Thirty Years of Turbulence - Chinese Enterprises

作者：admin  点击次数：53  发布时间：2025-05-28

The so-called "three processing and one compensation" refers to the factory's product styles, raw materials, and equipment being transported from overseas, and the produced products being exported through compensation trade, with mainland labor and government charging a certain processing fee. The first "three processing and one compensation" factory in China was the Dajin Garment Factory, founded in Shunde County in August 1978. In the first year, Hong Kong merchants paid a processing fee of HKD 800000. This form has spread rapidly in the the Pearl River Delta. It relied on Hong Kong merchants to solve the problems of raw materials, technology, and market channels, becoming the main model for the rise of southern industry. ①

Interestingly, most of the Hong Kong businessmen who founded these factories were former illegal immigrants. According to Fu Gaoyi's record, "Dongguan officials estimated that about 50% of the contracts signed with Hong Kong were signed with the original residents of Dongguan. It is clear that the provincial government of Guangzhou and its subordinate county governments have subtle differences in the treatment of stowaways." This year, newspapers in Guangdong Province were full of news about combating stowaways. In December, the provincial government also passed a "Regulations on the Treatment of stowaways and Escapes", which severely punished those who failed to stowaway. At the same time, in some counties and cities in the the Pearl River Delta, local officials began to welcome the early stowaways to return to their hometown to run factories. Especially in counties such as Dongguan and Zhongshan, a large number of "three come, one supplement" projects were carried out by former Hong Kong refugees who returned to handle them. A Dongguan official said to Fu Gaoyi, who came for an interview, "Ten years ago, my main responsibility was to prevent illegal immigration and detain illegal immigrants. In the past, we treated them as bad people, but now we believe they are adventurous and talented, different from the honest farmers who stayed behind