17
availability of building materials and bank credit. Given Hong Kong's expertise in housing construction, this is an area that could provide new business opportunities for Hong Kong property developers and construction companies.
41.
With regard to foreign trade and investments, the Seventh Five-Year Plan emphasizes that the advantages possessed by the Special Economic Zones, coastal cities
and coastal river delta areas have to be further
exploited. This should also generate additional business
for Hong Kong.
42.
As China intends to expand its exports by
product upgrading and more aggressive promotion in the
international market, Hong Kong manufacturers and exporters, who are experienced in product development for light manufactures like textiles, garments and electronic products and in international marketing, should be able to help. In addition, Hong Kong's importance as an entrepôt for China's exports to other countries should be further
enhanced. In respect of product upgrading, Hong Kong companies can help to facilitate China's imports of technologies and equipment. Hong Kong is also well placed to help China's manpower training and managerial skill development, especially as these relate to light
manufacturing industries. To the extent, however, that China succeeds in producing goods presently produced in Hong Kong, some manufacturing industries in Hong Kong will come under pressure with possibly painful adjustments required. Some Hong Kong goods will face increasing competition from Chinese goods in both the China market
and other overseas markets. Some manufacturers may find it worthwhile to move their operations wholly or partly
into China. A further shift in employment from
G F 12%
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CONFIDENTIAL & 3