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3. Hong Kong/China Cooperation

In recent years Hong Kong's economic relatons with China

generally, and Guangdong province in particular, have undergone rapid growth and development. Since 1985 China has been Hong Kong's largest trading partner. It is now the second largest market for

Hong Kong's re-exports and the largest source for Hong Kong's imports. Hong Kong has recently become China's largest trading

partner, accounting for more than a quarter of China's external

trade. These are highly significant developments which are

laying an important foundation of cooperation and trust for the

post-1997 period.

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