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WTO Accession, the Changing Competitiveness of Foreign-financed Firms and Regional Development in Guangdong of Southern China

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  • Godfrey Yeung

Abstract

This paper investigates the changing competitiveness of foreign-financed manufacturing firms and its implications for regional development in Guangdong province of southern China in the run-up to World Trade Organization (WTO) accession. It is argued that transnational corporations (TNCs) and some competitive, large-scale, locally-funded firms in Guangdong will triumph after WTO accession. The crowding-out process of small and medium sized enterprises (SMEs) in Guangdong will be accelerated in the near future, as they are competing directly with TNCs, and as their competitive advantages are diminishing, due to bureaucratic red tape and the rigorous enforcement of new government policies. Due to close business linkages with local privately-funded firms, the competitiveness and vitality of foreign-financed enterprises will have profound long term effects on the economic development of Guangdong, before and after WTO accession. Cet article cherche a etudier l'evolution de la competitivite des entreprises industrielles a capital etranger et les consequences pour le developpement regional en Guangdong dans le sud de la Chine, a la derniere ligne droite avant l'adhesion a l'OMC. On affirme que des societes transnationales et certaines grandes entreprises a fonds de proximite competitives en Guangdong reussiront au lendemain de l'adhesion a l'OMC. En Guangdong, le risque d'eviction des PME va s'accelerer dans un proche avenir, parce qu'elles sont en competition directe avec les societes transnationales et car leurs avantages competitives diminuent a cause de la bureaucratie et de l'application rigoureuse des nouvelles politiques gouvernementales. En raison des liens etroits commerciaux avec des entreprises a fonds de proximite, la competitivite et la vitalite des entreprises a capital etranger auront des consequences profondes a long terme sur le developpement economique de Guangdong, avant et apres l'adhesion a l'OMC. Dieser Aufsatz untersucht die sich wandelnde Wettbewerbsfahigkeit vom Ausland finanzierter, herstellender Firmen und ihre Implikationen fur die regionale Entwicklung in der sudchinesischen Provinz Guangdong angesichts des vereinbarten Beitritts Chinas zur WTO. Es wird der Standpunkt vertreten, dass sich TNC und einige wettbewerbsfahige, ortlich finanzierte Grossfirmen der herstellenden Industrie in Guangdong nach dem beitritt zur WTO durchsetzen, doch der Verdrangungsprozess der kleinen und mittleren Betriebe in Guangdong bald beschleunigt werden wird, da sie in direktem Wettbewerb mit TNCs stehen, und ihre Wettbewerbsvorteile sich sich infolge von Behordenvorschriften und rigoroser Einhaltung neuer Regierungspolitik verringern. Dank enger Geschaftsverbindungen mit ortsansassigen, privat finanzierten Firmen wird die Wettbewerbsfahigkeit und Bestandigkeit vom Ausland finanzierter Unternehmen auf lange Sicht tiefgehende Auswirkungen auf die wirtschaftliche Entwicklung Guangdongs vor und nach dem Beitritt zur WTO haben.

Suggested Citation

  • Godfrey Yeung, 2002. "WTO Accession, the Changing Competitiveness of Foreign-financed Firms and Regional Development in Guangdong of Southern China," Regional Studies, Taylor & Francis Journals, vol. 36(6), pages 627-642.
    • Handle: RePEc:taf:regstd:v:36:y:2002:i:6:p:627-642
    DOI: 10.1080/00343400220146786
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    References listed on IDEAS

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    1. Blumental, David M, 1999. "Applying GATT to Marketizing Economies: The Dilemma of WTO Accession and Reform of China's State-Owned Enterprises (SOES)," Journal of International Economic Law, Oxford University Press, vol. 2(1), pages 113-153, March.
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    5. Zhi Wang, 1999. "The Impact of China’s WTO Entry on the World Labour‐intensive Export Market: A Recursive Dynamic CGE Analysis," The World Economy, Wiley Blackwell, vol. 22(3), pages 379-405, May.
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    Cited by:

    1. Naubahar Sharif & Can Huang, 2009. "Cross-border Investment and Economic Integration: The Case of Guangdong Province and Hong Kong SAR," Chapters, in: Wilfred Dolfsma & Geert Duysters & Ionara Costa (ed.), Multinationals and Emerging Economies, chapter 6, Edward Elgar Publishing.
    2. Yeung, Godfrey & Mok, Vincent, 2005. "What are the impacts of implementing ISOs on the competitiveness of manufacturing industry in China?," Journal of World Business, Elsevier, vol. 40(2), pages 139-157, May.
    3. Huang, Can & Sharif, Naubahar, 2009. "Manufacturing dynamics and spillovers: The case of Guangdong Province and Hong Kong, Macau, and Taiwan (HKMT)," Research Policy, Elsevier, vol. 38(5), pages 813-828, June.
    4. Susanne Meyer & Daniel Schiller & Javier Revilla Diez, 2009. "The Janus‐Faced Economy: Hong Kong Firms As Intermediaries Between Global Customers And Local Producers In The Electronics Industry," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 100(2), pages 224-235, April.

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