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Why did light industry grow rapidly in Guangdong during the 1980s?

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Hong Kong: bridge — Guangdong Bridge between Hong Kong and Shenzhen, Guangdong province, on the Chinese mainland.

The rapid growth of light industry in Guangdong during the 1980s was primarily driven by the establishment of special economic zones (SEZs) within the province. In the early 1980s, three of China’s first four SEZs were created in Guangdong, specifically in the cities of Shenzhen, Zhuhai, and Shantou.12

These zones were designed to foster rapid economic development by allowing local governments to offer tax and business incentives to attract foreign investment and technology. Within these areas, enterprises were granted the autonomy to make their own production, investment, and marketing decisions, and foreign ownership was legalized. This policy environment encouraged the expansion of consumer-goods industries, leading to a dramatic increase in the production of items such as garments, shoes, and soft drinks. The success of these zones also benefited from a broader policy of decentralized economic management implemented by the government during the same period.213