ABSTRACT
This chapter continues the analysis of case study 2: the international dimension of microregionalism between Guangdong, Taiwan and Japan. It seeks to identify the main characteristics of China’s distinct pattern of integration with the world economy. Of particular importance in this respect is the microregional integration1 manifested by the uneven geographic spread of international economic relations in the province of Guangdong. This illustrates the way in which China’s gradual transition from relative isolationism has exhibited asymmetrical levels of development between different subnational spaces. We first focus on China’s inward FDI and the importance of PTAs in the expansion of foreign trade. We then turn to the phenomenon of industrial agglomeration and the associated increase of cross-border capital movements in Guangdong. The case of industrial agglomeration in Guangdong is particulary important, as China’s distinct integration processes, emphasizing processing and assembly production on the basis of export-oriented strategies, have played a crucial role in the formation of new cross-border international economic relations. We then consider the reasons why the Pearl River Delta (within Guangdong province) has been the focus of inward investment, and consider the particular experience of Guangdong’s two major cities, Shenzhen and Dongguan. Finally, in the conclusion, we summarize the key factors that have contributed to the rapid development of the processes of China’s microregional integration.
