Hong Kong’s industrialists believed China was a good place for their development so Hong Kong’s industrialists moved their factories to the mainland and they held branches in Hong Kong. Some of them moved all the things to the mainland. Those have four main points:

(1)China’s land rents were cheaper than Hong Kong. Hong Kong, Hong Kong’s industrialists maybe put their factory in a room of a tall building. If they want to product big number of goods were something impossible but if they moved their factories to China because the land rents were low didn’t need more money can build factories, even research institutes, employee hostels and clubs happened in the mainland factories easily.

   (2)    Otherwise, Chinese employee’s salaries were lower than Hong Kong. A part of industries, such as clothing, they needed big number of employees to work. Therefore if the Hong Kong factories moved to the mainland, the cost price of product decreased. Those were important for clothing and plastic industries

(3)    Or else, Hong Kong’s industries moved to the mainland were the main point of it because China had large number of materials, such as cotton wool and steel etc. If the factories near the places of product materials. The prices of product materials will low because the transportation fee decreased so many foreign countries also moved the factories to the mainland for development.

(4)  Look for the future, the mainland’s future was better than Hong Kong. China has 1.3 billion populations. As well the mainland’s market was bigger than the Hong Kong’s one. Also, the beginning of 1980s, China has adopted an open door policy and transports were more prosper.

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