Abstract: Re-industrialization in developed countries has resulted in massive investment backflow, which will have significant impact on Guangdong, a highly export-oriented province. From the perspective of labor cost comparison, this paper analyzes the reasons of investment backflow and its impact on Guangdong economy from micro-, meso- and macro-levels. It also raises the countermeasures from the point of shifting governmental functions, optimizing industrial structure, building a global industrial value chain and accelerating fostering of domestic market etc.

Key words: investment backflow, reindustrialization, Guangdong economy