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In about 40 years, Hong Kong has, against all odds, developed from a relatively obscure entrepot into a thriving industrial and financial economy of world renown. While such a complete metamorphosis constitutes an intriguing story, what of its future? Challenges of creeping, if not steadily proliferating, mercantilist forces and changing international division of labour aside, the capitalist city-economy of Hong Kong is now faced with the problem of changing governance. In all conscience, the future of Hong Kong, especially its post-1997 destiny as a free-market economy, as many have argued, hangs in the balance. Focusing on relationships concerning trade in manufactures, industrial restructuring and economic development against a background of data, this book offers an examination of the evolution and characteristics of Hong Kong's postwar economy in a historical and comparative perspective, its symbiotic connection with South China in the light of China's open-door policy since late 1970s, as well as a thoughtful assessment of its current turning point. Despite its emphasis on the economy of Hong Kong, this book has a broader objective - to contribute to the debate on alternative paths to growth and industrial restructuring in the context of a rational "dirigisme", a debate particularly relevant not only to academics in the realm of development economics but also to government economists and other officials concerned with looking for growth lessons and development strategies.