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implemented, so that Hong Kong will continue to be an autonomous economy with a free enterprise system, free
trade, and an international character. Given these
pre-conditions, there should be ample scope for further
development in Hong Kong-China economic relations in the
future.
6.
By the 1990s, in addition to its traditional
role as an important supplier of water and foodstuffs, China is likely to become a significant supplier of electricity, and perhaps also gas, to Hong Kong.
7.
Among the various sources of outside investment in Hong Kong, China is likely to assume a more prominent position in the next ten to fifteen years. The Hong Kong economy will also benefit substantially from investment
from China, although there is a concern that the level of
such investment could be affected by the political climate
and economic changes in China.
8.
In the longer term, China's emphasis on import
substitution and export promotion is likely to affect the
export prospects of many Hong Kong products, unless the
process of product upgrading and diversification by local
manufacturers can keep the quality of Hong Kong products ahead of those produced in China. On the other hand, Hong Kong's role as an entrepôt will strengthen further as China makes increasing use of Hong Kong's port and shipping facilities to deliver its exports. Also, Hong Kong will continue to cater for China's commercial needs with a wide range of financial, professional, technical and advisory services.
9.
In the longer term, Hong Kong's investment in
China is likely to increase further by substantial
amounts. Nevertheless, the level of investment in Hong
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