▁the ▁key ▁factor ▁that ▁facil itated ▁the ▁re location ▁of ▁production ▁to ▁China ▁and ▁hence ▁the ▁in flow ▁of ▁capital . ▁As ▁the ▁Hong ▁Kong ▁and ▁Taiwan ▁own ers ▁brought ▁capital , ▁management ▁methods , ▁and ▁technology ▁to ▁industrial ize ▁southern ▁China , ▁their ▁fact ories ▁also ▁absor bed ▁the ▁labor ▁force ▁from ▁rural ▁coun tr ys ide , ▁leading ▁the ▁labor ▁force ▁in ▁Gu ang d ong ▁and ▁F uj ian ▁to ▁nearly ▁double ▁from ▁ 1 9 8 5 ▁to ▁ 2 0 0 1 . ▁ ▁Hong ▁Kong ' s ▁role ▁also ▁helped ▁American ▁business ▁interests ▁to ▁enter ▁the ▁Chinese ▁soil . ▁Histor ian ▁Peter ▁E . ▁Hamilton ▁arg ues ▁that ▁the ▁role ▁of ▁Hong ▁Kong ▁was ▁more ▁than ▁facil it ating ▁invest ment ▁since ▁ 1 9 7 8 , ▁but ▁even ▁before ▁that , ▁the ▁local ▁and ▁American ▁business ▁interests ▁in ▁Hong ▁Kong ▁already ▁attempted ▁to ▁eng age ▁with ▁China ▁econom ically ▁through ▁trade ▁vent ures ▁and ▁the ▁distribution ▁of ▁international ▁publications . ▁Their ▁efforts ▁p aved ▁the ▁way ▁for ▁further ▁challeng ing ▁invest ment ▁into ▁China ▁and ▁convin cing ▁Chinese ▁officials ▁to ▁adopt ▁export - orient ed ▁policies ▁in ▁the ▁ 1 9 8 0 s . ▁ ▁Con sequ ences ▁ ▁In come ▁I ne quality ▁▁ ▁While ▁inequality ▁had ▁been ▁a ▁feature ▁of ▁the ▁Ma o ▁period ▁despite ▁the ▁Commun ist ▁eg al itar ian ▁r het or ic , ▁the ▁coming ▁of ▁foreign ▁capital ▁ex ac erb ated ▁and ▁alter ed ▁the ▁form ▁of