Local State Responses to Crisis-Induced Shrinkage in the World’s Factory Dongguan, China: Regional Resilience Perspective

Abstract

Since the beginning of the 21st century, the phenomenon of urban shrinkage, accompanied by symptoms of a structural crisis in urban areas, has spread on a global scale. The recent 2008 global economic crisis has been proven to have accelerated urban shrinkage in many previously prosperous cities. The city of Dongguan, which is known as the World’s Factory, suffered a manufacturing downturn and labor outflow induced by the crisis; however, it exhibited high resilience as it displayed a quick recovery in the postcrisis period. The notion of regional resilience and its potential applications can explain why urban and regional economies resist and adjust to internal and external challenges in a long-term development process. Based on the adaptive cycle analytical framework, this study focused on specific policies and plans initiated by the Dongguan municipality when it faced the financial crisis and its implementation effects. It contributes to current knowledge by elaborating on how the local state reacted to and coped with crisis-induced shrinkage and by providing a valuable case for exploring the dynamic evolution of shrinkage and resurgence in the context of globalization. Three main resilient strategies are identified: (1) moving toward a more diversified industrial structure; (2) highlighting endogenous momentums in economic transition; and (3) advancing the equalization of social welfare for local residences. Moreover, it provides implications for the urban planning community on how to respond to uncertainty and vulnerability from the perspective of regional resilience.