Trade I
Industry Vand Customs Department
(195
DAILY REVIEW OF BUSINESS TOPICS IN THE CHINESE LANGUAGE PRESS
Translated by the Trade Industry and Customs Department, Ocean Centre, Kowloon, Hong Kong.
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Divided views on joint deals with China
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The Hong Kong Economic Journal, in its front page lead to
front pag
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(October 2) carried interviews with several Hong Kong manufacturers on
new schemes of joint ventures in China. People in general agreed that
these ventures would have a favourable effect on Hong Kong's political
situation, the paper said. Some interviewees, however, thought that in
the long term, the moves would pose a threat to Hong Kong products, thus
producing a damaging effect on Hong Kong's economic development.
The Director of the Hong Kong General Chamber of Commerce,
Mr. Jimmy McGregor noted that China would not exceed Hong Kong in terms
of efficiency and productivity because of the differences in their
commercial set up. Therefore Hong Kong products would not face any keen
competition.
A prominent textile manufacturer expressed concern that Hong
Kong would suffer if the demands in overseas markets slackened and
called for speedy development of diversification.
An industrialist told the paper that the new ventures would
not affect Hong Kong because China was not a GATT member and both the
U.S. and EEC had not allocated any quotas to her.
In an accompanying editorial, the paper discussed the advantages
and disadvantages of investing in China and Taiwan. It urged local
manufacturers who invested in China to ask the Chinese Government to
allow their products be shipped out directly from China or through Hong
Kong as Chinese re-exports. This would make China a more favourable
location than Taiwan for investment.
cont'd
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