Hong Kong is the earliest of the Asian Newly Developed Economies to have embarked on export-oriented industrialization. Its success has also been portraited as the best example of a free-trade policy that leads to sustained development. The paper presents the factors leading to Hong Kong's post-Second World War industrialization, the characteristics of its industries as well as the related government policies. In the second half, the paper treats in detail how Hong Kong's industrial economy has been extended into neighbouring South China in a new cross-border system since the 1980s. The paper doubts the relevance of non-interventionist policies in the current situation of industrial growth based on cross-border co-operation and argues for more government input for sustaining Hong Kong's future industrial growth.
