any,

economic links

In

other

with China following the opening of

the Chinese economy at the end of the 1970s. Previously,

while Hong Kong had itself been a good and expanding market

for Chinese exports and an important source of foreign

exchange for the Chinese economy it had sold little, if

of its own domestic exports to China. This situation

has changed completely in less than a decade.

particular, the growth of the re-export trade has enabled

Hong Kong to resume its traditional role AS an entrepot.

Re-exports had fallen to less than a fifth of Hong Kong's

total exports in 1979 and were still less than 25% in 1978:

by 1988 they accounted for as much as 56% Of total

exports. 80% of this trade involv es re-exports to or from

China. Hong Kong's own domestic exports to China also

increased rapidly (by thirteen times in

in value between 1981

and 1988). As a result, China and Hong Kong are now each

other's largest trading partners.

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Jul 10

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investment by Hong Kong companies in China. Hong Kong in

by far the largest source of external investment in China,

accounting for about two-thirds of the total. Investment

by Chinese banks and trading entities in Hong Kong is also

large and growing. It has been

*

estimated that in the

1. Hang Thongs }......

114

at least 1.5 to 2 million

i 1'

1.

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J

workers

employed directly

1

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