Made in China or Made in Hong Kong? National Goods and the … · 2018-11-15 · 11 Made in China...

14
11 Made in China or Made in Hong Kong? National Goods and the Hong Kong Business Community Chung Wai-keung Introduction Guohuo, national goods, was a term being used from th e early 1900 s to refer to good s produce d i n China by Chines e owne d an d manage d factories. 1 It was a notion tha t emerge d i n th e contex t o f a serie s o f boycot t campaign s against foreig n good s fro m th e earl y 1900 s and , i n particular , agains t Japanese good s i n th e 1930s . A nationa l reactio n t o foreig n invasion , th e boycott of foreign good s encouraged the use of national goods produced by the Chinese . Man y activitie s wer e forme d t o promote th e us e an d sale s o f guohuo. Thes e activitie s range d fro m distributin g handbill s t o organizin g factory vendin g strategies and exhibitions of the product. The campaign was, as a whole , considere d t o b e successfu l i n arousin g th e Chines e an d th e overseas Chinese to use Chinese goods. 2 Were goods , produce d b y Chines e manufacturer s i n Hon g Kong , national goods? According to the Provisional Standards for Chinese National Goods (Guohuo zanding biaozhun) promulgated by the Chinese governmen t in 192 8 an d it s late r versions, 3 the y coul d be . According t o th e standards , products wer e classifie d a s nationa l good s a s lon g a s the y wer e produce d by Chines e owne d an d manage d factories , wit h Chines e worker s an d ra w materials of Chinese origins. The only problem with the Hong Kong Chinese

Transcript of Made in China or Made in Hong Kong? National Goods and the … · 2018-11-15 · 11 Made in China...

Page 1: Made in China or Made in Hong Kong? National Goods and the … · 2018-11-15 · 11 Made in China or Made in Hong Kong? National Goods and the Hong Kong Business Community Chung Wai-keung

11 Made in China or Made in Hong Kong? National Goods and the Hong Kong Business Community Chung Wai-keung

Introduction

Guohuo, national goods, was a term being used from the early 1900 s to refer to good s produced i n China by Chines e owne d an d managed factories. 1 I t was a notion tha t emerge d i n the contex t o f a series o f boycot t campaign s against foreig n good s fro m th e earl y 1900 s and , i n particular , agains t Japanese good s i n th e 1930s . A nationa l reactio n t o foreig n invasion , th e boycott of foreign good s encouraged the use of national goods produced by the Chinese . Many activitie s wer e forme d t o promote th e use an d sale s o f guohuo. Thes e activitie s range d fro m distributin g handbill s t o organizin g factory vending strategies and exhibitions of the product. The campaign was, as a whole , considere d t o b e successfu l i n arousin g th e Chines e an d th e overseas Chinese to use Chinese goods.2

Were goods , produce d b y Chines e manufacturer s i n Hon g Kong , national goods? According to the Provisional Standards for Chinese National Goods (Guohuo zanding biaozhun) promulgated by the Chinese government in 192 8 an d it s late r versions, 3 the y coul d be . According t o the standards , products wer e classifie d a s nationa l good s a s long a s the y wer e produce d by Chines e owne d an d manage d factories , wit h Chines e worker s an d ra w materials of Chinese origins. The only problem with the Hong Kong Chinese

Page 2: Made in China or Made in Hong Kong? National Goods and the … · 2018-11-15 · 11 Made in China or Made in Hong Kong? National Goods and the Hong Kong Business Community Chung Wai-keung

186 CHUN G WAI-KEUN G

manufacturers wa s that their production was in a British colony. This alone made their products non-national. Even though the goods met the standards for Chines e nationa l goods , the y wer e considere d a s foreig n good s wit h heavy impor t dutie s adde d t o them . Th e Hon g Kon g manufacturin g community ha d trie d man y time s t o persuad e th e Chines e governmen t t o grant "nationa l goods " statu s t o thei r product s bu t wa s denie d ever y time . Ironically, even though Hong Kong Chinese manufacturers ha d never been recognized officiall y a s nationa l good s manufacturers , the y ha d organize d seven annua l exhibition s o f guohuo betwee n 193 8 an d 195 1 t o exhibi t products tha t were mainly produced in Hong Kong.

This chapte r attempt s t o giv e a n accoun t o f ho w th e Hon g Kon g Chinese manufacturing communit y used the notion guohuo t o refer t o their own products before an d after th e Second World War, when this status was actually denie d b y th e Chinese government . Th e use o f th e notion guohuo for th e industria l exhibitio n wa s give n u p afte r 1951 . Instead , th e ter m Chinese-capital industria l products (huazi gongye chupin), whic h made the products stil l carr y a Chines e identity , wa s use d t o refe r t o th e product s exhibited i n th e annua l exhibitions . Th e Englis h titl e o f th e exhibitions , however, wa s Exhibitio n o f Hong Kon g Products , which instea d carrie d a Hong Kong identity for the products. Based on business news in the Chinese newspaper Wah Tsz Yat Po (Chin a Mail ) betwee n 193 5 an d 1940 4 an d other source s fo r th e late r period , thi s pape r provide s a n analysi s o n thi s changing identit y o f th e Hon g Kon g busines s communit y befor e an d afte r the war .

The Creation of a Chinese Identit y

Hong Kon g wa s basicall y a tradin g por t wit h littl e industria l productio n before th e 1930s . Industrie s i n Hon g Kon g starte d t o develo p i n th e lat e 1920s and early 1930 s and increased rapidly in scale only until the final fe w years befor e th e Japanese occupatio n i n 1941 . There wer e probably abou t 200 majo r factorie s i n Hon g Kon g durin g th e lat e 1930s. 5 Becaus e o f th e small siz e o f th e loca l market , product s fro m Hon g Kon g wer e intende d mainly fo r expor t t o Chin a (mainl y sout h China) , Southeas t Asi a and , i n lesser quantities , t o Americ a an d Europe. 6 Sinc e afte r th e Chines e government ha d gaine d bac k he r custo m autonom y i n th e lat e 1920s , th e Hong Kon g factorie s ha d los t thei r competitive power ove r foreign goods . Although predominantl y owne d an d manage d b y the Chinese , Hong Kon g goods were treated as foreign good s simply because of Hong Kong's statu s

Page 3: Made in China or Made in Hong Kong? National Goods and the … · 2018-11-15 · 11 Made in China or Made in Hong Kong? National Goods and the Hong Kong Business Community Chung Wai-keung

MADE IN CHINA O R MADE IN HONG KONG ? 18 7

as a British colony.7 Becaus e of the heavy import duties that were added to the Hong Kong products, Chinese manufacturers i n Hong Kong became less competitive. The y coul d no t benefi t muc h fro m th e extensiv e busines s networks developed by the Hong Kong traders in China that had contributed 40 percent o f Hon g Kong' s tota l impor t expor t trade. 8 A t more o r less the same time , th e Imperia l Preferenc e unde r th e Ottaw a Agreemen t o f 193 2 gave Hon g Kon g product s a chanc e t o ente r par t o f th e Britis h Imperia l market wit h favorabl e impor t tariffs . Th e inherite d discriminatio n agains t the colony' s industria l product s b y th e Imperia l market , however , limite d the potential market for Hong Kong Chinese manufacturers .

Mainland China , especially sout h China, used to be a major marke t fo r Hong Kon g products . Accordin g t o a surve y o f 11 2 Chines e owne d factories,9 mos t factorie s reporte d multipl e market s fo r thei r products . 7 0 out of the 112 factories, or 62.5 percent, reported that they exported to China (mostly south China). Except for a few factories whose products were either cheap enoug h o r remaine d competitiv e fo r othe r reasons , mos t factorie s claimed tha t th e Chin a marke t ha d shrun k t o be almos t non-existen t afte r the Chinese governmen t increase d impor t duties. 10 Th e real impac t o f th e rise i n Chinese impor t duties cannot be calculated, sinc e no official dat a i s available for the quantity an d value of exports to China. The above survey , however, reporte d tha t becaus e o f sudde n change s i n th e Chines e market , Hong Kong' s weavin g industr y ha d shrun k fro m a total o f mor e tha n 60 0 factories o f variou s size s i n 192 9 to just abou t 13 0 in 1934 . The Weavin g Association, which mostly involved larger factories, use d to have about 6 0 member factories, but the number decreased to around 30 factories by 1934 . A knittin g factor y i n 193 6 reported tha t sale s i n Chin a ha d reduce d fro m 30^-0 percent to 1 0 percent of its total sales since the rise of import duties.11

In th e sam e survey , 9 2 factories , o r 8 2 percen t o f th e factories , reporte d Southeast Asi a (an d som e part s o f Indi a also ) a s thei r majo r market . An d 38 factories , o r onl y abou t 3 4 percent o f surveye d factories , reporte d tha t their products had a local market (six reported that the local market was their only market).12

Due to the fac t tha t during that time there existed no organization tha t could represen t Chines e manufacturer s i n Hong Kong , a few ke y Chines e manufacturers create d one in 1934. 13 Th e main function o f the organization was t o coordinat e Chines e manufacturer s i n Hon g Kon g t o persuad e th e Chinese governmen t t o gran t them , i f no t a totall y equa l statu s t o th e indigenous Chines e goods , a t leas t a favorabl e statu s fo r expor t o f Hon g Kong good s t o th e Chin a market. 14 Originally , th e organization wa s to be named th e Hon g Kon g Oversea s Chines e Nationa l Good s Manufacturers '

Page 4: Made in China or Made in Hong Kong? National Goods and the … · 2018-11-15 · 11 Made in China or Made in Hong Kong? National Goods and the Hong Kong Business Community Chung Wai-keung

188 CHUN G WAI-KEUN G

Union (Qiaogang guohuo changshang lianhehui). 15 Th e titl e explicitl y indicated ho w the y identifie d themselve s an d tha t the y woul d lik e th e Chinese government to see them as national goods manufacturers. The name finally decide d upon was the Chinese Manufacturers' Unio n of Hong Kong. The par t "o f Hon g Kong " wa s seldo m see n i n mos t context s afte r it s creation, whic h agai n ma y mea n the y wante d t o emphasiz e mor e o n th e Chinese an d no t o n th e Hon g Kon g origi n o f th e organization . B y discussing, formally an d informally, wit h provincial officials i n Guangdong and centra l official s i n Nanjing , th e unio n constantl y requeste d fo r mor e competitive marketin g condition s fo r it s products . The requests , however , were never granted. 16

Hong Kon g product s wer e no t considere d a s Chines e product s i n mainland China . I n Southeas t Asia , however , th e situatio n wa s different . Probably based on a looser definition o f "Chinese," Hong Kong' s product s were considere d jus t a s Chines e a s product s fro m th e Mainland . Fo r example, Hong Kong manufacturers wer e invited by the Singapore Chines e Chamber of Commerce in 1935 , along with other manufacturers i n Hankou, Shanghai, Guangzhou , Xiamen , an d Fuzhou, to participate in an exhibitio n of Chines e good s i n Singapore. 17 Simila r exhibition s i n th e Philippines , Vietnam and Indonesia (then the Dutch East Indies) also invited Hong Kong to participate. 18 Hon g Kon g product s ha d capture d a larg e marke t i n Southeast Asia especially afte r the boycott of Japanese goods resulting fro m the Sino-Japanese conflicts .

The Hon g Kon g Chines e manufacturer s migh t no t hav e considere d actively creatin g a n image o f national good s manufacturers fo r themselve s yet whe n the y decide d t o participat e i n a Nationa l Good s Exhibition . I n 1938, Th e Propos e t o Us e Nationa l Good s Grou p (Chang yong guohuo tuan), founde d b y th e Hon g Kon g YMC A an d YWCA , propose d t o th e Chinese Manufacturers ' Unio n t o organize a National Goods Exhibition i n Hong Kon g t o promot e th e us e o f guohuo i n th e colony . Firs t reactin g passively t o thi s proposal , th e unio n accepte d th e suggestio n bu t worke d slowly o n th e preparatio n an d di d no t finaliz e th e exhibition' s rule s an d regulations unti l 2 0 day s befor e i t wa s du e t o begin. 19 Th e reaction fro m the manufacturers , moreover , wer e no t goo d either, 20 partl y because ther e wasn't enough time for the manufacturers t o prepare for the exhibition, and partly because they were not sure about the benefits tha t they could get fro m the participation. In the first few days after the official announcemen t of the exhibition, only 20 factories agree d to send exhibits. The union managed to have abou t 8 0 factorie s an d companie s agree d t o participat e befor e th e opening of the exhibition on 4 February 1938. 21

Page 5: Made in China or Made in Hong Kong? National Goods and the … · 2018-11-15 · 11 Made in China or Made in Hong Kong? National Goods and the Hong Kong Business Community Chung Wai-keung

MADE I N CHIN A O R MAD E I N HON G KONG ? 18 9

Figure 11.1

Despite th e fac t tha t th e exhibitio n wa s calle d Exhibitio n o f Chines e Products (Zhongguo huopin zhanlanhui), o r mor e commonl y Guohuo zhanlanhui, mos t o f th e participant s wer e actuall y Hon g Kong-base d factories an d companies, with very few of them from th e Mainland.22 Hon g Kong goods became guohuo i n the exhibition. The identity woul d certainl y be familia r withi n th e Southeas t Asi a oversea s Chines e population , bu t i t might no t b e tha t popula r fo r th e loca l market . I hav e ye t t o fin d mor e evidence on this matter but, based on the limited evidence that I cite below, the notion of guohuo was seldom used to market Hong Kong-made products in Hong Kong. From the manufacturers' advertisement s that I collected,23 I found ver y few factorie s an d companies in Hong Kong that used the notion guohuo t o promote thei r goods. 24 Fo r companies tha t had business both in China an d i n Hon g Kong , mos t use d th e notio n guohuo o n thei r advertisements i n China bu t not i n Hong Kong . For example , Tian Chu , a prominent figur e i n th e Nationa l Goods Movemen t (Guohuo yundong) i n China, put the term guohuo o n an advertisement in China but not for one in Hong Kong. 25

Page 6: Made in China or Made in Hong Kong? National Goods and the … · 2018-11-15 · 11 Made in China or Made in Hong Kong? National Goods and the Hong Kong Business Community Chung Wai-keung

190 CHUN G WAI-KEUN G

Figure 11.2

35 B

A m f i l m E£ f ? tt! 8 > 3S

Figure 11.3

Page 7: Made in China or Made in Hong Kong? National Goods and the … · 2018-11-15 · 11 Made in China or Made in Hong Kong? National Goods and the Hong Kong Business Community Chung Wai-keung

MADE I N CHIN A O R MAD E I N HON G KONG ? 19 1

Probably becaus e o f th e uncertaint y o f thi s idea , th e Chines e Manufacturers' Unio n use d man y way s t o advertis e th e exhibitio n an d t o promote th e ide a o f usin g (an d buying ) guohuo t o the Chines e residen t o f Hong Kong . Thes e include d radi o broadcasts ; newspape r advertisements ; posters hun g o n buses , ferries , an d i n theatres ; letters t o every school ; an d requests t o bookstores t o display book s o n the National Good s Movement , etc.26 T o attrac t mor e peopl e t o come , th e exhibitio n als o provide d entertainment suc h as new style opera and traditional Cantonese opera. 27

The opening ceremony of the 1s t Guohuo Exhibition sheds light on how the Chinese Manufacturers' Unio n and the Hong Kong government define d this event. It was quite clear that, through the exhibition, the union was trying to introduc e a Chines e identit y fo r Hon g Kon g good s t o the public. 28 Th e opening declaration of the exhibition given by Ip Lan Chuen, chairman of the union, used a lot of Chinese-identity notions to refer to the event.29 By using phrases such as "national calamity" (guonan), "love one's country" (aiguo), "national resurgence" (minzu fixing), an d "fellow countrymen " (guoren), I p was trying to suggest at the same time that Hong Kong Chinese should identify themselves wit h th e Mainland. 30 Also , h e associate d th e industria l development of Hong Kong with that of the Mainland, and suggested that to love ou r country , w e shoul d us e guohuo; eve n thoug h th e guohuo a t th e exhibition wer e actually Hon g Kong products (Xianggang huo)? x

In contras t t o the Chines e definitio n o f Hon g Kon g product s give n b y Ip La n Chuen , th e speec h give n b y Si r Rober t H . Kotewall , Kt. , the n president o f th e unio n bu t als o membe r o f th e Executiv e Counci l o f th e colony, represente d a perspective tha t the colonia l governmen t migh t hav e adopted. I n hi s speech , Si r Rober t use d notion s suc h a s "Hon g Kon g products" (Xianggang chupin), "Chines e people" (huaren) and "Hong Kon g Chinese people " (Xianggang huaren)? 2 Th e us e o f thes e Hon g Kong -identity notion s carrie d a latent implicatio n o f a distinction betwee n Hon g Kong an d China. 33 Th e us e o f huaren, a s a n ethnica l term , rathe r tha n zhongguo ren might also be used to avoid the political connotatio n tha t the term zhongguo ren might carry . The Hong Kon g Chinese were only ethni c Chinese wh o happene d t o be living i n Hon g Kong . In hi s speec h i n 1940 , during th e 4t h Nationa l Good s Exhibition , h e emphasize d th e rol e o f th e Hong Kon g governmen t i n th e developmen t o f th e Hon g Kon g industry . Rather than seeing Chinese manufacturing businesse s as part of the Chinese national economy , hi s speec h reassure d tha t th e loca l econom y wa s th e Hong Kon g colonial government' s responsibility. 34

Page 8: Made in China or Made in Hong Kong? National Goods and the … · 2018-11-15 · 11 Made in China or Made in Hong Kong? National Goods and the Hong Kong Business Community Chung Wai-keung

192 CHUN G WAI-KEUN G

Made in China or Made in Hong Kong ?

After th e firs t exhibition , th e publi c reactio n o n guohuo wa s bette r tha n expected by the union. Thereafter, th e exhibition became the union's regula r annual activity . The strategy o f calling Hong Kong goods "national goods " remained unaltered for the next six exhibitions.35 Eve n though exhibits fro m China becam e mor e visible , th e exhibitio n wa s stil l dominate d b y Hon g Kong goods. For example, at the 4th Guohuo Exhibition , a n agent in Hon g Kong organize d abou t 2 0 Shanghaines e factorie s t o participate , bu t th e made-in-China guohuo wer e all put under a special section of the exhibition site and were separated from the remainder of the exhibits.36 Th e promotion of guohuo b y th e unio n i n Hon g Kong , therefore , migh t no t reall y mea n guohuo fro m China . Even though, they did promote guohuo fro m Chin a a t the sam e time , and could be considered a s one of thei r patriotic acts, 37 th e promotion o f Hon g Kon g goods , now name d vaguel y a s guohuo, wa s stil l their first priority .

The union' s laten t definitio n o f thei r guohuo a s made-in-Hon g Kon g products wa s obviou s whe n w e loo k a t thei r relationship s wit h othe r organizations tha t wer e a t th e sam e tim e promotin g th e us e o f guohuo i n Hong Kong . The key nationa l good s organization (guohuo tuanti) i n Hon g Kong wa s th e Chines e Nationa l Good s Productio n an d Sale s Associatio n (Zhonghua guohuo chanxiao xiehui). I t wa s originall y th e Frida y Lunc h Gathering Society (Xingwu jucanhui), a group of key Shanghainese banker s and entrepreneur s whic h ha d activel y participate d i n th e Nationa l Good s Movement when they were in China.38 A Hong Kong branch of the jucanhui was establishe d i n 1938 , when ke y participant s o f th e jucanhui fle d fro m Shanghai an d settle d i n Hon g Kon g afte r th e Japanes e occupatio n o f Shanghai.39 Th e Chanxiao xiehui wa s established later , in 1940. 40

These peopl e represente d th e mos t authenti c grou p tha t ha d bee n involved in the National Goods Movement in China. Even though both were talking abou t ho w t o promote guohuo, th e Chinese Manufacturers ' Union , however, ha d neve r developed an y intimate relationship wit h them . Ip Lan Chuen wa s one of the committee member s o f the Chanxiao xiehui, bu t hi s involvement probabl y wa s merel y symbolic . Phili p Gockchi n (o r Gu o Quan), th e the n chairma n o f th e Hon g Kon g Chines e Chambe r o f Commerce, was also being invited to be one of the committee members, but this again was more as a symbolic act . It was mentioned tha t the Chanxiao xiehui had helped to prepare the 3rd Guohuo Exhibition,41 bu t this was never acknowledged in any document from th e union that I have come across. So, very likely , they ma y have played a minor role in the Hong Kon g Guohuo

Page 9: Made in China or Made in Hong Kong? National Goods and the … · 2018-11-15 · 11 Made in China or Made in Hong Kong? National Goods and the Hong Kong Business Community Chung Wai-keung

MADE IN CHINA O R MADE IN HONG KONG ? 19 3

Exhibition, or at least the union did not want to talk about it. Another even t that show s the distance between the m was in 1939 , when both group s sen t investigation team s t o Maca u t o se e i f i t wa s suitabl e fo r investment . Th e two teams went separately.42 Ther e were a few other guohuo tuanti in Hong Kong, but al l had few connection s wit h the union.43

The difference s i n wha t th e unio n an d th e Chanxiao xiehui actuall y wanted t o promote wer e agai n obviou s whe n w e look a t how the y trie d t o organize the sales outlets for their respective guohuo. Guohuo in China had been organize d t o sel l throug h th e Chin a Product s Compan y (Zhongguo guohuo gongsi). A branch, therefore, was established in Hong Kong to serve the same purpose. The company wa s se t up in 193 8 with China Bank (HK ) Co. and Communications Ban k (HK) Co. as the key shareholders . A group of factorie s an d peopl e wit h Shangha i origi n als o hel d som e shares . Th e company sol d made-in-China guohuo, bu t i t is not certain i f they als o sol d made-in-Hong Kon g guohuo. The shareholders' lis t indicates that only very few Hong Kong factories an d people held shares and they were in very smal l quantities.44 I p Lan Chuen, for example , held 315 shares which constitute d less than 0.25 percent of the total. This may very well indicate that the China Products Compan y i n Hon g Kon g ha d fe w tie s wit h th e Hon g Kon g industrial community .

Rather tha n usin g th e newl y establishe d Chin a Product s Compan y a s an outlet, the Chinese Manufacturers' Unio n actually tried to set up its own guohuo gongsi righ t afte r th e firs t guohuo exhibition. 45 Becaus e o f th e success o f the exhibition , a meeting wa s held by th e union t o discuss wit h the exhibition participant s wha t they shoul d do in the future t o promote the sales o f guohuo. Th e participant s conclude d tha t the y shoul d organiz e a Chinese products department store as an outlet for the guohuo. The company was named as Chinese Products Co. Ltd. (Zhongguo huopin youxiangongsi) and articles of association o f the company wer e passed a few day s after th e decision. Interestingly, even though the company was going to be registered in Hong Kong , the company wa s organized i n a typical Chinese way whe n we look a t how the company's article s of association wer e written. 46

According t o the plan, manufacturers i n Hong Kon g could ren t booth s in the department stor e to sel l thei r products. 47 Whil e the exact purpose of setting u p th e compan y i s fa r fro m clear , i t sound s lik e th e compan y wa s set up for the sales of local guohuo, (i.e . Hong Kong products) as their main business. Guohuo from othe r places of the Mainland probably would be sold on a conditiona l basis . Th e company , however , wa s neve r established . According t o news reports , a few meeting s wer e schedule d afte r th e hors e racing an d footbal l seaso n i n Hon g Kon g ha d started , an d wer e cancelle d

Page 10: Made in China or Made in Hong Kong? National Goods and the … · 2018-11-15 · 11 Made in China or Made in Hong Kong? National Goods and the Hong Kong Business Community Chung Wai-keung

194 CHUN G WAI-KEUN G

because o f insufficien t attendance. 48 Manufacturer s probabl y los t interes t since they migh t no t be sure about the sales and therefore wer e not willin g to commit capita l to the company.

Market-driven Identit y

I hav e ye t t o discove r an y direc t evidenc e tha t ma y determin e wh y th e Chinese Manufacturers ' Unio n decide d t o use guohuo t o refe r t o product s that were actually mad e in Hong Kong. Nevertheless, I would like to argue that i t wa s ver y likel y tha t th e adoptio n o f th e notio n guohuo wa s a pragmatic marke t expansion strategy . When the union was organized, ther e was a debate o n whethe r Hon g Kon g manufacturer s shoul d mov e nort h t o explore the Mainland market or move south to develop the Southeast Asia n market.49 Base d on the socio-political context during the wartime, no matter where Hon g Kon g manufacturer s went , the y coul d hav e benefite d fro m using a guohuo label .

The onl y wa y fo r Hon g Kon g product s t o compete wit h othe r foreig n goods i n th e Chin a Marke t wa s t o b e considere d guohuo, s o tha t impor t duties coul d b e lowe r an d price s coul d the n b e mor e competitive . Th e adoption o f th e guohuo identit y i n a publi c way , suc h a s organizin g a n exhibition under the title guohuo, then might actually be part of the strategy to persuade the Chinese government . To label products as guohuo wa s als o a good marketing strategy to promote sales in China and the crowded-with-refugees loca l market , whe n Guohuo yundong i n Chin a ha d alread y succeeded. This unilateral adoption of the guohuo labe l was, of course, not totally successful . Rathe r the n grantin g Hon g Kon g manufacturer s a vas t market, th e most direc t response from th e Chinese governmen t i n terms of assisting Hong Kong manufacturers wa s to suggest they move (neiqian) into Guangdong. Substantia l assistance , including cash subsidie s was provided . Most manufacturers , however , responde d t o thi s suggestio n i n a ver y conservative wa y bu t som e factorie s di d mov e int o Guangdong. 50 A t thi s point, Hong Kong manufacturers ha d already given up hope that the Chinese government woul d chang e it s min d an d ha d decide d the y shoul d loo k fo r export markets outside China. 51

Sales o f Chines e guohuo becam e ver y goo d i n Southeas t Asi a i n th e late 1930s , and was much bette r than in the Hong Kon g market. 52 Guohuo exhibitions wer e organized by the local Chinese Chamber o f Commerce in different Southeas t Asia n citie s a s earl y a s 1915. 53 Th e overseas Chinese , especially those in Southeast Asia, had a strong preference fo r Chinese-mad e

Page 11: Made in China or Made in Hong Kong? National Goods and the … · 2018-11-15 · 11 Made in China or Made in Hong Kong? National Goods and the Hong Kong Business Community Chung Wai-keung

MADE IN CHINA O R MADE IN HONG KONG ? 19 5

goods. A guohuo label , an authentic one , certainly guaranteed good sales in the Southeas t Asia n market . The union issued it s own guohuo certificat e t o Hong Kon g product s a s a proo f o f thei r Chines e origin. 54 Th e Guohuo exhibition i n Hon g Kon g wa s a n additiona l wa y t o sor t out , wit h stric t examination, authenti c Chines e good s (mostl y Hon g Kong-made , though ) by displaying them publicly. 55

Having failed t o convince the central government to allow Hong Kon g products t o ente r th e Chin a marke t a s indigenou s products , th e unio n changed it s strategy , instea d askin g fo r th e issu e o f a Nationa l Good s Certificate (guohuo zhengmingshu) fro m th e governmen t a s a proo f o f authentic "Chineseness" for the Southeast Asian market.56 Th e proposal was turned dow n agai n a s migh t hav e bee n expected . Th e Ministr y o f th e Economy, however, agreed instead to issue an "Overseas Chinese industria l products certificate " a s a guarantee o f authenticit y t o qualified Hon g Kon g manufacturers. Th e criteri a wer e relativel y mor e flexibl e an d mos t Hon g Kong manufacturer s shoul d b e qualified. 57 I t wa s quit e clea r ho w eage r Hong Kon g manufacturer s wante d t o be see n a s guohuo producer s simpl y because o f market considerations .

Figure 11.4

Page 12: Made in China or Made in Hong Kong? National Goods and the … · 2018-11-15 · 11 Made in China or Made in Hong Kong? National Goods and the Hong Kong Business Community Chung Wai-keung

196 CHUN G WAI-KEUN G

Figure 11.5

A guohuo labe l could also be used as a marketing strategy for the Hong Kong local market. Most companies in Hong Kong did not use it as a selling point simply because it might not work for the Hong Kong local population. The notion guohuo wa s first considered for local market use when refugee s from th e Mainland constitute d almos t half o f the Hong Kong population. 58

In 1931 , the populatio n o f Hon g Kon g wa s 84 0 473 an d remaine d stead y until 1937 , when 10 0 000 refugees arrive d in Hong Kong. Another 500 000 came i n 193 8 and ye t anothe r 15 0 000 in 1939. 59 Whe n a significant, an d indeed, overwhelmin g proportio n o f Hon g Kong' s populac e wa s fro m China, an d thu s mor e familia r wit h th e nationalisti c notio n o f guohuo, i t became a feasible strateg y t o promote th e sale s o f product s manufacture d in Hong Kon g by using the notion. Som e loca l manufacturers did , i n fact , adopt the strategy, and used i t in their advertisements. 60

Page 13: Made in China or Made in Hong Kong? National Goods and the … · 2018-11-15 · 11 Made in China or Made in Hong Kong? National Goods and the Hong Kong Business Community Chung Wai-keung

MADE I N CHINA O R MAD E I N HON G KONG ? 19 7

Concluding Remarks : Goods"

'Hong Kong People Use Hong Kon g

The us e o f guohuo t o refe r t o Chines e mad e product s i n Hon g Kon g wa s finally give n u p i n 1951 , probably i n reactio n t o politica l change s i n th e Mainland.61 Th e annua l industria l exhibition , whic h t o a large exten t wa s an exhibitio n fo r Hon g Kon g goods , no w wa s rename d a s Exhibitio n o f Hong Kon g Chinese-capita l Industria l Product s (Xianggang huazi gongye chupin zhanlanhui). Withou t th e nationalisti c connotatio n tha t guohuo carried, huazi stil l implie d a n ethni c identit y distinguishabl e fro m othe r kinds o f capital . Th e Englis h titl e o f th e exhibition , whic h wa s no t fo r ordinary Chines e to read, however , di d not have the "Chinese-capital" par t and was simply called Exhibition o f Hong Kong Products.

}^0^mMm!^^^

Figure 11.6

During th e 1950s , the major marke t fo r Hon g Kon g products wa s stil l export markets . T o wha t exten t a Chines e identit y (claime d a s huazi or Chinese capital) could help to cultivate the overseas market during that time still needs further research , but obviously a n ethnic Chinese identity woul d probably hel p connec t a produc t t o th e widel y sprea d Chines e busines s networks tha t could be found i n East and Southeas t Asia. 62

Page 14: Made in China or Made in Hong Kong? National Goods and the … · 2018-11-15 · 11 Made in China or Made in Hong Kong? National Goods and the Hong Kong Business Community Chung Wai-keung

198 CHUN G WAI-KEUN G

Figure 11.7

The alternativ e identity , a Hong Kon g identity , wa s firs t mentione d i n 1954 bu t wa s becomin g matur e i n th e lat e 1950 s whe n th e populatio n o f Hong Kon g reache d 3 000 000. In response t o thi s potentia l loca l market , the Chines e Manufacturers ' Unio n launche d a new campaign . Durin g th e 15th Exhibition of Hong Kong Products, the slogan "Hong Kong People Use Hong Kong Goods" was promoted as a way to support the industrial growth of Hon g Kong. 63 Bot h th e chairma n an d th e governmen t officia l wh o attended th e openin g ceremon y urge d Hon g Kon g manufacturer s no t t o neglect thi s potentia l market. 64 Onc e again , th e identit y o f product s wa s changed as it was driven by a new market. Old identities, on the other hand, faded ou t from public awareness when there was no practical need for them. The highly vaunted notion of guohuo statu s disappeared in most documents published late r about the history o f the Exhibition o f Hong Kong Products . In a n essa y tha t provide d a historica l revie w o f th e exhibition , al l pas t exhibitions wer e calle d "exhibitio n o f industria l products " (gongzhanhui), a contemporary ter m that was not used until the late 1950s. 65