De-industrialization was Hong Kong’s Biggest Mistake

[Your Old Comrade]

A while ago, I did a video about Hong Kong's loss of its electronics manufacturing industry. Decent video. Did decently well. But the single loudest thing that people screamed at me in the comments section was:

"Well the manufacturing went over to Shenzhen. And now Hong Kong can focus on providing services, which it's way better at! Why are you complaining!?"

But I am making it clear here that de-manufacturing the Hong Kong economy was a mistake. Perhaps, even its biggest. In this video, we will look at what happens when an entire economy loses its ability to make things that people want.

Singapore. South Korea. Taiwan. Hong Kong. Together these four countries, the Four Tigers, led the way in making prosperity for its residents. Each of the four tigers had deep roots in electronic assembly and industry. That means assembling components into finished goods for export.

For a first few decades, the tigers got to a certain level of prosperity on the back of this industry. As the 70s came around though, it became clear that this industry could not last. Manufacturers were decamping for cheaper places abroad.

South Korea, Taiwan, and Singapore managed to "upscale" their efforts and ascend the value chain. But Hong Kong managed neither and they got left behind. This has had consequences that last to present day. In this video, I want to talk about the fall of Hong Kong's electronics industry.

[Incal]

Well, "returning" to communist China was definitely a decisive factor too.