ge of cheap land and labor force in the 1980's. (Yahuda, p.24) While Shanghai has attracted foreign investments into China, Hong Kong has accounted for between 60 and 80 percent of the total foreign direct investment in China. In 1993, there were 50,868 investment projects of Hong Kong and Macao businesses in China with a value of $76.756 billion. The majority of investments are concentrated in the Guandong province. Through these direct investments, came along the necessity to have sophiscated bank services, legal, and operational structures. Hong Kong provides a great deal of these services to China's modernization. In addition, these service centers provided a learning center for expertise and invaluable experience in dealing with many facets of international economy. Examples of these institutions are China International Trust and Investment Corporation, China Resources and the Bank of China. (Yahuda, p.25)Hong Kong has been the leading center of Asia and the third in the world after London and New York. I foresee that it will remain its status in the world due to its legal infrastructure, history and culture. When the British colonized Hong Kong, it not only brought about their law system which is rule of law, but also their western ideas, education and culture. The system of rule of law taught a majority of the local people to respect and obey the law. The political structure of Hong Kong government and the civil service are considered to be the most stable, non-corrupt and efficient in Asia. Furthermore, the western emphases are to expand entrepreneurship, independence and to promote free trade. To this day, these ideas are instilled in the people of Hong Kong. This, of course, made and will continue to make Hong Kong an attractive place for international transactions to take place. In conclusion, both Shanghai and Hong Kong have made tremendous contributions to the economic modernization of China. Shanghai h...
