A few days ago
lily law

Why do HK businessmen set up factories in China?

Thanks!

Top 4 Answers
A few days ago
Mai

Favorite Answer

Two reasons, low cost of materials and cheap labor, also labor that is not neccessarily encouraged to seek benefits or shorter working hours, etc. Also, since China technically now owns Hong Kong (it was handed back by the british several years ago) it is not encouraged that Hong Kong companies help the economys of other countries by putting their factories in say malaysia, when they could be providing much needed jobs for people in China.
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A few days ago
wheeliebin
Basically there are two reasons for this, 1. they receive incentives from the Chinese Government (Hong Kong is now part of mainland China, and no longer leased to Britain) such as tax concessions and favourable sites at cheaper rates. And no.2 Their labour costs are reduced substantially as workers wages are far lower in China than say Australia or other westernised countries such as N. Z. This way they can produce goods at much cheaper prices, thus competing in the market place in a stronger position than their rivals. Have a great day.
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A few days ago
dxb falcon
HK businessmen set up factories in China because in china labour are cheap employers are of less value. so their expense decreases and profit increases. thats y now a days majority of electronic goods are made in china .

>>>WELL I THINK U GOT THE ANSWER <<<

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A few days ago
donald
low cost..
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