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Thirdly, it is worth examining the vested interests
riding on the success of Hong Kong. The interests of the
people of Hong Kong in this are obvious.
Perhaps less obvious
to some overseas observers is the strong Chinese interest that
Hong Kong should continue to prosper as it does now. Hong Kong
is China's largest market and its second largest trading
partner. It is China's largest source by far of direct
external investment and joint venture investment (in the seven
years 1979-1985, 60% of China's external investment came from
Hong Kong). It is a vital entrepot for Chinese exports, and a
service centre for China as well as other countries in the
region. The vast numbers of Hong Kong people travelling to
China (over 22 million border crossings in 1986, compared with
around half a million in the mid-seventies), and remittances
sent to relatives in China by Hong Kong residents are also
valuable sources of income for China.
Chinese investments in Hong Kong are large and
growing. They have overtaken British investments in the
manufacturing sector, and are now exceeded only by American and
Japanese. Chinese interests control fifteen banks and numerous
other companies in Hong Kong,. A Chinese company bought a
significant minority shareholding in Cathay Pacific Airways
earlier this year, and is participating in a consortium that is
building a HK$3 billion second cross-harbour tunnel. Estimates
of what China earns from Hong Kong range from thirty to forty
percent of China's total foreign exchange receipts. These
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