ABSTRACT
As mentioned in the previous chapters, even before the economic reforms, Hong Kong and Macau were regarded as the windows of the Mainland China as they transshipped to the country goods that it did not produce or faced shortages in, especially during the period of trade embargo and economic isolation in the late1950s and 1960s.After the economic reforms began, theMainland attempted to resume its external contacts. Preferential policies were offered on a trial-and-error basis to attract investments from the special administrative regions (SARs). After obtaining some success in absorbing capital from Hong Kong and Macau, the open-door policy was further extended to other foreign economies. The SARs then became the stepping stones for foreign investors who wanted to expand their businesses in Hong Kong and Macau to Mainland China.
