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This paper employs an embeddedness approach to study the restructuring and spatial change of China's auto industry since the 1980s. The two major dynamics behind these processes are discussed in detail: (1) institutional reform, which has resulted in a mixed regulation mechanism composed of both market competition and legacies of the past command economy, and which has also allowed more freedom in the decisionmaking of indigenous auto firms, and (2) globalization of production in terms of a huge inflow of foreign direct investment (FDI), mainly in the form of joint ventures. As a result, a new geography of the industry has emerged, with clear features of decentralization of production and a shift of production toward the coastal region. The paper concludes that the gradual institutional reform in China has led to a 'path-dependent' development of its auto industry and that auto-producing FDI has been deeply embedded in the Chinese institutional environment. This involvement in China's auto production can be aptly described as 'embedded globalization.' Key Words: China, auto industry, industrial restructuring, FDI, embedded globalization.

A study was conducted to analyze Hong Kong's post-World War II industrialization. The study also examined the country's policies and transition of its industries into Guangdong Province, China. Results indicated that China has always supported a critical factor in the economic development of Hong Kong. Findings also suggested that the future of Hong Kong's industrial economy will be correlated with its presence in the Pearl River Delta.

Focuses on the `small government, big market' approach of Hong Kong to its economic policies and business. Factors which contributed to the success of the region; Features of its market and businesses; Debate on the prospects for Hong Kong's territorially extended industries.