Download Urban Geography

Cross-boundary Urban
Development in Hong Kong and
Shenzhen 1997-2007
Jianfa Shen
Department of Geography and Resource Management
The Chinese University of Hong Kong
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Outline
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Introduction
Conceptualizing intercity relations between Hong
Kong and Shenzhen
Growing together: economic integration
Living together: social interaction
Linking together: cross-boundary infrastructure and
services
Asymmetric urban governance and challenges
Conclusion
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Location of Hong Kong and Shenzhen
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Introduction
 Cities compete against each other for
certain opportunities, markets and supply.
 Cities may also cooperate to enhance the
competitive advantage of both cities by
 seeking
agglomeration effects
 facilitating innovation process
 managing externalities
 avoiding duplicative capacities
 improving efficacy
 minimizing risks (Heeg et al, 2003)
 The dynamics of Hong Kong and Shenzhen
relations constitute an interesting case for
the study of inter-city competition and
cooperation.
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Conceptualizing intercity relations
between Hong Kong and Shenzhen
Capitalist society of
Hong Kong
Transitional society of
Shenzhen
Civil society
Social relation
Civil society
Economic relation
Business
Business
Public services
Social welfare
Infrastructure
Natural resources
Environment
Government
Government
Law & regulation
Institutional context of Hong Kong and Shenzhen relations:
One country-two systems; CEPA; regional division of labor under market economy
Competition
Competition and cooperation or neutral
Cooperation
neutral
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Private business
Cross-boundary cooperation prevails in
Hong Kong and Shenzhen
 Due
to the complementarities of capital,
labour, technology and market knowledge
Hong Kong investors have made
massive investment in Shenzhen
 contributing
to economic growth and export
in both cities.
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State-owned enterprises and business
 Hong Kong SAR government only owns a few public
organizations/businesses such as
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Hong Kong Convention and Exhibition Centre under Trade
Development Council
Hong Kong Airport Authority
Kowloon-Canton Railway Corporation
 Making profit is not the main objective of these
businesses
 But the government does have a keen interest to
maintain a strong convention and exhibition business
and airport in Hong Kong for the general interest of
Hong Kong economy
 These are areas that may compete directly with other
cities such as Shenzhen International Airport and
convention and exhibition business in Guangzhou,
Macau and Shenzhen
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Growing together: economic
integration
Table 2 Shenzhen’s GDP and GDP per capita as percentage of Hong Kong 1981-2005
(%)
Year
GDP as percentage of Hong
Kong
1981
1985
1986
1990
1991
1995
1996
1997
2000
2001
2002
2005
Guangdong
55.0
55.3
47.3
42.4
40.0
49.3
51.7
53.2
76.9
87.3
99.6
153.6
PRD
na
na
na
na
na
32.4
34.3
35.7
na
na
69.5
124.0
Hong Kong GDP
as percentage of
mainland
Shenzhen
0.9
3.7
2.9
4.7
5.0
7.0
7.9
8.9
15.7
18.0
21.9
34.0
GDP per capita as
percentage of Hong
Kong
Mainland
10.8
11.6
13.7
19.7
21.7
19.8
18.6
18.5
14.1
12.6
11.3
8.0
8
4.8
4.5
3.8
2.6
2.3
2.6
2.8
2.9
3.7
4.2
4.7
6.6
Shenzhen
13.9
25.1
17.9
13.5
14.6
10.0
11.0
11.4
15.6
17.0
20.1
28.4
Growing together: economic
integration
 Hong Kong is the largest FDI investors in mainland
China
 Hong Kong is the major source of foreign capital in
Shenzhen
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accounting for 78.9% in 1986, 70.7% in 1997 and 53.0% in
2005
 Hong Kong FDI reaches many places
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Shenzhen accounted for 19.2% FDI received by China in
1986, 3.7% in 1997 and 4.9% in 2005
Shenzhen received 27.1% of Hong Kong FDI to mainland
China in 1986, 8.1% in 1997 and 16.5% in 2005
 HK-mainland FDI link > HK-Shenzhen link
 HK dependence on Shenzhen < Shenzhen
dependence on HK
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Shenzhen and Hong Kong are
important trading partners
 Shenzhen’s export contributed over 13% of the total export of
China
 Outward processing related export accounted for the bulk of
export from Shenzhen
 A high proportion of Shenzhen’s export went to Hong Kong.
 Shenzhen to Hong Kong export’s share in the total export
from mainland to Hong Kong
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19.0% in 1991, 48.4% in 1997 and 36.2% in 2005.
Table 5 Export of Shenzhen and the share of Shenzhen to Hong Kong export 19912005 (US$ billion)
Year
1991
1997
2005
Total
export
Export
related to
outward
processing
9.9
25.5
101.5
8.7
21.1
75.5
Export
of FDI
firms
3.5
14.1
67.6
Shenzhen
to Hong
Kong
export
9.3
21.2
45.1
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Share of
Shenzhen
to Hong
Kong
export in
Shenzhen
total export
(%)
94.4
83.1
44.4
Share of
Shenzhen
export in
China
export
(%)
Share of
Shenzhen to
Hong Kong
export in
China to
Hong Kong
export (%)
13.7
14.0
13.3
29.0
48.4
36.2
Living together: social interaction
Share in the
total
employment of
Hong Kong:
4.2% in 1998
7.2% in 2005
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Living together: social interaction
Table 10 Characteristics of Hong Kong residents working in mainland 1998-2005
Percentage share (%)
1998
2005
2005 HK population
Males
86.2
75.5
54.5
Aged 30-39
35.5
29.3
28.5
Aged 40-49
32.9
36.4
30.1
With tertiary education
33.2
42.0
28.9
Manufacturing sector
36.7
47.1
6.8
Employees
72.7
77.9
87.7
Employers
19.8
15.3
4.3
7.5
6.8
7.3
Managers and administrators
40.8
35.6
8.9
Professionals and associate professionals
35.0
45.4
24.7
Self-employed
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Location of working in 2005
Working in Guangdong
NA
87.3
Working in Shenzhen
NA
38.0
Working in Dongguan
NA
29.5
Working in Guangzhou
NA
9.6
Working outside Guangdong
NA
12.7
Working in Shanghai
NA
6.3
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Hong Kong residents living in mainland China for over
3 months in the 6 months before enumeration
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Residential properties owned by
Hong Kong residents
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Residential properties owned by
Hong Kong residents
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Residential properties owned by
Hong Kong residents
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Residential properties owned by
Hong Kong residents
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Reasons for living in mainland China
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Linking together: cross-boundary
infrastructure and services
 The 24-hour operation was introduced at the Lok Ma
Chau checkpoint on 27 January 2003
 Hong Kong-Shenzhen Western Corridor opened on 1
July 2007
 Lok Ma Chau spur line and the Lok Ma
Chau/Huanggang railway passenger crossing started
operation in 15 August 2007
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Asymmetric urban governance and
challenges
 A market economy has emerged in Shenzhen and
SOEs play a limited role, though much greater than
the case of Hong Kong
 Domestic firms employed only 22.5% people but
contributed 36.2% pre-tax profit and 50.8% tax
 Shenzhen economy depends heavily on the Hong
Kong and foreign investment
 Shenzhen is more active in attracting FDI than Hong
Kong
 Shenzhen government has bee highly selective in
supporting large business, SOEs and private
business
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provide convenient and direct services to 193 large firms in
Shenzhen since 2003
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Asymmetric urban governance and
challenges
 As a policy of the central government, the core task
of the Shenzhen government focuses on economic
development and investment promotion
 The core task of the Hong Kong government focuses
on the social needs of the city while leave economy
largely to the invisible hands of the market
 Hong Kong government has also been less sensitive
and responsive to economic opportunities under the
philosophy of “positive non-intervention”
 The legislative council and the growing civil society
also make it harder for the government to get
approval or support for major projects after 1997
 All these factors result in a pattern of being slow to
make decision and slow to take action
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Conclusion
 Close economic relation/cooperation exists
between HK and Shenzhen
 Shenzhen relies heavily on HK investment
 HK and Shenzhen are major trading partners
 Increasing number of HK residents living and
working in Shenzhen
 Competition emerges in state-owned sector
 Major challenges in cooperation due to
asymmetric urban governance
 Serious talk on cooperation between two city
governments may partly help to move forward
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Thank you!
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