63
7.1.3
Regarding
extent
HK
of
is likely to
industries, the Chinese authorities will
continue to develop processing trade, compensation trade
end joint venture arrangements, as 2 means to introduce
technology and management skills. The
businessmen's involvement in these areas
increase further. The lower labour and land costs in
China have attracted the setting up of labour-intensive
and/or land-intensive processes, which are costly in
Hong Kong. Such processing arrangements were believed to have grown rapidly ever the past year and helped to
increase the flexibility of HK's manufacturing sector in
coping with the substantial increase in overseAS
orders. The expansior of processing arrangements has so
far
mutually beneficial, providing many job
opportunities in China particularly Guangdong and
been
Shenzhen.
7.1.4
Inadequate power supply continues to be a problem for
Guangdong. The expansion in industrial and commercial
activities, together with increased household affluence,
and the resultant strong demand on the transport system,
have placed heavy pressure on the power supply. Although there are firm plans to increase significantly
the generation capacity and the situation is expected to
improve somewhat, power supply will probably remain a
corstraint to development for some time.
7.1.5 Ir. some areas power supply is still provided on a
rotational basis, and thus limits the operating hours of
factories even though there cre sufficier.t orders.
Offices and hotels (some with their own generators) are
also heavy users of electricity, With the substantial
increase in household incomes in recent years, there is
also growing espiration among households for higher
living standards, including ecquiring more household
appliances. A continued strong growth in demand for
electricity is expected.