CRS-21
IV. U.S. INTERESTS AND OPTIONS
In recent years the United States has remained Hong Kong's largest
foreign investor and trading partner. At the end of 1981, according to
U.S. Department of Commerce statistics, U.S. investment in Hong Kong reached
$2.7 billion. The United States is the major foreign direct investor in
Hong Kong's manufacturing sector with 47 percent of total investment, fol-
lowed by Japan with 30 percent. Out of Hong Kong's total two-way trade of
11/
of this was with the United States.
$44.5 billion in 1982, $8.6 billion
The United States absorbed 38 percent of Hong Kong's total domestic exports
last year.
As a supplier, the United States ranked third, after China and
Japan; the American share of Hong Kong's import market was 11 percent last
U.S. businesses in Asia have long used Hong Kong as a base of opera-
tions and a major transportation, communications and financial support center.
Hong Kong has loomed larger in U.S. considerations as American firms have
used the colony as a base in exploring the China market.
year.
Americans interested in Beijing's future policy toward Taiwan have
also been following closely China's approach to Hong Kong for indications
as to how Beijing intends to deal with Taiwan. Thus far, Chinese spokesmen
have explicitly linked Beijing's approach on the two issues, though some
have added that while Beijing wants British administration to be replaced
by a "Chinese" one representing the "people" of Hong Kong, in the case of
Taiwan, the administration is already Chinese and, therefore, would not
12/
have to be replaced.
11/ This figure included $5.1 billion in Hong Kong domestic exports to the U.S.; $.95 billion in re-exports from Hong Kong to the U.S.; and $2.5 billion in Hong Kong imports from the U.S.
12/ See remarks of Chinese leaders Deng Xiaoping and Liao Chengzhi replayed in Foreign Broadcast Information Service. Daily Report. China. Nov. 23, 1982.