The trend of International industries tranfer from labor intensive (ex. textile industry) to capital intensive industry (ex. iron&steel industry),and then transfer from capital intensive to technology intensive industry(ex. consumer electronic and IT industry). Mainly transferred industries between internation are labor intensive, or declining industries, or marginal industries which have lost the advantage in competition. Government of Pearl River Delta had initiated international industrial transfer with utilization the advantage of policy and geographic, as well as, made a progress in industry development. It made economic developing model of the processing trade.
Since the investment in the eastern coastal area has been available earlier and most Taiwanese companies invested in foreign trade. Taiwanese companies are major to invest in Jiangsu province, Canton province, and Shanghai city. They have already played an important role in economic development of Mainland China. With the benefit of technology and capital, they can develope quickly through the gathering of upstream, middlestream, and downstream industries. As economic in eastern region of Mainland Chian has been progressed continueously, the capacity of foreign investment and industrial transfer are increasing. And also attract technology intensive industries. Now Yangtze River Delta and Pearl River Delta are major largest region to attract technology intensive industries.
With the economic progress in middle and western area of Mainland China, a lot of labors go back to their home town to work. In eastern coastal area, recruiment become difficult since lack of labor population. Consider the different regional economic development. Higher economic development, higher manpower cost. Industry transfer from economic developed region to sub developed region can achieve economic growth for economies of scale. Specially, labor intensive industries tend to transfer to sub developed region due to payroll cost consideration. For example, industries in Pearl River Delta will transfer to northern Canton as well as eastern and western Canton mostly. Some of them will trasfer to the inner area of China. This trend also provides the oppotunity of industrial upgrading.