Trans-border Flow: Between Hong Kong and Mainland China (Part I)

Trans-border Flow: Trans-border Flow: Between Hong Kong and Mainland ChinaBetween Hong Kong and Mainland China

(Part I)(Part I)

Theme: • The formation of transborder governan

ce ( 跨境管治 ) between Hong Kong and the Pearl River Delta, South China

Questions:1. What is transborder urban governance? 2. What is transborder flow and when did

it begin?

• An increasing demand of transborder economy between Hong Kong and Pearl River Delta, South China in the past two decades.

Transborder Urban GovernanceTransborder Urban Governance

“an increasingly complexity of modalities ( 形態 ) of governing including governmental actors, para- government agencies ( 輔助政府的機關 ), business networks and societal actors who may work together or against each other in a cross-border context”.


Tung Chee Wah VS Huang Hua Hua

Key concept to remember!

We need to develop useful middle-ranged concepts like multi-scalar politics.

Globalization - but a multiple re-ordering of time and space conducive to new configuration of scale politics and forms of governance, often in a transborder-border context.


Scaling processes can be further distinguished into:

cross-border relations (internationalization);

open-border relations (liberalization);

trans-border relations (re-making of social relations in multiple forms).

Multi-scalar Politics:Multi-scalar Politics:


Harrell (1995) helps to distinguish two processes:

– "regionalism" refers to top-down processes- the conscious and deliberate attempts by national states to create formal mechanisms for dealing with common transnational issues;

Multi-scalar Politics:Multi-scalar Politics:Key concept to remember!

– "regionalisation" refers to bottom-up processes- the driving forces come from markets, from private trade and investment flows, and from the policies and decisions of companies.

Multi-scalar Politics:Multi-scalar Politics:Key concept to remember!

• highlighting the “bottom-up” nature of transborder interaction in in China.

• The term "economic integration" often refers to the formal cooperation between states, and thus ignoring the societal factors in pushing forward the transborder governance.

Multi-scalar Politics:Multi-scalar Politics:


• Despite to the state factors, transborder interactions between Hong Kong and the Pearl River Delta from the bottom have been underway for more than two decades.

Hong Kong and Transborder FlowsHong Kong and Transborder Flows

• In addition to capital relocation both in manufacturing and services sectors, there are also:– a) cross-border employment, – b) marriage;– c) housing

• A “transborder society” has been forging long before both sides of governments finally came to the scene.



Hong Kong residents working in Mainland China

Special Topics Report No. 21 and 30, Social data collected via the General Household Survey, Census and Statistics Department, Hong Kong, 1999, 2001.

Year No. of persons working in Mainland China

1988 52,300

1989 45,600

1992 64,200

1995 122,300

1998 157,300

2001 190,800

• 35.5% were aged 30-39; while 32.9% were aged 40-49. Their median age was 39.

• Analysed by sex, 135,500 (86.2%) were males.

• The working population in Mainland China generally had relatively higher educational attainment.


• Some 55.4% of them had secondary or matriculation education and 33.2% had tertiary education.

• 72.7% were employees; 19.8%, employers; and 7.5%, self-employed persons.

• Nearly all the employees (95.3%) were employed by companies in Hong Kong to work in Mainland China.


Hong Kong residents who had worked in mainland China by occupation in June 2001

Occupation No. of Person (‘000)

Percentage (%)

Compared to all employed persons in HK (%)

Managers and administrators

67.8 35.5 8.1

Professionals and associate professionals

81.5 42.7 23.5

Clerks 15.2 8.0 17.5

Service workers and shop sales workers

6.3 3.3 14.9

Craft and related workers 10.6 5.5 9.4

Plant and machine operators and assemblers

4.6 2.4 7.7

Elementary occupations 4.2 2.2 18.8

Others 0.7 0.4 0.2

Overall 190.8 100.0 100.0

Hong Kong residents working in Mainland China by occupation in 1998

Planet and machine operators & assemblers

3% Elementary occupations

0%

Clerks6%

Professionals & associate

professionals 35%

Managers & administrators

44%

Craft & related workers

9%

Service workers & shop sales workers

3%

• 43% were in the wholesales, retail and import/export trades, restaurants and hotels sector;

• 37.8% were in the manufacturing sector.

• The percentage of those engaged

in manufacturing sector in 1998 decreased from 58.0% in October 1995 to 37.8% in June 1998.


• On the contrary, the percentage of those engaged in the wholesale, retail and import/export trades, restaurants and hotels sector was higher.


Hong Kong residents who had worked in mainland China by industry in June 2001

Industry No. of Person (‘000)

Percentage (%)

Compared to all employed persons in HK (%)

Manufacturing 71.2 37.3 10.0

Construction 5.2 2.7 8.9

Wholesale, retail, and import/export trades, restaurants and hotels

83.5 43.8 30.5

Transport, storage and communications

6.7 3.5 10.8

Financing, insurance, real estate and business services

18.0 9.5 14.4

Community, social and personal 5.3 2.8 24.7

Others 0.9 0.5 0.7

Overall 190.8 100.0 100.0

Hong Kong residents who had worked in the Mainland China during the 12 months before enumeration by no. of times having worked in the Mainland China (1998 and 2001)Number of times having

worked in the mainland of China

No. of persons (May-Jun 1998)(‘000)

% No. of persons (Apr-Jun 2001)(‘000)

%

1-3 days 23.23 14.8 21.9 11.5

4-9 days 20.9 13.3 18.0 9.4

10-19 days 26.0 16.5 30.3 15.9

20-29 days 25.4 16.2 25.0 13.1

30-49 days 38.9 24.7 36.3 19.0

> 50 days 22.9 14.5 58.4 30.6

Unknown - - 0.9 0.5

Total 157.3 100.0 190.8 100.0

Median (times) 20 26

Therefore:1. Trans-border labour flow has been the cent

ral part of the globalization process, especially, in trans-border making between China and Hong Kong in the 90s and this will continue in the coming years.

2. The picture foretold a process of “economic integration” from below emerged in early 1990s, long before the state discourses proliferated ten years later.


Trans-border Flow: Trans-border Flow: Between Hong Kong and Mainland China Between Hong Kong and Mainland China

(Part 2) (Part 2)

Theme: • The formation of transborder governan

ce between Hong Kong and the Pearl River Delta, South China

Questions:1. What is transborder labour relation? 2. What cultural implication we can learn?

Hong Kong residents working across theborder in Mainland China became aninternational eye-catching issue.

Understanding Trans-border Labor RelationsUnderstanding Trans-border Labor Relations

Understanding Trans-border Labor RelatiUnderstanding Trans-border Labor Relationsons

Time Magazine in May 2001 states,

“Nowhere is the demarcation more striking than at its border with Shenzhen - a line that Hong Kong people can cross freely but most mainlanders can only gaze at. The one-way traffic has become a nonstop flood: up to 200,000 people a day, 100 million crossings a year, a number likely to triple by 2010.”

Understanding Trans-border Labor RelatiUnderstanding Trans-border Labor Relationsons

• On average, 31,000 vehicles and 280,000 people traveled across the boundary every day during the year of 2000.

• Hong Kong Annual Report 2000: Mainland China is the most important trading partner with Hong Kong.

• 40 per cent of its trade was with the Mainland and three quarters of the 18 million containers handled by the port of Hong Kong were connected to trade with the Mainland.


• Three Objectives:

1. understand the trans-border labour flow in terms of its multi-scalar politics as new labour relations are forged in the restructuring of Hong Kong’s political economy.

2. explore not only novel forms of cross-border labour relations but also the process of how these forms are constructed in all its conflict and tension-ridden nature.


3. highlight the cultural production of this trans-border subject and its implications for identity issues.


Hong Kong people may live here and have a big house in China

• Historical Perspective

• This trans-border configuration is made possible by the changing geopolitics of both sides: South China and Hong Kong.

• Upon the establishment of the PRC in 1949, Guangdong was the major gateway connecting the whole country to the outside world.



• Canton City had been one of the important cities in connecting the national economy with global capitalism.

• Its geographical location at the southern end of China made the region more competitive and conducive to international capitalist players.

• China’s Open-door policy and the Economic Reform of the late 70s brought forth a great change in the geopolitics of South China.

• The “open-door” policies were the first attempt to incorporate the socialist system of China - the national-local spaces into the global market - the global-regional scalar mix.



• This bold experiment won support from key party elites and coastal-provincial actors, esp. when the four SEZs and 14 coastal cities witnessed a rapid influx of foreign capital and fast development in 80s and 90s.

Thanks Deng again!!!

• The rapid increase of foreign direct investment and joint-ventured cooperation, esp. with HK capital in the 90s, thus allowed the national-local scales of Chinese industrialism to link up with the global and regional scalar mixes.

• The pace of new spatial

configuration was greatly accelerated with the rise of Shanghai as a global city in the late 90s.


• China’s entry to the WTO in 2001 and Beijing’s successful bid for the 2008 Olympics finally signify a rise in China’s status as a globalizing society.


Hong Kong Problem

• The Asian Financial Crisis and its aftermath hit the Hong Kong economy badly at the time of its restructuring into a regional financial city.

• The unemployment rate rose to 7.8% in mid 2002 and still there is no trace of great improvement.


• The bubble in the property economy - has burst and asset prices have dropped by over 50% in 2002 in comparison to the highest prices in 1997.

• The poor performance of the economy further pushed the SAR government to further depend on the trans-border imaginary to solve its internal economic crisis.


• In his 2001 Policy Address, Tung stressed that HK as a gateway city has a unique position, with the Mainland as its hinterland and extensive links to all corners of the globe.

• Tung also boasted that HK’s infrastructure, such as the HK International Airport and the international container port, were world-class, as were the talents of HK’s professionals and their management experience.



we are in the right place at the we are in the right place at the right time to benefit most from right time to benefit most from the economic development of the economic development of our Motherland… our Motherland… Following China’s accession to Following China’s accession to the World Trade Organization, the World Trade Organization, co-operation between Hong co-operation between Hong Kong and Guangdong will rise to Kong and Guangdong will rise to new heightsnew heights

• The HK government thus openly encourages trans-border flow and persuades its citizens to look for jobs in Mainland China.

• Also aided by extensive newspaper coverage and media propaganda- “Looking northward”, literally meaning to search for opportunities in China.


• Ming Pao Editorial: “Citizens could consider working on mainland” (October 17, 2001) it states,

• “When the Mainland’s economy soars, people well versed in international trade will be in great demand there. Mainland businesses will then need financial professionals, accountants, lawyers and people experienced in import and export business. Many Hong Kongers have much such experience. If they are prepared to work on the mainland, they are likely to accomplish much.”


Comment:

• These official discourses encouraging Hong Kong people to find a way-out in Mainland China seem a bit redundant if not ridiculous.

• Trans-border interactions between Hong Kong and the Pearl River Delta, from the bottom up, have been underway for more than two decades.


• In addition to capital relocation, both in manufacturing and services sectors, cross-border employment, marriage and housing have already become conspicuous social phenomena in the last decade.

• The creation of a trans-border spatial structure thus was more inclined to informal and soft integration and reliant on the actions and decisions of non-state actors


• The trans-border labour flow no doubt was a kind of regionalisation process before it turned to be a regionalism process when the HK government plans for a “South China Economic Circle”.


• New trans-border managerial class: “We enjoyed the first class life in China, the kind of luxurious life that we can’t ever dream of while we are in Hong Kong.”

• Crossing the border enhanced their social status and living quality, yet this class never tried to mix with the local community:

• “We don’t make friends with the locals. We are people with different heads. I’ll never contact the locals unless my business needs them, often the local officials or powerful men.”

Cultural ImplicationCultural Implication

• New trans-border working class: “Although I have a Mainland wife now, I still don’t like the Mainlanders. If I have son or daughter in the future, I will have them educated in Hong Kong and apply for them to leave Mainland China. Dongguan is not a nice place, nice people won’t come here.” (a truck driver)

• This trans-border settlement never leads to the “assimilation” into Mainland society. He is still reluctant to blend into this society.


• In his eyes, Mainland society is full of social disorders such as corruption, crime, traffic chaos, bad and slow work pace, cheating and so on.

• About the identity issue, he insists on claiming himself as a “complete” Hong Konger and resists the idea of sharing any cultural traits with the Mainlanders.


• Another notable trend in this globalizing process is “trans-border housing”, triggered by the relocation of capital and labour.

• Since the price of properties was nearly 10 times lower than that in HK, the low-priced flats in South China attracted working class people who could not afford property in HK.


VSVS

• The sales continue to increase in 2000 despite there being a general problem of oversupply.

• The loan for buying the properties in China in May 2000 was $107,000,000 and increased to $206,000,000 in June.

• The first preference of HK people is in Shenzhen; the second and third choices are Zhongshan and Dongguan because of their convenience for travel.


• To assist the transborder flows, the SAR Government prolonged the opening hours of immigration services across the Shenzhen border in Dec 2001, and also prolonged a 24-hour cross border opening.


• The trans-border managerial class and working people are the liminal subjects living out the tensions of this multi-scalar trans-border space.

• The term “trans-border persons” vividly depicts them as subjects of flow.

• Successful or not, their “cross-border work experience” is the new work pattern produced for meeting the scalar mixes of global production.

Conclusion:Conclusion:

• The border, as a “physical and visible wall”, is still a crucial dividing line for cultural identification between HK people and the Mainland Chinese.

• The border is only open unconditionally to Hong Kong citizens, not vice versa.

• Cultural segregation is created and embedded in the daily experiences of the trans-border managerial and working classes.

• Conflictual and tension-ridden nature of this “trans-border space” in the making.

Conclusion:Conclusion:

Trans-border Flow: Between Hong Kong and Mainland China (Part I)

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