G.F. 326
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15.
When the SEZS and cities in southern China
become more developed and externally oriented, the competitive threat they will pose to Hong Kong will be
greater. As a result, some local manufacturing industries
could come under pressure in the future, with possibly difficult adjustments required.
16.
As regards the possibility that the SEZS and
cities in southern China would divert investment from Hong
Kong, this is likely to be confined to manufacturing
processes that can no longer be carried out economically
in Hong Kong. The foreign exchange restrictions,
difficulties with the bureaucracy, poor quality of labour and inadequate supporting infrastructure in China are, however, significant deterrents to outside investors.
17.
(c) Electricity, gas and water supply
It is likely that the region covering Guangzhou, Shenzhen and the neighbouring counties and towns will continue to rely on Hong Kong for part of its electricity supply, at least until the commissioning of the Daya Bay nuclear power plant. The supply situation in this region will improve somewhat when the Sha Jiao power plant is in
full operation by the end of 1987, but the demand for
electricity will also increase as economic activities in
the region continue to grow. The electrification of the Guangzhou-Shenzhen Railway, the opening of several new hotels, and general development will all add to the demand for electricity.
18.
However, with the completion of the Daya Bay nuclear power plant, presently scheduled for 1994, Hong
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