The reforms introduced by Deng Xiaoping in the late 1970s and early '80s triggered a boom in the export-oriented manufacturing sector, which was concentrated in the coastal regions, according to HSBC. With their advantageous location, cheap labour and helpful government policies, these regions quickly developed into a global manufacturing hub. As some major urban centres such as Guangzhou and Shanghai matured, low-value-added, highly polluting industries were pushed out to nearby cities, accelerating the industrialisation of less developed areas in these provinces. The size of the agriculture industry quickly shrank, replaced by the expansion of the industrial and service sectors.
