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Annex E

(translation)

Trade Relation between the Mainland and Hong Kong

Present Situation and Future Prospects

1. Present Trading Situation

The trading relationship between the mainland and

Hong Kong has hitherto been close. In particular, with the

continuous entrenchment of reform and the open policy in

the mainland ́and the sustained growth in world economy

since the 80s, trade between the mainland and Hong Kong has

been developing rapidly. Chinese exports to Hong Kong

(including goods re-exported through Hong Kong) have been

increasing rapidly at annual double-digit growth rates.

According to MOFERT's

exports to Hong Kong

1990, this amount has

The absolute increase

statistic, the value of Chinese

amounted to US$4.35 bn in 1980. In

increased 4 times to US$17.93 bn.

was more than US$13 bn, which

have also

accounted for more than one-third of the total exports of

the whole country. Meanwhile, imports from

from Hong Kong

(including goods transhipped from Hong Kong)

increased substantially. In 1980, import value was US$570

million, the figure rose to US$7.49 bn in 1990, which

represented an increase of US$6.92 bn and was more than 13

times the figure for 1980. Hong Kong ranks first among all

the regions/countries supplying imports to China. Hong

Kong has been China's largest trading partner since 1987 ·

and according to Hong Kong statistics, mainland China has

been Hong Kong's largest trading partner since 1985.

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