G.F. 326
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61.
(d) China as a consumer of goods and
services provided by Hong Kong
Since 1984, China has become Hong Kong's second
largest domestic export market. However, in late 1985 and early 1986, domestic exports to China suffered a set-back though in recent months, a significant recovery has
occurred. Nevertheless, the prospects for Hong Kong's
domestic exports to China remain uncertain. In the next
few years, it is likely that tight controls will continue to be imposed on China's imports, particularly imports of consumer goods, and China will continue to be cautious in
the use of its hard-earned foreign exchange. As a result,
Hong Kong's exports of consumer goods to China are likely
to continue to be adversely affected. 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's products ahead of those
produced in China.
62.
The pace of infrastructural development in China
has not been fast enough to satisfy the needs arising from
the growth in China's international trade. It is
therefore likely that, in the next ten to fifteen years, China will make increasing use of Hong Kong's port and shipping facilities. Thus China will continue to feature prominently in Hong Kong's entrepôt trade, both as a market and as a source of supply. The double-tracking and eventual electrification of the railway all the way from Shenzhen to Beijing and the construction of the
superhighway linking Guangzhou with Shenzhen and Zhuhai
are expected to intensify substantially the use of land
transport and hence enhance further Hong Kong's role as an
entrepôt for China (paragraphs 30 to 36).
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