ON THE INTERNATIONAL ECONOMIC FRONT
China
* Premier Li Peng was quoted as saying that banks are an important means for the state to regulate the economy and says they should be encouraged not to issue loans that are out of line with state policy; the People's Bank of China must hold to national policy and not be influenced by localities and departments.
* Of the some 7,800 foreign enterprises in China, report- edly 6,600 are Hongkong firms, accounting for $US4.8 billion ($HK37.44 billion), or 65 percent of the total value of direct investment at the end of 1986. Conversely, China is also the largest direct investor in Hongkong with an es- timated total value of $US7 billion to $US8 billion (roughly, between $HK55 million and $HK63 million). It is estimated that about one million workers and man- agers in Guangdong Province work directly or indirectly for the manufacturing labour force of 900,000 in Hongkong itself.
Travel for business, tourism and family visits has grown tremendously, with over 14 million China-Hongkong border crossings last year, nearly 3 times + the population of all of Hongkong.
* In 1987 Sino-American trade increased 25 percent to $US10.4 billion ($HK81.12 billion). The PRC rose to be- come the 13th largest US trading partner. American imports from China increased 32 percent to $US6.9 billion ($HK51.82 billion). After Japan, the United States is the leading foreign market for Chinese products, taking more than 16 percent of the PRC's exports. In 1987 US exports to the PRC rose 13 percent to $US3.5 billion ($HK27.3 billion), or 8.7 percent of China's imports. By the end of 1987 there were 407 US-China joint ventures in China, totalling $US3.1 billion ($HK24.18 billion) in pledged investment, second only to Hongkong. * According to the State Commodity Inspection Bureau (CIB), to improve its import inspection system and ensure the quality of import commodities, China plans to implement an import commodity quality licence system for products relating to security, health, environmental and labour protection, and quarantine. According to the provisions of the Procedure for Imple- menting the Import Commodity Quality Licence System,
'soon' to be formulated, overseas firms and their agents should apply for import commodity 'security labels', certificates or registrations before they sign import trade contracts with China.
This is the first system of its kind to be implemented in China.
Indonesia
The results of Indonesia's response to the external pres- sures threatening its economy have been successful enough that its rate of economic growth is 1.4 percent higher than expected and national income has increased 6.7 percent in 2 years, the World Bank reports. * Ground-breaking ceremonies have been held for the $US103-million ($HK803.4 million) Regent of Jakarta Hotel, being erected by P.T. Permadani Khatulistiwa Nusantara. Several local banks, under the leadership of Bank Dagang Negara, have arranged a syndicated loan of $US70 million ($HK546 million) to help finance the 400- room hotel, expected to open in late 1990. Hongkong- based Regent International Hotels will manage the new facility.
* Indonesia's shipments of oil to Japan in April reached 15.35 million barrels, and displaced the United Arab Emirates, which shipped 14.34 million barrels, as Japan's chief source of crude oil. Saudi Arabia, in third place, shipped 6.42 million barrels. Total Japanese oil imports
for the month were 90.45 barrels.
For the calendar year 1987, Indonesia's total exports of crude oil (condensate) had a value of a little more than $US5 billion ($HK39 billion), which was 9.7 percent higher than in 1986.
* Steel from Indonesia is being used by a Japanese contrac- tor, Emoto Company Ltd, to build an olefins plant for the Thai National Petrochemical Corporation Ltd. The first shipment of 387 tons of furnace steel for partial completion of the contract, shipped recently, was the first export of its kind from Indonesia.
* A $US15.3-million ($HK119.34 million) joint venture between Ham-IlTrading Company Ltd of Hongkong and P.T. Dongin Prabawa of Indonesia will manufacture sport shoes in Tangerang, West Java. To be called P.T.
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