V. DONGGUAN'S COMPARATIVE ADVANTAGES FOR FURTHER DEVELOPMENT

At present, the economic globalization process is deepening, and the world-wide technology innovation is revitalizing. As China endeavors to fulfill its commitment of WTO, Dongguan meets more unprecedented challenges and opportunities. In China, there have been competitions between regions. Much attention has been drawn to the competition between Pearl River Delta and Yangzi River Delta. Dongguan should make full use of comparative advantages and speed up dvelopment, which is significant for Dongguan to first basically fulfill odernization in China.

Globally speaking, Dongguan has the advantages of inexpensive land and labor, which are attractive to international manufacturing industry. The international processing and manufacturing center moved from the United States to Japan, then to the "Four Dragons of Aisa", then to the east coast of China and South-east Asia. This transfer attribute to the transfer of comparative advantages. Because Dongguan's workforce is mainly from hinterland, the surplus of labor supply will stand and there will not be a big growth in me cost of labor. Although the cost of land may increase quite much, the rise is still small compared with that of developed industrial countries. Thus Dongguan will still have the advantage of inexpensive land and labor within 20 years. We will keep the export-oriented strategy, and try every effort to introduce overseas-invested manufacturing industry.

From the point of view of whole China, Dongguan has outstanding advantages compared with Yangzi River Delta regions:

1. FAVORABLE LOCATION AND CONVENIENT TRANSPORTATION 

Dongguan is located on the east bank of the Pearl River estuary, in the proximity to Hong Kong and Macao. A convenient transportation network of roads and railways, waterway and air lines, and efficient custom service, facilitate the easy transaction of people, commodities and capital between Dongguan and Hong Kong. Hong Kong's return to the motherland and me further opening up of the mainland of China clear all the blocks in me way of Dongguan-Hong Kong exchanges, social and economic connection between the two places are more and more frequent. Hong Kong will be continuously consolidated and strengthened as the most important financial center, commercial center, information center, transportation and shipping center and the logistics center in South-east Asia, me radial and driving effect of Hongkong to¡¡Dongguan will also be increasingly strengthened, which is absent in the Yangzi River Delta and other regions in China.

2. INTEGRATED SUPPORTIVE INDUSTRIES

With a complete industrial production chain, Dongguan is capable to produce 95% of all computer parts. Industries in a form of multi-support create the reduction of corporative costs, and timely and easy access to all sorts of information in that industry Therefore production and operation can be quickly adjusted. Dongguan then becomes an ideal place for processing and manufacturing.

3. ADVANCED SYSTEM

Having taken an early step of reform and opening up, Dongguan has a more integrated socialist market-oriented economic system. Dongguan has done a good job of abiding by the international system and the international rules. Making good use of this advantage, Dongguan will continue to attract foreign investments to further develop its export-oriented economy

4 CLUSTERING OF MANUFACTURING FACTORIES.

Dongguan is located between Guangzhou and Shenzhen. Dongguan is especially highlighted with its manufacturing industry in comparison to the two megacities. For Dongguan, to further develop its manufacturing will be strongly complementary and make full use of its advantage, but also be benefited from the radial effects of these two cities by combining with their high-tech industry and advanced service industry, so as to speed up our modernization process. As one of the biggest manufacturing base of IT products in the world, Dongguan has become a logo with immense invisible assets, making it have more business opportunities One point for sure is that, Dongguan will continue to have comparative advantages in manufacturing industry domestically and internationally.

(to be continue)

Editor: James