DAILY REVIEW OF BUSINESS TOPICS AS REPORTED IN THE CHINESE PRESS-
Trade Industry & Customs Department Translated by the Commerce and Industry, Department
RECEIVED BY NO. 51 2 4 JUL 1978
CHINA TO JOIN HANDS WITH X TO DEVELOP THE ELECTRONIC
DECK OFFICIN
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Hong Kong Economic Journal (12/7)
The Chinese authorities have sought the co-operation of HK merchants
to develop the electronic industry in China. They suggested to set up
electronic factories in Canton or to open processing factories in Sham Chun
near Lo Wu or at the border area near Macao. According to local manufacturers,
a number of difficulties exist in the setting up of electronic factories in
Canton but founding of processing factories stands a greater chance of
success. As Hong Kong is pinched by labour shortage, some of the production.
facilities in excess may be used in the processing factories to be opened
in China. But on account of political reasons, Hong Kong merchants who are
accustomed to free trade may find themselves unable to adapt to certain
conditions of industry investment in China.
1
The founding of processing factories in China is benefited by cheap
labour and low cost of plant premises, besides giving a lift to the development
of the parent company in Hong Hong. However, many complicated problems, such
as labour supply, payment of wages and plant management, would require a
thorough study before any plans to set up factories there can be materialised.
FOUNDING OF FACTORIES IN CHINA BY HK MERCHANTS PLACES HK IN THE DISADVANTAGE
Hong Kong Economic Journal (12/7)
China's more open and enlightened trade policy may weaken Hong Kong's
role as a middleman. China's direct participation and involvement in HK's trade and industry produce only false optimism in the short term. In the long
term perspective, the profits of local merchants will have to be sliced off
for market growth is very much limited.
By virtue of a cheap labour force and ample land, China intends to
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