ABSTRACT

The chapter is divided into six sections. The first section discusses the processes of Hong Kong manufacturing firms’ shift into Guangdong, which became the basic model of cross-border production. The second section examines the role of local governments’ ‘para-diplomatic’ activity, focusing on the provincial level (Guangdong) and the subprovincial level (Dongguan). The third section examines the operation and structure of cross-border networks of governance, including the role of guanxi and intermediary organizations between the Dongguan government and foreign firms. The fourth section analyses the growth of the Chinese electronics industry and its impact on East Asian industrial structure. The fifth section considers whether this microregionalism has promoted China’s national economic integration. Finally, the conclusion summarizes the chapter’s main arguments.