▁urban ▁landscape ▁in ▁the ▁special ▁economic ▁zones ▁symbol ize ▁the ▁achiev ements ▁of ▁China ' s ▁economic ▁policies ▁since ▁the ▁late ▁ 1 9 7 0 s , ▁the ▁negative ▁effects ▁that ▁the ▁reform ▁brought ▁to ▁Chinese ▁society ▁could ▁also ▁be ▁found ▁in ▁the ▁special ▁economic ▁zones .. ▁ ▁S ources ▁▁ ▁The ▁largest ▁source ▁of ▁foreign ▁direct ▁invest ment ▁in ▁China ▁is ▁what ▁econom ist ▁Barry ▁N aught on ▁calls ▁“ the ▁China ▁circle ”, ▁Hong ▁Kong , ▁Taiwan , ▁and ▁Mac au . ▁Among ▁the ▁three ▁locations , ▁Hong ▁Kong ▁has ▁remained ▁the ▁largest ▁source ▁since ▁the ▁mid - 1 9 8 0 s . ▁In vest ment ▁from ▁developed ▁countries ▁like ▁Japan ▁and ▁the ▁United ▁States ▁constit uted ▁the ▁second ▁group ▁for ▁the ▁period ▁concerned . ▁N aught on ▁notes ▁that ▁as ▁invest ment ▁from ▁Korea ▁and ▁Japan ▁focused ▁on ▁n ort he astern ▁part ▁of ▁China , ▁it ▁may ▁have ▁had ▁a ▁stim ulating ▁effect ▁on ▁the ▁otherwise ▁decl ining ▁economy ▁in ▁the ▁region . ▁In ▁the ▁ 1 9 6 0 s ▁and ▁ 1 9 7 0 s , ▁Hong ▁Kong ▁and ▁Taiwan ▁had ▁gone ▁through ▁a ▁period ▁of ▁sust ained ▁growth ▁based ▁on ▁manufact uring . ▁As ▁the ▁local ▁production ▁costs ▁began ▁to ▁rise ▁in ▁the ▁ 1 9 8 0 s , ▁manufact ures ▁started ▁to ▁re loc ate ▁their ▁production ▁to ▁the ▁recently ▁available ▁special ▁economic ▁zones ▁in ▁China . ▁N aught on ▁highlight s ▁the ▁low ▁transaction ▁costs ▁within ▁the ▁China ▁circle ▁as