In the 1960s and 70s, manufacturing grew in importance, and the label ‘Made in Hong Kong’ was seen around the world. An unlikely combination of events triggered this rapid growth. First, large numbers of people from China streamed into Hong Kong. A small number of wealthy immigrants (mainly Shanghainese) brought the capital and experience needed to set up new manufacturing businesses. The penniless majority (many from Guangdong province) became cheap labour in the factories. At the same time, China’s involvement in the Korean war put it under embargoes from both the US and United Nations, stifling Hong Kong’s trading role.

This manufacturing boom soon faded, starting in late 1978, when China opened its doors to foreign investment. Hong Kong’s manufacturers seized the chance to relocate their factories to Southern China, benefiting from lower cost land and labour. In 1991, manufacturing still accounted for 14.4% of Hong Kong’s GDP, but by 2004 its share was just 4.1%.